More Damp Sand In Permian

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The following Quick Report was published April 8,2022, by Infill Thinking

More Damp Sand In Permian As Producers Work With What They’ve Got

In a separate report this morning, we wrote about the conservative approach that local sand producers in the Permian are taking in response to strong market signals.
In that report we mentioned two key trends in the supply base: i) the outsized presence of wet sand in the few greenfield projects we are tracking in the Permian, and ii) sand producers trying to optimize the equipment they already have in the basin to improve throughput rather than building a bunch of new capacity.
One example covering both of these angles is what High Roller is doing with equipment from their shuttered Penwell plant.
Although there have been rumors about High Roller adding capacity in the market, we don’t see what’s happening with the company’s operations as capacity adds in the traditional sense of supply growth.
Instead, High Roller is working to maximize what they’ve got. And what that means exactly is cannibalizing and relocating their Penwell Plant equipment to two sites they controlled before the upcycle in Kermit:

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