In the Northern White market, FOB Northern White Odessa 40/70m, as well as 100m, 40/70m, and 30/50m mine gate prices fell by 1% each this week.
The “tried and true” way to assess the performance of an oil well is to compute the total cost per barrel of oil produced once the very last barrel has been recovered.
In the Northern White market, FOB Odessa 40/70m fell by $0.20 per ton and Northern White mine gate prices remained relatively flat this week apart from FOB Wisconsin 30/50m, which was up slightly at +1%.
Benchmarks and analysis for frac sand available for viewing now.
Below are some recent talking points on both the demand and supply side for crude oil markets to think about as well as a short commentary on supplementary markets such as oilfield services and frac sand supply and logistics markets.
In the Northern White Market, FOB Odessa 40/70m fell by $0.50 per ton, reflective of falling demand for sand (both Northern White and region in-basin) in West Texas.
Northern White mine gate prices remained relatively flat this week, suggesting continued limited demand relative to in-basin supply. Prices stayed within 2% of last week’s prices across the board for 100m, 40/70m, 30/50m and FOB Odessa Northern White 40/70m.
An interesting argument was inspired by popular energy analyst and engineer David Ramsden-Wood, who I credit with initially addressing this concept. Kudos!
Frac sand suppliers have struggled in the current market environment. Crude oil prices have crumbled amid a major oversupply (especially during the COVID19 pandemic).
Northern White mine gate prices remained relatively flat this week, suggesting continued limited demand relative to in-basin supply. Prices stayed within 2% of last week’s prices across the board for 100m, 40/70m, 30/50m and FOB Odessa Northern White 40/70m.