Frac Sand Weekly News Digest

Pete Cook, Editor

Issue #262 | March 11, 2020

Okay.  Let’s just take a breath for a second.  Yes, the coronavirus issue is getting worse, but most of the drastic actions being taken are being done to prevent it’s spread.  I am confident we’ll figure this out and get it under control.  And yes, oil prices collapsed due to an OPEC+ oil price war.  But neither Russia nor Saudi Arabia can sustain long term super-depressed oil prices.  So I’d recommend you remain calm and see if there is something positive that can come out of this for you and your company.  Stay in close touch with your clients.  Focus on those relationships and get creative in figuring out how you can help your clients work through this downturn.  Let’s see if things calm down a bit in a week or two.  And remember that in crisis-type situations there are companies out looking for new partners, new suppliers, and new opportunities that they might not consider in “normal” times.  There are bargains to be had, joint ventures to be developed, and deals to be done.
 
While there is a lot of tough reading in today’s newsletter, don’t overlook the other industry news (Sandbox-ArrowsUp, Emerge, CIG, etc.).
 
We’re still planning on having the Mobile-Mini Frac Sand Mine Forum at The Petroleum Club of Houston on April 17th.  Sponsorships are nearly sold out and registrations continue to come in.  We’ll keep an eye on the coronavirus situation, but bear in mind that the overwhelming majority of our attendees are from Texas (not an international crowd).  Don’t miss the opportunity to hear from a variety of industry leaders on the topic, and the chance to network with companies looking for solutions and potential partners at this crucial time.  We look forward to seeing you there.

This Week's News

On Black Monday, A Double Black Swan Leaves Us Staring Into A Black Abyss

We digest the implications of the market fallout and think through some things that matter for business leaders in the oilfield at its darkest hour…

U.S. Silica Settles Litigation Involving its SandBox Logistics Unit and Arrows Up, LLC

U.S. Silica Holdings, Inc. SLCA, +0.97% today announced that it has settled multiple intellectual property and contractual lawsuits involving its SandBox Logistics™ unit and Arrows Up...

U.S. Silica – Arrows UP: The First Consolidation Deal In Oilfield Service Since Everything Changed Over The Weekend

There is one less independent wellsite storage firm operating in the Lower 48 today after a legal battle culminated in a takeover that will see the fleet change hands...

Frac Sand Company Emerges From Bankruptcy, Back In Compliance With Chippewa County

A frac sand company in Wisconsin has re-emerged from bankruptcy and has brought its Chippewa County mine back into compliance with state and local regulations. Texas-based Emerge...

Superior Silica receives permit to start mining again in Chippewa County

A frac sand company has been given the green light to resume operations in Chippewa County after emerging from bankruptcy. Superior Silica Sands filed for bankruptcy last summer...

PropX

CIG Logistics Announces David Nightingale as New CEO

CIG Logistics announced today David Nightingale as the organization's Chief Executive Officer. Mr. Nightingale will succeed Jonathan Green, the company's founder and previous CEO...

Jordan Sands asks court to end receivership

Jordan Sands is telling a court that there was no emergency to justify putting the business into receivership while a bank seeks to get land, equipment and other assets the company put up as...

Covia sales suffer in US fracking downturn

On Tuesday March 10, the company’s energy division, which provides proppants to the fracking industry, reported sales of 3.3 million short tons for the last quarter of 2019, down 21% on the...

Frac sand stocks flattened as oil price rout means weak production

Declining oil production is devastating news for frac sand stocks including U.S. Silica, Hi-Crush, Covia, Smart Sand and Carbo Ceramics. Separately, U.S. Silica says it has settled multiple lawsuits...

Proppant Industry Stress Test Part 1: U.S. Silica

Amidst all the doom and gloom of the overall equity and bond markets, this article continues a set of informative pieces related to U.S. Silica and contains information related to the O&G proppant...

Oil War: Some Permian Basin operators already scaling back operations

Two oil companies focused on the Permian Basin of West Texas are already planning to scale back their operations amid an oil war between Russia and Saudi Arabia that has caused commodity...

US Tight Oil E&Ps React Swiftly, Decisively To SLAM The Brakes

It’s been 36 hours since the oil industry’s D-Day equivalent, and US E&P operators are wasting no time cutting activity…

Oilfield minerals face falling US drilling activity

Markets for oilfield minerals like frac sand and barite are being influenced by national policies and international trade, reports William Clarke. Oilfield minerals, the clays and proppants used in drilling...

Oilfield market rout threatens barite, frac sand demand

Oil prices have come under heavy pressure from fears that the novel coronavirus will disrupt global manufacturing and demand. This threatens to reduce the pace of drilling and fracking, and limit...

What Oil War Could Mean for Trucking

Most Americans closed out the first week in March fretting about the onset of COVID19 – the illness caused by the new version of coronavirus that emerged in China late last year – and the resulting...

Oilfield Water Markets 2020 Conference

Oil rebounds from worst loss since 1991 amid stimulus hopes

Oil rebounded from its worst loss since 1991 on speculation that potential U.S. tax cuts may shield the market against the coronavirus and a price feud between major producers. Futures climbed...

Don’t Conflate Exxon’s Big Permian Rig Count Chop With Completions

Within minutes of the transcript of the Exxon analyst day being released, we shared this summary of what’s new in the company’s Permian Basin Drilling & Completion outlook…

Houston company's stock goes up while oil war causes others to go down

Stock prices for Houston-based Cabot Oil & Gas shot up at a time when the ongoing oil war between Russia and Saudi Arabia caused prices for almost every other company in the industry...

Drilling Rig Operator Pioneer Energy Services Files for Chapter 11 bankruptcy

After enduring more than five years of losses, San Antonio drilling rig operator Pioneer Energy Services has filed for Chapter 11 bankruptcy. In its Chapter 11 filing in U.S. Bankruptcy Court in...

Decline In U.S. Shale Production Is Closer Than You Think

I wrote an article a couple of years ago about the "end of days" for little fracking companies, focusing one in particular, Liberty Oilfield Services, that was the then-darling of fund managers looking...

Advertiser Space Available

Reporter’s Notebook: The furious debate over how to spell fracking

An innocent stop at a conference booth unwittingly ignited a furious debate on the social media network LinkedIn over how to spell the slang word for hydraulic fracturing...

Texas Railroad Commissioner Ryan Sitton unseated in GOP primary upset

South Texas rancher Jim Wright unseated incumbent Texas Railroad Commissioner Ryan Sitton in an upset Republican primary victory. With nearly two-thirds of precincts reporting and Wright...

Video of One Day on the Job Building a Frac Sand Plant

Building a frac sand mine isn't easy! Check out this awesome video from #turninNburnin showing how busy just one day can be...

Alternative Use: Wisconsin Dairy Improves Operations (and Wins Award) Using Frac Sand for Cow Bedding

The somatic-cell count at Maple Ridge Dairy near Stratford has declined from 110,000 to less than in 80,000 during the past few years. That reflects the farm team’s work on continually improving cow...

Frac Sand Weekly News Digest logo

Get relevant announcements and news from major outlets, industry leaders, and local media so you always know what’s happening and changing in the frac sand industry.

Subscribe to get our carefully curated summary of relevant frac sand related news and analysis delivered to your inbox each Wednesday morning.

We keep your data private and share your data only with third parties that make this service possible.

Share Your News

Send us your press releases and any other news articles which you believe would be of interest to our readers. Email submissions to fsdigest@petroleumconnection.com

Advertising

Do you offer goods or services focused on the frac sand supply chain? Advertise in the Frac Sand Weekly News Digest.