Morgan Stanley's View (16 Oct, 2014)US-based financial services company Morgan Stanley has suggested that silica sand supply could be a strong growth limiting factor for the rapidly expanding fracking industry.
Proppant suppliers like Hi-Crush Partners and US Silica Holdings are already benefiting greatly from rapidly expanding US demand for frac sand.
The market position of being a supplier in a rapidly growing industry struggling to keep up with demand is highly lucrative. Industry winners will be the companies that find a way to keep supply rates up with demand.
"We believe the industry now sits on the verge of a prolonged frac sand supply shortage," said Morgan Stanley in a research report yesterday.
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In other news Hi-Crush are supplying Haliburton with Northern White until end 2018.
Hi-Crush could logically acquire Victory Silica.