Frac Sand Project   Spec. & Requirement: for Peru Oil Drilling...:Logistic & Material       http://pemine.com/sand   7-9-2018   Coord.: By: Vic
          source: LJW           { Please re-fresh webpage Often to see updating Data. }   {*作业人员可從里面利用部分各自需要的信息来作业, 不对外开放.** }  
                                                                                                      {Private webpage, not open to Public.}
                                          Peru time: USA Pacific time add 2 hours.  China Time:  USA Pacific time add 3 hrs Am>Pm.    有道翻译師   Cn <> En       

 Map, Port   Contact    Subject    Material   Inquiry & Answer   Frac Sand  Cn Sand Spec     Proppants     OtherSource Location  Alibaba  USA Provider info.                  


Subject


Provide Peru石油Drilling。每月四千吨货      7-4-2018 LJW friend won a bid provide CnPetro in Peru 4000mt/mo. material.   Majority.... Frac Sand


Background: Our Clients-Team (in China) won the Bid.
                     Now is supplying material & equip. to Paita Project (owner: CnPetro).                    
Subject:
       Looking for....
               1. Logistic:  Peru Local Logistical Provider &
               2.  Material: 2000mt ton a month Frac Sand  (current was importing from China.),
                    may consider the Local alternated Supply.....07-05-2018



Business Possibility: A. Logistic:  1. Need Local Customs Broker,  
                                                         2. Bookiing & Shipping: Need Containers or/and Chart Ship,
                                                         3. Transportation:           Local Trucking & Warehouse/Distribution.
                                   B. Material:    1. Need new Local Material Suppliers. (cheaper & better).  
                                                          2. Local Coordinated  & Puchasing  Office.  



A. Logistic 家里发货到秘鲁的到达港是:派塔港(Port Paita),是在秘鲁西北的海港,
    距离井下现场(在阿尔多Alto)100多公里,是秘鲁距离油田现场最近的货运港口。             
    距离Lima 有1000公里,到那里价格我估计在美金$__ __ __每吨 (cn 1400-2000)



B. Material    每月四千吨货      7-4-2018 LJW

家里发货到秘鲁的到达港是:派塔港(Port Paita),是在秘鲁西北的海港,距离井下现场(在阿尔多Alto)100多公里,
是秘鲁距离油田现场最近的货运港口。
种类目前是5种: 1)改性瓜胶(一级粉);2)有机硼交联剂;3)粘土稳定剂;4)
破乳助排剂  ;5)破胶激活剂  6) 破胶激
                             7 ) 压裂沙 (
石英砂)
.
 1) modified guar gum (first grade powder);
 2) organoboron crosslinker
(concentrate);
 3) clay stabilizer (concentrate);     other sources: 
https://themarkcorp.com/products/stabilization/clay-stabilization/    Houston,  USA
 4) Flow Bacik Surfactant (concentrate)
 5) Gel breaking Activator
(concentrate)
 6) Breaker (Amonium Persulfate) demulsification aid.        
 7) Fracturing Sand.
 (FracSand) (2000mt/mo)

Can you find out Local Suppliers for
 these Material?
    vic 7-14--18


 

Sulfonated Asphalt Series Products
Sulfonated Asphalt-Potassium
Humate Acid Sodium
Humate Acid Potassium
Sulfonated Lignite
Fluid Loss Control Agent
Organophilic Lignite
Sulfonated Phenolic Resin
Modified Starch
Carboxymethyl Cellulose
Polyanionic Cellulosic Polymer
Xanthan Gum
Partial Hydrolytic Polycrylamide
Extreme-Pressure Lubricant
Mud Detergent
Defoamer
Pipe Free Agent
Plugging Agent
钻井液用钠基磺化沥青
本产品为黑褐色自由流动的粉末或颗粒,由自然界有机物与磺化剂经碱化磺化而得

了解更多
钻井液用腐殖酸钠
本产品为黑褐色自由流动颗粒或粉末,由腐植酸通过碱化改性后而得。

了解更多
钻井液用磺化褐煤(SMC)
本产品为黑色自由流动的粉末,由天然有机物经磺化改性制得。

了解更多
钻井液用羧甲基纤维素(CMC)
本产品是一种阴离子型聚电解质,由氯乙酸钠与纤维素反应制得。

钻井液用聚阴离子纤维素(PAC)
本产品为白色至淡黄色粉末或颗粒,无味无毒,吸湿性强,易溶于冷水和热水中。

了解更多
钻井液用部分水解聚丙烯酰胺PHPA
本产品为白色或淡黄色粉末,水溶性好。能抑制泥页岩的水化作用和提高钻井液的粘度,是钻井液用强力包被剂。

了解更多
钻井用液改性淀粉

了解更多
钻井液用黄原胶
本产品为类白色或浅米黄色粉末,是一种生物聚合物,无毒且易溶于。

Inquiry & Answer:

