This document provides an overview and analysis of the frac sand supply chain and market. It discusses trends driving increased use of regional frac sand sources, such as higher intensity drilling increasing sand volumes used per well. The emergence of sand mines in the Permian Basin is a major development that could significantly reduce logistics costs. However, challenges for Permian sand include developing adequate infrastructure and workforce to support major volumes. The document also covers the impacts of new regulations on trucking and silica dust exposure.
Evolving Frac Sand Supply Chain and Logistics TrendsTaylor Robinson
The panel discussion focused on evolving trends in the frac sand supply chain and logistics. Three key trends were discussed: 1) Growing sand intensity and regional sand is shifting the logistics focus to "last mile" solutions for delivering sand to wells, 2) Supply chain responsibilities are evolving as various services are bundled, unbundled, or rebundled, and 3) New equipment and technologies are proliferating to increase efficiency, lower costs, and improve environmental performance in areas like portable storage, transloading, and software. The panelists represented companies involved in frac sand supply, logistics, and consulting.
JP Morgan transportation and logistics frac sand logistics by plg consulting ...Taylor Robinson
This document discusses trends in the frac sand industry, including:
1) Regional sand is growing its market share as producers seek to reduce logistics costs. Permian dune sand mines starting up in 2018 may capture a significant portion of the Permian market.
2) Increasing lateral lengths and sand intensity per foot are driving higher sand volumes per well. This favors regional sand producers and is increasing demand for finer 100 mesh sand.
3) The stabilized oil price and rig count environment means frac sand demand growth will be driven by factors other than rig counts in the near future. Producers have little room for price increases given tight cash flows.
4) High intensity completions continue to be adopted
Petrochemical Supply Chain and Logistics 2017Taylor Robinson
This document summarizes the presentation by Taylor Robinson of PLG Consulting on shale gas, industrial expansion, and polyethylene. The presentation covers:
1) An overview of the US shale gas revolution and its impact on markets and logistics.
2) The impact of industrial build-out driven by shale gas, including $145B in investments through 2025 focused on petrochemicals and plastics in Texas and Louisiana.
3) Updates on North American polyethylene expansion, including capacity growth of 31% by 2020 that will require exports to grow from 2.5MM tons currently to over 6MM tons.
This document discusses trends in the frac sand market, with a focus on developments in the Permian Basin. Some of the key points made include:
- Demand for frac sand has stabilized as oil prices have remained steady, though regional sand is growing its market share. The Permian Basin in particular is seeing rapid growth in frac sand demand.
- The Permian is attractive due to its low costs and productivity gains. It is on track to be the largest source of shale oil production growth. This is driving proliferation of frac sand mines in the Permian's dune fields to take advantage of lower transportation costs.
- The frac sand supply chain is evolving as producers take a more active role in sourcing
Supply is barely keeping up with growing demand in Q2, see when new supply will overtake demand, frac sand growth drivers, frac sand mega trends, and much more.
Frac sand webinar schneyer robinson-06082017 final Taylor Robinson
The document discusses key drivers of demand and supply in the frac sand market. On the demand side, tight oil production from shale plays like the Permian basin is driving continued demand for frac sand despite lower oil prices. Completion techniques are evolving to use more proppant per well. On the supply side, regional sand sources are gaining market share over long-haul northern white sand due to lower total delivered costs. Proximity of sand deposits to oilfields is increasingly important as frac sand supply chains aim to minimize transportation costs. Environmental, health and safety challenges also face the industry.
On September 25, 2013, PLG Consulting President Taylor Robinson presented at Industrial Minerals’ Frac Sands Conference in Minneapolis, Minnesota. The premise of the conference is: 'After the Gold Rush'; providing an in-depth assessment of exactly how the industry has reached its current heights and, importantly, where it is headed next. Taylor’s presentation, entitled “Mine to Market – How the Industry Has Matured,” gives current and future insight to all key aspects of the rapidly maturing frac sand supply chain.
PLG Consulting "Frac Sand - New Volume Impact" presentation given by Taylor Robinson at Industrial Minerals Conference on 9/23/2014 in Minneapolis, MN.
Evolving Frac Sand Supply Chain and Logistics TrendsTaylor Robinson
The panel discussion focused on evolving trends in the frac sand supply chain and logistics. Three key trends were discussed: 1) Growing sand intensity and regional sand is shifting the logistics focus to "last mile" solutions for delivering sand to wells, 2) Supply chain responsibilities are evolving as various services are bundled, unbundled, or rebundled, and 3) New equipment and technologies are proliferating to increase efficiency, lower costs, and improve environmental performance in areas like portable storage, transloading, and software. The panelists represented companies involved in frac sand supply, logistics, and consulting.
JP Morgan transportation and logistics frac sand logistics by plg consulting ...Taylor Robinson
This document discusses trends in the frac sand industry, including:
1) Regional sand is growing its market share as producers seek to reduce logistics costs. Permian dune sand mines starting up in 2018 may capture a significant portion of the Permian market.
2) Increasing lateral lengths and sand intensity per foot are driving higher sand volumes per well. This favors regional sand producers and is increasing demand for finer 100 mesh sand.
3) The stabilized oil price and rig count environment means frac sand demand growth will be driven by factors other than rig counts in the near future. Producers have little room for price increases given tight cash flows.
4) High intensity completions continue to be adopted
Petrochemical Supply Chain and Logistics 2017Taylor Robinson
This document summarizes the presentation by Taylor Robinson of PLG Consulting on shale gas, industrial expansion, and polyethylene. The presentation covers:
1) An overview of the US shale gas revolution and its impact on markets and logistics.
2) The impact of industrial build-out driven by shale gas, including $145B in investments through 2025 focused on petrochemicals and plastics in Texas and Louisiana.
3) Updates on North American polyethylene expansion, including capacity growth of 31% by 2020 that will require exports to grow from 2.5MM tons currently to over 6MM tons.
This document discusses trends in the frac sand market, with a focus on developments in the Permian Basin. Some of the key points made include:
- Demand for frac sand has stabilized as oil prices have remained steady, though regional sand is growing its market share. The Permian Basin in particular is seeing rapid growth in frac sand demand.
- The Permian is attractive due to its low costs and productivity gains. It is on track to be the largest source of shale oil production growth. This is driving proliferation of frac sand mines in the Permian's dune fields to take advantage of lower transportation costs.
- The frac sand supply chain is evolving as producers take a more active role in sourcing
Supply is barely keeping up with growing demand in Q2, see when new supply will overtake demand, frac sand growth drivers, frac sand mega trends, and much more.
