{"id":62295,"date":"2022-03-26T08:18:51","date_gmt":"2022-03-26T13:18:51","guid":{"rendered":"https:\/\/olduvai.ca\/?p=62295"},"modified":"2022-03-26T08:18:51","modified_gmt":"2022-03-26T13:18:51","slug":"sand-for-fracking-is-now-3-times-as-expensive-as-it-was-last-year-and-its-one-of-several-reasons-us-oil-production-isnt-increasing","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=62295","title":{"rendered":"Sand for fracking is now 3 times as expensive as it was last year, and it&#8217;s one of several reasons US oil production isn&#8217;t increasing"},"content":{"rendered":"<section class=\"post-headline-wrapper\n           default-headline\"><\/p>\n<h3 class=\"post-headline \"><a href=\"https:\/\/www.businessinsider.com\/frac-sand-one-reason-us-oil-production-not-increasing-2022-3?fbclid=IwAR0uw8EOixmhUVqlI--j1Wp1FdCJTWXxUYmlVl8kW5iPk2wDvefd9pJ2SI8\">Sand for fracking is now 3 times as expensive as it was last year, and it&#8217;s one of several reasons US oil production isn&#8217;t increasing<\/a><\/h3>\n<\/section>\n<section id=\"l-content\" class=\" is-right-rail   with-rail-video-ad\" data-track-page-area=\"Post\" data-post-content=\"\">\n<section class=\"row\">\n<div class=\"col-12\">\n<article>\n<figure class=\"figure image-figure-image  \" data-type=\"img\" data-e2e-name=\"image-figure-image\" data-media-container=\"image\">\n<div class=\"aspect-ratio\"><img decoding=\"async\" src=\"https:\/\/i.insider.com\/623a319e4627420018f7d32b?width=700\" sizes=\"(min-width: 1280px) 900px\" srcset=\"https:\/\/i.insider.com\/623a319e4627420018f7d32b?width=400&amp;format=jpeg&amp;auto=webp 400w, https:\/\/i.insider.com\/623a319e4627420018f7d32b?width=500&amp;format=jpeg&amp;auto=webp 500w, https:\/\/i.insider.com\/623a319e4627420018f7d32b?width=700&amp;format=jpeg&amp;auto=webp 700w, https:\/\/i.insider.com\/623a319e4627420018f7d32b?width=1000&amp;format=jpeg&amp;auto=webp 1000w, https:\/\/i.insider.com\/623a319e4627420018f7d32b?width=1300&amp;format=jpeg&amp;auto=webp 1300w, https:\/\/i.insider.com\/623a319e4627420018f7d32b?width=2000&amp;format=jpeg&amp;auto=webp 2000w\" alt=\"Fracture manager Eric Vaughan holds a mixture of sand and water which will be pumped down the pipes as shale gas developer Cuadrilla Resources will start fracking for gas next week at its Preston New Road site near Preston\" \/><\/div><figcaption class=\"image-caption headline-bold\" data-e2e-name=\"image-caption\">A hydraulic fracturing manager holds a mixture of sand and water which is pumped down the pipes at a shale gas site in the UK.\u00a0<\/figcaption><span class=\"image-source-caption \"><span class=\"image-source headline-regular\" data-e2e-name=\"image-source\">Peter Powell\/Reuters<\/span><\/span><\/figure>\n<div>\n<section class=\"post-content typography \" data-track-content=\"\" data-post-type=\"post\">\n<div id=\"piano-inline-content-wrapper\" data-piano-inline-content-wrapper=\"\">\n<div data-component-type=\"content-lock\" data-load-strategy=\"exclude\">\n<div class=\"content-lock-content\">\n<ul class=\"summary-list summary-list-variant\">\n<li>Russia&#8217;s invasion of Ukraine has knocked 1.5 million barrels of oil per day out of the global supply.<\/li>\n<li>With prices spiking, US oil producers have not significantly stepped up production.<\/li>\n<li>One reason: the special sand needed for fracking is 185% more expensive.<\/li>\n<\/ul>\n<p>With Russian oil on the international blacklist due to the invasion of Ukraine, the world is seeking a replacement for as many as 4.5 million barrels per day.<\/p>\n<p>Indeed, analysts at Rystad energy consultancy estimate that global trade of crude is down by an average of 1.5 million barrels per day since the beginning of Russia&#8217;s assault on its Eastern European neighbor.<\/p>\n<p>Nearly a month on, crude oil is trading at over $110 per barrel, a price which has historically motivated oil companies to ramp up production, but the output of US drillers hasn&#8217;t appeared to move significantly.<\/p>\n<p>One of the key reasons actually predates the war in Ukraine: the special sand required for hydraulic fracturing (frac sand) in shale oil production has gotten a lot more expensive.<\/p>\n<p><a href=\"https:\/\/www.marketwatch.com\/press-release\/frac-sand-market-2022-2027-size-share-trends-growth-outlook-price-key-players-industry-analysis-and-research-report-2022-02-03\" data-analytics-module=\"body_link\" data-analytics-post-depth=\"60\" data-uri=\"130b3095ecd1cce71597a28f5407e7d5\">Frac sand<\/a>\u00a0is made of silica crystals processed from pure sandstone, with a small grain size and round shape that allows natural fluids like oil and water to pass between them. At a drilling site, sand is mixed with water and special chemicals, then injected into the ground at high pressure to break up shale to release and pump out the oil inside.<\/p>\n<p>That material now costs between $40 and $45 per ton, Rystad Energy analyst Ryan Hassler told\u00a0<a href=\"https:\/\/www.axios.com\/why-us-oil-producers-arent-jumping-to-fill-the-worlds-energy-void-ddaf048f-5dbd-4d29-a72b-d2c1fa3867fb.html\" data-analytics-module=\"body_link\" data-analytics-post-depth=\"80\" data-uri=\"4ad0e2a5437e109ad59c8a20d4f52514\">Axios<\/a>\u00a0\u2014 nearly 185% higher than last year. Two years ago, sand prices were in the teens.<\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<\/article>\n<\/div>\n<\/section>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>Sand for fracking is now 3 times as expensive as it was last year, and it&#8217;s one of several reasons US oil production isn&#8217;t increasing A hydraulic fracturing manager holds a mixture of sand and water which is pumped down the pipes at a shale gas site in the UK.\u00a0Peter Powell\/Reuters Russia&#8217;s invasion of Ukraine [&hellip;]<\/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":[2,3],"tags":[9218,32796,20312,331,412],"class_list":["post-62295","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-business-insider","tag-dominick-reuter","tag-frac-sand","tag-fracking","tag-hydraulic-fracturing"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/62295","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=62295"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/62295\/revisions"}],"predecessor-version":[{"id":62296,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/62295\/revisions\/62296"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=62295"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=62295"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=62295"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}