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Permian Frac Sand: If We MineIt, Will They Come?Posted on August 14, 2017

Houston-based Hi-Crush Partners began sand mining operations on July 31.Their plant is located at a former recreation site near the junction of Texas 115

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demand this summer. Millions of tons of it, in fact. A field of sand dunes extends 200miles in a crescent from New Mexico through the booming Permian Basin. Now theoil industry has taken a special interest in this sea of windblown formations.

Outside of a loading facility in Odessa, Texas, Molly Sizer opens up the trailer hatcheson top of her red International Eagle 18-wheeler. Her trailer is empty now, but soon itwill hold 50 thousand pounds of sand. The sand is transported into the facility by railfrom the Midwest and other parts of Texas. We climb back into the cab and get in linebehind several other trucks, waiting to load up under the silos before hauling the sandoff to oil well sites. Molly got her start trucking a couple of years ago.

I realized that it was really quick schooling, she says, and so therefore I was in theworkforce really quick, and out there making money in a very short period of time.

Molly Sizer opens her trailer hatches outside of a sand loading facility in Odessa,TX.

She hauls frac sand, a key ingredient in the hydraulic fracturing process. Its pumpedunderground at high pressures along with a mixture of water and chemicals to makefractures in the earth. The sand keeps those fractures propped open, which allows oiland gas to flow up to a well.

Joseph Triepke, founder of the research firm Infill Thinking, says that as the PermianBasin has become the epicenter of onshore drilling in the in US, the role of sand inthe fracking process has become increasingly important. He thinks that looking at theamount of sand pumped per well in the Permian may be a better way to track oilfieldactivity than counting rigs.

Now its not just about drilling as many wells as we can, were actually drilling fewerwells than we used to, but its about touching more of the rock underground, he says.

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Transporting sand long distances is expensive it can cost up to 3 times the price ofthe material itself. Some producers hope that soon, the sand that truckers like Mollyhaul to their wells will be locally sourced. And the Permian Basin may continue to seemore job openings accompanying what some are referring to as the sand gold rush.

According to Clint Walker with the Permian Basin Petroleum Association, the moresand producers pump into their wells, the more oil the wells produce.

Where that diminishing return point is, we dont know. But more sand equals betterwells, says Walker.

Until recently, the industry favored coarse-grain sand in the fracking process, mostlyfrom the Midwest. But when oil prices plummeted a couple of years ago, producersbegan experimenting to find more efficient and cheaper ways to get oil out of theground. They found that, at least in some formations, using finer sand at higher andhigher volumes seems to push out more oil. This shift in industry thinking means theWest Texas dunes dunes that Walker grew up playing in are suddenly of greatinterest.

A dune field at the former Dunes at Kermit recreation site.

The areas first and so-far only operating mine opened on July 31st, at a former dunerecreation site outside of the town of Kermit. At least a dozen other companies haveannounced plans to open mines in the area.

Joseph Triepke at Infill Thinking says its too soon to tell whether the market is bigenough.

There is a question out there, if we do produce it, will they come? Will they actuallybuy it and pump it just because its there and cheap?

Triepke estimates that if all of those mines begin operation, they could produce asmuch as 55 million tons of sand next year. Right now Texas wells use about 17 milliontons per year. Thats a lot of extra sand. Which raises the question: how serious arethese sand mining companies?

Brent Elliot, a researcher at the UT Bureau of Economic Geology, offers that a lot of

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the time, companies will report that theyre establishing sand mines and its just toposition themselves versus other companies in competing for resource space.

He notes that less than half of the companies staking territory in the Permian duneshave filed the required permits. He has much lower estimates of local capacity anddemand 2.9 and 5.4 million tons, respectively and he wants to see more testresults that speak to whether this fine sand will work for Permian producers.

You know, Im still not completely on board with using the Kermit sands as a fracsand. Because not all sand is created equal, he says.

According to Elliot, the Northern White sands from the Midwest that producers haveused for years are, geologically speaking, much older than the Permian sand. Theyvewithstood the test of time through life cycles of erosion, making them more durable.

But sand from the Midwest is expensive, and sand mining has raised environmentalconcerns in that region related to the process of digging the sand out from under thetopsoil. The West Texas dunes, which sit in loose piles on top of the bedrock, posetheir own set of problems. Oilfield geologist Dr. Steve Schafersman says that thedunes are an isolated and unique ecosystem.

Theres a tremendous diversity of wildlife all sorts of plants and animals that areunique because they are adapted to live in the dunes, thats their home,Schafersman says. Theycant live anywhere else.

Among them is the Dunes Sagebrush Lizard, a rare species that came close to anendangered listing at the onset of fracking in the Permian. The listing was fought offsuccessfully by the oil industry, but the removal of the lizards habitat will giveenvironmentalists a stronger edge to protect the dunes in court, in the face of animpending sand boom.

By Sally Beauvais

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Fame Monster'August 14, 2017 | NPR The albumturned Hollywood decadence and dirtinto a campy, scathing and mostimportantly audio-visualextravaganza that continues toinfluence and inspire.

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