A worldwide supply crunch of so-called proppants — ultra-hard sand grains and tiny manmade ceramic balls — has some drillers using lesser-grade particles that have cut the yield of oil wells in the Bakken and Three Forks formations in western North Dakota.
"The reality is people are sold out of everything," said Mike Vincent, a Golden, Colo.-based engineer. "People are taking whatever they can — an extremely low quality material is being pumped into the Bakken."
Another favorable event - oil companies are entering long term contracts with frac companies to assure that they will have frac crews on call for as long as three years. As you might expect, the oil companies are paying an arm and a leg for these long term comittments. CRR is sitting on a gold mine along with the oil companies that have lots of shale acreage.
Great find. With the new line in Georgia coming on line and this news, revenue should skyrocket. CRR not to be confused with CCR or Credance Clearwater Revival will continue the climb. Now where is the split news?
Proppants are in short supply everywhere. All the honchos are still predicting that companies will be waiting in line through mid 2011 to get their wells fraced. A good time to be in the proppant business.