Post by
yixter on Feb 27, 2022 9:40pm
Tight Sand Market!!!
U.S. shale production is expected to rise by 109,000 barrels per day in March, to 8.7 million bpd, according to the U.S. Energy Information Administration. The Permian Basin is expected to see output rise to 5.2 million bpd in March, which would be a record, and there are now 301 oil rigs operating in that basin, the most since April 2020. U.S. frackers added three crews in the first week of February, boosting the total to 264 from roughly 167 this time last year, according to consultancy Primary Vision. The sand market is so tight Oestmann said, because fewer people have been working in the mines and there has been a shortage of truck drivers. He said his company is looking to bring sand in by rail, a sourcing method that fell out of fashion following the advent of local mines a few years ago. "The railed sand depots were busy," said Richard Spears, vice president of oilfield consultancy Spears & Associates, of a recent trip to west Texas. "When that source is kicking in at high volume, and the local mine is full out, you know you've got a challenge." Much of the sand being railed in is coming from Wisconsin, according to Rystad. U.S. independent fracking firm Liberty Oilfield Services (LBRT.N), which recently acquired a last-mile sand delivery firm PropX, last week said it had seen bottleneck challenges around sand in the Permian basin, both in regards to availability and transportation.