Supply from a bunch of new frac sand mines in West Texas, close to the Permian Basin, is expected to drive prices for frac sand down 19% in the region this year, according to Rystad Energy.
Ryan Carbrey, the senior VP of shale research at the consultancy, told an industry conference on Wednesday the supply glut is likely to reduce sand frac prices to roughly $30 a ton, compared to 2018 prices.
Wisconsin sand is forecast to see a sharper decline – round 29% — to $25/ton. This is because the new mines in West Texas close to the drilling sites are taking share of the formerly frac-sand top trader, Kallanish Energy learns.
The analyst forecast the market share held by miners around Wisconsin will fall to 34% in 2020, from 75% in 2014.
Prices are also subject to a lower demand for fracking this year, which is expected to fall by 3%.
This post appeared first on Kallanish Energy News.