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
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.
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.
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
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.
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
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.
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.
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.
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
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.
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
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.
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.
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.
The document discusses the impact of COVID-19 on global shipping and supply chains. It notes that blank sailings reduced excess capacity while keeping freight rates stable in the first half of 2020. Major ports in China, India, and Sri Lanka saw large drops in volumes of 20-50% in the first few months of the year. The challenges for ports include further loss of volumes, less frequent vessel calls, and potential outbreaks on terminals. However, ports may pursue opportunities such as attracting transhipment business, diversifying offerings, and increasing digitization across supply chains.
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.
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.
Shipping industry planning, optimization & schedulingPuneet Mishra
The document discusses shipping industry operations and challenges. It provides an overview of bulk and liner shipping sectors. It then outlines key challenges, including fluctuating freight rates, demand forecasting, repositioning empty containers, vessel capacity scheduling and routing, load imbalance, and hub location selection. Finally, it presents a framework for liner planning, optimization, and scheduling that involves data input, decision variables, and optimization under operational constraints.
The document discusses Halliburton's experiences with proppant management in unconventional shale resources in Argentina. It outlines Halliburton's transition from manual proppant loading processes to implementing a bulk proppant management system including a new proppant storage plant, bulk transport, and satellite storage centers. Case histories show the system improved proppant transport efficiency by reducing trips and using bulk loading for two horizontal wells completing over 50,000 sacks of proppant each.
Canpotex is the largest exporter of potash and leases around 2,000 railcars from CIT Rail to transport potash from mines in Saskatchewan to ports. CIT Rail has been a strategic partner to Canpotex since 2007 when they first leased railcars. Recently, CIT began using Canpotex's new railcar maintenance facility in Saskatchewan to service CIT's railcars, further expanding their partnership. The arrangement helps Canpotex ensure reliable potash delivery to customers and improves railcar performance and maintenance.
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.
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.
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.
Lorraine A. Hoy is seeking a position that utilizes her proven leadership skills in import and export operations, supply chain management, and customer service. She has over 15 years of experience in logistics coordination, transportation planning, and operational management. Her objective is to streamline communication procedures to minimize costs while maintaining excellent customer service.
Impact on trade on expansion of panama canal a dissertationHeisenberg26
The document discusses the proposed expansion of the Panama Canal and its potential impacts. Key points:
- The Panama Canal expansion aims to allow larger post-Panamax ships to pass through. This $5.2 billion project would address bottlenecks and growth in transpacific trade for ships carrying up to 12,000 containers.
- The expansion is expected to increase Asian freight transiting the canal and quantities of cargo delivered to Atlantic and North American ports. It could shift geographical patterns and increase cargo volumes in North American Atlantic ports.
- Panama hopes the expansion establishes the country as a regional logistics hub like Singapore and Dubai, attracting foreign investment and making Panama more competitive with other North American ports. The
This document discusses the classification of the largest floating storage and regasification unit (FSRU) ever built. The FSRU has a capacity of 263,000 cubic meters, making it larger than any existing FSRU. Extensive analysis was conducted, including liquid motion analysis to study sloshing loads, strength analysis to verify hull structure, and fatigue analysis to ensure the structure can withstand forces over a 40-year lifespan. The classification society Bureau Veritas concluded that the cargo containment system and structural design were suitable and granted approval for the FSRU to operate safely.
JP Morgan Transportation and Logistics - Frac Sand UpdatePLG Consulting
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.
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.
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.
PLG Consulting "Frac Sand - New Volume Impact" presentation given by Taylor Robinson at Industrial Minerals Conference on 9/23/2014 in Minneapolis, MN.
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.
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.
The document discusses the impact of COVID-19 on global shipping and supply chains. It notes that blank sailings reduced excess capacity while keeping freight rates stable in the first half of 2020. Major ports in China, India, and Sri Lanka saw large drops in volumes of 20-50% in the first few months of the year. The challenges for ports include further loss of volumes, less frequent vessel calls, and potential outbreaks on terminals. However, ports may pursue opportunities such as attracting transhipment business, diversifying offerings, and increasing digitization across supply chains.
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.
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.
