Frac Sand Weekly News Digest

Pete Cook, Editor

Issue #256 | January 29, 2020

We look forward to seeing 180+ of you today at the 5th Annual Frac Sand Industry Update! The event is completely sold out (for the 4th year in a row!) and the timing of the Industry Update could not be better. The venue will be as packed as the agenda.  We’ll be discussing the sudden shortage of 100 mesh in the Permian, the concept and potential impact of mobile/mini mines, diversification and adaptation in a down cycle, and many other issues of interest (including the announcement of a new niche frac sand event to be held in Houston in mid-April!).

IIf you were not able to join us in Houston today, touch base with your contacts in attendance and look forward to next week’s Frac Sand News Digest for details. Mark your calendars and budgets so you do not miss our April event or the largest frac sand event of the year (being held in San Antonio in September –
https://petroleumconnection.com/event/9th-annual-frac-sand-supply-logistics-conference/.

Have a great rest of the week!

This Week's News

Sandemonium Strikes Again

Just when everyone assumed the Permian was hopelessly oversupplied with sand comes a supply crunch that will make everyone question their beliefs...

As DUCs Decline, U.S. Sand Demand Seen Returning, with In-Basin Capacity Outpacing NWS

A fall off in Lower 48 exploration activity has slammed the sand mining sector, but some stability should return this year, according to Moody’s Investors Service. In an in-depth analysis of the sector, analysts said the fracture sand industry...

Hi-Crush Inc.: Uncertainty Should Soon Vanish

The past year or so has not been particularly kind to shareholders in frac sand player Hi-Crush Inc. Shares of the business have been crushed by persistent pessimism, ranging between concerns that in many parts of the...

The Miniaturization Of In-Basin Frac Sand Greenfield Expansion

With the days of large-scale in-basin mine construction vanishing, we wonder if the miniaturization trend this chart reveals is a precursor to the rise of mobile-mini plants...

Frac Shack Announces Acquisition of Operating Assets of the Sandtinel Group of Companies

Frac Shack Inc. announced that it has acquired all the operating assets of the Sandtinel Group of Companies for an undisclosed amount. Frac Shack will fund the purchase with cash and debt. All Sandtinel employees have also agreed...

Greenfield News – More Bakken Local Sand Plans In The Works

A new entrant sand miner launched last last year is quickly advancing a brand new local frac sand mine project for the Bakken through the local permitting process in North Dakota...

Oil Production Continues to Surge in State, U.S.

Despite a slowdown in drilling activity, oil production has continued to soar in Oklahoma and nationwide...

EIA: US crude oil production efficiency continues year-over-year improvements

US oil production from tight formations increased in 2019, accounting for 64% of total US crude oil production, according to the US Energy Information Administration. This share grew because of the increasing productivity of new wells...

Increased New Well Productivity Helped US Shale Growth In 2019

Rising productivity from new wells has driven U.S. shale production higher in recent years and higher in 2019, too, the Energy Information Administration said on Friday...

Advertiser Space Available

Parsley Energy trims spending, hikes dividend

Parsley Energy on Friday joined a growing number of companies in the industry paying higher dividends to boost Wall Street confidence and loyalty but often cutting spending to overcome stagnant crude prices. The Austin-based oil...

Baker Hughes closes 2019 with a profit while peers report huge losses

Houston oil-field service company Baker Hughes closed 2019 with a profit as its peers in the troubled sector are reporting multibillion dollar losses. Baker Hughes reported $128 million of net income in 2019, a 34 percent decline...

Hess Midstream LP Announces Increased Quarterly Distribution

Hess Midstream LP, today announced that the Board of Directors of its general partner declared a quarterly cash distribution of $0.4258 per Class A share for the quarter ended December 31, 2019. The distribution...

Schlumberger grows global headcount despite U.S. layoffs

Oil-field service giant Schlumberger grew its global head count in 2019 despite finishing the year with a $10.1 billion loss and laying off 1,400 workers in the United States. In a Wednesday morning filing with the Securities and Exchange...

