Eagle Ford Sand Grab Underway

Sand is Thought to Help Further Stimulate a Well During Fracking
Frack Sand Storage

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At the onset of the Eagle Ford boom, the biggest priority was getting skin in the game. Now, rather than a land grab, the next big thing may be a sand grab.

Next month, the EIA predicts the Eagle Ford will reach oil production of $1.5-million bbls/d, but according to the Houston Chronicle, 95% of the oil and gas is left behind, despite the high production numbers. With those statistics, operators are motivated to find ways to recover these hydrocarbons. One method already being applied is the use of copious amounts of sand in well completions, in order to further stimulate the well during the fracking process.

The use of sand in well completions stands to greatly benefit companies that supply sand to operators. Sand miner US Silica Holdings Inc. said its demand could triple over the next five years, according to Reuters. Thousands of tons of sand are used to frack just one well.

BNSF & U.S. Silica Plan Frack Sand Storage in San Antonio

Expect 3-4 shipments of 10,000 tons per month coming to San Antonio
Frack Sand Storage

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BNSF and U.S. Silica have plans to build a silica sand storage facility in San Antonio for the Eagle Ford Shale. The facility will have capacity to store 15,000 tons of frack sand and should be operational by early 2013.

U.S. Silica expects to make 3-4 shipments per month of 10,000 tons of frack sand from Illinois to Texas. The company will ship three grades of dry sand, as well as resin coated proppants from a new facility in Rochelle, IL. [Read more…]

Frack Sand Trucking Company Adding Dozens of Trucks and Drivers in 2012

Hauling Frack Sand, Drilling Fluids, and Produced Liquids (Oil & Condensate) is Big Business in South Texas

A frack sand trucking company has plans to add dozens of trucks and almost 100 more Eagle Ford Jobs by the end of 2012. Cornell Carriers is one of many companies hiring drivers by the dozen. The demand for hauling sand, fluids, and oil production is outstripping supply.  There simply aren’t enough qualified drivers living in South Texas. Almost every company with trucks is hiring drivers. If you have a CDL, take advantage of the opportunity.

Read more about Cornell’s plans at BizJournals.com [Read more…]

Pioneer Natural Resources (PXD) Grows Eagle Ford Production 15% in Q1

White Sand Completions Continue to Look Promising - Similar Production with $700,000 in Savings

Pioneer Natural Resources continues its focus on lower costs and further improving its Eagle Ford assets.  Along the way, the company grew Eagle Ford production 15% quarter over quarter from 20,000 boe/d to 23,000 boe/d.  Current expectations are for more than 50,000 boe/d in 2014.

Pioneer reported that results continue to hold up on the 45 wells where white sand was used instead of ceramic proppant in completions. The company tested white sand in more shallow areas of the play and has recognized a cost savings of $700,000 per well. If production results hold up, we might see a more significant shift to the use of white sand.

The company has 10 wells waiting to be completed and plans to bring online 125 wells this year. With 26 brought online in the first quarter, we’ll see an increase to more than 30 wells per quarter over the remainder of the year.

You can read more quarterly commentary at our Pioneer Eagle Ford page.

Eagle Ford Crude is Driving Rail Traffic Across South Texas

Will the Gardendale Rail Go From Almost Abandoned To 25,000+ Railcars Served?
Gardendale Pipe Yard

Courtesy of Ironhorse Resources | Click to Enlarge

South Texas rail traffic is on the rise. Some of the traffic is directly related to growth in the Eagle Ford and some is related to economic growth across the board.

The Port of San Antonio’s East Kelly Railport is set for an expansion this year. Watco is expanding to occupy 20 acres of the 350 acre railport and will nearly double the amount of track it has in place from 20,000 ft to more than 35,000 ft. The development is in response to growth from serving a little more than 2,600 railcars in 2010 to more than 4,500 in 2011. [Read more…]

Alice TX – No Drilling, But Still a Boom Time

Alice Texas doesn’t sit in the fairway of the Eagle Ford Shale, but it sure seems to be benefiting. A $6 million sales tax surplus was realized over the past year. The city budgeted income of $650,000 per month and only one month came in under $1,000,000.

Weatherford, whose office had shrunk over several years, has grown from 27 to over 300 employees in three short years. An Alice based frack sand company, SandPro, has over 400 employees in the state. For reference, Alice’s population is somewhere around 20,000. Companies with hundreds of employees make a big impact.

While not in the middle of development, the city is positioned centrally from east to west and the existing presence of the oil industry before the Eagle Ford boom, makes it an easy location for distribution and offices.  [Read more…]