Proppant sand providers, which faced headwinds during the first quarter from low prices and conservative spending by their customers, will have to deal with a supply and demand imbalance that could pressure prices into the foreseeable future.
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Shale Support, which provides proppant for oil and gas drilling, has gained capital from Austin, TX-based CrowdOut Capital LLC to acquire two mines that would double its reserves.
No “easy beach days” are ahead in the U.S. onshore proppant sand market, as fierce competition among suppliers, and a slowdown in Permian Basin completions, likely will continue into 2019, according to analysts.
Houston-based Hi-Crush Partners LP unveiled a triple shot of expansions on Monday, with the takeover of a Manitoba-based silo-based sand storage business and build out of proppant operations in Wisconsin and the Permian Basin.
The U.S. onshore rig count will decline modestly through the rest of the year, but a large backlog of wells awaiting completion indicates pressure pumping demand will continue to move higher over the coming months, Raymond James & Associates Inc. said Monday.
U.S. producers may have enough cash flow this year to double the onshore rig count from current levels, Raymond James & Associates Inc. said Monday. The only thing standing in their way could be a lack of pressure pumping equipment.
New technologies are reducing costs and raising recoveries, but as pressure pumper Liberty Oilfield Services demonstrated Tuesday in Denver, innovation has not only improved equipment, but it’s helping to assuage relationships with nearby communities.
The pullback in the U.S. onshore has choked demand for all types of services, with proppant volumes declining sharply since the start of the year. Proppant providers are continuing to cut costs and are working with their customers to hold on to market share for the eventual upturn. As to when the market will strengthen, however, it’s anybody’s guess.
The United States will remain the world’s largest producer and consumer of frack sand for years, and the North American frack sand market is projected to grow by nearly 9% every year through 2016, according to a report by the U.S. Geological Survey (USGS).
The United States will remain the world's largest producer and consumer of frack sand for years, and the North American frack sand market…