PacWest Research cited in July 1st Fox Business News interview with Emerge Energy CEO on demand for sand. Emerge, the top performing Energy MLP IPO for 2013, has doubled capacity for 2014 based on market estimates and as they continue to see a spike in drilling & frac sand demand. PacWest research notes that, frac sand accounts for over 93% of NAM proppant market (by mass); and sand continues to be the dominant proppant – it has consistently been used in 94-97% of wells between 11Q1 and 14Q1.
Chris Robart quoted in the Midland Reporter on North American drilling and completion activity.
“When you look at the Permian Basin, compare it to other maturing basins or even maturing plays, the proportion of multi-well pads with three, four or five wells on one pad where all are fractured at once, when you look at the Permian Basin compared to other plays, it’s far lower than, say the Marcellus or Bakken,” said Chris Robart, a partner in PacWest Consulting Partners. “We expect that to step up for the rest of 2014.”
Robart also explains in the article that the market is seeing an increase in infrastructure, including rail, that are critical to ensuring the availability of material, like
frac sand and other bulk items. That, he said, will help decrease costs by helping service companies manage their costs. Still, PacWest forecasts moderate price increases into 2016, the first seen since late 2011. Robart said those increases should be 2 to 3 percent.
For full article by Mella McEwen, see http://www.mrt.com/business/article_3ab16bc2-f808-11e3-a4f6-0019bb2963f4.html
Russia will likely partner with Western companies for them to provide the modern drilling and production gear for hydraulic fracturing in order to unlock its $8.2 trillion worth of barrels still underground.
Read full article at http://www.bloomberg.com/news/2014-06-16/russia-s-8-2-billion-oil-trove-locked-without-u-s-tech-energy.html