Frac Sand Weekly News Digest

Nick Cook, Editor

Issue #363 | March 9, 2022

The crisis in the Ukraine continues to highlight the need for U.S. shale to increase production (even Elon Musk called for an immediate increase in U.S. shale production!).  Unfortunately, constraints about which we were already aware (sand, trucking, labor) still present massive challenges.  Over the years, U.S. shale producers have surprised everyone with their innovations, investment, and resourcefulness, but I’m not sure what can be done to overcome the current limitations.  That said, if anyone can figure it out it is this group.    The world needs it and, for once, the U.S. oil & gas industry can play the hero AND be recognized for it.  Let’s see what can be done.

 

And now, the news…

This Week's News

A Patriotic Oil Production Blitz Would Require Some Brown Sand And / Or NWS Capacity Reactivation

“There decades when nothing happens; and there are weeks when decades happen.” – Vladimir Ilyich

Biden's Russia-Oil Ban Opens Path for Shale Giants EOG, Devon to Fill the Gap

President Joe Biden’s ban on Russian oil imports puts new pressure on U.S. drillers to help fill a supply shortfall that has sent crude prices to the highest levels since 2008.

US shale shortages to limit efforts to replace banned Russian oil

U.S. shale producers are unlikely to replace banned Russian oil imports due to a shortage of sand, equipment and labor and a dwindling backlog of wells waiting to be completed, energy executives and analysts said on Tuesday.

Elon's right. And every patriotic realist will soon join his call for U.S. oil growth.

Even Elon Musk has called for an immediate increase in U.S. oil production.

U.S. shale producers Oasis, Whiting to merge in $6 billion deal

The deal between the companies, which had filed for Chapter 11 bankruptcy in 2020 following a crash in energy prices due to the pandemic, comes amid record high crude prices.

U.S. shale back to booming, adding 1 million barrels a day

Output in the U.S. shale patch is “re-booming” this year, with research and data analysis firm Lium LLC forecasting production will surge by more than 1 million barrels a day.

Every Grain Counts Now – Insandity Continues, Especially In The Permian

We continue to hear market anecdotes signaling further tightening in frac sand availability leading to continued price momentum for suppliers.

Sentiment Sea Change Underway Towards U.S. O&G As The Mainstream’s ‘Existential Threat’ Narrative Flips

Bottom line: A powerful mainstream narrative shift encompassing public opinion, policy, and capital markets is underway with positive implications for U.S. oil and gas production, producers, and service providers…

Permian Basin to Play Critical Role in Global Energy Security, Exxon Mobil CEO Says

Exxon Mobil CEO Darren Woods says crude oil and energy exports from the Permian Basin and other parts of U.S. shale will help stabilize markets and strengthen global energy security.

Occidental CEO says oil prices can hit $150

Crude prices could go to $150 a barrel as a result of the Russia situation, according to Occidental Petroleum Corp. CEO Vicki Hollub.

Oil producers in a 'dire situation' and unable to ramp up output, says Oxy CEO

Among the challenges are the age of the wells, labor shortages and securing raw materials.

High Oil Prices Aren’t Enough To Tempt Shale Producers?

America’s shale industry is looking to ramp up production, but it is facing two major hurdles that could curb its trajectory.

Athabasca Minerals Closes Wisconsin Acquisition

The assets include real estate of 1,100 acres, a fully functional and staffed mine and processing plant capable of 2 million tpy of sand, fixed storage, rail transload with unit-train capability (i.e. loading/unloading 100 railcar shipments), mobile equipment and active supply chain contracts.

Sand Is So Tight It’s Now Influencing These 6 Pressure Pumping Market Trends

Tight sand is becoming a major factor in the pressure pumping market. Here are 6 ways this is playing out:

U.S. Oil Prices Just Did Something They’ve Only Done 3 Times Since The 1980s

Although the mainstream press will focus on the massive spot oil price spike (shock and awe of $130/bbl post Biden’s Russian oil embargo today), it’s important to keep in mind the context of the 12-month strip and futures curves when extrapolating the oil price move’s impact on oilfield activity.

Smart Sand, Inc. Announces Fourth Quarter and Full Year 2021 Results and the Acquisition of the Hi-Crush Blair, Wisconsin Facility

“Activity levels are showing continued strength and we are seeing higher sales prices and operating margins in 2022.”

U.S. Silica Touts Market Momentum

“In our Oil and Gas segment, proppant and logistics demand improved sequentially, driven by stronger customer activity, particularly in West Texas."

Rig Count & Permit Counts – The Calm Before The Storm?

As you can see in our weekly rig count data below, this was a very quiet week for the U.S. rig count (land oil count down a couple, land gas count up a couple) – in STARK contrast to the macro which is ablaze with chaos.

Despite oil price surge, analysts don't expect resurgence of Wisconsin frac sand industry

Russian invasion of Ukraine is contributing to oil prices surpassing $100 per barrel for first time since 2011.

Muadinoon Mining Company enhances frac sand production in Saudi Arabia with wet processing solution

Recently, Muadinoon sought to improve the quality of its products through further washing and cleaning of the mined sand.

Frac sand truck overturns in south Shreveport

An early morning crash has closed a busy roadway in Shreveport on Friday morning.

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