A first-of-its-kind frac sand logistics solution set to debut in the Permian Basin later this year may help transform the way proppant is delivered to support hydraulic fracturing operations there. If it works as advertised, it will represent another advance in the streamlining of oil and gas production in the U.S.’s most prolific shale play. In today’s RBN blog, we‘ll explore how Atlas Energy Solutions aims to mechanize the delivery of sand to crude-oil-focused well sites in the Permian.
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Before we delve into Atlas’s innovation, it’s important to understand the critical role sand plays in the Permian’s Delaware and Midland basins. Hydraulic fracturing is, of course, a transformative process used to extract oil and gas from shale formations deep underground. One essential component of the process is proppant, typically mined sand, which is injected with water and carefully selected chemicals into wells under high pressure to “prop” open fractures in the rock and allow the hydrocarbons to flow to the surface.
As we all know, the Permian is driving U.S. shale production growth. RBN’s mid-case production forecast has Permian output growing from 10.4 MMboe/d in 2024 to 11 MMboe/d in 2025 — a 6% annual growth rate — and more production means more proppant. And lots of it: Many thousands of tons of sand — often 10,000 or even 15,000 tons! — are used per well in West Texas and southeastern New Mexico. [There is a lot of variability in frac sand use, depending on, among other things, the type of frac job (zipper frac vs simul-frac), the horizontal length being drilled, the pressure of the well, and many other factors. In a zipper frac, two wells are completed in an alternating, back-and-forth manner. In a simul-frac, two wells are stimulated at the same time.] Permian proppant demand grew from just over 14 million tons per year in 2016 to nearly 60 million tons last year, and it’s estimated to grow to almost 80 million tons by 2025 (see blue bars in Figure 1 below). The Permian is also making up an increasingly large share of total U.S. proppant demand, rising from 34% in 2016 to 53% in 2023 and (by recent estimates) to about 60% this year and next (gold line and boxes in Figure 1).
Figure 1. Permian Basin Proppant Demand. Source: Atlas Energy
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About the song
“Enter Sandman” was written by Kirk Hammett, James Hetfield and Lars Ulrich and appears as the first song on side one of Metallica’s fifth studio album, Metallica (The Black Album). The lyrics are a conceptional view of nightmares as seen through the eyes of a child. Released as a single in July 1991, it went to #16 on the Billboard Hot 100 Singles chart and has been certified Platinum by the Recording Industry Association of America. It was former New York Yankees relief pitcher Mariano Rivera’s entrance music and has been used as stadium music for major sports events for many years. Personnel on the record were: James Hetfield (vocals, guitar), Kirk Hammett (lead guitar), Lars Ulrich (drums) and Jason Newsted (bass).
Metallica (The Black Album) was recorded between October 1990 and June 1991 at One on One in Los Angeles and produced by Bob Rock, James Hetfield and Lars Ulrich. Elektra Records brought Bob Rock to produce and lead Metallica from their thrash/speed metal roots to a more commercial, polished sound. Initially, Rock and the band were often at odds with each other, leading to Elektra allowing Hetfield and Ulrich to produce the album along with Rock. Released in August 1991, the album went to #1 on the Billboard 200 Albums chart and has been certified 16x Platinum by the RIAA. Metallica, Rock, and Elektra had found the formula for success for the band. Five charting singles were released from the LP.
Metallica is an American heavy metal band formed in Los Angeles in 1981 by James Hetfield and Lars Ulrich but based out of San Francisco since 1983. They have released 11 studio albums, eight live albums, one soundtrack album, three EPs, and 49 singles. They have won two American Music Awards, nine Grammy Awards, three MTV Video Music Awards, and were inducted into the Rock and Roll Hall of Fame in 2009. Eight members have passed through the band since its formation. Since 2003 the lineup has been Hetfield, Ulrich, Hammett and bassist Robert Trujillo. They continue to record and tour and will be playing stadiums in the U.S. and Canada beginning in August.
Comments
By my experince the sand wears out conveyor belts very quickly. The sand in the air combined with the sand being conveyed, will require significant maintenance intervals, not to mention belts breaking from the tug and pull off a long load, much like a train engine with the cars catching up. This may be a significant factor if Atlas is not properly prepared.