Frac Sand Weekly News Digest

Nick Cook, Editor

Issue #362 | March 2, 2022

Frac sand Ponzi scheme, new mines, many investor calls discussing sand, and oh-by-the-way oil prices soar past $100 with the Russian aggression.

 

Our thoughts and support go out to the folks in Ukraine. Domestically, an already insane demand only looks to soar as the Ukrainian war unfolds. Between that and the inability to keep a steady sand supply, it begs the question: “How high will oil prices go?” 60 million barrels of oil to be released, but that is only a band-aid to what looks like will be rising prices with no quick-fix to oil and gas supply (with sand scarcity playing a major role in holding the reins back).

 

Also, we are switching our website providers, so we apologize for any issues you may have encountered with our website or sending us emails.

 

And now, the news…

This Week's News

New Permian In-field Frac Sand Mining Capacity On The Way & Will Be Easily Absorbed

Read about a couple more sand plant developments coming online – their inventory will be snatched up fast.

Texas man indicted for Frac Sand Ponzi scheme

41-year-old Marco "Sully" Perez Jr. has been indicted by a federal grand jury in Midland for his role in a Frac Sand Ponzi scheme.

U.S., IEA Agree to Release 60 Million Barrels From Oil Stockpiles Amid Ukraine Turmoil

Decision comes as oil prices surge above $100 a barrel over worries about Russian crude production.

Sand Buyer Headaches Are Now Turning Into Migraines

Anecdotes from some of the craziest moves folks are making just to bring in very expensive sand.

Chesapeake Energy sees higher costs for fracking, sand

Shale producer Chesapeake Energy on Thursday said it was seeing higher costs related to hydraulic fracturing and sand, as inflation continues to hit the oil and gas industry.

U.S. Silica Holdings, Inc. Announces Fourth Quarter and Full Year 2021 Results

"Our fourth quarter and full year 2021 results reflected positive market momentum as we continued to navigate a global economic recovery.” – CEO Bryan Shinn

Advertiser Space Available

US Silica Smokes Analyst Estimates. Their Rosy Outlook Is NOT Hyperbole

How did the market respond to much-better-than-expected sand outlooks for US Silica?

Energy Sanctions Are a Weapon Putin Would Understand

Oil and gas have proven potent in changing Moscow’s behavior before, whereas selective measures only tend to strengthen autocrats.

Putin’s Ukraine Invasion May Finally Give U.S. Producers The Incentive Needed To Start Drilling Again

As the economic fallout from Vladimir Putin’s invasion of Ukraine rippled across the global oil markets, U.S. consumers face the prospect of even higher fuel costs at a time when gasoline is already selling at a record in some parts of the country.

As WTI Trades Above $104/BBL, A Salute To Shale & What Our Readers Do To Further Its Noble Cause…

U.S. oil production is a noble cause, even when the industry has been underappreciated (and even demonized) by political agendas promoted by virtue-signalers who themselves are oil-dependent consumers.

Russia Scrambles to Maintain Oil Sales, Lifeblood of Economy

Refiners balk at buying Russia’s oil and banks refuse to finance shipments of Russian commodities, fearing the impact of financial sanctions.

EOG Resources (EOG) Q4 2021 Earnings Call Transcript

EOG highlighting ESG: “Utilizing local sand and water pipelines includes the added benefit of removing trucks from the row of contributing to a safer oilfield with lower emissions.” – COO Billy Helms

Ovintiv Reports Fourth Quarter and Year-end 2021 Financial and Operating Results

Ovintiv utilized Simul-Frac on 90% of its Permian completions in 2021.

Laredo Petroleum (LPI) Q4 2021 Earnings Call Transcript

“We are providing our own sand from our own third party operating sand mine. So we've got that contract in place basically through the rest of the year, which significantly helps us offset additional inflationary pressures in sand which are quite high right now in this market.” – COO Karen Chandler

Diamondback to Hold Permian Oil Output Flat as Prices Strengthen

Diamondback Energy Inc. is aiming to keep oil production flat in the Permian Basin this year, part of a larger trend among Lower 48 exploration and production (E&P) firms to ensure healthy shareholder returns amid a bullish price cycle.

LinkedIn Post: Jason Miller

Michigan State Supply Chain Professor discussing the importance of changing the narrative around fracking in order to combat Russia’s aggression and boost the American economy.

Hiked wages could ease current slump

By the summer, it is expected that the supply of shale oil might be cut due to inadequate amounts of frac sand. At the same time, summer is the peak time for oil demand.

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