Shipping industry planning, optimization & schedulingPuneet Mishra
The document discusses shipping industry operations and challenges. It provides an overview of bulk and liner shipping sectors. It then outlines key challenges, including fluctuating freight rates, demand forecasting, repositioning empty containers, vessel capacity scheduling and routing, load imbalance, and hub location selection. Finally, it presents a framework for liner planning, optimization, and scheduling that involves data input, decision variables, and optimization under operational constraints.
The document discusses Halliburton's experiences with proppant management in unconventional shale resources in Argentina. It outlines Halliburton's transition from manual proppant loading processes to implementing a bulk proppant management system including a new proppant storage plant, bulk transport, and satellite storage centers. Case histories show the system improved proppant transport efficiency by reducing trips and using bulk loading for two horizontal wells completing over 50,000 sacks of proppant each.
Canpotex is the largest exporter of potash and leases around 2,000 railcars from CIT Rail to transport potash from mines in Saskatchewan to ports. CIT Rail has been a strategic partner to Canpotex since 2007 when they first leased railcars. Recently, CIT began using Canpotex's new railcar maintenance facility in Saskatchewan to service CIT's railcars, further expanding their partnership. The arrangement helps Canpotex ensure reliable potash delivery to customers and improves railcar performance and maintenance.
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.
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.
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.
Lorraine A. Hoy is seeking a position that utilizes her proven leadership skills in import and export operations, supply chain management, and customer service. She has over 15 years of experience in logistics coordination, transportation planning, and operational management. Her objective is to streamline communication procedures to minimize costs while maintaining excellent customer service.
Impact on trade on expansion of panama canal a dissertationHeisenberg26
The document discusses the proposed expansion of the Panama Canal and its potential impacts. Key points:
- The Panama Canal expansion aims to allow larger post-Panamax ships to pass through. This $5.2 billion project would address bottlenecks and growth in transpacific trade for ships carrying up to 12,000 containers.
- The expansion is expected to increase Asian freight transiting the canal and quantities of cargo delivered to Atlantic and North American ports. It could shift geographical patterns and increase cargo volumes in North American Atlantic ports.
- Panama hopes the expansion establishes the country as a regional logistics hub like Singapore and Dubai, attracting foreign investment and making Panama more competitive with other North American ports. The
This document discusses the classification of the largest floating storage and regasification unit (FSRU) ever built. The FSRU has a capacity of 263,000 cubic meters, making it larger than any existing FSRU. Extensive analysis was conducted, including liquid motion analysis to study sloshing loads, strength analysis to verify hull structure, and fatigue analysis to ensure the structure can withstand forces over a 40-year lifespan. The classification society Bureau Veritas concluded that the cargo containment system and structural design were suitable and granted approval for the FSRU to operate safely.
JP Morgan Transportation and Logistics - Frac Sand UpdatePLG Consulting
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.
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.
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.
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.
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.
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.
The Future Has Arrived: Petrochemicals And Energy By Rail | Southwest Rail Sh...PLG Consulting
The document summarizes a presentation given by Graham Brisben, CEO of PLG Consulting, at an annual meeting on February 21, 2018 in San Antonio, TX. The presentation covers topics including the energy and chemicals supply chain, recent developments in energy production and energy-by-rail transportation, and the ongoing US chemical industry build-out driven by shale gas resources. Charts and figures are included to illustrate trends in areas such as crude oil production, frac sand consumption, regional sand mine development, and projected industrial investment and rail impacts through 2025 resulting from shale gas-related expansion.
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.
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
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.
-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_
ISG is now a global company with agents in South Africa, Tanzania, Mexico, Brazil, Peru, Chile and a strong team in Australia and New Zealand. Our container designs are all FEA tested and have gone through a rigorous testing programme.
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.
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
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
PLG CEO and Founder, Graham Brisben spoke at the North American Rail Shippers Annual Meeting in San Francisco, California on May 24, 2017. Mr. Brisben’s presentation North American Energy Insights: Special Focus - Mexico included:
Overview of the current energy market in North America
Information on the key impacts in the rail industry
Emerging opportunities for rail in Mexico
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.
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
Similar to Permian basin frac design & New completions technologies 2017 (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.
Petrochemical Supply Chain and Logistics 2017PLG Consulting
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.