Frac sand webinar schneyer robinson-06082017 final Taylor Robinson
The document discusses key drivers of demand and supply in the frac sand market. On the demand side, tight oil production from shale plays like the Permian basin is driving continued demand for frac sand despite lower oil prices. Completion techniques are evolving to use more proppant per well. On the supply side, regional sand sources are gaining market share over long-haul northern white sand due to lower total delivered costs. Proximity of sand deposits to oilfields is increasingly important as frac sand supply chains aim to minimize transportation costs. Environmental, health and safety challenges also face the industry.
On September 25, 2013, PLG Consulting President Taylor Robinson presented at Industrial Minerals’ Frac Sands Conference in Minneapolis, Minnesota. The premise of the conference is: 'After the Gold Rush'; providing an in-depth assessment of exactly how the industry has reached its current heights and, importantly, where it is headed next. Taylor’s presentation, entitled “Mine to Market – How the Industry Has Matured,” gives current and future insight to all key aspects of the rapidly maturing frac sand supply chain.
PLG Consulting "Frac Sand - New Volume Impact" presentation given by Taylor Robinson at Industrial Minerals Conference on 9/23/2014 in Minneapolis, MN.
Robinson presents "State of the Proppants Market" presentationPLG Consulting
This document provides an overview and analysis of the proppants market from a presentation by Taylor Robinson of PLG Consulting. It summarizes that demand for natural sand is rising significantly due to new fracking techniques, while ceramic and resin coated volumes are flat to down. Supply of natural sand is keeping pace through new mines and adequate transloading infrastructure. It also notes that consolidation and improving logistics efficiency will be key for companies to succeed in the proppants industry in coming years as customers focus on reducing total costs.
Industrial minerals oilfield minerals outlook 2014 finalPLG Consulting
1. The document discusses the state of the proppants market, including trends in demand and supply for different proppant types like natural sand, ceramics, and resin-coated sand.
2. It outlines key logistics components of the frac sand supply chain from mining to delivery at the wellhead and notes that efficient unit train operations are important for lowering costs.
3. New fracking techniques are driving increased demand for frac sand as well pad development and optimized well design techniques use more sand per well.
8. Nicole Player, MGT - Creating a Mine with Datamine Scenario Planning and S...Kristy Marshall
This document discusses using scenario planning and analysis in open pit mine planning to assess sustainability and deliver sustained value. It recommends:
1. Creating multiple pit design scenarios to understand project risk, opportunities, and drivers under different inputs and assumptions.
2. Analyzing scenarios in Datamine software to efficiently generate, schedule, and evaluate pit designs on optimization shells.
3. Comparing scenario metrics like NPV, cash flow, costs to balance financial and sustainability targets for a socially and environmentally responsible mine.
This facilitates robust project valuation and selection of development options aligned with sustainability.
2. Jonathan Nortier and Ali Sirkeci, AMC - Evaluate Your Options with MinemaxKristy Marshall
This document discusses how Minemax software can be used to evaluate mining options and scenarios. It provides three case studies where Minemax was used: 1) A capacity study to determine the optimal plant size, testing various scenarios. 2) A study of a TSF constrained project to determine the optimal pit design. 3) A study involving pit sequencing and plant feed determination for a project with multiple ore types requiring blending to meet processing constraints. The document emphasizes how Minemax allows evaluation of numerous scenarios quickly and generation of practical mining schedules.
Presentation by Edgard Hitti with Alon Asphalt Company titled "Terminal Blend Rubber Bitumen" at the California Asphalt Pavement Association San Diego Technical Committee Meeting Jan. 28, 2015 in the City of Carlsbad.
Partnering With Metal Fabrication Supply Chains To Achieve Saskatchewan GrowthSteve Demmings
The document summarizes a presentation about partnerships between Saskatchewan and the Port of Thunder Bay. It discusses how the port currently handles commodities from Saskatchewan like potash, coal, and grain. It also outlines the capabilities and facilities of the port and the Thunder Bay Metal Fabricators Association that could enable future partnerships in areas like mining and petroleum. The port has the infrastructure to support increased shipping and receiving of Saskatchewan's exports and imports.
Ignatius Michael is applying for a position as a roustabout with over 6 years of experience working offshore on various oil and gas platforms and rigs in locations such as Mumbai and the Central Complex platform. He has completed extensive safety training programs and has experience performing tasks such as loading and offloading supplies, housekeeping, mixing chemicals, and assisting with maintenance and well operations. Michael has good communication skills and knowledge of safety systems, chemicals, and rig conditions. He is seeking to further his career as a roustabout working offshore.
Presented by Todd Bush of Energent Group at The Energy Forum in Houston, Texas (modified from original to remove sensitive data). The purpose of the Haynesville Refrac Study was to determine operators, service companies, and suppliers involved in refracs. 40 initial completions and refracs were examined to understand economics, performance, and products. Most refracs utilized less proppant & showed ROI within 12 months. Production uplift varied across operators & material used.
PLG Provides Industry Updates to GE CapitalPLG Consulting
On October 15, 2013, PLG CEO Graham Brisben presented to GE Capital in New York, New York. Graham’s presentation addressed transportation updates in the Oil & Gas market which have upended traditional logistics and trading patterns in the energy industry, starting an industrial renaissance in the U.S.
1) The document presents a case study of Fowler Distributing Company, a beer and wine distributor. It analyzes the company's current delivery operations and routes, identifies problems, and poses questions to optimize the system.
2) ROUTER software is used to analyze different route designs and scenarios. The optimized current design reduces miles driven from 334 to 317 and daily costs from $764.62 to $739.93.
3) Relaxing restrictive time windows could further reduce miles to 272 and costs to $676.79, saving over $15,000 per year.
The candidate is applying for a position in the oil and gas industry and believes they would be an asset due to their hard work ethic and passion for new challenges. They have 9+ years of experience in various roles in the industry including as a power engineer, plant operator, and commissioning operator. They possess strong communication, problem solving, and safety skills and are looking for new opportunities.
The document discusses terminal operations planning including berth planning, vessel planning, and yard planning. Berth planning involves gathering information about vessel arrivals and cargo to determine berthing location and schedule. Vessel planning develops strategies for cargo handling operations considering factors like cargo layout and equipment availability. Yard planning strategies include pre-stacking cargo in fixed areas or moving service areas to reduce unnecessary moves.
The document discusses terminal operations planning including berth planning, vessel planning, and yard planning. Berth planning involves gathering information about vessel arrivals and cargo to determine berthing location and schedule. Vessel planning develops strategies for cargo handling operations considering factors like cargo layout and equipment availability. Yard planning strategies include pre-stacking cargo in fixed areas or moving service areas to reduce unnecessary moves.
Jason Bendo has over 14 years of experience in the petro-chemical industry with expertise in supervision, craft skills, planning, and safety. He has worked on numerous turnaround and capital projects for companies such as ExxonMobil, Phillips, BP, Shell, Valero, and Chevron. Bendo has held roles including superintendent, general foreman, foreman, and planner and has a strong history of completing projects on time and within budget. He has certifications in areas including boiler making, rigging, and forklift operation.
