The U.S. benchmark, WTI Crude, fell 2.09% to $90 a barrel at press time, while Brent Crude was down 1.76% to $91.33.
Reuters reports that with crude prices at their highest levels in years, U.S. oil drillers are trying to boost output fast, but their efforts have been hit by a shortage of sand to use for fracking operations. Crude output is expected to hit records in parts of Texas and New Mexico, the heart of U.S. shale activity. Sand supplies are so tight that it is slowing the pace of work for some oil drillers, and higher costs for sand are eating into the bottom line for others.
Glenn Leroux, president and CEO of Canadian Premium Sand, joined BNN Bloomberg to discuss why the company has shifted away from the oil patch and into solar glass manufacturing. Despite soaring oil prices, he sees the solar business as a good investment. “It doesn’t make sense to go back to frac sand,” he said.