**Inquiry 7-5-2018:
1. Container Load or Bulk Load....?  2. How many ton for each shipment?     3. Dispatch Ports (China?)?   4. When the Shipment start?
5. China Freight Forwarder?        6. Can accept Callao Port (Peru)?       7.
Hows to do Packing?   8. What is the Specification.... such as the Size
9.  Can we use regular Sand for Cement use   or can we get Sand from beach?   10. Shipped & on Sea  containers .... how many, how much the freight, who is their existing Customs Broker in Peru.
      How much the Charge in Freight & Service. Satisfy their service, what need to improve... 11. Which Ship line to load container to Paita, the ship schedule, sign any service contract with existing Ship company?.

1.集装箱装载或散装货物......? 2.每批货多少吨? 3.派遣港口(中国?)? 4.装运开始时?
5.中国货运代理? 6.可以接受Callao Port(秘鲁)吗?7..怎么做包装? 8.什么是规格....例如尺寸

9.我们可以使用常规的  用 水泥使用,还是可以从沙滩上取?  10.运输和海运集装箱....运费多少,运费多少,谁是他们在秘鲁的现有报关行。
       运费和服务收费多少钱。 满足他们的服务,需要改进的地方...... 11.哪个船舶装载集装箱到Paita,船期表,与现有船公司签订任何服务合同?

Frac Sand     Spec        16一30,20一40,12一20





Laboratory Data:

Name, Frac Sand, Spec 850-425um

No. , Test Item, Unit, Std., Result

1  Dia.

2 Circle

3 Ball

4 Acid Dissolve

5 Density (volume)

6 Density

7 Clarity

8  Breakage

9  Ave. Dia


Laboratory Data:

Name, Frac Sand, Spec 1180-600um

No. , Test Item, Unit, Std., Result

1  Dia.

2 Circle

3 Ball

4 Acid Dissolve

5 Density (volume)

6 Density

7 Clarity

8  Breakage

9  Ave. Dia.


 

China      Tianjin:    
China
Peru  User
USA   (San Francisco)  Victor
 Victor


AUTEFA      LJW   189 3199 9527     wechat = lijinwei9497  
eMail: b69072216@sina.com      李京卫
Sample Address:
辛集市 奥特发纺织纤维有限公司
河北省 辛集市 小辛庄 乡小章村 邮编052360
HeBei Province, China, Post Code: 052360
丁跃莹
wxid_7qrqmphsosb212

dyytx2009@sina.com
Engineering...

Calle Porta 374 Dpto 601
Miraflores, Lima.

Mr Zuo Kefeng,
 913 002 279

CNPC Peru

MillwoodRanch LLC.
whatsapp: 5106404294 (BLU)
WeChat: picardoranch, millwoodranchllc
+1-510-640-4294 (BLUcell)
millwoodranch@outlook.com  (DELLLaptop)
perusino123@gmail.com (BLU cell)
tricellusa@gmail.com (iPhone Cell)

pemine.com
vic@pemine.com  (mi*8)
4334 Arequipa Ave, #1002,
Miraflores, Lima, Peru

Apt in Miraflores :+51-918852600- +51-921977985 Rosita




Zuo Kefeng   (Data from Google)

Zuo Kefeng (41), Chief Engineer      (41+12= 53 at 2018)
Zuo Kefeng has been chief engineer at Greka since May 2006. Mr Zuo has 23 years' experience in the oil sector.
He worked for Huabei Petroleum Administration Bureau for 18 years where his last position was Deputy Administration Manager.
He joined Haubei Emirates Engineering LLC in 2002 and held the positions of Engineer, Marketing Manager and General Manager.
Mr Zuo was approved as an IADC WellCAP instructor in February 2005.


