Topic: US Silica

Central Texas Frac Sand Mine Hours Drop 10%

In 2019, Texas will reach over 130 million tons of production per year (MMTPY) of frac sand nameplate capacity, of which 85% will come from Permian and Eagle Ford facilities, as new construction projects wind down and ramp to full utilization. Energent is closely monitoring regional operations in central and south Texas as mines shut down in the first half of 2019.Pioneer Natural Resources (NYSE: PXD) and Covia Holdings Corporation (NYSE: CVIA) reported future closures scheduled in the first...

Read More

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...

Read More

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...

Read More

Earnings Season Recap: E&Ps Prepare for 10%+ Cost Increases

Key Themes from Last Week's Earnings CallsE&P capital remains unchanged going into the second quarter Frac crews are sparse as many pressure pumpers continue to reactivate fleets Drillers see increased day rates to around $20K per day as operators continue increased drilling programs Frac sand prices are increasing as sand shortages continue Sand companies looking to increase supply with greenfield and brownfield expansionThe DetailsRange Resources (NYSE: RRC) drilled 3 laterals over 15,000’ and seven over 10,000’ in the...

Read More

A Shortage of Frac Sand Will Bring Supply Chain Challenges

Many oilfield service and supply companies, including Halliburton (NYSE: HAL), Hi-Crush (NYSE: HCLP), U.S. Silica (NYSE: SLCA), and Fairmount Santrol (NYSE:FMSA) have cited a shortage of frac sand for the U.S. shale plays, specifically 40/70 in the Permian Basin.Advancements in the horizontal drilling and completion techniques of leading shale E&P’s are driving frac sand demand to new high points. The significance of multi-well pad drilling in the Permian increased each of last several years, even during the downturn. In...

Read More

Larger Volumes and Integrated Operations Key for Frac Sand Suppliers

The U.S. frac sand market has heated up in 2016 even with depressed oil prices. Many operators have increased proppant intensities in their frac designs and are testing upwards of 5,000 pounds per lateral foot while increasing the size of their laterals. Some of the these operators are Devon Energy (NYSE: DVN) and Chesapeake Energy (NYSE: CHK) who have tested in the SCOOP and Haynesville. Horizontal wells in the Permian basin average 7,500 foot laterals and 11 million pounds of proppant...

Read More