Nick Cook, Editor
Issue #361 | February 23, 2022
Big thank you to all of speakers and sponsors who made last Friday such a success! Insightful discussions and fruitful networking.
We are seeing a BIG uptick in news sources discussing the challenges of sourcing sand, especially in Texas. For those of us in the industry, this has been constantly at the forefront of our minds since 4Q21, but the shortage keeps on building up. Sand shortages are putting the harness on operators looking to capitalize on the highest oil prices since 2014. NPT is increasing, and the question is “where can I get sand?”
As announced on Friday, registrations are now open and the dates announced for the 11th Annual Frac Sand Supply & Logistics Conference, November 16-18th in San Antonio. Mark your calendar and register today.
And now, the news…
Rystad Researcher Artem Abramov called current prices for frack sand "unheard of in the industry's modern history."
Private oil producers are leading an industry return to places like the Anadarko Basin of Oklahoma and the DJ Basin in Colorado, where drilling had almost completely stopped in mid-2020 when those areas became unprofitable because of lower oil prices.
Several frac sand veterans we update regularly with told us that this market is crazier than anything they’ve seen even back to 2014.
Frac sand is the latest vital material that the energy industry can’t get enough of, a shortage that will hinder the ability of U.S. shale producers to increase production and bring down oil prices.
Not enough frac sand at a time when oil prices topped $90 a barrel could limit the growth as more and more shale firms – especially privately-held ones – seek to boost production materially to capture the high oil prices.
For full year 2021, an average of 57 mobile proppant management systems were fully utilized, representing a 27% increase from 45 fully utilized systems averaged in 2020.
“While the market continues to signal an upcycle with momentum as we enter 2022, our first quarter results are expected to see some impact from… increased downtime as a result of sand shortages.”
Sneak peek from Infill on innovation in the wellsite storage space…
Pioneer is using two simultaneous fracturing, aka simul-frac crews, in a drive to improve efficiency on the well pad, and is considering adding a third simul-frac crew in the latter part of 2022.
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