Procedure (general purpose use):   for Reminder, Checklist,.. (Purpose of this Article.)                   written by: Victor 7-12-2018

   ****Flow Chat:   Sample > Order > Deliver > Payment > Review 
        for...... Buyer, User,     Seller, Producer
     incl.:  Broker, Middleman, Consultant

       please always use these APPROACHs:  Common Sense, Proportion & Priority, Professional Experiences..
A. Before acquire the Order: Evaluate the Producer...
                                              1. Facility   (size, equipment, Packing...),
                                              2. Capacity (production schedule, stock),
                                              3. Quality   (Spec, Lab. Report, Sample (preliminary, proof, order),
                                              4. Cost        (study, analysis ),
                                              5. Record:       revenue, Paper work, history
                                              6. Execution: 
team, 
effective, influence, assurance, tracking, priority, flexible
                                              7. Credit:       history, finance ability/asset, dispute & lawsuit, risk take
                                              8. Market:      trend, competitors, politic, replacement, new-tech,
Risk analysis,...

B. Processing the Order: Contract...    
                           Calculate the Cost (material, logistic & operation...incl. PR),
                           Prepare the Order Terms (Money..Price,
Payment,  Schedule..Delivery, Quality..Inspection, Penalty),
                           Negotiate the Order's final Price against condition.
                           Risk sharing, Exit Policy (nature & political), Insurance, Deposit

C. After acquire the Order:  Execution     Delivery       Payment
                          Domestic Logistic, Inspection (method, result, certificate..),  Export Logistic, Paper work
                          Payment  method... receiver parties

D. Misc: Guarantor: Who, Sharing (incl. ability & willing)    
               Budget (Operation):  approve, use & audit.
                Reward: Cost Saving..

***Since FracSand Project the User & Producer both in Peru,    (for your info.  Buyer & Seller in Cn)
Once the Buyer & Seller agreed the Spec, (thru Spec Sheet &/or preliminary Samples), the Price, the Term..
Local User/Buyer can sent their own inspectors with SGS staff to the site (producer side or user side)..
                                          to examine the Goods against Spec. Sheet
and/or agreeded Sample.
Map...... Paita
 



Port  ... Paita Peru     ( Callao>Paita ... 1076km,    Callao>Chiclayo   768km,    Puira>Paita   93km  )

 



Location  


the Oil rig site.... El Alto
,

possible storage sites: Piura, Talara, Paita

Piura>ElAlto 153km,
Talara>ElAlto 53km,
 Paita>ElAlto 141km,
 Paita>Piura 53km

I am not sure where is storage site...
must be in these 4 locations

First , we assumed... destination   ElAlto.
              vic 7-13-2018


USA Provider info.    

Just The Numbers... Plus: Frac Sand Companies
Mar. 29, 2018 10:01 AM ET|93 comments  | Includes: CRR, EMES, HCLP, SLCA, SND
Laura Starks   
MARKETPLACEEcon-Based Energy Investing

Summary
Frac sand entities take several forms: as divisions of large oilfield service companies, as part of public industrial sand companies or limited partnerships, and as private companies.

One frac sand limited partnership, Hi-Crush is currently offering a 7.4% return on its units.

One of the largest private sand companies is combining with one of the largest public companies:
the resulting entity will list publicly later this year.

While sand volumes are increasing, demand is subject to oil prices and the pace of drilling.
Volumes increase is not exactly synchronized with increasing lateral length or number of wells
and an inflection point occurs with intensity (pounds per foot).
Technical and process changes to hydraulic fracturing can be expected to eventually impact the pace of growth in sand demand.
This idea was discussed in more depth with members of my private investing community, Econ-Based Energy Investing.
Image result for frac sand pictures

Credit: Host.Madison.com

Mining and selling frac sand can be an attractive but tricky business because frac sand demand operates as a second-order derivative commodity: the supply-demand balance for sand depends (but not only) on the supply-demand balance for crude oil.
The operations and prices of frac sand companies can be quite variable, as the five examples show here.
Thus, investors will find it valuable to dig--so to speak--into frac sand company numbers.

A key material in the hydraulic fracturing process is sand or proppant—used literally to prop open fractures in rock underground that allow hydrocarbons to flow and be produced. Sand is cheaper than manufactured proppant, particularly in the volumes used, so most proppant IS sand and my use of “sand” includes manufactured proppant.

As it was discovered sand worked as well and was far cheaper than manufactured proppant in the large volumes needed, sand mines were opened in Wisconsin. With its desirable size and shape characteristics, during 2017 Northern White sand was still used in about two-thirds of new wells. However, the cost of shipping the sand by rail to Texas and elsewhere has meant “regional” or brown sand from Texas is developing a growing customer base.


