Frac Sand Weekly News Digest

Nick Cook, Editor

Issue #366 | March 30, 2022

As the Western world demands more oil and gas, oil and gas operators demand more sand. And as operators demand more sand… frac sand companies say we’re doing our best but it isn’t that easy. Wall Street Journal is reporting that investor interest is turning a corner towards more investment in O&G, but we will we see that same point of emphasis in frac sand? With sand prices at sky-high prices and many investors still staying wary of boom-bust type cycles, this is the perfect opportunity for bold investors to take advantage.

 

Especially on the Natural Gas side, the US has committed to supplying 50 billion cubic meters to the EU (we set a record last year with “just” 22 billion…) If you are producing gas with a stable supply of sand, this could be a very bright decade for you. But will the federal government ease its regulatory war against the O&G industry in order to combat actual war in Europe? Or will it remain futile rhetoric? Time will tell.

 

And now, the news…

This Week's News

Sand for fracking is now 3 times as expensive as it was last year, and it's one of several reasons US oil production isn't increasing

That material now costs between $40 and $45 per ton, Rystad Energy analyst Ryan Hassler told Axios — nearly 185% higher than last year. Two years ago, sand prices were in the teens.

‘You can’t just turn on the taps’: bottlenecks hit hopes of US oil output surge

“It’s almost like the industry thought we were driving a car with a five-speed transmission — but we went to shift from fourth to fifth gear and that fifth gear just wasn’t there,” said Dirk Hallen, chief executive of Hi-Crush.

Natural-Gas Industry Gets Boost as Biden Shifts Stance

The president, who campaigned on a platform to transition the U.S. to cleaner energy, said Friday the U.S. is working to ship 50 billion cubic meters of LNG to Europe annually through at least 2030 to help the continent wean itself from dependence on Russian supplies.

In Texas, calls to boost oil production after Russian invasion run into hard realities

“It’s hard to get pipe, sand, crews for drilling rigs, truck drivers,” said Mike Oestmann, CEO of Tall City Exploration, a company that drills oil wells in West Texas.

Higher Prices Spark Fresh Investor Interest in Oil and Gas

Private-equity firms hope to tap renewed investor interest in oil and gas, industry consultants and fund managers say.

Site Visit To Delaware Basin’s 1st “Independent” Mini Wet Sand Plant

The Permian's newest frac sand plant is the first non-vertically integrated mini damp sand plant in the Delaware Basin.

Advertiser Space Available

Only America can ensure global energy security

The EIA also projects that gasoline and diesel fuel will remain the primary fuels consumed by the transportation sector in the foreseeable future.

Oil Prices Stay High as Russian Crude Shortage Hits Market

UBS estimates that around 2 million barrels a day, or about a fourth of the Russian output, has been disrupted. The International Energy Agency forecast that the level could reach 3 million by next month, warning of a potential spark in the worst energy-supply crisis in decades.

Roll Up Your Sleeves – Plug & Perf Alternatives Deserve Another Look As SimulFracs Evolve

A new dimension in simul-fracs looking to increase cost savings even further.

The New Oil Market Paradigm Sets Small Drillers Up For Big Gains

Privately-owned oil producers in the United States emerged as the drivers behind the latest oil production increase in the country towards the end of the second pandemic year.

What Is Holding U.S. Oil Production Back?

More than half of the respondents have attributed the restraint in growth to investor pressure to maintain capital discipline, indicating that some hard lessons were learned over the past few years.

Shale Gas Rig Count Is Nearly Back To Pre-Covid Highs. Oil Is Not.

With contacts in the Haynesville telling us how busy they’ve been, we take a look at gas vs oil drilling trends in this update.

Fed energy survey finds robust activity growth

The Federal Reserve Bank of Dallas called oil and gas activity robust in its quarterly energy survey covering the first quarter of 2022.

U.S. to Boost Gas Deliveries to Europe Amid Scramble for New Supplies

The U.S. aims to ship 50 billion cubic meters of LNG to Europe annually through at least 2030, officials said Friday, making up for about a third of the gas the EU receives from Russia.

Idled Trempealeau County frac sand mine has been purchased by Smart Sand Inc.

On March 8, Smart Sand purchased a mine, processing and rail loading facility in the city of Blair formerly owned and operated by Texas Based Hi-Crush Inc.

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