Ask-the-Analyst July 2019

Ask-the-Analyst July 2019

Thursday 7/25

Ask-the-Analyst: Todd Bush, Boyd Skelton, and James Jang, M.Sc.. Has the #Permian bottleneck abated in 2019? What do current market signals say about this particular issue? Find out in the comments tomorrow! #OilandGas #Energy #shale

Operators in the #Permian have seen the bottleneck situation improve in the 1H 2019 mainly due to two new crude oil pipelines coming into the service: Magellan Midstream Partners’s BridgeTex II expansion (40,000 bbl/d) and Enterprise Products’s Midland-to-Sealy pipeline (45,000 bbl/d). The #Midland-to-#Houston price differential has also fallen to $5-5.50/bbl range from the height of $18/bbl in Aug 2018 as a result. We expect the bottleneck to fully disappear by Sept or Oct this year upon completion of EPIC Midstream’s EPIC (400,000 bbl/d) and Plains All American’s Cactus II (300,000 bbl/d). EPIC Midstream has announced that they will cut in half initial rates for interim service on its converted #NGL pipeline to $2.50/bbl, starting Aug 1.

Tuesday 7/23

Ask-the-Analyst. Todd Bush, Boyd Skelton, and Jonathon Clark. So far two companies in the frac sand industry have filed for bankruptcy. Do you know who they are? #OilandGas #Energy #shale #fracsand

So far in the month of July, two companies have filed for bankruptcy, one headquartered in Haynesville and the other a Texas based firm. With an oversupplied market we can expect other proppant suppliers to follow suit in the next 6 months. For a more detailed explanation please reach out or visit our website

Tuesday 7/16

Ask-the-Analyst: Todd Bush, Boyd Skelton, and Luke Smith. What percentage of #Permian wells are within 2-hours drive time of a frac-sand mine? We will use our database of 2015-2018 permitted Permian wells and our drive time maps to get you the answer. #OilandGas #Energy #shale #fracsand

From 2015 to 2018, nearly 73% of permitted wells were within 2-hours drive time of a frac-sand mine.  If we focus on 2018 and look at proppant usage, 76.7% of all Permian proppant usage occurred at wells within 2-hours drive time of a frac-sand mine. 

The attached chart normalizes the 2-hour drive-time coverage as a percent of 2018 total proppant — it does not show much proppant came from a particular mine. For example, you can read it as “the Kemit South Plant was within 2-hours of 40% of all 2018 proppant used in the Permian”.

Thursday 7/11

Ask-the-Analyst: Todd Bush, Boyd Skelton, and Luke Smith. What is the trend between weighted drive times and number of near-by frac-sand mines for wells within 2-hours of a mine? Find out tomorrow in the comment section below! Also, check out our weighted drive time per well map: #OilandGas #Energ y #shale #fracsand

Weighted drive times tend to decrease as the number of mines within 2-hours increases.  You can think of this chart as a combination of our weighted drive time map ( and our number of mines within 2-hours map (

Tuesday 7/09

Ask-the-Analyst: Todd Bush, Boyd Skelton, and James Jang, M.Sc.. What are some of the key structural issues faced by OFS companies today, specifically drilling rig contractors and pressure pumpers? #OilandGas #Energy #shale

Although top performers are more successful in defending their revenue streams through higher utilization, retaining key customers, and signing term contracts, some of the structural issues faced by US land drillers and pressure pumpers are: 1) low barriers of entry 2) extremely tight lending environment and 3) markedly increased service intensity. This situation is further exacerbated by strict capital discipline efforts made by E&P’s, limiting both workload and profit margins. Send us a message if you would like to discuss further.

Thursday 7/02

Ask-the-Analyst: Todd Bush, Boyd Skelton, and Jonathon Clark. With #Permian and Eagle Ford mines getting all the attention, #Haynesville operations and construction projects have flown under the radar. Come back tomorrow for an update on Haynesville frac sand operations and to find out which project is nearing the finish line!

#OilandGas #Energy #shale #fracsand #eagleford

Our database follows 6 frac sand operations in Louisiana with a total nameplate capacity of 7 million tons. With the majority of attention spotlighting local operations in other basins such as the Permian, Eagle Ford and Mid-Continent, the Haynesville has flown under the radar especially when it comes to the three major suppliers; Gen6Proppants, Sierra Frac Sand and Performance Proppants. In the past year Sierra Frac Sand expanded operations by a million tons and Performance Proppants expanded one facility and also brought online a brand-new facility on the Arkansas/Louisiana border. Lastly, Gen6Proppants will be opening a facility in the Red River Parish of Louisiana in 3Q’19 and based on aerial footage silos are up which indicates next quarter seems like a likely startup. Gen6Proppants originally reported a Q2’19 start-up. For more information please visit

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