This Week’s Market Buzz
Published: Thursday, 18 June 2015 15:50
- According to the investment website Seeking Alpha, long term, the market dynamics for frac sand are still in place. The amount of frac sand per well seems to be increasing for now based on the fact drillers are using more stages per well. As prices fall drillers are incentivized to increase the amount of frac sand they use per well to increase IRRs. Many drillers have shifted from a "total production at all cost" strategy to an IRR-focused strategy, which means they will likely keep increasing the amount of sand used per well. Short term, the number of wells drilled but awaiting completion may drive demand, but it is very uncertain if this will prove to be a lasting trend.
Read more: This Week’s Market Buzz