Nick Cook, Editor
Issue #351 | December 8, 2021
Good news if you sell sand in Texas, less so if you need to buy it. Sand shortages piling up in both the Permian and the Eagle Ford. Those issues aside though, we’ve got some really solid articles talking about how the volatility in the oil price is being managed throughout the industry. Also, announcements from Badger Mining, Athabasca, Covia, and more. Here’s your registration link for the Frac Sand Update too so that you can secure your spot.
Welcome to your Wednesday. Enjoy that mug of coffee, take a deep breath, dive in, and take these next 15 minutes to get yourself up to date.
And now, the news…
Spending by Lower 48 oil and natural gas producers is set to rise by 19.4% next year to $83.4 billion from an expected $69.8 billion in 2021, according to new analysis by Rystad Energy.
Badger Mining Corp. today announced a new partnership with TranSand Inc. This exclusive partnership in Fort St John will bring a significant increase in frac sand transloading capacity to the region.
The reasons factoring into why sand could stay a big problem for Permian operators going into 2022.
Its 2020 acquisition of Schlumberger’s OneStim business segment made Liberty the second-largest pressure pumper in North America. It also added wireline operations, two Permian frac sand mines, and an expanded technological portfolio.
At the World Petroleum Congress, attendees were set to celebrate higher prices, but the new Covid-19 variant is affecting the mood.
Read the factors that are still contributing to the tight sand market in the Eagle Ford and how that affects NWS vs local sand.
The Strategic Assets are comprised of real-estate, an operational sand mine and processing plant capable of up to two million tons production per year, fixed storage, two rail transloads (including unit-train capability), mobile equipment, and active supply chain contracts including rail cars, for cash consideration of US$1 million (approximately C$1.2 million) and the assumption of reclamation liabilities of approximately US$6.4 million.
The Organization of the Petroleum Exporting Countries and allied producers led by Russia said Thursday they would raise their collective production by another 400,000 barrels a day in January.
With the recent oil price drop, here’s a graph forecasting how much lower the rig count will be for $55 for $70 WTI and comparing 22’ vs 23’ at those prices.
Covia announced today that its Industrial Segment will implement a price increase across all product lines, effective January 1, 2022, of up to 15% depending on the product and grade.
Operator’s responses from Infill’s survey differ from the broader market when it comes to oil prices.
Concerns about demand being disrupted by further travel restrictions and lockdowns have dragged down crude roughly 20% from its 2021 highs.
The deeply impoverished South American country of Suriname, which has been sharply impacted by the COVID-19 pandemic, is hoping to replicate the hydrocarbon success being enjoyed by neighboring Guyana.
All the charts and graphs from Infill’s annual survey.
The move is the state-owned oil giant’s latest effort to pull cash out of its vast energy infrastructure.
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