• U.S. crude stockpiles have been rising for seven consecutive weeks, and forecasts of an eighth build of 2.9 million barrels last week fueled worries that demand growth may not be sufficient to soak up the global crude oil glut. U.S. benchmark West Texas Intermediate crude was holding at $54.01 a barrel. Benchmarks Brent crude oil was at $55.56 a barrel.
• As Saudi Arabia cuts even more oil than promised, U.S. shale production is up by 176,000 barrels per day – but it’s the frac sand industry that is about to come up for some very lucrative air. Last week, the Saudis said they had cut production to below 10 million barrels per day, which is a two-month low, and lower than the Kingdom had pledged to cut. At the same time, the Energy Information Administration (EIA) came out with news of a 176,000-barrel-per-day increase in U.S. production from the previous week – the biggest increase since May 2015.
• Arrows Up LLC, an affiliate of OmniTRAX Inc., has introduced a method to get frac sand into the blender at the wellhead in a way that eliminates dust, saves time and cuts costs. “Anyone who has ever fracked a well knows there are a million things to consider when it comes to safety, costs and efficiencies,” said Ken White, director of sales for Arrows Up LLC. “Our system makes their job easier by providing a last-mile containerized proppant delivery solution that addresses all three of those business priorities.” White said their delivery solution combines unitized Jumbo Bins with a riser that allows the sand to be directly discharged into the blender at the wellhead. This flexible system offers tailored solutions that customers love because it reduces transportation costs and demurrage without compromising safety. The Arrows Up Jumbo Bin can hold 25 tons of frac sand and decrease product shrinkage by reducing the number of times the product needs to be transferred. It can also be moved by standard transportation equipment, giving customers the flexibility they need to control costs.