North american energy & Petchem Markets Future Impact to railPLG Consulting
This document summarizes the presentation given by PLG Consulting on the future impact of North American energy and petrochemicals on rail. Key points include:
- Growing US oil and gas production, especially in the Permian basin, is supporting a return to growth for crude by rail despite declines since 2013 peaks. LPG by rail has surpassed crude in volume.
- Fracking techniques are becoming more intensive, requiring more sand and water per well, driving increased demand for proppants and frac sand transported by rail. Frac sand volumes have recovered to near peak levels.
- Western Canadian crude production growth over the next two years will outpace new pipeline capacity, increasing crude by rail volumes from the current 125
MARS Meeting Summer 2015-North American Energy Revolution-Implications for RailPLG Consulting
This presentation features an overview of the North American energy market with updates on PLG's Crude by Rail And Frac Sand Market report. PLG's expert analysis included market intelligence on the small covered hopper market and the U.S. industrial expansion from the shale gas production increase.
This document summarizes key logistical challenges that could impact petrochemical engineering project timelines. It notes that logistics capacity constraints will increase over the next decade due to rail, trucking, and marine congestion. Both project and operational logistics require expertise to navigate these challenges. The document recommends integrating logistics experts throughout the project life cycle to provide flexibility and avoid cost overruns from unforeseen logistical issues.
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.
Plg refc presentation 2015 v gb 16 9 aspect final 030115PLG Consulting
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Plg union league railway supply group luncheonPLG Consulting
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This document provides an overview of energy production, transportation, and consumption. It discusses topics like fracking, the Keystone XL pipeline, coal and natural gas production, and unconventional oil and gas resources. It also summarizes changes in North American energy infrastructure and flows to accommodate increasing domestic production.
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Insight: In a landscape where traditional narrative structures are giving way to fragmented and non-linear forms of storytelling, there lies immense potential for creativity and exploration.
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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).
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• For a full set of 760+ questions. Go to
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This presentation was uploaded with the author’s consent.
This presentation by OECD, OECD Secretariat, was made during the discussion “Competition and Regulation in Professions and Occupations” held at the 77th meeting of the OECD Working Party No. 2 on Competition and Regulation on 10 June 2024. More papers and presentations on the topic can be found at oe.cd/crps.
This presentation was uploaded with the author’s consent.
Permian basin frac design & New completions technologies 2017
1. 1Experience / Expertise / Excellence www.plgconsulting.com
Frac Sand Supply and Logistics Dynamics
Taylor Robinson
President, PLG Consulting
November 29, 2017
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 www.plgconsulting.com
Today’s Agenda
I. Trends Impacting Frac Sand Market
II. Permian Frac Sand Trends
III. Logistics Focus Moves to the “Last-
Mile”
IV. Frac Sand Supply Chain
Management Best Practices for Oil &
Gas Producers
4. 4Experience / Expertise / Excellence www.plgconsulting.com
I. Trends Impacting Frac Sand
Market
A. Stable Price / Rig Count
Environment
B. Sand Volume & Spec Drivers
C. Growth of Regional Sand
D. Frac Sand Supply Chain Evolution
5. 5Experience / Expertise / Excellence www.plgconsulting.com
“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
6. 6Experience / Expertise / Excellence www.plgconsulting.com
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
7. 7Experience / Expertise / Excellence www.plgconsulting.com
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?
8. 8Experience / Expertise / Excellence www.plgconsulting.com
Lowest Total Delivered Cost Wins –
Driving Industry to Regional Sand
Source: Headwaters MB research, PLG Consulting
The frac sand supplier must balance the economics of all stages -
from production through to the “last-mile” of delivery to well
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
9. 9Experience / Expertise / Excellence www.plgconsulting.com
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
10. 10Experience / Expertise / Excellence www.plgconsulting.com
Regional Sand Is “Good Enough” For Some
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%
…and growth is not limited to Texas
…Growing mine activity in Eagle Ford, MidCon, Haynesville
11. 11Experience / Expertise / Excellence www.plgconsulting.com
Frac Sand Supply Chain Evolution
E&Ps 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 - 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