Todd Akin   
Frac Sand Companies Are The Best Way To Play An Energy Recovery
Todd Akin • May 25, 2018 6:09 AM ET

The hydraulic fracturing sand industry segment experiences volatility driven in three ways: big oil and natural gas price changes, pressure on completion costs (like sand) and reduced numbers of wells drilled in the down-cycles, and the commodity nature of sand itself, separate from the commodity behavior of oil and gas.

While some in the market have extrapolated ever-rising sand use (more wells drilled, longer laterals—more feet, and higher intensity—more pounds of sand/foot), the desire to limit well costs, to explore new technologies, and the economic inflection point in certain basins means sand demand will not increase directly with oil drilling footage. Indeed, in places like the Midland sub-basin of the Permian a declining benefit-to-cost ratio past an intensity of about 2000 pounds/foot has been experienced.

Moreover, “sand” has several components: acquiring the acreage, mining, processing or washing, long-haul transport in the case of Wisconsin sand, last-mile transport for all sand, and in many cases, on-site storage.

Under the tax regime that existed until recently, limited partnerships have been attractive structures for midstream operations like processing and transportation. This may change. But because the frac sand business includes midstream components, a mix of common stock and limited partnership structures predominates.

Five+1 US sand companies are
CARBO Ceramics (NYSE:CRR),                                 Emerge Energy Services LP (NYSE:EMES),
Hi-Crush LP (NYSE:HCLP),                                       US Silica (NYSE:SLCA), and
Smart Sand (NASDAQ:SND).
                                      
Unimin

In the last few days, US Silica has announced it will acquire EP Minerals, an industrial minerals company. US Silica, a company established over 115 years ago, already gets significant revenue and diversification from its non-frac sand divisions.

A sixth company is expected soon. In December 2017, Unimin announced it was acquiring Fairmont Santrol. The combined entity is expected to become a NYSE-traded public company later this year. It will have 45 million tons per year of sand capacity and over a billion tons of reserves. Unimin, a subsidiary of Belgian company SCR-Sibelo, is the largest private sand company in the US and will be 65% of the entity; Fairmont, which was the third-largest public sand company by market capitalization, will be 35% of the combined entity. Its CEO, Jenniffer Deckard, will be CEO of the new company.

We can think about two groups and one factor that compete with these five-to-be-six companies.
The first are the large turn-key oil field operators whose bundled services include sand supply, such as
              Halliburton (NYSE:HAL),
              Schlumberger (NYSE:SLB), and
              Mammoth Energy Services. (NASDAQ:TUSK)
.

The second group comprises private frac sand companies:
              Vista Sand,                        Atlas Sand,                  Preferred Sands,
              Black Mountain Sand,                                          Alpine Silica.

The competitive factor is the ever-changing technology of hydraulic fracturing,
 including experimentation with other processes, proppants, chemicals, and quantities of sand.

Market Capitalization, Stock Price, and Current vs. 52-week High
Based on March 28th, 2018 closing prices, US Silica has the largest market capitalization, at $2 billion, followed by Hi-Crush has a market cap of $960 million. Market caps for the other three companies are much smaller, clustered at $185-$225 million.


                                          3/28      52-wk      Current

Symbol                               Price       high       to high

CRR    Carbo Crmc            7.28       13.70        53%

EMES Emerge LP               5.99     15.05         40%

HCLP Hi-Crush LP            10.78      18.25       59%

SLCA US Silica                 25.39       50.39       50%

SND  Smart Sand                5.52        16.81       33%

The Dow Jones Industrial Average closed at 23,848 on March 28th, off of its all-time high of 26,617 in January 2018, but still at 90% of that level. So it's surprising to see these companies and partnerships at only 33-59% of their 52-week highs. Moreover, current and future oil prices have remained high, including a March 28th oil futures close of $64.65/barrel.

Current, Dividend, and Price-to-Earnings Ratios
The current ratio measures liquidity and it is the ratio of a company’s current assets to its current liabilities. A current ratio does not include credit facilities or borrowing bases, so it is of interest but not definitive. A ratio of 1.0 is a minimum desired level; of course, companies are also careful not to tie up funds in non-productive assets. The current ratios for these companies range from 2.0 to 4.6.

Three of the companies do not pay dividends; however, US Silica’s $0.25/share provides a 1% yield and Hi-Crush LP’s $0.80/partnership unit gives a mouth-watering 7.4% return.

