Permian Basin Producing Their Own Frac Sand

A change is looming for frac sand production. Currently the Permian basin is relaying on Northern White premium frac sand to supply over 1,200 mi from Wisconsin. Wisconsin has been mining sand for more than 100 years.

The Permian basin is increasing activities and capital expenditures, there are 2,430 uncompleted drilled wells. Frac sand is essential to the industry as it is helping to extract oils and gas from the ground at high pressure.

Wisconsin’s abundant supply of high quality sand has been in high demand. Mines are working overtime if not 24 hours a day. It is forecasted to produce over 107 million tons this year. Wisconsin sand, valued by frackers for it’s ideal grains size, shape and durability.

Mines based in the Permian basin are now producing sand that meet the standard requirement, including the volume to meet the demand growth of 2.5 million tons per quarter over 2018/2019

It is expected by the end of 2018 over seven million tons per quarter of premium sand from those mines should be available. With the production of those mines we are going to see a declined of 800,000 tons of sand to be shipped by rails from Wisconsin in the fourth quarter of this year compare to the first quarter of 2018.

It is well known the cost and availability of frac sand has been an issue for operators in the Permian basin. The focus of new and existing frac sand companies is to meet the needs of the producer. They have spent over $850 million to opening their own mines near Winkler county, Texas.

The potential cost saving in-basin sand is enormous, those mines need to be able to provide sands that meets the standard requirement operators needs. The potential saving could be up to 50% on frac sand currently exported from Wisconsin.