Report: Frac sand demand up significantly, and prices may follow

The Wall Street Journal reports that frackers are expected to use nearly 95 billion lbs. of sand this year, a figure that’s up nearly 30 percent from 2013 and up 50 percent from forecasts energy-consulting firm PacWest Consulting Partners made one year ago.

According to the report, the increased demand is having an effect on the price of frac sand. U.S. Silica Holdings Inc., for example, recently said it would start charging as much as 20 percent more for finer sand grades. U.S. Silica expects demand for sand to be at least 25 percent higher than supply through 2014.

“Northern White is in short supply, so people are using basically whatever they can get their hands on to complete their wells,” Michael Lawson, a spokesman for U.S. Silica, told The Wall Street Journal.