Nick Cook, Editor
Issue #365 | March 23, 2022
Private E&Ps getting some great coverage this week as their nimbleness has allowed them to quickly respond and adapt to this market. Especially without being restrained by pressures of major stockholders, they’ve been able to do what makes sense.
Other news discussing how sand problems in west Texas are moving south, North Dakota’s production could climb up to 100,000 barrels per day, and discussions about how frac sand supply, the use of DUCs, and investor wariness are dampening the industry’s ability to meet demand.
In fun recreation stories, check out sandboarding in Monahans and nature walks at sand mines in Wisconsin.
Lots of great articles to read this week, so pour the coffee and dig in.
And now, the news…
South Texas frac sand market has taken a turn for the worse if you are buying sand.
If limited inventories of in-basin sand and a shortage of truck drivers persist, companies may have no choice but to lean more on rail-dependent sand from the Upper Midwest, which could lift Class I railroads’ carloads.
With oil prices today gyrating around $100 a barrel, Endeavor Energy Resources, and a few other privately held U.S. drillers, have emerged as pivotal players in the global energy market.
Since 2020, the private E&P activity in the unconventional drilling mix has moved up substantially.
North Dakota’s oil output could climb another 100,000 barrels per day by the end of 2022 amid high crude prices, a state energy regulator estimates.
After picking up a load of sand in Monahans, try sandboarding in this state park.
E&Ps rethinking the push to "unbundle" their services as challenges grow.
"The [frac sand] market is getting tighter in terms of availability, pricing is higher, and then even if you can source the sand, there are issues [such as] can you get the trucks to move it to where you need it?" William Janela, analyst at Credit Suisse, tells Axios.
Efficiency has driven US shale gas production to new heights even as E&P companies continue to pursue a low- to no-growth strategy, but challenges producers have managed to avoid so far loom on the horizon.
“Even if oil jumps to $200 a barrel today, there’s nothing more that can easily be done,” said Manish Raj, chief financial officer at private oil producer Velandera Energy Partners LLC in Louisiana.
A last mile system design new to the Lower 48 but experienced abroad makes it’s Permian debut.
You can visit nest boxes to help band America's smallest falcon at Badger Mining.
Calfrac Well Services Ltd., a Calgary-based specialist in hydraulic fracturing that works in Canada, as well as Argentina, Russia and the United States, said a revival in drilling last year and commodity prices provide momentum, but there is uncertainty on the horizon.
Chart detailing the capex trend for public E&Ps in 2022.
The upgrade reflects Covia's earnings recovery and significant deleveraging in 2021, driven by strong execution and favorable end markets.
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