On March 15, 2019 Rystad Energy released a report detailing that in-basin sand has no initial impact (i.e. the IPs show no material differences) on well productivity in the Permian Basin. In part due to this result, the group also surmises that the adoption rate of in-basin Permian dune sand has reached as high as 80% already in 2019. Infill Thinking reported similar market sentiment in February 2019 indicating:
- that there is no evidence of reverse substitution back to Northern White Sand (“NWS”), local sand mines vs. rail transloads volumes are running 90:10 today;
- the up-front well savings of local sand play well with new capital discipline shift and the mandate to live within cash flow; and,
- frac sand prices & supply are no longer a concern.