This document discusses the implications of larger container ships for regional and feeder ports. As ship sizes increase towards 12,500 TEU, there will be cascade effects that displace smaller ships across all sizes. This poses challenges for regional and feeder ports to attract sufficient cargo volumes and handle larger vessels. Port infrastructure, equipment, IT systems and administrative processes may need upgrades. Some regional ports could emerge as hubs but many may be bypassed. Feeder ports risk becoming less relevant without adaptations. Consolidation is expected in regional and feeder shipping routes.
This resume is for Larry Dosher, an experienced completion and operations engineer with over 25 years of experience in oil and gas operations, including land, inland waters, offshore shelf and deep water. He has a strong background in rig operations, remedial well interventions, and production optimization. His previous roles include senior positions at Freeport McMoRan Oil & Gas, Newfield Exploration, Agip Petroleum, and Chalmers, Collins & Alwell, where he specialized in well completions, workovers, and production engineering. He brings expertise in areas such as artificial lift optimization, project management, and cost reduction.
Richard Steger, Platform Manger-Rehab, Ingevity, delivers a technical presentation on blanaced mix design and cracking test, addressing high-recycle content asphalt mixtures at the CalAPA Spring Asphalt Pavement Conference & Equipment Expo, April 12-13, 2017 in Ontario, Calif.
Permian basin frac design & New completions technologies 2017PLG Consulting
This document discusses trends in the frac sand market and Permian basin frac sand trends. Some key points:
- Regional frac sand is growing its market share as it provides lower total delivered costs compared to northern white sand transported long distances. New regional sand mines are opening in Texas to supply the growing Permian basin demand.
- The Permian basin frac sand demand is growing rapidly due to increasing rig counts, lateral lengths, and sand intensity in completions. Dune sand mines are proliferating in West Texas to supply this demand but face challenges from water availability, wildlife regulations, and lack of available workforce.
- As frac sand volumes increase, the focus is shifting to "last mile" logistics of transport
Frac Sand Market and Logistics, Plus Special Report on Permian Takeaway Logis...PLG Consulting
Frac sand supply was barely keeping up with growing demand in the 2nd quarter 2018. What changed in Q3? Was the number of Permian mines expanding or shrinking? What was happening to sand prices? Get these answers and more in this free presentation.
From Drilling to Downstream: Opportunities And Challenges For Rail Carriers |...PLG Consulting
With new highs in crude, NGL, and natural gas production, the US is leveraging abundant and low-cost hydrocarbons to become one of the largest suppliers of energy and chemicals to the world. PLG Consulting’s CEO Graham Brisben explains why this is happening and what it means for rail shipments and car demand in sand, refined products, chemicals, and other commodities.
This document provides an overview and analysis of the proppants market from a presentation by Taylor Robinson of PLG Consulting. It summarizes that demand for natural sand is rising significantly due to new fracking techniques, while ceramic and resin coated volumes are flat to down. Supply of natural sand is adequate as new mines continue to come online. Unit train shipping has been a major logistical development, while trucking remains regional. The presentation examines proppant supply chains, mining and processing locations, major shipping flows, and rail transport. It identifies consolidation, efficient supply chains, and cost reduction as keys for companies going forward.
Robinson presents "State of the Proppants Market" presentationPLG Consulting
This document provides an overview and analysis of the proppants market from a presentation by Taylor Robinson of PLG Consulting. It summarizes that demand for natural sand is rising significantly due to new fracking techniques, while ceramic and resin coated volumes are flat to down. Supply of natural sand is keeping pace through new mines and adequate transloading infrastructure. It also notes that consolidation and improving logistics efficiency will be key for companies to succeed in the proppants industry in coming years as customers focus on reducing total costs.
Industrial minerals oilfield minerals outlook 2014 finalPLG Consulting
1. The document discusses the state of the proppants market, including trends in demand and supply for different proppant types like natural sand, ceramics, and resin-coated sand.
2. It outlines key logistics components of the frac sand supply chain from mining to delivery at the wellhead and notes that efficient unit train operations are important for lowering costs.
3. New fracking techniques are driving increased demand for frac sand as well pad development and optimized well design techniques use more sand per well.
8. Nicole Player, MGT - Creating a Mine with Datamine Scenario Planning and S...Kristy Marshall
This document discusses using scenario planning and analysis in open pit mine planning to assess sustainability and deliver sustained value. It recommends:
1. Creating multiple pit design scenarios to understand project risk, opportunities, and drivers under different inputs and assumptions.
2. Analyzing scenarios in Datamine software to efficiently generate, schedule, and evaluate pit designs on optimization shells.
3. Comparing scenario metrics like NPV, cash flow, costs to balance financial and sustainability targets for a socially and environmentally responsible mine.
This facilitates robust project valuation and selection of development options aligned with sustainability.
2. Jonathan Nortier and Ali Sirkeci, AMC - Evaluate Your Options with MinemaxKristy Marshall
This document discusses how Minemax software can be used to evaluate mining options and scenarios. It provides three case studies where Minemax was used: 1) A capacity study to determine the optimal plant size, testing various scenarios. 2) A study of a TSF constrained project to determine the optimal pit design. 3) A study involving pit sequencing and plant feed determination for a project with multiple ore types requiring blending to meet processing constraints. The document emphasizes how Minemax allows evaluation of numerous scenarios quickly and generation of practical mining schedules.
Presentation by Edgard Hitti with Alon Asphalt Company titled "Terminal Blend Rubber Bitumen" at the California Asphalt Pavement Association San Diego Technical Committee Meeting Jan. 28, 2015 in the City of Carlsbad.
Partnering With Metal Fabrication Supply Chains To Achieve Saskatchewan GrowthSteve Demmings
The document summarizes a presentation about partnerships between Saskatchewan and the Port of Thunder Bay. It discusses how the port currently handles commodities from Saskatchewan like potash, coal, and grain. It also outlines the capabilities and facilities of the port and the Thunder Bay Metal Fabricators Association that could enable future partnerships in areas like mining and petroleum. The port has the infrastructure to support increased shipping and receiving of Saskatchewan's exports and imports.
Ignatius Michael is applying for a position as a roustabout with over 6 years of experience working offshore on various oil and gas platforms and rigs in locations such as Mumbai and the Central Complex platform. He has completed extensive safety training programs and has experience performing tasks such as loading and offloading supplies, housekeeping, mixing chemicals, and assisting with maintenance and well operations. Michael has good communication skills and knowledge of safety systems, chemicals, and rig conditions. He is seeking to further his career as a roustabout working offshore.
