Frac Sand Weekly News Digest
October 11, 2017
Issue #136


Insights from the 6th Annual Frac Sand Supply Logistics Conference

This past week, I was a part of the largest frac sand industry gathering with over 525 attendees in Houston, TX. The event was dominated by optimism for continued, strong industry growth, as well as, new innovations and market entrants. Of course, there were a variety of views on every topic as the always dynamic market is entering uncharted territories for volume and impact to the Oil & Gas industries. First, some key takeaways from the speakers/panels:

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How Busy Is The West Texas Frac Sand Market? It’s This Busy… [Video]

We share a peek at trucks waiting on frac sand sent into us by a reader in the Permian Basin.

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Frac sand miners: KeyBanc Capital restarts coverage, sees sand demand rising

Shares of U.S. frack sand miners Fairmount Santrol Holdings Inc up 4 pct at $4.94, U.S. Silica Holdings Inc up 1.4 pct at $31.60 in early trading

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Fairmount, U.S. Silica: Not Just Pounding Sand

We are reinitiating and updating ratings for Fairmount Santrol Holdings and U.S. Silica Holdings with Overweight ratings. We see compelling free cash generation as sustainable around [with oil at] $50 per barrel given secular trends in sand demand. While seemingly commoditized, new entry of sand supply will be harder.

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Hi-Crush Announces Commencement of Operations at Pecos Terminal

Hi-Crush, today announced the company has commenced operations at its new Pecos, Texas terminal, the first unit-train capable terminal with silo storage in the Southern Delaware Basin. Hi-Crush is actively delivering produced sand via rail to the Pecos terminal, which includes 20,000 tons of vertical silo storage on-site, from two of its Union Pacific connected Northern White facilities in Wisconsin. On October 3, 2017, Hi-Crush began loading customer trucks for delivery to support local completions activity.

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This Large Permian Operator Will Cautiously Start Replacing Northern White Sand With Local Next Quarter

We’ve heard from a lot of sand producers lately on the prospects of and plans for in-basin sand. More important of course is the commentary from E&P companies. We’ll be hearing a lot more from them as 3Q17 reporting season rolls around here in about three weeks. Here’s what one big potential buyer said about it last week.

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The STACK/SCOOP Is Seeing Improved Production Data From Enhanced Completions

US unconventional production continues to improve production per foot. Although frac' sand and fluids usage has increased, the additional costs are offset by better production. This continues to effect balancing world inventories, but not to the extent initially thought. While the Bakken is more transparent, plays in Texas and Oklahoma do not provide the quality of data.

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Some Initial Thoughts On Reports That Unimin Is Buying Fairmount Santrol

Here’s what you need to know about the rumors that Unimin is buying Fairmount Santrol.

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Hi-Crush Partners: More Rigs, More Sand, And Some M&A Chatter

Hi-Crush Partners is starting to look more and more bullish, the closer the company comes to its next earnings report. Rig counts continue to rise across the country as oil holds its position over $50 a barrel. As technology advances, more and more sand is needed by oil companies to get the oil out of the ground and on its way to consumers, bolstering demand regardless of oil prices. After a couple of hard years following the collapse of oil prices, M&A chatter might be starting to heat up as outside companies look to find hidden value in sand companies with the bottom in oil prices already established.

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Preferred Sands Confirms Commitment To Build Two Permian Plants, Shoots Down Oilfield Speculation Of A Cancellation

Here’s what you need to know about the latest rumor moving through the Permian Basin sand mining sewing circle.

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OPEC sees 'extraordinary' steps needed for market stability

Oil producers are succeeding in re-balancing an oversupplied market, though they may need to take further steps to sustain the recovery into 2018, OPEC Secretary-General Mohammad Barkindo said.

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The Future For Oil Supply And Prices After The 'Amazon Effect' Stimulates Shale 2.0

The Energy Information Administration went out on a limb this past summer and forecast what is already happening: U.S. crude oil production is on track to reach historic highs. This week U.S. crude exports hit a record too, now rivaling those of Kuwait. (Savor the word “exports” after decades of hand-wringing over oil imports.) And in related news: last month Citi issued a forecast predicting U.S. shale oil production will double in five years, set aside whether Citi is overly enthusiastic.

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U.S. Shale Juggernaut Shows Signs of Fatigue

American shale drillers, which defied expectations and upended traditional oil markets by increasing production in the face of lower prices, are finally showing signs of slowing down.

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U.S. shale production altered global oil markets

Predicting the long-term global oil supply picture used to be easy: there was never enough. Oil was a scarce, limited resource, and demand continued to grow. Producers had to continually find new sources of oil, travel to often-remote and dangerous parts of the world to tap any source of oil that was available. Not anymore.

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Shifting Risks In Global Oil Supply

If the demand side of the equation is relatively predictable, oil supply is notoriously difficult. Many of the market’s most colorful moments through history have revolved around supply, with OPEC at the centre of most in the last six decades. Swinging cuts to production in the early 1970s and a turning on of the taps in the mid-1980s whiplashed the price. That double whammy has been repeated, in reverse, these last three years.

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Public questions wetland permit for Monroe County frac plant

There was little public support Friday for a Georgia timber company’s plans to fill wetlands in order to build a $65 million frac sand plant in Monroe County even as the contested project received federal approval.

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Lawyers square off over 'about-face' on frac sand mining

The nation's first outright ban on frac sand mining saw its first day in court as both sides of the lawsuit against Winona County's frac sand ban argued their case for summary judgment Tuesday before Judge Mary Leahy in District Court in Winona.

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Winona County continuing trial process on sand mining ban

A campaign to overturn Winona’s ban on industrial sand mining will continue on to pretrial after a decision wasn’t made in court Tuesday.

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First UK shale gas frack only weeks away, Third Energy confirms

The first frack for shale gas in the UK is just weeks away, according to the company preparing to undertake the controversial technique in North Yorkshire.

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Looming threat of sand scarcity is masked by mirage of a nearly limitless natural resource

Earlier this year, Eileen reported that one of the world’s most seemingly abundant raw materials is actually a dwindling resource.

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Short list of alternate plans created to end dredging controversy

With a meeting with the U.S. Army Corps of Engineers looming next week, a group of stakeholders against the Corps' current dredge material management plan for Lower Pool 4 of the Upper Mississippi River whittled down their list of alternatives Thursday to four.

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Judge won’t postpone FourWinds trial

A federal judge will not postpone the fraud trial involving a failed sand-fracking business at the center of an FBI probe that also ensnared state Sen. Carlos Uresti.

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Recent Issues


OCTOBER

  Issue #137 - October 18, 2017

  Issue #136 - October 11, 2017

  Issue #135 - October 4, 2017


SEPTEMBER

  Issue #134 - September 27, 2017

  Issue #133 - September 20, 2017

  Issue #132 - September 13, 2017

  Issue #131 - September 6, 2017



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