{"id":31343,"date":"2018-02-21T09:07:14","date_gmt":"2018-02-21T14:07:14","guid":{"rendered":"http:\/\/olduvai.ca\/?p=31343"},"modified":"2018-02-21T09:07:14","modified_gmt":"2018-02-21T14:07:14","slug":"frac-sand-shortage-threatens-shale-boom","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=31343","title":{"rendered":"Frac Sand Shortage Threatens Shale Boom"},"content":{"rendered":"

Frac Sand Shortage Threatens Shale Boom<\/a><\/h3>\n\"Sunset<\/picture>\n
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Higher drilling costs could threaten the recent surge in United States shale production.<\/p>\n

Halliburton said last week that its earnings could be negatively impacted because of bottlenecks related to the supply of frac sand used in shale drilling. The Wall Street Journal reported<\/a> that Halliburton\u2019s shares were briefly halted on February 15 after Halliburton\u2019s CFO Chris Weber told an audience at the Credit Suisse Energy Summit that the company\u2019s first quarter earnings could take a hit by a whopping 10 cents per share.<\/p>\n

The reason, he said, was because of delays by Canadian rail companies that would slow the delivery of frac sand. Halliburton saw its shares drop by more than 2 percent on a day that saw broader gains to the S&P 500.<\/p>\n

Frac sand is integral to growing shale production, increasingly so these days with more and more sand pumped down into a well. Shale drillers have credited the heavy doses of sand with squeezing out more oil and gas from the average well. Demand for frac sand surged from 34 million tons in 2012 to 61.5 million tons in 2014. Consumption fell in the ensuing years as drilling dried up when oil prices collapsed, but frac sand consumption surpassed previous highs in 2017 as drilling resoundingly came back.<\/p>\n

In 2018, frac sand demand is expected to top 100 million tons, according to Rystad Energy. \u201cRight now, the market is really stretched thin,\u201d says Thomas Jacob, a senior analyst at IHS Markit, told the FT<\/a> in December. \u201cEveryone is running at full capacity.\u201d<\/p>\n

Much of the frac sand has come from places like Wisconsin, which produces \u201cnorthern white sand\u201d that is hard and round, helping to create porous fractures in shale wells. It is high quality, but expensive, particularly because it has to be shipped by rail to Texas shale fields.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Frac Sand Shortage Threatens Shale Boom Higher drilling costs could threaten the recent surge in United States shale production. Halliburton said last week that its earnings could be negatively impacted because of bottlenecks related to the supply of frac sand used in shale drilling. The Wall Street Journal reported that Halliburton\u2019s shares were briefly halted […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[331,18782,412,6010,5332,1422,1462],"class_list":["post-31343","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-fracking","tag-haliburton","tag-hydraulic-fracturing","tag-nick-cunningham","tag-oilprice-com","tag-sand","tag-shale-oil-production"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31343","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=31343"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31343\/revisions"}],"predecessor-version":[{"id":31344,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31343\/revisions\/31344"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=31343"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=31343"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=31343"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}