One of the reasons the South Texas Oil Boom is booming is because of the technology being used to extract oil from locations where oil has never before been extractable. Everyone is familiar with hyrdraulic fracking, a newer technology allowing oil explorers to reach oil trapped in layers of rock, but it is the use of SAND in fracking, which employs the use of soft sandstone to literally unlock supplies of underground oil and natural gas, that is most effective.
Oil isn’t the only treasure to be found in South Texas. There’s another boom of sorts happening here: the sand boom. This “frac sand” is an extremely durable quartz sand used in hydraulic fracturing to make it more effective. Frac sand is one of the most important ingredients in hydraulic fracturing.
Although drilling activities have received a boost in recent times, sand mining firms has been instrumental in helping to meet the demand of the oil and gas industry by supplying the one magic ingredient that seems to draw oil out of the ground like a snake charmer draws a snake out of a basket: SAND.
Sand mining is one of the many tangential industries to crop up in the wake of the South Texas Oil Boom. A dozen sand min operators have cropped up in Texas, and their success is an indication of the success oil and gas wells are having around the state – an indication that South Texas is poised to be a key player and a force to reckon with in the oil industry for years to come.
The energy sector is using much more sand for fracking – up to 1,000 truckloads – for a single well. There is high expectation that the demand for fracking sand will double this year. Demand is expected to hit 80 million tons compared to 40 million tons last year. In 2018, demand is expected to hit 120 million tons.
If you’re interested in learning more about oil investing for well-qualified investors, request a free copy of The Insiders Guide to Oil Investing.