Presented by Todd Bush of Energent Group at The Energy Forum in Houston, Texas (modified from original to remove sensitive data). The purpose of the Haynesville Refrac Study was to determine operators, service companies, and suppliers involved in refracs. 40 initial completions and refracs were examined to understand economics, performance, and products. Most refracs utilized less proppant & showed ROI within 12 months. Production uplift varied across operators & material used.
PLG Provides Industry Updates to GE CapitalPLG Consulting
On October 15, 2013, PLG CEO Graham Brisben presented to GE Capital in New York, New York. Graham’s presentation addressed transportation updates in the Oil & Gas market which have upended traditional logistics and trading patterns in the energy industry, starting an industrial renaissance in the U.S.
1) The document presents a case study of Fowler Distributing Company, a beer and wine distributor. It analyzes the company's current delivery operations and routes, identifies problems, and poses questions to optimize the system.
2) ROUTER software is used to analyze different route designs and scenarios. The optimized current design reduces miles driven from 334 to 317 and daily costs from $764.62 to $739.93.
3) Relaxing restrictive time windows could further reduce miles to 272 and costs to $676.79, saving over $15,000 per year.
The candidate is applying for a position in the oil and gas industry and believes they would be an asset due to their hard work ethic and passion for new challenges. They have 9+ years of experience in various roles in the industry including as a power engineer, plant operator, and commissioning operator. They possess strong communication, problem solving, and safety skills and are looking for new opportunities.
The document discusses terminal operations planning including berth planning, vessel planning, and yard planning. Berth planning involves gathering information about vessel arrivals and cargo to determine berthing location and schedule. Vessel planning develops strategies for cargo handling operations considering factors like cargo layout and equipment availability. Yard planning strategies include pre-stacking cargo in fixed areas or moving service areas to reduce unnecessary moves.
The document discusses terminal operations planning including berth planning, vessel planning, and yard planning. Berth planning involves gathering information about vessel arrivals and cargo to determine berthing location and schedule. Vessel planning develops strategies for cargo handling operations considering factors like cargo layout and equipment availability. Yard planning strategies include pre-stacking cargo in fixed areas or moving service areas to reduce unnecessary moves.
Jason Bendo has over 14 years of experience in the petro-chemical industry with expertise in supervision, craft skills, planning, and safety. He has worked on numerous turnaround and capital projects for companies such as ExxonMobil, Phillips, BP, Shell, Valero, and Chevron. Bendo has held roles including superintendent, general foreman, foreman, and planner and has a strong history of completing projects on time and within budget. He has certifications in areas including boiler making, rigging, and forklift operation.
This document discusses the implications of larger container ships for regional and feeder ports. As ship sizes increase towards 12,500 TEU, there will be cascade effects that displace smaller ships across all sizes. This poses challenges for regional and feeder ports to attract sufficient cargo volumes and handle larger vessels. Port infrastructure, equipment, IT systems and administrative processes may need upgrades. Some regional ports could emerge as hubs but many may be bypassed. Feeder ports risk becoming less relevant without adaptations. Consolidation is expected in regional and feeder shipping routes.
This resume is for Larry Dosher, an experienced completion and operations engineer with over 25 years of experience in oil and gas operations, including land, inland waters, offshore shelf and deep water. He has a strong background in rig operations, remedial well interventions, and production optimization. His previous roles include senior positions at Freeport McMoRan Oil & Gas, Newfield Exploration, Agip Petroleum, and Chalmers, Collins & Alwell, where he specialized in well completions, workovers, and production engineering. He brings expertise in areas such as artificial lift optimization, project management, and cost reduction.
Richard Steger, Platform Manger-Rehab, Ingevity, delivers a technical presentation on blanaced mix design and cracking test, addressing high-recycle content asphalt mixtures at the CalAPA Spring Asphalt Pavement Conference & Equipment Expo, April 12-13, 2017 in Ontario, Calif.
Permian basin frac design & New completions technologies 2017PLG Consulting
This document discusses trends in the frac sand market and Permian basin frac sand trends. Some key points:
- Regional frac sand is growing its market share as it provides lower total delivered costs compared to northern white sand transported long distances. New regional sand mines are opening in Texas to supply the growing Permian basin demand.
- The Permian basin frac sand demand is growing rapidly due to increasing rig counts, lateral lengths, and sand intensity in completions. Dune sand mines are proliferating in West Texas to supply this demand but face challenges from water availability, wildlife regulations, and lack of available workforce.
- As frac sand volumes increase, the focus is shifting to "last mile" logistics of transport
Frac Sand Market and Logistics, Plus Special Report on Permian Takeaway Logis...PLG Consulting
Frac sand supply was barely keeping up with growing demand in the 2nd quarter 2018. What changed in Q3? Was the number of Permian mines expanding or shrinking? What was happening to sand prices? Get these answers and more in this free presentation.
From Drilling to Downstream: Opportunities And Challenges For Rail Carriers |...PLG Consulting
With new highs in crude, NGL, and natural gas production, the US is leveraging abundant and low-cost hydrocarbons to become one of the largest suppliers of energy and chemicals to the world. PLG Consulting’s CEO Graham Brisben explains why this is happening and what it means for rail shipments and car demand in sand, refined products, chemicals, and other commodities.
This document provides an overview and analysis of the proppants market from a presentation by Taylor Robinson of PLG Consulting. It summarizes that demand for natural sand is rising significantly due to new fracking techniques, while ceramic and resin coated volumes are flat to down. Supply of natural sand is adequate as new mines continue to come online. Unit train shipping has been a major logistical development, while trucking remains regional. The presentation examines proppant supply chains, mining and processing locations, major shipping flows, and rail transport. It identifies consolidation, efficient supply chains, and cost reduction as keys for companies going forward.
This document discusses PLG Consulting's expertise in bulk commodity logistics, energy and chemical markets, and logistics infrastructure design. It provides an overview of PLG's team experience, core expertise, and services. It also includes presentations on trends in US shale energy supply chains including production and transportation of crude oil, natural gas, natural gas liquids, and frac sand.
North American Oil & Gas and Petrochemical Supply Chain: Latest Impact to RailPLG Consulting
With the current news cycle, keeping well-informed about the petrochemical, oil and gas industries can be a full-time job. Executives looking to improve their operations and understand market dynamics should check out this presentation given by PLG Consulting at the Midwest Association of Rail Shippers (MARS) 2018 Summer Meeting, where we covered:
- How oil prices will affect hydrocarbon production
- Key frac sand and logistics trends
- Opportunities for chemical, plastics and crude by rail
- Petrochemical investment forecasts
Expert Perspective on the Frac Sand Market and Supply Chain - schneyer robinson PLG Consulting
Latest analysis on the frac sand market and supply chain. Expert Perspectives on the Frac Sand Market and Supply Chain.