12. 12Experience / Expertise / Excellence www.plgconsulting.com
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
▪ Minimizing resin-coated
sand and ceramics usage
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
13. 13Experience / Expertise / Excellence www.plgconsulting.com
II. Trends Impacting Frac Sand
Market
A. Stable Price / Rig Count
Environment
B. Sand Volume & Spec Drivers
C. Growth of Regional Sand
D. Frac Sand Supply Chain Evolution
II. Permian Frac Sand Trends
A. Why Is “Everyone” Here?
B. Rapid demand growth in progress
C. Dune sand potential
D. Permian frac sand growth
challenges and risks
14. 14Experience / Expertise / Excellence www.plgconsulting.com
Source: Pioneer Natural Resources Investor Presentation – November 2017
Why Is “Everyone” Here?
Source: U.S. Energy Information Administration, Short-Term Energy Outlook, July 2017
The shift to horizontal wells over the past three years drove
rapid IP per well increases
Midland is acknowledged as lowest cost shale play
Delaware continues to increase productivity as learning curve
grows
Permian forecasted to be the biggest volume driver in U.S.
over next year
15. 15Experience / Expertise / Excellence www.plgconsulting.com
Causing Rapid Frac Sand Demand Growth
Permian has become the largest basin for frac sand
usage during 2016 (passing the Eagle Ford)
In 2017, Permian will use ~80% more than EF – 26M
tons estimated
Note that Q2 still has outstanding data;
Volume will increase over time
Infillingthinking.com forecasts 45mm tons of
Permian frac sand consumption for 2018
Forecast (guestimate) at 50-55mmtpa in 2019
16. 16Experience / Expertise / Excellence www.plgconsulting.com
Total Delivered Cost Reduction Driving
Regional Mine Growth
Source: Headwaters MB research (2016); U.S. EIA based on data from various published studies as of April 2015
Lower 48 Shale Plays and Major Sand Basins
Directional Total Delivered Cost
Regional
Sand
Direct
Truck
Regional
Sand Rail
Northern
White Unit
Train
Northern
White
Manifest
“Back of the envelope” Math
for Permian dune sand
Roughly a $50 per ton
logistics reduction
(eliminating rail & transload)
Average well uses 5,500 tons
of sand
$275,000 savings per well
17. 17Experience / Expertise / Excellence www.plgconsulting.com
Permian Dune Sand Mines Proliferate
Three mines open now
▪ Hi Crush Kermit
▪ Aequor Burro Minerals
▪ Alpine Silica West Texas 1
Others by end of year
▪ High Roller
▪ U.S. Silica
Most others claim to be
opening in Q1 or first half
of 2018
Several mines talking about
2nd mines not listed
18. 18Experience / Expertise / Excellence www.plgconsulting.com
Will Permian Dune Sand Really Be “Good
Enough” For a Majority of Users
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 used
since July
Projected mix (on average) about 75%
/ 25% between 100 mesh and 40/70
Is “good enough” quality going to be
“good enough” in the real world?
Unanswered questions:
▪ Will dune sand 40/70 be acceptable? Esp. for
deep, high pressure Delaware wells….
▪ Will producers 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 market share of dune sand in the second half of 2018?
19. 19Experience / Expertise / Excellence www.plgconsulting.com
Permian Dune Sand Concerns & Challenges –
Traffic Congestion, Driver Shortages
Legend
Permian Shale Layers
Active Permian Rig
Existing Sand Mine
Sand Transload
Potential Sand Mine
Frac Sand Truck
Movement
Potential
Impact/Concerns
Access:
• Limited routes in some areas
• Truck congestion at major
intersections, in towns, and
near high intensity well
locations
Supply:
• Are there enough
truck/trailers of the right
configuration?
• Are there enough drivers?
