Topic: Frac Sand Demand

Delaware, Eagle Ford, Bakken, and SCOOP New Well Highlights

Tidal Petroleum Uses 7.5 Million Pounds of Frac Sand and 2459 bbls HCL Acid (2018-08-13) An Eagle Ford well was completed by Tidal Petroleum in Karnes, Texas. The Moy South 1H produced 24-hour IP rates of 2644 bbl of oil, 1,584 MMcf of gas, and 216 bbl of water along the 3,546 lateral. Enterprise Products is the gatherer for crude, condensate, and gas for the pad. Tidal Petroleum reported flowing tubing pressures of 4900 PSI and a 22/64 choke size. Discovery Natural...

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The Proppant Demand Dichotomy in Appalachia Super Laterals

While the Appalachia Basin only accounts for roughly 15% of total proppant usage in the Lower 48, the US Northeast has some of the highest proppant amounts per well. In 1Q18 a typical completion in the Appalachia Basin averaged roughly 16 million pounds, or 8,000 tons, representing a 7% increase year-over-year. Comparatively, the US average is roughly 13 million pounds or 6500 tons. This is partially attributable to specific operators in the region testing longer “super laterals.” Figure 1. Proppant Amount and...

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Permian Traffic Accidents up 17% in 2018

A surge of activity has sprung up with the steady increase in price of WTI since the summer of 2017, most notably a 11.5% (+101 rigs) rise in rig count within the Permian Basin between June 2017 and April 2018. To support such activity, the Texas Department of Transportation, or TxDot, has allocated approximately $2 billion towards the Energy Sector in the State of Texas expanding across more than 1,400 projects from 2016-2019.Included in the $2 billion is approximately $180...

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Has Anadarko cracked the code in the DJ Basin?

The operator stated in its first-quarter 2017 operations report that a new completion design is being tested in their Colorado acreage. The new design involves increased fluid volumes coupled with tighter stage spacing. The report also states early results of the new design show improvements of more than 10% cumulative oil to date, with their fourth-quarter 2017 operations report estimating a 20% uplift in EURs.One crucial part of the puzzle, proppant amount, is not mentioned in the reports. Energent took...

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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...

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West Texas inSANDity Continues in the Permian

Last week in Houston at the Frac Sand Supply & Logistics Conference, all signs pointed towards more sand per lateral foot, more mines in the Permian, and more trucks to deliver frac sand to the wellsite. Frac sand demand in the Delaware and Midland Basins is expected to increase. E&Ps have increased the proppant per lateral foot by 31% in the last year, with public E&Ps citing the transportation and logistics constraint as a concern, not frac sand supply. Regional replacement? Based on...

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Permian Sand Mines Add 35 Million Tons of Frac Sand By Summer 2018

During the first half of 2017, there were over 15 mines permitted or approved by Texas regulators. The sand rush of 2017 turned investor eyes towards the frac sand business.  Private capital supports many of the new companies entering the West Texas sand market. The Summer of Sand Frac sand companies aggressively leased and acquired positions in the heart of the Permian Basin in (and around) Winkler County Texas.The large public companies, like US Silica, Hi-Crush, and Fairmount Santrol announced mines coming online...

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Mammoth Reports Growth in Pressure Pumping, Frac Sand Production, Directional Drilling

On May 3, 2017, Mammoth Energy Service, Inc. (NASDAQ: TUSK) hosted its quarterly earnings call to report results from Q1’17. Highlights included a dramatic increase in YOY pressure pumping activity, progress on two key frac sand production facility acquisitions, and growth in the company’s directional drilling fleets.Mammoth reported Q1 spending of about $31 million, most of which is tied to delivery of 75,000 HHP and associated equipment ordered in November 2016. Other factors includeAcquisition of three high-pressure fleets totaling...

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