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“You cannot take sand for granted,” said Corp. CEO Vicki Hollub has said worker bankruptcy during the sand-bust days of
Chris Wright, CEO of Liberty Energy Inc., shortages along with supply-chain snarls 2020.
the second-biggest frac-services provider. explain some of why US oil drillers aren’t “It’s definitely our growth engine,” Hi-
Without enough, “I’m quite concerned about significantly expanding production. Crush CEO Dirk Hallen said of the company’s
global balances for oil, gas and food — those Turning sand into a mobile business tackles three mobile units and plans to roll out more
are intimately tied.” another area of supply-chain bottlenecks: later this year. With fracing operators now
Total US demand for frac sand is currently trucking. consuming almost three times as much sand
about 5% higher than the roughly 25 million Because Nomad can dig up sand close each month as they did five years ago, Hallen
tons being produced, according to industry to where it’s needed, a single 18-wheeler said demand is likely to stay strong.
consultant Enverus, which estimates a can make multiple trips back and forth And Brock of Nomad points out that
shortfall of roughly 1.3 million tons. from the mobile mine to the well in one mobile units will be able to meet demand
Brock of Nomad says that by carving into day. That means as few as 10 trucks total are faster than traditional mines because not
the earth about 15 feet (4.6 meters) deep needed, down from the roughly 70 used in having to truck as far also means eliminating
across 40 acres, one of his mobile units can traditional deliveries from mines. That brings the time-consuming step of drying.
produce about 1 million tons. And since the a significant drop in freight costs. But even After sand is dug up, it gets washed and
units are mobile, Nomad doesn’t need to limit more critically in the Permian, where labor is then left to air dry in piles for a few days. At
itself to the huge, dusty dunes of traditional extremely tight and the unemployment rate stationary mines, it then gets blasted in giant
mines. is hovering just above 3%, it means needing drying machines. That way when trucks are
“We can find deposits that previously fewer truck drivers. loaded, they’re carrying as much sand as
wouldn’t make sense if you thought you’re As Brock puts it: “You solve that issue, you possible. But Brock says since his trucks only
stationary, because maybe this deposit only solve a lot of problems.” go a short distance, he can skip the machine
has 3 million tons,” Brock said. “That can give Devon Energy Corp., one of the region’s drying, eliminating pricey equipment.
me two years’ worth of work, and then I can biggest explorers, is among those already The cost savings were a key part of
move over 2 miles to the next spot.” turning to mobile mines. The company is Nomad’s pitch as the company was getting
The rebound for sand prices is emblematic working with Hi-Crush to develop its unit. off the ground during the depths of the
of the inflation spreading across the Permian. The pilot project will sit on a roughly 5-acre pandemic, when Brock says prices were so low
Analysts at JPMorgan Chase & Co. estimate pad site and account for a quarter of Devon’s that sand was a “four-letter word,” and not just
costs for US shale companies are soaring at total sand needs in the Delaware Basin, in the literally.
a rate of 25%, or almost triple the headline western half of the Permian. “When you get crunched, and you need to
inflation rate. “It gives us a sense of security with our start saving some money,” he said, “you start
A lot of that’s driven by shortages. There supply,” said John Raines, vice president of getting creative.”
aren’t enough steel pipes, not enough drilling Devon’s Delaware Basin business unit. BLOOMBERG
rigs, not enough bulldozers – and critically, It’s also helping to spark a revival for
not enough people. Occidental Petroleum companies like Hi-Crush, which went into

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