Frac Sand Weekly News Digest
Nick Cook, Editor
Issue #492 | November 6, 2024
With the announcement of Donald Trump winning the US presidential election, oil dipped slightly while nat gas long-term futures increased. Both of which were expected, and we’ll have to see the long-term ramifications. Although the win is likely to decrease the barriers of entry for fracking, what we’ve seen under the Biden administration is that operator capital discipline will affect production most directly (and in Pres. Biden’s case even if the administration asks for more drilling). Additionally, frac sand prices are much more directly influenced by supply.
Speaking of supply, two major frac sand operators merged on Monday to create the second-largest player in the Permian with both a strong Eagle Ford in-basin presence, NWS supply, and terminals spread throughout the country. Meet: Iron Oak Energy.
With two weeks out, our sponsorship options are nearly sold out for next month’s conference! Save $200 on registering before Friday as well! Hundreds of folks registered with new sponsors (like Tarmac, 1 Traq, Hemco, Masaba, and Twin Eagle) signing up just in the past few days.
Lots of great stories within, so let’s dig in…
And now, the news…
This Week's News
Covia Energy and Black Mountain Sand Combine to Create Iron Oak Energy Solutions, a Leading North American Proppant Supplier
The Company's assets include strategically located in-basin sand mines in the Permian Basin and Eagle Ford Shale, as well as premium Northern White Sand facilities with an extensive logistics network.
A Big Deal In Frac Sand As Covia And Black Mountain Combine
It was Merger Monday in frac sand as Covia and Black Mountain have announced an all-stock merger transaction - details on the results of the transaction.
Trump Win Has Longer-Term Implications for Natural Gas
Near-term U.S. natural gas prices will remain unaffected by Trump’s election victory while longer-term impacts are likely to be predominantly on the demand side, Eli Rubin of EBW Analytics says in a note.
2024 Has Been A Record Consolidation Year In Permian Frac Sand
Permian frac sand customers are consolidating, but so is the sand supply base.
LinkedIn Post: Wall Street Sand Co
An update on the production from the new big player in Permian damp sand production (note: you can hear from their CEO at the conference).
Oil Futures Fall As Trump Wins Back White House
Brent’s pullback from above $75 a barrel “reflects expectations of increased U.S. supply and a potential demand slowdown tied to a tariff-driven approach toward key trading partners, particularly China,” Mukesh Sahdev of Rystad Energy.
Atlas Expects Peers To Close Permian Sand Mines In 1H2025… & Other Earnings Takeaways
In digestible bullet points, here are some key takeaways from the new Atlas disclosures and conference call.
Shale Drillers Risk Creating a 2025 Oil Supply Glut, Diamondback Says
Oil market is watching for signs US drillers are opening taps.
ProPetro Ceases Diesel Fleet Investments, Still Building / Ordering E-fleets
Interesting notes to watch their fleet makeup (particularly with their acquisition of Aqua Prop earlier this year).
What Trump's victory means for mining
With the ex-president back in office, mining will undergo a major shift.
ProFrac Replacing Diesel Fleets With Next Gen Pumps/Power Gen, & Navigating Price/Activity Challenges
What to know form ProFrac earnings this week.
Marathon Oil and ConocoPhillips' $22.5B Deal Sparks Major Layoffs
Although the merger is a strategic move for the company to expand its portfolio and streamline its operations, it is challenging for the employees who are about to face layoffs.
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