Schneyer Robinson
06082017 final
A data-driven view of frac sand in the US shale plays, Permian, Eagle Ford, SCOOP, STACK, Niobrara. Includes coverage of the anticipated supply of West Texas sand mines in the Permian Basin and the upcoming logistical and water constraints.
I mformed oilfield_minerals_conf_houston_20170522-schneyer_robinson_final. fo...Susan Humerian
PLG President, Taylor Robinson, spoke at the Oilfields Mineral & Markets Forum 2017 in Houston, Texas on May 23rd. Mr. Robinson presented The Frac Sand Industry New Normal Supply Chain Challenges and Opportunities which included:
Comprehensive look at the current frac sand market
Analysis on proppant demand drivers
Information on regional sand basins
Impacts on logistics and supply chain
The document summarizes the development of the frac sand supply chain industry from its early growth to the current trends toward consolidation and optimization. It discusses how demand is driven by shale drilling activity, the major players in sand mining and logistics, and cost factors. The presentation predicts further consolidation, with the most efficient integrated supply chains winning by leveraging every link to provide the lowest total delivered cost. Within 3-5 years the industry will likely see significant growth driven by liquids production, with "tier 1" suppliers focusing on reducing costs through continuous improvement and gaining volume leverage.
PLG presents, "From Mine To Market: Overcoming Supply Chain Hurdles" at 3rd F...PLG Consulting
PLG president, Taylor Robinson spoke at the 3rd annual Frac Sand Conference, an Industrial Minerals Event, held in Minneapolis, Minnesota on September 1, 2015. PLG’s presentation, From Mine To Market: Overcoming Supply Chain Hurdles, featured the latest market intelligence on the effects of the global and U.S. energy markets on the frac sand market with updates on each link of the frac sand supply chain and the small covered hopper car market. Robinson also spoke about the latest fracking technology and its impacts on the short term outlook of the frac sand industry along with opportunities for long term growth. Robinson also moderated the three logistics sessions at the conference.
US Silica Holdings is the second largest producer of commercial silica in the US, which is used primarily as a proppant in fracking. The analyst recommends buying US Silica Holdings due to increasing demand for its frac sand, low costs, scale advantages, and barriers to entry in mining and processing commercial silica. US Silica Holdings has expanded production capacity through new facilities and sees potential to further grow sales and margins.
From Upstream to Downstream: Opportunities and Challenges for RailPLG Consulting
With unprecedented highs in crude, NGL, and natural gas production, the US is leveraging abundant and low-cost hydrocarbons to become one of the largest energy and chemicals suppliers to the world. PLG Consulting’s CEO Graham Brisben details why this is happening and what it means for rail shipments and car demand in sand, refined products, chemicals, and other commodities. Download this free presentation given at the Rail Equipment Finance Conference 2019. In it, you’ll discover:
- What’s expected for frac sand rail shipments in 2019
- How small cube hoppers are affecting cars in storage
- The biggest stories that represent potential new rail volumes/tank car demand
- The forecast for shale-driven industrial investment
This presentation was given by Joel Schneyer, Managing Director at Headwaters MB at the Petroleum Connection 5th Annual Frac Sand Supply & Logistics Conference in San Antonio, TX.
Coping with the new paradigm: What might the industry look like when it all ...Capstone Headwaters
This presentation was given by Joel Schneyer, Managing Director at Headwaters MB at the Industrial Minerals 4th Frac Sand Conference in Minneapolis, MN.
The following presentation was given by Joel Schneyer, Managing Director at Headwaters MB at the Frac Sand Insider 2016 Conference & Exhibition in La Crosse, WI.
-Sandonomics ’17 - Regionalized Value, Distance Matters to the DJ and Bakken was presented on September 13, 2017 at the 5th Frac Sand Conference hosted by Industrial Minerals Events in Denver, Colorado. Taylor Robinson, President of PLG Consulting, and Joel Schneyer, Managing Director at Headwaters MB, provided the latest analysis of the fluctuating frac sand market. The presentation included a look at proppant consumption and grade preferences by basin, insights into the logistical challenges and requirements, and the latest information for frac suppliers to manage costs from the mine to the well head.
schneyer robinson
.5th frac sand_conf_
Similar to JP Morgan Transportation and Logistics - Frac Sand Update (20)
How Northeast Petrochemical Logistics Will Change The Industry LandscapePLG Consulting
In this presentation, originally given at the Northeast U.S. Petrochemical Conference in the summer of 2018, PLG Consulting covered:
- Development factors and challenges in NE petrochemical production over the next decade and what it means for rail shipments and car demand in sand, refined products, chemicals, and other commodities
- Best practices in petrochemical industry logistics
- Developing logistics and supply chain strategies that lead to a competitive advantage
Pipeline capacity in the Permian Basin is approaching maximum capacity, leaving up to 740,000 barrels per day of crude stranded by September 2019 according to PLG Consulting. Alternatives like rail and trucking cannot make up the capacity shortfall. This will result in an estimated $40 million per day or 200 million barrels of unrealized revenue for Permian producers over the next 16 months until new pipeline projects are completed. To mitigate the capacity constraints, producers may be forced to shift rigs and completions to other shale plays in order to maintain production growth goals.
The U.S. Truck Market In Crisis - PLG Consulting PLG Consulting
After an extended period of ample truckload capacity and weak carrier pricing power, U.S. shippers are now finding themselves in a tight market with rapidly rising rates. Major truck shippers are having trouble covering loads, paying higher spot rates and are facing increasing intermodal costs. View this presentation to learn why and what you can do about it or visit our website for the full webinar recording.
The Future Has Arrived: Petrochemicals And Energy By Rail | Southwest Rail Sh...PLG Consulting
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PLG Consulting Appalachian logistics League May 5, 2015PLG Consulting
PLG president, Taylor Robinson spoke on May 5, 2015 at the 65th annual Appalachian Logistics League meeting. Mr. Robinson presentedThe North American Energy Revolution: The Implication for Logistics. The meeting was an opportunity for members to network and discuss the ever changing industry of Supply Chain and Logistics with a primary focus on the impacts to the region.
The document summarizes the implications of the North American energy revolution for rail transportation. It discusses how new extraction technologies have led to surging domestic production of oil, gas and NGLs, displacing many imports. This has led to growth in crude-by-rail as production outpaced pipeline capacity, especially for Bakken crude moving to refineries. It forecasts crude-by-rail volumes remaining stable as pipelines are built out slowly, and prices expected to rebound after a challenging 2015 enables continued production growth and frac sand/crude-by-rail demand.
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Plg union league railway supply group luncheonPLG Consulting
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Presentation slides from XP2024 conference, Bolzano IT. The slides describe a new view to leadership and combines it with anthro-complexity (aka cynefin).
