The Permian Basin Oil Boom
The United States is currently in the midst of an oil boom. This boom is located in the heart of Western Texas, in an area called the Permian Basin. Let’s look over the numbers to see just how huge this is for the United States:
- Pretend, for a moment, that Texas is a country. If it were, Texas would be among the top 10 oil producers in the world. Estimates show that in the next year or so, Texas will surpass the production of oil in Iran and Iraq, landing Texas in the top 5 (in the world).
- The combination of horizontal drilling and fracing has resulted in a natural gas boom over the past few years that traveled through Barnett Shale (North Texas), Eagle Ford Shale (South Texas), and is now in the Permian Basin (West Texas).
- Overall oil production for Texas this year has exceeded 4 million barrels per day.
- By 2023, economic forecasting predicts that over 41,000 new wells and $308 billion will be invested in the boom, dropping the cost of oil from 65-75$ a barrel to 60$ a barrel.
- Estimates and experts agree: the U.S.’s volume of oil production may surpass the production of several OPEC (Organization of Petroleum Exporting Countries) countries.
- Fracing has not been shown, in any case, to pollute groundwater.
- Over 90% of natural gas wells in America use the fracing process to increase production.
The Oil Boom: Thank you, Fracing
How is this boom made possible? Hydraulic fracturing, or ‘fracing’ for short, is the answer. The most common misconception with fracing is that it is a drilling process; in fact, the process usually doesn’t occur when the drilling rig is on the project location. Hydraulic fracturing uses fluid and material (frac sand) to create small fractures in a rock formation to catalyze the production of new and existing oil and gas wells. Fracing is used in the vast majority of U.S. natural gas and oil wells to enhance performance and profit, minimize drilling time, and preserve otherwise-inaccessible energy sources.
Frac sanding is important, as it reduces our need and reliance on foreign energy and oil. Without fracing, America could potentially lose half of its natural gas production: this is something that our economy would do well to avoid.
TPS: Your Frac Sand Mining and Processing Solution
Not all sands are created equal. TPS provides custom solutions for constructing and commissioning industrial sand facilities. We offer a one-stop-shop by providing EPCM services for the frac sand industry: we can help verify reserves, attain the necessary permits, develop operating budgets and capital, analyze the logistics of the projects, build complete frac sand plants, and operate those plants as well. With TPS, we can help your company achieve the lowest possible operating cost with the highest uptime in the industry.
At TPS, we believe that we must reduce our dependency on foreign energy while bolstering the economy of the United States. We have the experience needed to determine the most effective method for de-agglomeration and frac sand production. Contact us today or give us a call at (888) 670-6795.