Resumen de Tough market conditions hit frac sand
Rick Shearer, CEO of Emerge Energy and Superior Silica said that the lower crude oil prices were having a "chilling effect" on the frac sand market, stating in March that Emerge Energy and its Superior Sands subsidiary would "work with customers to help them lower their total cost of sand on a delivered cost per-tonne basis".
Following disappointing 2014 financial results, frac sand producer Victory Nickel also felt the impact of falling demand as, in mid-April, it temporarily suspended production at its Seven Persons (7P) frac sand plant in Alberta, Canada, due to slower than anticipated frac sand sales.
"As a result of market uncertainty in Canada and the US, a "knee jerk" reaction by predominantly the US-based frac sand retailers caused import frac sand prices in Canada to be reduced to levels that do not appear to be sustainable over the long term," Victory Nickel outlined in a statement.