 Like this article 


On the trailing twelve months’ price-to-earnings (P/E), both CARBO Ceramics and Emerge Energy Services have non-applicable ratios since their most recently-reported earnings per share were negative. Among the others, Smart Sand has a P/E ratio of 10 and Hi-Crush of 11, while US Silica has a P/E of 14.

Also, investors should be aware Market Realist ranked CARBO Ceramics as one of the five worst oilfield service companies by market returns in 2018 at -25%.

Liability-to-Asset and Short Ratios
It is also worth seeing companies' overall liability-to-asset ratios to determine their levels of financial flexibility. These range from conservative to aggressive. At the conservative end of the spectrum Smart Sand is at 23%, CARBO Ceramics at 25%, and Hi-Crush LP is 29%. US Silica hits the middle of the road at 39%. On the high end we find Emerge Energy Services LP at 84%.

Another metric of investor sentiment is the ratio of shares held in short positions to floated shares. The doubters tell the story for CARBO Ceramics where the ratio is a high 74%. The lowest is 8% for Emerge Energy Services LP and the other three are clustered at 15-18%.

Recommendations
Based on these numbers, potential investors are encouraged to take a closer look at US Silica for its operations and diversification. Depending on individual tax needs and changes under the new law investors may want to consider Hi-Crush Limited Partnership for operations and its high yield of 7.4%. Finally, IPO investors may want to wait and watch for the new NYSE-listed company later this year resulting from the combination of Fairmont Santrol and Unimin.

Before deciding, investors should consider all factors in a company’s current operations, as well as its current and future earnings, strategies, and issues. These include a possible downturn in the crude oil market, additional supply from several new mines, and changes in technology or operations that reduce the use of sand in hydraulic fracturing.

While you're here, consider subscribing to Econ-Based Energy Investing, a Seeking Alpha Marketplace platform. Weekly in-depth articles provide you with recommendations for long energy investments.

Subscribers get actionable ideas, make decisions with larger industry context, and save time on research. My service focuses on publicly-traded small & mid-cap oil producers (by basin) & refiners (by area) drawing from a public energy space spanning more than 400 companies.

I’m an industry insider with +30 years' experience working for & investing in energy companies. As you plan your research and investing strategies for the year, consider Econ-Based Energy Investing.

10 Great REITs To Own For The Next 10 Years
Brad Thomas • Jul. 12, 2018 3:45 AM ET
Disclosure: I am/we are long TUSK.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article
.



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    http://www.kallanishenergy.com/2018/04/03/frac-sand-needs-growing-with-laterals/  

Frac sand needs growing with laterals
April 3, 2018 Company News, Crude Oil, In Focus, News, North America, Onshore, Unconventionals 0

When prices went into the ditch in 2014-2016, the U.S. energy industry hunkered down, concentrated operations to plays’ sweet spots, and discovered supersizing well laterals and frac sand usage were the way to succeed.

Now, with crude prices remaining over $60 a barrel, the market for sand is surging once again as U.S. oil production rebounds in a big way, and the rising price of the tiny grains threatens to cut into energy companies’ profits.

“Laterals are longer and the pounds of sand used per lateral-foot have increased considerably,“ Ryan Carbrey, Houston-based senior vice president with Rystad Energy, told Kallanish Energy.

Sonny Randhawa, director and senior research analyst – Oilfield Service and Equipment at Seaport Global Securities in Houston, expects frac sand demand to increase to 100 million tons in 2018, and 115 million tons in 2019, up from 82 million tons in 2017. Laterals rapidly are approaching two miles in length — and beyond.

Carbrey told Kallanish Energy he expects the volume of frac sand forced into each horizontal well drilled in the Marcellus and Utica Shale plays, along with the Permian’s Delaware and Midland sub-basins to jump an average of 26.6% from 2018 to 2021.

                                          2018                    2021
Marcellus                   14,700,000 lbs.     18,700,000 lbs.
Utica                           22,000,000           27,600,000
Permian - Delaware    14,400,000           18,300,000
Permian - Midland      17,400,000           22,000,000

Expert opinions vary as to whether increase drilling, plus longer laterals and more sand per lateral-foot will lead to a possible shortage.

Carbrey, for example, told Kallanish Energy there currently is a frac sand shortage in certain areas, but it’s due to bad weather slowing shipments to the wellsite.

“The (frac sand ) companies are saying four to six weeks (of shortages), but we think it might be longer than that; the issue is slowly being mitigated and within two months this should be sorted out,” he said.

While going to the beach with a highlift and loading dump trucks with sand doesn’t qualify as a solution to a possible frac sand shortage, once again the industry has discovered there is a viable substitute for the gold (or the white) standard of sand.

