Frac Sand Weekly News Digest

Nick Cook, Editor

Issue #357 | January 26, 2022

So much news this week that you may have to go over and pour yourself that second mug of coffee halfway through. Everyone is saying that same thing: oil production and spending is going to continue to climb this year.

 

Halliburton kicking off this quarter’s earnings calls is causing a buzz among investors in the frac sand world. Headlines: “using almost all frac sand equipment”, “sold out”, “spending more than 25% this year”…

 

With price increases and shortages across the board, how is your company finding the best ways to increase revenue or decrease costs? What partnerships are you forming? 2022 is off to a fiery start with no indication of putting on the brakes. You can’t afford to miss networking with other industry leaders next month at the 7th Annual Frac Sand Update in Houston on Feb 18th.

 

Also of note, WISA is holding their Technical Seminar and Membership Meeting on Feb 16th. For those involved in NWS, this should be a great event; see the article below.

 

And now, the news…

This Week's News

Frac Sand Pricing Momentum Continues To Build

The market is in a big state of flux, and pricing power has inflected – after several years, it’s finally a seller’s market again.

EIA expects U.S. fossil fuel production to reach new highs in 2023

They forecast that, in 2022 and 2023, crude oil prices will remain high enough to encourage growth in the number of active drilling rigs and continued improvement in drilling efficiency.

WISA Technical Meeting on February 16th

The Technical Seminar and Membership Meeting features a strong lineup of speakers, many of whom are past speakers for, and long-time friends of, The Petroleum Connection (Dr. Kent Syverson, Mark Krumenacher, Isaac Orr, and Cody Wickersheim to start!).

Oil Demand to Exceed Pre-Covid Levels in 2022, IEA Says

In its monthly oil market report, the IEA hiked its oil demand growth forecast for the coming year by 200,000 barrels a day, to 3.3 million barrels a day.

NWS Production Trends – 3 Observations & 5 Key Questions Going Forward

Some interesting high level takeaways have to do with NWS activity in the aggregate during the quarter

Oil Explorers Are Fracking at Breakneck Pace, Fueling Inflation

North American oil drillers appear likely to expand spending by more than 25% this year while overseas explorers are on course for a more modest increase in the mid-teens, Halliburton Co. executives said Jan. 24 after reporting their biggest quarterly profit in seven years.

Advertiser Space Available

Meteor Timber asks Wisconsin Supreme Court to reinstate permit for frac sand facility

The appeal is the latest act in a five-year legal saga that spans two administrations, multiple courts, and shifting markets for the high-quality Wisconsin sand used to extract oil and gas from deep rock formations.

Feeling Inflation Pinch, Permian E&Ps Targeting Further Efficiency Gains

Continued efficiency improvements are expected to be critical for natural gas and oil producers in the Permian Basin this year as cost inflation for oilfield services (OFS) takes full effect.

Where Would $85 Oil Put The Frac Fleet Count In 2023?

Lium Research’s frac forecast data models to incorporate an $85 crude assumption over our forecast period (through 2023) in comparison with $70 crude.

Halliburton sees frac equipment orders double as shale rebounds

Shale-oil companies are using almost all of the frac equipment and crews available as exploration expands, accelerating cost inflation and pointing to worsening supply-chain disruptions across the industry.

Halliburton Lifts Payout for the First Time in More Than 7 Years

Shale-oil companies are using almost all of the fracking equipment and crews available as exploration expands, accelerating cost inflation and pointing to worsening supply-chain disruptions across the industry.

Halliburton Frac Is “Sold Out”; Net Pricing Ticking Higher

Halliburton’s conference call this week echoed research presented in Infill Thinking’s recent stream on completions trends around pricing, materials and logistics.

O Shaughnessy Asset Management LLC Has $332,000 Position in Smart Sand, Inc.

O Shaughnessy Asset Management LLC’s holdings in Smart Sand were worth $332,000 as of its most recent filing with the Securities and Exchange Commission.

A Red Flag In Permian Well Data + DUC Depletion Could Cause Some Heartburn Among Frac Crowd

Analysis of projected rig counts in relation to DUC inventory – how does permitting compare with rig count and DUCs?

Australia: Environmentalists vow to fight latest Kimberley fracking proposal to unearth Australia's largest oil resource

It is the second application for fracking in the region since a moratorium on the practice was lifted in 2018, with a proposal from Texan-based Black Mountain Energy currently under assessment by the EPA.

Putin's hand on the gas tap: How Net Zero eco-policies have handed Russia's strongman the bargaining chip he needs to ransom Europe over Ukraine - and could lead to soaring prices in the UK

Green policies have driven up the continent's reliance on foreign supplies of fossil fuels, sacrificing the continent's energy security and handing Vladimir Putin a bargaining chip that experts warn he will now use to hold the continent to ransom over Ukraine.

Oil Price Rise Blamed in Part on OPEC, Russian Output Shortfalls

Shortfalls in countries such as Nigeria and Iraq raise questions about whether output increases are enough to quell markets.

UK: Wressle well production could top 1,500 barrels per day – new estimate

The operator of the Wressle oil well in North Lincolnshire has said production could reach 1,543 barrels per day.

Canada: Calima Energy eyes Leo #4 well’s success to open up Thorsby expansion

Looking ahead, the objective of the well is to successfully expand the greater Thorsby area, providing cash flow generation, reserves growth and drilling inventory in a meaningful way to the company.

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