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Title : Friday , November 10, 2017 -- Frack Sand And Texas -- RBN Energy
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Friday , November 10, 2017 -- Frack Sand And Texas -- RBN Energy

Veterans Day activities. Blogging will be delayed. 

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RBN Energy: major changes afoot in sand use, supply and prices.

In the past year, there have been major changes in the frac sand sector. Exploration and production companies in the Permian and other growing areas have significantly ramped up the volume of sand they use in well completions, catching high-quality sand suppliers in the Upper Midwest off-guard and spurring sharply higher frac sand prices due to the tight supply.

At the same time, development of regional sand resources has taken off in the Permian — with close to 20 mines announced with upwards of 60 million tons/year of nameplate capacity possible — and, to a lesser extent, in the SCOOP/STACK, Haynesville and the Eagle Ford.

That new capacity should begin easing sand-supply shortfalls next year, reducing sand delivered costs and potentially threatening the dominance of traditional Northern White sand. And more changes are ahead in 2018. 

Frac sand is critically important, not only in Shale Era hydrocarbon production, but in production economics. Production in shale plays is founded on a combination of horizontal drilling and the use of proppant (primarily natural sand, but also a bit of ceramics and resin-coated sand) that, when forced out of the horizontal portion of wells at high pressure (using water and other fluids), fractures openings in the surrounding shale. When the pressure is released, the fractures attempt to close but the proppant contained in the fluids keeps them open, making a ready path for oil, gas and NGLs to flow into the well bore.

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