"The shipping of proppants by rail has seen a price increase in just the past 18 months of 10-14% in different corridors, even as the total volume of sand cars has moved ahead of the onshore rig count due to the increasing amounts of sand used per well," says [Taylor Robinson]. Frac sand unit trains generally pull between 100 and 130 cars of product.
Looking into the future, PLG's Robinson questions whether sand companies and road transport companies will form partnerships in the same way that rail companies and miners have done. "The sand trucking market is very fragmented, and this pairing up between sand companies and trucking companies is not one we have seen happen yet." Robinson points to new sources of sand being developed in the mid-Western states of Illinois and Missouri, as well as some mines in Texas. "There are resources in all these states," he says. "But whether they will be developed or not depends on the quality of the sand and what the engineers at the wellsite need."
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