Nick Cook, Editor
Issue #384 | August 3, 2022
Jam-packed digest this week. New in-basin Uinta sand mine planned is some of the biggest news, but don’t miss the lawsuit updates, outlook on supplies, and maybe a little M&A(?)
Next week is our Houston frac sand happy hour – come grab a beer!
And now, the news…
Late last week, the BLM opened a public scoping period on a proposed new frac sand mine operation in Utah.
Simul-frac operations, now allow four wells to be completed at a time, reducing cycle time by a quarter, management said.
Combing through earnings calls, we see which pressure pumpers are increasing their fleets even more.
A "perfect storm" of frac sand and labor shortages, inflation, and limited inventory of fleets that can be reactivated after going idle in 2020.
A potential M&A in the frac sand world coming soon?
“You know, if the federal government is complaining about 9,000 leases, not having anything done with them — well, that’s just a very small fraction of the total amount of leased acreage out there,” said Hugh Daigle.
Capital Now provided a $500,000 factoring credit facility to a frac sand trucking company in Red Deer, AB.
Hi-Crush filed in response to UPP’s petition, outlining their side of the story in quite a bit of detail.
Of course now the question becomes: when will the rig contractors add meaningful Super Spec rig capacity (via newbuilds or more extensive retrofit/reactivation capex)?
The report cited the chief executive of NexTier Oilfield Solutions, a fracking company, as saying, "Availability of frac fleets is one of main bottlenecks impeding oil and natural as production growth for the next 18 months."
First Halliburton, then Liberty, and now Nextier and RPC Inc have all beat consensus expectations for 2Q22 and raised guidance ahead of expectations for coming quarters.
A quarry has been proposed on public land in Utah’s Uinta Basin just outside Dinosaur National Monument, where operators hope to extract sand for use in the oil and gas industry’s fracking operations.
Pure silica sand is the second hardest material on earth second only to diamonds. It has weathered millennia in the elements, undergone metamorphic stresses, rolled around in ancient seabeds and spent thousands of years being blown around expansive desert regions.
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