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This presentation was uploaded with the author’s consent.
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This presentation was uploaded with the author’s consent.
Mastering the Concepts Tested in the Databricks Certified Data Engineer Assoc...SkillCertProExams
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Suzanne Lagerweij - Influence Without Power - Why Empathy is Your Best Friend...Suzanne Lagerweij
This is a workshop about communication and collaboration. We will experience how we can analyze the reasons for resistance to change (exercise 1) and practice how to improve our conversation style and be more in control and effective in the way we communicate (exercise 2).
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Abstract:
Let’s talk about powerful conversations! We all know how to lead a constructive conversation, right? Then why is it so difficult to have those conversations with people at work, especially those in powerful positions that show resistance to change?
Learning to control and direct conversations takes understanding and practice.
We can combine our innate empathy with our analytical skills to gain a deeper understanding of complex situations at work. Join this session to learn how to prepare for difficult conversations and how to improve our agile conversations in order to be more influential without power. We will use Dave Gray’s Empathy Mapping, Argyris’ Ladder of Inference and The Four Rs from Agile Conversations (Squirrel and Fredrick).
In the session you will experience how preparing and reflecting on your conversation can help you be more influential at work. You will learn how to communicate more effectively with the people needed to achieve positive change. You will leave with a self-revised version of a difficult conversation and a practical model to use when you get back to work.
Come learn more on how to become a real influencer!
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Rosie Wells is an Arts & Cultural Strategist uniquely positioned at the intersection of grassroots and mainstream storytelling.
Their work is focused on developing meaningful and lasting connections that can drive social change.
Please download this presentation to enjoy the hyperlinks!
Collapsing Narratives: Exploring Non-Linearity • a micro report by Rosie Wells
JP Morgan Transportation and Logistics - Frac Sand Update
1. 1Experience / Expertise / Excellence
Taylor Robinson
President, PLG Consulting
January 11, 2018
Transportation and
Logistics
Frac Sand Update
2. 2Experience / Expertise / Excellence www.plgconsulting.com
Partial Client List
Experience
PLG Team
▪ Real-world, industry veterans
▪ Delivering value to over 200 clients
since 2001
▪ Over 50 logistics, supply chain &
engineering experts with operational
leadership experience
Core Expertise
▪ Bulk commodity logistics
▪ Surface transportation – all modes
▪ Energy & chemical markets
▪ Private equity and corporate
development
Services
▪ Frac sand supply chain design &
operational improvement
▪ Diagnostic assessments &
optimization
▪ Logistics infrastructure design
▪ Investment strategy, target
identification, due diligence, post-
transactional support
▪ Site selection
▪ Independent logistics technology
assessment & implementation
▪ Hazmat training, auditing & risk
assessment
3. 3Experience / Expertise / Excellence
“Stable” Price / Rig Count Environment
WTI Oil price has been rangebound $40 to $60 for
~18 months
Onshore rig count has stabilized around 900 rigs
over ~past four months
▪ ~60% of rigs are in TX, OK, NM
Implications for frac sand:
▪ Demand growth not driven by rigs, but other factors in place
▪ Tight frac sand capacity through early 2018
▪ Producers’ conservative, tight cashflow will remain – little room
for sand price inflation
▪ Permian and SCOOP/STACK are the hot oil growth plays
Source: Infillthinking.com
Source: Energentgroup.com Nov 17, 2017
Rig Count by State
Rig Count – Past 4 Months
4. 4Experience / Expertise / Excellence
Sand Volume and Spec Drivers
Increasing lateral lengths
▪ Nearly all producers continue to extend
lateral length with similar or higher sand
intensity
▪ Experimental wells extending well
beyond 10,000 feet
Source: Pioneer Natural Resources Investor Presentation –
November 2017
More sand / lateral foot
▪ 2,000 lbs per foot becoming
commonplace
▪ Experimental wells up to 5,000 lbs/foot
▪ Higher density drives more 100 mesh
Leads to more sand per well
▪ Sand volume is still different by play
▪ All plays continue to rise
▪ Note that last quarter always has some
delayed reporting issues, so some lag
in the Q2 volume
5. 5Experience / Expertise / Excellence
Source: Infillthinking.com
Sand Volume and Spec Drivers
Majority of industry still growing sand volumes
and increasing efficiency
▪ Industry “darlings” are implementing latest version of higher
intensity campaigns
▪ “Followers” are working hard on their generation of well
completions, many with more sand intensive well designs
▪ A handful of producers talked about cutting back on sand
volume during Q3 calls
Source: Energentgroup.com
100 mesh availability - a competitive advantage
▪ 100 mesh volume likely will overtake 40/70 in 2018 for volume
▪ 40/70 still key in many well completion designs
▪ 100 mesh growth trend enables regional sand growth
▪ Will regional sand production growth cause another increase in
the percentage of 100 mesh downhole?
6. 6Experience / Expertise / Excellence
Frac Sand Supply Chain Overview
Source: Headwaters MB research, PLG Consulting
The Northern White supply chain is long and complex – Logistics
makes up about 3/4 of the total delivered cost
Operating Costs =
$10 - $30 / ton
Transload
Facility Fees =
$7 - $20 / ton
Freight + Railcar Leases
+ Fuel Surcharges +
Logistics =
$30 - $60 / ton
“Last Mile”
Trucking Costs =
$15 - $50 / ton
Mining Processing Rail
Load-out
Long Haul
Rail
Transloading
and Storage
Trucking to
Well
Northern White
X X X X X X
Regional Sand
X X ? X
Regional Sand is a game changer
7. 7Experience / Expertise / Excellence
Materials
Chemicals
Clean Water
Proppants
OCTG (Pipe)
Railcars to
Transloading
5
From local
reservoir /
well
Avg - 55
Largest - 240
5~8
Trucks to
Well Site
20
~300,000
barrels
water / job **
Avg – 220
Largest - 960
20~32
Avg – 260
Up to 1,000
Truckloads
Oil / Gas / NGLs
Pipeline, Truck, Rail
-Note: A majority of
crude is still moved by
truck for some distance
at some plays
Waste Water
Initially 2 barrels of
produced water per
barrel of Crude
increasing to 5 barrels
on average
Avg – 65
Up to 250
Railcars
* Example is for rail-delivered supply chain ** Horizontal/Directional well average in last 6 months (Energent Group)
Each well drilled requires:
Shale Operations Are Logistics-Intensive –
Challenges Pushing Downstream
8. 8Experience / Expertise / Excellence
Emergence of Regional Sand
Regional sand growing share
since 2014 downturn
Regional sand share expected to
grow significantly in 2018 as
Permian dune mines start
Source: EIA, US Geological Survey, Headwaters MB Research
Northern
White Sand
High quality
white sands
Late
Quaternary
Sand Dunes
Hickory
Sandstone Haynesville
Eagle
Ford
Permian
DJ
Bakken
Marcellus
- Utica
SCOOP/
STACK
Source: U.S. Silica December 2016
9. 9Experience / Expertise / Excellence
Total Delivered Cost Reduction Driving
Regional Mine Growth
“Back of the envelope” math
for Permian dune sand
Conservatively a $50 per ton
logistics reduction (eliminating rail &
transload)
Average well uses 5,500 tons of
sand
$275,000 savings per well
10. 10Experience / Expertise / Excellence
Will Permian Dune Sand Be “Good Enough” For a
Majority of Users and Applications?
