66.6 F
Fort Worth
Tuesday, October 20, 2020
Energy Wisconsin frac sand mines sit dormant as competition grows

Wisconsin frac sand mines sit dormant as competition grows

Other News

Closing prices for crude oil, gold and other commodities

The Associated Press Benchmark U.S. crude oil for September delivery rose 31 cents to settle at $41.60 a barrel Monday. Brent crude...

Trump to discuss energy, tour oil rig, raise money in Texas

By DARLENE SUPERVILLE Associated PressWASHINGTON (AP) — President Donald Trump will shift his focus to American energy dominance during a stop in...

Basic Energy Services makes organizational changes

Fort Worth-based Basic Energy Services, Inc. (OTCQX: BASX) in late May announced the implementation of changes to the organizational structure of the...

Texas oil producers were cutting output before Railroad Commission chose not to, Commissioner Christi Craddick says

By Cassandra PollockMay 12, 2020 Texas Railroad Commissioner Christi Craddick on Tuesday doubled down on the agency’s recent decision...

EAU CLAIRE, Wis. (AP) — Wisconsin’s frac sand industry is grappling with several idled mines as the sector faces increased competition in Texas and Oklahoma.

Kent Syverson, a geology professor at the University of Wisconsin-Eau Claire, believes the region’s frac sand development boom is over.

Areas of western and central Wisconsin saw heavy investment from 2011 to 2014, when sand mines, processing plants and rail loading facilities were emerging throughout the area. Since then, Superior Silica Sands has idled three sand mines in Wisconsin, while Hi-Crush is halting production at its mine in Augusta.

Syverson told the Eau Claire Leader-Telegram that demand remains strong, but energy companies have built mines closer to oilfields in Texas and Oklahoma. The production expansion has lowered prices and allowed oil drillers to purchase local sand for less than the cost of shipping it from Wisconsin, he said.

“The capital has already been invested in Wisconsin, so the real questions are how much of this sand will still be needed and how many of these higher-cost operations that are taken off line will never come back,” he said.

Syverson also argued that companies in the Permian Basin in West Texas and southeast New Mexico are moving toward finer grain sand. It’s lower quality but more plentiful than the northern white sand that’s produced in Wisconsin.

“Wisconsin sand is still the Cadillac of all sands, but these companies in the Permian Basin are saying they can make more money driving a Chevy than a Cadillac,” Syverson said. “It’s all a cost-benefit analysis.”

In the Upper Midwest, mines with the annual capacity of 18 million tons of frac sand have already been idled this year, said Ryan Carbrey of Houston-based energy research firm Rystad Energy.

Carbrey expects the number to rise to 30 million tons by the end of 2019.

The changes in the Permian Basin are important because the area accounts for half of the country’s shale energy production, Carbrey added. But he said major shale energy deposits in North Dakota and Pennsylvania still rely on northern white sand.

“In those regions, there’s not really much good local sand,” he said.

___

Information from: Leader-Telegram, http://www.leadertelegram.com/

Latest News

ConocoPhillips buying Concho in $9.7B all-stock deal

By CATHY BUSSEWITZ AP Business Writer NEW YORK (AP) — ConocoPhillips is buying shale producer Concho Resources in an...

Closing prices for crude oil, gold and other commodities

The Associated Press Benchmark U.S. crude oil for November delivery rose 84 cents to $41.04 a barrel Wednesday. Brent crude oil for...

Five years on, Israelis see few benefits from major gas deal

By JOSEPH KRAUSS Associated PressJERUSALEM (AP) — Five years after Israel signed a landmark agreement to develop large offshore gas fields over...

Closing prices for crude oil, gold and other commodities

The Associated PressBenchmark U.S. crude oil for November delivery rose $1.24 to $41.19 a barrel Thursday. Brent crude oil for December delivery...

Closing prices for crude oil, gold and other commodities

The Associated Press Benchmark U.S. crude oil for November delivery fell 72 cents to $39.95 a barrel Wednesday. Brent crude oil for...