“While we do believe things are getting tighter for operators and their service providers, we think they will be able to adapt,” Dan Debelius, an analyst with The Freedonia Group, tells Kallanish Energy. “They may need to switch to a lower quality sand for example, but should still be able to satisfy their needs.”

Frac sand is broadly classified into three categories, according to Carbrey: Northern White Sand (NWS), top-of-the-line quartz which usually is mined in Wisconsin; Brown Sand, most of which now comes from Texas; and In-Basin Sand, or sand mined near the play where it will be used.

The Marcellus/Utica Shale plays would be using primarily Northern White Sand because it’s not only the best sand, it’s also the closest.

Northern White Sand’s price at the minegate (at the mouth of the mine) is expected to range between $45 per ton to $55/ton in 2018. All-in costs (mining, rail transportation and truck transportation to the site) in the Marcellus/Utica region is roughly $123/ton

All-in costs in the Permian Basin for NWS is between $135/ton to $155/ton, according to Carbrey. That cost is a major reason why more and more frac sand producers are establishing mines right in the Permian. The sand many not be white, but it’s cheaper.

For that reason, the next big thing in the Permian is in-basin sand. “When we published our (frac sand) study in 2017, we only had information on a few companies working to bring production online in the Permian region,” Debelius told Kallanish Energy.

“Now we are aware of 16 companies, some with multiple mines, with announced plans to add additional frac sand capacity in the Permian Basin.”

Carbrey said 85 million tons of additional frac sand capacity have been announced for the Permian – with 55 million tons of that total slated to come online by the end of 2018.

Some independent producers are not waiting for new frac sand mines to come online. Rather, to maintain tighter control on supply and prices, some companies are looking at owning their own frac sand mines.

Antero Resources is the latest producer to say it was looking at mining its own sand to offset recent price increases.

Sand, which is roughly 12% of the company’s well development cost, has been the only oilfield product in which the company has seen a large price increase. Antero is now eyeing ways to “self-source” the material, said Glen Warren, Antero’s president, speaking last month at the Scotia Howard Weil energy conference in New Orleans.

“A lot of companies are looking at possibly investing in their own frac sand mines,” Carbrey said. “Pioneer Natural Resources and EOG Resources were pioneers in owning their own frac sand supply.”



Dramatic changes to the supply of frac sand could lead to efficiency gains in the Permian basin
3/8/2018

HOUSTON -- A major report from Energent, part of Westwood Global Energy Group, the energy market research consultancy, predicts dramatic changes to the frac sand supply chain to the Permian basin, the world’s most important oil growth region.

The Permian basin produces 2.9 MMbopd, approximately 45% of light-tight oil production in the U.S. More than 800 E&P operators, 25 pressure pumpers, and 30 frac sand producers are engaged in activities there. With 2,430 drilled uncompleted wells and increasing capital expenditures for E&Ps in the basin, the Permian is poised to continue growing.

Frac sand is vital to the industry as it is pumped into the ground at high pressure to help extract oil and gas. Until now, the industry has relied upon Northern White premium frac sand hauled over 1,200 mi from Wisconsin at a cost of $110/ton.

The Energent report shows that all this is about to change. Mines based within the Permian basin itself are now producing sand of the required technical standard and volume to meet the expected demand growth of 2.5 million tons per quarter over 2018-19. 

By the end of 2018, Energent anticipates over seven million tons per quarter of available premium sand capacity inside the Permian basin. This will remove almost 800,000 tons of sand requiring long-haul rail logistics in fourth-quarter 2018 compared with first-quarter 2018.

Todd Bush, Founder of Energent, comments: “The cost and availability of frac sand has been a major challenge for operators in the region. So much so, that new entrants and existing frac sand companies have dedicated over $850 million to opening their own miles near Winkler county, Texas.

“The potential savings of in-basin sand are huge – as long as operators are satisfied that it meets their technical requirements, they could save up to 50% on frac sand hauled from Wisconsin.

“Assuming a 50% adoption rate of locally mined sand, incumbent suppliers will see a material decline in non-contracted volumes by the third quarter. It will also focus attention on logistics within the basin itself, the truck fleet, retaining drivers and transport technology, which will also drive well economics.”

The full report -- Frac Sand in the Permian – Near-Term Outlook - -  has been put together using Energent and Westwood’s proprietary data detailing frac sand demand and consumption patterns across the U.S. shale plays