Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on September 24, 2018 at 6:12

Hayes, the frac sand business blew up about 18 months ago when operating companies transitioned to completion designs with two to three times the lbs. of sand pumped per linear foot of lateral.  Before that completion designs used 1000# to 2000# on average,  Now 3000# to 4000# per foot.  As drilling increased and sand demand took off, there was a major change in the sand business.  Previously there were a limited number of sand quarries and supplies were transported long distances by train and then by truck.  The trend for the last 18 months has been to find the right kind of sands and build quarries in close proximity to the drilling in the major basins.  What they all talk about is "the last mile".  Transport is such a large proponent of cost that sand companies want supply as close to the drilling as possible.  This has created a lot of new sand companies racing to gain competitive advantage by being closest to the action.  Like many things in this industry, the trend may lead to too much competition and some companies not surviving but it will help completion costs for operating companies.

When the Haynesville Shale started the cost to drill was 60 or 70% the total well cost with completion being the 30 to 40% remaining.  Then with the advent of long laterals cost became about 50/50.  Now with long laterals and high intensity completion designs, the ratio is 40/60, or more.

Permalink Reply by Susan Livingston on December 16, 2019 at 9:23

What I know is that the 'SandBox' Trucks go past our house 24x7 on LA Hwy 157 South and then go into Bienville Parish.  They are wearing out our road, when they should go down I-20 and get off at Sibley, LA exit.  

Permalink Reply by Skip Peel - Mineral Consultant on December 16, 2019 at 9:28

A problem shared by a lot of parishes and communities.  We live in a state that allows the O&G industry to largely do what they want with impunity.