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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…
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.
“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.
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 depth update from recon in Lamesa.
“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.
Private-equity firms hope to tap renewed investor interest in oil and gas, industry consultants and fund managers say.
The Permian's newest frac sand plant is the first non-vertically integrated mini damp sand plant in the Delaware Basin.
The EIA also projects that gasoline and diesel fuel will remain the primary fuels consumed by the transportation sector in the foreseeable future.
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.
A new dimension in simul-fracs looking to increase cost savings even further.
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.
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.
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.
The Federal Reserve Bank of Dallas called oil and gas activity robust in its quarterly energy survey covering the first quarter of 2022.
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.
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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