- Frackers are expected to use nearly 95B pounds of sand this year, up nearly 30% from 2013 and up 50% from forecasts made just a year ago; as demand for the fracking sand takes off, sand prices are surging and the stock prices of sand producers are on the rise.
- It can take 4M pounds of sand to frack a single well, but several companies are experimenting with using more after finding that the output of wells is up to 30% higher when they're blasted with more sand; ~20% of all onshore wells are now being fracked with extra sand, but the technique could expand to 80% of all shale wells, according to RBC analysts.
- U.S. Silica (NYSE:SLCA) expects demand for sand will be at least 25% higher than supply for the rest of this year; it already has raised prices for some frack sand and plans to start charging 10%-20% more for the top-of-the-line Northern White sand.
- Hi-Crush Partners (NYSE:HCLP) is predicting another 5%-10% increase in sand prices before year's end; the company recently signed seven new long-term contracts at higher prices and for greater volumes with oilfield service firms.
- Frack sand producer Emerge Energy (NYSE:EMES) was last year's most successful public offering, with a share price that has shot up 558% since its debut.
at CNBC.com (Nov 14, 2014)