Price:
• Inflation on trucking services
expected
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 by end of
2017
▪ West Texas is a low population area with
few potential drivers
20. 20Experience / Expertise / Excellence www.plgconsulting.com
Source: WRI Aqueduct 2014m Headwaters MB
Water availability for mines Dune Sagebrush Lizard (DSL)
Source: Infillthink.com – Sept 2017
Source: Infillthink.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
21. 21Experience / Expertise / Excellence www.plgconsulting.com
II. Trends Impacting Frac Sand
Market
A. Stable Price / Rig Count
Environment
B. Sand Volume & Spec Drivers
C. Growth of Regional Sand
D. Frac Sand Supply Chain Evolution
III. Logistics Focus Moves to the
“Last-Mile”
A. Last-mile market landscape
B. Regulatory impacts
C. Last-mile equipment comparisons
D. Future questions
22. 22Experience / Expertise / Excellence www.plgconsulting.com
Key Impacts to Last-Mile Landscape
Sand
Intensity
Per Well
“Local”
Sand
Growth
Trucking
Industry
Challenges
(Drivers, ELD)
New
Equipment
Innovation
Sand
Companies
Offering LM
Solutions
E&P
Direct
Sourcing
Growth
OSHA
Silica Dust
Mandate
6/18
Low Price
Oil/Gas
Environment
Frac Sand
Last-Mile
23. 23Experience / Expertise / Excellence www.plgconsulting.com
Logistics Focus Moves to Last-Mile
Source: Headwaters MB research, PLG Consulting
Northern White sand supply chain is long and complex
Mining Processing Rail
Load-out
Long Haul
Rail
Transloading
and Storage
“Last Mile”
Note: Transloading may be required for
trucking over ~150 miles from sand mine to
wellhead
Northern
White
X X X X X X
Regional Sand
X X ? X
Regional Sand Impact
Regional sand shortens the supply chain and eliminates steps, but still
need to deliver more sand than ever to the well!
24. 24Experience / Expertise / Excellence www.plgconsulting.com
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
25. 25Experience / Expertise / Excellence www.plgconsulting.com
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
26. 26Experience / Expertise / Excellence www.plgconsulting.com
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
27. 27Experience / Expertise / Excellence www.plgconsulting.com
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
28. 28Experience / Expertise / Excellence www.plgconsulting.com
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
29. 29Experience / Expertise / Excellence www.plgconsulting.com
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”?
30. 30Experience / Expertise / Excellence www.plgconsulting.com
II. Trends Impacting Frac Sand
Market
A. Stable Price / Rig Count
Environment
B. Sand Volume & Spec Drivers
C. Growth of Regional Sand
D. Frac Sand Supply Chain Evolution
IV. Frac Sand Supply Chain
Management Best Practices for
Oil & Gas Producers
31. 31Experience / Expertise / Excellence www.plgconsulting.com
Learn the whole frac sand value chain
▪ Its all about the total delivered cost and not shutting down
the well!
▪ Must understand the “should be” costs, market prices and
reasonable margins for each link of the value chain
▪ Invest the time and money into the research – do your
homework
▪ Balance needed - Don’t rush, but need a sense of urgency
to avoid “analysis paralysis”
▪ Need to have a sourcing strategy for pressure pumping if
they will be displaced from sand responsibility
▪ Need top management and cross-functional buy-in
throughout the process
Build a team of market and logistics experts to
manage the frac sand supply chain
▪ This is a strategic investment in sourcing, operational and
transportation experts
▪ Need expertise in truck, rail, and bulk material handling
▪ Team’s mentality must be both tactical and strategic
▪ NEVER shut down a well
▪ Thinking and planning long term, strategically
▪ Need technology aspect to ensure highest efficiency
Source: petroleumconnection.com
Frac Sand Supply Chain Management
Best Practices for Oil & Gas Producers
32. 32Experience / Expertise / Excellence www.plgconsulting.com
Frac Sand Supply Chain Management Best
Practices for Oil & Gas Producers
Become a trusted frac sand industry player
▪ Keep your commitments
▪ Pay on time
▪ Everyone has a long memory
▪ Creatively “invest” in your suppliers and partners
▪ Invest in pressure pumper relationships even if they no longer
have sand responsibility
Stay up with the markets, players and the trends
▪ Go to the industry events – read the blogs
▪ Work closely with credible suppliers
▪ Do your own research on industry innovations and rumors
33. 33Experience / Expertise / Excellence www.plgconsulting.com
Thank You!
For follow up questions and information, please
contact:
Taylor Robinson
President
PLG Consulting
+1 (508) 982-1319 | trobinson@plgconsulting.com
And thanks to our
friends for their help :
Energent Group
Infillthink.com
Headwaters MB