Source: Company websites, Headwaters MB research
Permian Dune Sand Texas Regional “Brown” or “Hickory” Sands Northern White Sand
Black
Mountain
Black
Mountain Unimin FMSA US Silica Unimin FMSA US Silica
40/70 100 40/70
Brady
40/70
Texas Gold
40/70
Premium Hickory
40/70
Unifrac
40/70
White
40/70
White
Winkler, TX Winkler, TX Brady, TX Voca, TX Voca, TX
K Value 7,000 8,000 6,000 6,000 6,000 11,000
8,000-
9,000 9,000
Sphericity 0.7 0.7 > 0.6 > 0.6 0.6 0.7 - 0.9 0.7 0.6
Roundness > 0.6 > 0.6 > 0.6 > 0.6 0.7 0.7 - 0.9 0.7 0.7
Turbidity < 100 < 100 < 250 < 75 10 - 130 < 100 < 50 10 - 140
Acid Solubility < 3.0% < 3.3% < 3.0% < 2.0% 1.80% < 3.0% < 0.6% 0.80%
Only limited volumes have been pumped
since Hi-Crush started in July – initial
production results only
Projected mix (on average) ~75% / 25%
between 100 mesh (70/140) and 40/70
Unanswered questions:
▪ Will dune sand 40/70 be acceptable? Esp.
for deep, high pressure Delaware wells….
▪ Will industry gravitate towards “West TX 100
mesh” (50/140) and not use the fine 40/70?
▪ Will E&Ps continue to “import” 40/70 from
upper Midwest?
▪ Or will E&Ps shift towards an even higher
share of 100 mesh due to cost advantage
and success in high intensity applications?
Burning industry question – What will be the dune sand share in the Permian a year from now?
11. 11Experience / Expertise / Excellence
Regional Sand Growth – Not Just the Permian…
Eagle Ford
Permian SCOOP / STACK
Haynesville
12. 12Experience / Expertise / Excellence
Frac Sand Supply Chain Evolution
E&Ps are taking a more active role in sourcing
and managing the frac sand supply chain as frac
sand cost becomes a larger share of the total
well cost.
A variety of E&P sourcing models exist:
➢ Traditional - Utilize pressure pumper to source
and deliver frac sand to their well site operations
➢ Growing – Self sourcing sand at mine or
transload facilities and manages logistics
providers with internal team
➢ Exceptional - Vertically-integrated supply chain
with capability to source all pieces of the supply
chain internally and externally
New Entrants / OfferingsShifting Supply Chain Responsibilities
Frac sand providers continue to grow in-basin
sand sales volume
▪ Have built rail logistics capabilities over past several years
▪ Continue to build out their own transload facilities
Sand companies are increasing last-mile
capabilities with numerous options including:
▪ U.S .Silica – pushing use of SandBox containers
▪ Hi Crush selling delivered sand to wellsite with PropX boxes
(PropStream)
‒ PropX also leases equipment and customer manages sand sourcing and
trucking
▪ Arrows Up containers (owned by OmniTrax)
‒ Delivered to wellsite option – can use any sand
▪ Other large sand companies managing last mile logistics for
E&P via pneumatic trucks; sometimes utilizing portable silos
New sand mining companies in regional sand
Transloaders and other 3rd party logistics
providers offering last-mile services
13. 13Experience / Expertise / Excellence
High Intensity
Drilling
Expanding
… Driving More
Development
with Finer Sand
… Enabling
Regional Sand
Market to Grow
… and
Increasing the
Role of
Trucking in the
Supply Chain
▪ Latest generation of
high intensity can add
25-40% recovery per
well
▪ Sands nearby active
basins will become the
lowest delivered cost,
displacing some
current mines and
transloading
▪ Trucking volume
growth will drive
innovation in
storage solutions at
well site
… Growing
Focus on Last
Mile Logistics
▪ 100-mesh sold out/in short
supply for foreseeable
future
▪ Crush resistance not seen
as important with finer sand
Increased
Shale Oil
Production
Flattens/Shrink
Oil Prices
… Which
Limits 2018+
Sand Volume
Growth
Shale oil is a
victim of its own
success for a
second time
BUT
Tying Trends Together Showcases
Logistics Focus Shift
14. 14Experience / Expertise / Excellence
Impacts to Frac Sand Last-Mile
Sand
Intensity
Per Well
Regional
Sand
Growth
Trucking
Industry
Challenges
(Drivers, ELD)
New
Equipment
Innovation
New
Entrants
Offering LM
Solutions
E&P
Direct
Sourcing
Growth
OSHA
Silica Dust
Mandate
6/18
Low Price
Oil/Gas
Environment
Frac Sand
Last-Mile
15. 15Experience / Expertise / Excellence
New FMCSA Standards for Truck Driver Hours of Service
Compliance
▪ Implementation mandated by December 18, 2017
▪ Requires use of an Electronic Logging Device (ELD) use by all commercial drivers
who are required to prepare hours-of-service (HOS) records of duty status (RODS)
‒ Exceptions are given to drivers in certain short-haul situations and also for drivers of
vehicles manufactured before 2008
▪ Sets ELD performance and design standards
▪ Requires ELDs to be certified and registered with FMCSA
▪ Establishes what supporting documents drivers and carriers are required to keep Source: overdriveonline.com
Electronic Logging Device (ELD) Mandate
Imminent
Source: trucks.com
16. 16Experience / Expertise / Excellence
OSHA Silica Dust Standard Impact to Industry
New OSHA Standards for Silica Sand Exposure
▪ Published on March 26, 2016
▪ Established a reduced Permissible Exposure Limit (PEL) for crystalline silica
‒ 50 µg/m3 (micrograms per cubic meter of air)
▪ Requires employers to monitor crystalline silica exposure if workplace levels exceed 25 µg/m3
for at least 30 days in a year
‒ Employers must provide medical monitoring to employees in those workplaces
▪ Employers involved in hydraulic fracturing must comply by June 23, 2018
OSHA = Occupational Safety and Health Administration - OSHA standards details are included in Appendix
Source: blowing.sucks
17. 17Experience / Expertise / Excellence
Permian Dune Sand Concerns & Challenges –
Traffic Congestion, Driver Shortages
If Permian sand volume reaches
45M Tons/Year in 2018…
▪ 1,800,000 truckloads/yr sand (if all are
pneumatic trucks)
▪ Requires over 1,500 truck fleet
National truck driver shortage
expected to reach 50,000 at end of
2017
