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What’s Driving Increased Proppant Use by HCLP, EMES?

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Increased proppant use

As discussed earlier in the series, frac sand volumes for both Hi-Crush Partners (HCLP) and Emerge Energy Services (EMES) rose in 4Q16.

In addition to rising rig counts, another contributor to increased proppant demand has been the increased amount of proppants used per horizontal well.

As the chart above shows, proppant consumption per horizontal well has been rising significantly, driving demand. Total proppant consumption across basins also rose significantly in 3Q16.

As we discussed in the previous article of this series, the re-fracking of existing older wells and the huge DUC (drilled but uncompleted) well backlog offer huge frac sand demand potential.

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