From Late-2019 Strength To Early-2020 Strength For Permian Permits

From strength to strength in January for this important West Texas drilling activity indicator...

Rig count declines even as Permian recovers earlier losses

The natural gas-rich Haynesville Shale of East Texas and northern Louisiana was the biggest single loser in this week's rig count, which remained almost flat. In figures released early Friday afternoon, the Baker Hughes Rig Count...

10 Oilfield Water & Frac Sand Specialists On The Move

In this asset-intensive business, talent shifts are often ignored. But people matter. Talent shifts affect how business is done and competitive advantage, and here are ten moves that matter for how business is done in the sectors we cover in early 2020…

Permian Basin traffic accidents were up by 17% in 2018

Based on an in-depth Energent Group report, Permian Basin traffic accidents were up by 17% in 2018. As oilfield activity and the number of vehicles on the road increase in the coming years, this poses a greater risk for drivers. To address...

Union Pacific: Navigating Volume Pressures

Union Pacific recently reported results for the fourth quarter of fiscal 2019. Revenues in the quarter declined 9% to $5.2 billion as a result of a double digit decline in volumes. For the full year, revenues contracted...

Tarmac International

Union Pacific: Earnings Fuel Hopes Of A Successful Business Year

A few weeks ago, I published this article covering Union Pacific's bull case from a dividend investor's point of view. The main driver of growth has been and still is the economy. Hence, as a result of the ongoing growth...

One of the Reasons of Why Horizontal Wells Underperform

Slotted liner completions are the most common devices used to prevent and control sand production in horizontal wells. We are currently delivering solutions aimed at preventing MIC and chloride attack caused by solids...

Paramount Resources LTD Forms Strategic Partnership with Novi Labs to Integrate Machine Learning into Well Planning Workflows

Today Novi Labs, Inc. announced the formation of a long-term partnership with Paramount Resources LTD focused on increasing net asset values by enabling Paramount's engineering teams to rapidly analyze all...

Dunes Sagebrush Lizard Caught in a Political Maelstrom

All the way back in 1982, the Fish and Wildlife Service identified the dunes sagebrush lizard as a species for which proposed listing was “possibly appropriate.” Since then, habitat destruction and other new threats, like...

Good News for Drillers: Pa. Supreme Court Says Rule of Capture Applies to Fracking

In an apparent case of first impression that drew heavy amicus interest from natural gas industry organizations, the Pennsylvania Supreme Court has determined that the rule of capture, which precludes trespass liability for drillers where...

Rule of Capture is Back for Pennsylvania Oil and Gas Wells... Sort Of

On Wednesday, the Pennsylvania Supreme Court overturned a lower court decision that appeared to make the “rule of capture” inapplicable to oil and gas wells subjected to hydraulic fracturing, or “fracking.” Briggs v. Sw. Energy Production...

Research & Commentary: Proposed Fracking Moratorium in New Mexico Would Devastate State Economy

A proposal introduced for the second consecutive year in New Mexico because of erroneous environmental concerns would establish a four-year ban on new hydraulic fracturing permits and would imperil the state’s financial situation...

Texas Senate joint interim committee to hold hearing on water and fracking

State Sen. José Rodríguez will participate in tomorrow’s joint hearing of the Senate Committees on Natural Resources & Economic Development, and Water & Rural Affairs. Sen. Rodríguez serves on both committees. The joint committee...

Cuomo: Make NY fracking ban permanent

Gov. Andrew Cuomo wants to make New York’s ban on hydraulic fracturing harder to overturn. Cuomo, a Democrat, pledged support this week for making the state’s fracking ban “permanent,” meaning it would be set in law and...

Virginia Senate panel OKs offshore drilling, fracking bans

A Virginia Senate committee on Tuesday advanced measures that would ban offshore drilling as well as hydraulic fracturing in much of eastern Virginia. Similar versions of both measures have been proposed in previous...

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