▪ West Texas is a low population area with
few potential drivers
Source: Texas DOT
Source: Infillthinking.com, Baker Hughes, PLG analysis
Note that not all dune sand mines
are shown on the map
18. 18Experience / Expertise / Excellence
Source: WRI Aqueduct 2014m Headwaters MB
Water availability for mines Dune Sagebrush Lizard (DSL)
Source: Infillthinking.com – Sept 2017
Source: Infillthinking.com – July 2017
Permian Dune Sand Concerns & Challenges –
Sand Mining Challenges
Available Workforce
▪ Dune sand mines are mostly located in “very
high risk” areas for water availability
▪ Most dune sand mines are being designed
with 85-90% water recycling capability, but a
3M ton per year plant that still requires
~400M gallons of fresh water annually
▪ Five (5) companies have been awarded a
Certificate of Inclusion into the Texas
Conservation Plan (“TCP”) for the DSL
▪ Black Mountain, Vista, High Roller, and US
Silica), Preferred Sands
▪ 1,500 mine workers likely needed in
Kermit/Monahans area based on 14
mines coming online
▪ Kermit county population 6,300 with an
unemployment rate of 5.4%
▪ Besides hiring challenges, retention will
be a challenge
19. 19Experience / Expertise / Excellence
Last Mile Equipment Solutions - Box
Solution Characteristics/Specifications
CHARACTERISTIC ARROWS UP SANDBOX PROPX
Box Weight (tons) 1.8 4.4
4.1
(two boxes moving
on one truck)
Advertised Box Capacity (tons) 25.0 22.5
25.0
(two boxes moving
on one truck)
“Real Life” Lading Weight per
Load (tons) (*)
21.0 – 21.5 (up to 23.5) up to 21.0 22.0 – 25.0
Truck Trailer Type Flatbed / Drop Deck Proprietary Drop Deck Flatbed
Loaded Boxes per Trailer 1 1 2
Conveyor at Wellsite None
Proprietary “Cradle” (up to 4
boxes at a time)
Proprietary Conveyor System
(“PropBeast”)
Risers at Wellsite Yes No No
Max Discharge Rate into Blender
(tons/minute)
16.5 12.5 16.7
Ownership by Sand Co. None U.S. Silica – 100% Hi Crush (“investor”)
Proprietary Use by Sand Co. No No (~) No
Box Tracking
RFID/GPS-based with
software
Q2 2018 – QR code-based
tracking with software
QR code-based tracking with
software
(*) Dependent on overweight permits, tractor weight
20. 20Experience / Expertise / Excellence
Last Mile Equipment Solutions - Portable Silo
Solution Characteristics/Specifications
CHARACTERISTIC
PROPELL
(Sandstorm)
SOLARIS
FB INDUSTRIES
(Titan)
Silo Size (tons) 275 205 190, 280
Silo Configuration(s) 3-pack, 6-pack, custom 6-pack 6-pack
Truck Type Pneumatic, Bottom Dump
Pneumatic
(Bottom Dump under
development)
Pneumatic,
Bottom Dump (December
2017)
Conveyor Interface
Proprietary Conveyor System
(“VectorBelt”)
Proprietary Conveyor System
Proprietary Conveyor System
(“Cobra”)
Max Discharge Rate into Blender
(tons/minute)
10.0 11.5 16.5
Sand Co. Relationship None None None
Local Sand Management
Software
Yes Yes Yes
21. 21Experience / Expertise / Excellence
Last Mile Equipment Solutions –
Best-In-Class Solution Comparisons
Trucking will become the biggest bottleneck and inflationary portion of the frac
sand supply chain. Therefore, equipment/process improvements will focus to:
▪ Minimize truck cycle time
▪ Maximize volume per truck
▪ Minimize trucking rate
▪ Minimize demurrage
Boxes Silos
Ability to utilize low cost, flat bed truck
-Can truck be further light-weighted?
Ability to utilize bottom dump trucks
-Drive through unloading will eliminate
backing in trucks at well site (big
inefficiency)
Maximized loaded sand volume of 25k
tons+
-Volume based on permitting allowances
Maximized loaded sand volume of 27k
tons+
-Need ultra-light trailer and permitting
allowances (where possible)
Minimal demurrage due to five min unload
time
Minimal demurrage due to five to ten
minute unload time
Capable software integration enabling
real- time monitoring
Capable software integration enabling
real- time monitoring
Ability to meet OSHA June 2018
requirements
Dust suppression on conveyor and into
silo with the ability to meet OSHA June
2018 requirements
22. 22Experience / Expertise / Excellence
Last Mile Equipment Solutions – Future
Direction and Innovation Questions
Will new entrants to last-mile services be successful in gaining market
share?
Can/will box solutions gain share with high-intensity frackers?
Will bottom-dump solutions (including retro-fitted pneumatic trailers)
become mainstream for silo solutions?
Are there further payload increases available through light-weighting
tractors / trailers?
What will be the actual driver capacity lost from the implementation of
the ELD mandate?
What will be the impact of the Permian dune sand traffic congestion in
2018+ after mines come online in first half of year? What will be done to
improve the situation? Impact on road conditions and “who pays”?
23. 23Experience / Expertise / Excellence
Summary
Frac sand industry has evolved rapidly this decade
▪ It has been a rollercoaster ride!
▪ Latest downturn was driven by oil price/rig activity crash
▪ Past year shows the challenges to ramp up – 100% volume growth in
2017 vs. 2016
Regional (actually “local”) sand is revolutionary
▪ More capacity needed and will eliminate costly logistics
▪ Challenges and barriers abound that could slow/limit growth
▪ Permian is the obvious hotbed, but other plays will also grow local sand
use
Focus on last-mile will intensify in the coming year
▪ Regulatory issues are imminent and impactful
▪ Truck drivers will be the most precious resource in the supply chain
▪ Equipment innovation will continue with a focus on driving reduced cycle
times
▪ Permian trucker shortage and congestion could become severe in second
half of 2018
24. 24Experience / Expertise / Excellence
Thank You!
For follow up questions and information, please
contact:
Taylor Robinson
President
PLG Consulting
https://plgconsulting.com/
+1 (508) 982-1319 | trobinson@plgconsulting.com
And thanks to our
friends for their help :
Energent Group
Infillthinking.com
Headwaters MB