Frac Sand Weekly News Digest

Nick Cook, Editor

Issue #335 | August 11, 2021

As you will see below, there continues to be positive news from the frac sand industry.  On top of that, we are receiving several calls per week from people looking for frac sand assets to purchase (used silos, conveyors, plants, etc.).  While some companies continue to struggle (based on plant locations and changes in the type of sand in demand), there is still a lot of business being done and plenty of innovations and partnerships quietly in the works.  I look forward to the many sideline conversations which we’ll have the Frac Sand Supply & Logistics Conference.  Please plan on joining us.  You don’t want to miss out.

 

With all the talk about simulfracs, we are working on adding a panel or two on the topic to the conference agenda.  We hope to release the majority of the agenda in the next week.

 

Related to the conference, please bring your spouses and families to the Grapevine with you!  As you will see from the article below, we have a partnership with the Grapevine Convention and Visitors’ Bureau which will give anyone with a conference badge discounts at 100+ restaurants, shops, and activities in Grapevine.  On top of that, we’ll have free entry to GrapeFest on Thursday, September 16!  Anyone bringing their spouse or kids should email me with their names so we can be sure to print name badges for them.  While the spouse & family name badges will not get them into the conference itself, they will be able to get all those discounts in Grapevine by wearing the name badges!

 

Don’t forget to book your hotel rooms too.  The room block expires August 25th.

 

And now, the news…

This Week's News

Listening To The Customers – Cliff Notes On Nearly 20 E&Ps That Talked About D&C Programs Last Week

A whole host of E&Ps held conference calls over the past 7 days. With an eye on takeaways relevant to the drilling and completions market, here’s a quick run down of what Infill Thinking heard, operator-by-operator, from 19 of this past week’s calls. Lots about simulfracs.

EOG makes $907M in second quarter

EOG Resources turned a gigantic profit in the second quarter as reopening economies lifted oil prices.

EOG Expects To Drive Sand Cost Down Further Through 2022. But How At Today’s Rock Bottom Prices?

EOG’s outlook is closely watched as they are the shale bellwether and have been at the leading edge of frac sand spec downgrading to cut proppant costs for many years (i.e. NWS to Regional to in-basin to……?). So here we summarize what matters for the D&C market from their call, starting with a most interesting comment on frac sand.

Discounts Available During the Frac Sand Supply & Logistics Conference

Bring your spouse and family to enjoy some great discounts in Grapevine, Texas during the Frac Sand Supply & Logistics Conference and GrapeFest!

The U.S. Maintains Its Natural Gas Dominance

Natural gas production had been in decline in the U.S. until the fracking boom that began to boost production in 2005. Production grew in the U.S. by an astounding 86% from 2005 to 2020, which pushed the U.S. back into the global lead among natural gas producers.

Texas oil regulator floats tax credits for natural gas projects

The natural gas industry should receive tax incentives similar to those provided for renewable energy projects, according to one of Texas’s top oil and gas regulators.

This Week’s Pressure Pumper Outlook Roundup

Over the past few days, we’ve heard from PUMP, NEX, and FTSI (takeaways from these new commentaries are below). These follow RPC, Liberty, Patterson-UTI, and Calfrac last week (see takeaways from those guys here).

“DUCs Down” Has Made Shale’s Post-COVID Bed Softer…so Far

US shale producers dramatically cut investment when oil prices collapsed last year, and – under pressure from investors – have remained exceptionally disciplined even with oil prices now above pre-COVID levels.

Hotel Room Block Cut-Off Date Approaching

Those attending the 10th Annual Frac Sand Supply & Logistics Conference should be sure to book their rooms at the Gaylord Resort & Convention Center before the room block cut-off date. Our discounted group rate of $219 per night is only guaranteed until August 25, 2021.

The US Shale Revolution Reaches New Lows

Downhole technology and surface efficiencies have made the cost to produce a barrel of US Shale Oil lower than ever.

10th Annual Frac Sand Supply & Logistics Conference

Oilfield Service Experts See Continued Innovation Ahead in US Shale

Experts in emissions detection, water management and sand logistics share insight about the next potential leading-edge technology in U.S. shale.

Oilfield challenges aired

Observers say a different response to downturns needed.

U.S. Permian Basin Gets Vote of Confidence With Infrastructure Plan

A coalition of energy companies, along with state and local partners, plans to spend $844 million on roads, education, workforce development, housing, broadband and health care in the region, according to the Permian Strategic Partnership, which assembled the group.

Permian Road Safety Coalition continues efforts to end traffic fatalities

A decline in oilfield activity throughout the Permian Basin did not translate to a decline in traffic fatalities last summer, indicating the Permian Road Safety Coalition still has work ahead of it in arresting those fatalities. The PRSC will be attending the 10th Annual Frac Sand Supply & Logistics Conference, if you would like to learn more.

Railroad bidding war for Kansas City Southern is reignited

Canadian Pacific jumped back into the bidding war for Kansas City Southern Tuesday with an increased $31 billion offer for the U.S. railroad, but its latest bid remains lower than the rival $33.6 billion offer from Canadian National that Kansas City Southern accepted back in May.

IAC Frac Sand Support

Project Bowie Complete – NexTier Takes Over The Alamo!

A public pumper takes out a large private pumper, adding to their foothold in the Permian while advancing the frac HHP consolidation narrative. This is good news for the frac business et. al. on the same day that we see more customer consolidation with Callon taking out Primexx.

Hyliion plans bigger battery to stay relevant in electric truck race

Shares under pressure, but CEO says startup in good shape financially.

Surface Transportation Board Releases Final Environmental Impact Statement for the proposed Uinta Basin Railway in Utah

The Final EIS recommends the 88-mile Whitmore Park Alternative as the environmentally preferred route.

Oil and gas bankruptcies slow as crude recovers

Fewer oil and gas companies filed for bankruptcy in the second quarter as demand increased and crude prices climbed to past $70 a barrel.

Advertiser Space Available

Forget About Peak Oil - We Haven’t Even Reached Peak Coal Yet

As the pushers of Peak Oil demand theory try in vain to revive their own always-wrong narrative, it now appears that the world has yet to even meet the peak of demand for the least environmentally friendly fuel of all, coal.

Academia and Industry Embrace Nuance in Fracturing

Improving operational efficiencies in hydraulic fracturing by moving to subtle understanding of fissures and proppant.

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