In-Basin Sand Report: New Winkler Mines Change Frac Sand Landscape
New sand mines are changing frac sand pricing and logistics dynamics. The mines are concentrated in and around Winkler county in the heart of the Permian Basin.
With 28% growth in Permian rigs, service companies and operators are reducing costs with new sand supply coming online in West Texas. Permian and SCOOP/STACK are leading the rig count growth (see sample page below). Drilling rigs targeting continue to dominate the drilling market. Will the in-basin frac sand trend continue to other plays?
Logistics Hold the Key to Unlock Cost Savings
Assuming a 50% adoption rate of locally mined sand, incumbent suppliers will see a material decline in non-contracted volumes by 3Q18. Beginning in the second half of the year, in-basin sand will make major inroads into the current supply chain. As operators reduce the delivered to wellsite frac sand cost, several mines will have a cost advantage due to mine location. Each mine is profiled with drive time analysis, current capacity, and production timeframe similar to Vista Proppant’s profile page below.
Find out more about the only report to highlight sand supply, demand, pricing, logistics, and last-mile sand storage options. Get pricing and details here.