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By R. J. Grace

Carbon in the form of coke is used as a reactant in various chemical and metallurgical processes, The high cost of by-product coke along with its periodic lack of availability and high investment necessary for additional by-product recovery facilities indicate the need for a low-cost production unit based on a new procedure for coke manufacture, Traveling-grate coking-stokers were developed by Shawinigan Chemicals Ltd. to produce coke required for carbide manufacture, They were adapted to kilns so that the hot volatile gases could be used for lime burning, Their operation has been described in various patent disclosures (1, 2, 3), and their application to rotary lime burning kilns has been described by Andersen (4). Details of the process and plants have also been published by Kurt Baum (5,6).

Jan 1, 1958

By J. David Chapman

There are a variety of choices of materials for mineral extraction processing. Traditionally, end users have used metallic piping for fluid handling and little is known about the advantages (or limitations) of non-metallic piping systems. This presentation will review custom FRP pipe systems and their use in severe corrosive and erosive process streams. These systems can be designed to various pressure and temperature ratings and different components (such as resin and glass type) can be varied to suit the process conditions

By Tamas Kekesi, Gergo Rimaszeki, Tibor Kulcsar

The efficient purification of soldering waste material can be achieved in a single operational step by the electrolytic refining in pure hydrochloric acid - tin-chloride media. The complex formation of the ionic species may offer a beneficial level of natural inhibition. Using the PCR (periodic current reversal) technology, is efficient in affecting the morphology of the cathodic deposit. In order to optimize the process, the investigation of the solution stability and the electrode reactions is essential. The natural tendency of the Sn(II) oxidation and precipitation can be overcome by properly controlling the concentration of the main components and the ratio of Sn(IV)/Sn(II) in the electrolyte solution. Polarization curves were obtained for different concentrations tin and hydrochloric acid. Conclusions referring to the electrode reaction were derived from the overvoltage - current plots. The morphology of the deposit can be correlated with the exchange current density, also determined from the polarization curves. The cathodic current efficiency and the morphology of deposited metal are affected by the distribution of tin species and the principal electrolysis parameters.

Jan 1, 2011

By H. E. Perlee

Mathematical expressions are derived for the histories of the pressure, flame radius, mass fraction burned, and burned and unburned gas temperatures associated with a spherical flame propagating concentrically in a spherical vessel. The equations are solved numerically for a 9.5 pct CH4/air mixture using the best available information for the burning velocity, expansion ratio, and specific heat ratio. Calculated histories are in complete accord with experimental measurements. The accuracy of calculated histories is determined relative to errors in the system parameters, and it is found that 10 pct errors in either the burning velocity or the expansion ratio results in a 40-pct error in the pressure history. A 10-pct error in either burned or unburned specific heat ratio results in a 22-pct error &apos;in the pressure history. It was further established that the usual assumption of constant specific heat ratio is unacceptable, but equating the burned and unburned specific heat ratios result in no apparent error in the histories. The cubic law (P = Kt3 + Po) is derived and discussed, and it is found that the law is valid only during the early period (P<2 atm) of flame growth.

Jan 1, 1974

By A. B. Kinzel

THE year 1936 has been an eventful one in the iron and steel industry. Renewed industrial activity has brought with it many new problems. These problems have generally involved the question of increasing capacity without sacrifice of economies and quality developed in the less active previous years. The nature of the iron ore used and the effect of its porosity and other physical characteristics on the capacity of the blast furnace has been reviewed by the U. S. Bureau of Mines. The whole question of handling raw materials and methods of charging furnaces has been intensively studied, with the result that capacity has been in- creased without affecting the quality of

Jan 1, 1937

By J Centofanti, D Conti, R Riske, C Morley, A Cook

Why is it so difficult? Why are there differences throughout the resources industry in how reconciliation factors are reported and calculated? Why is there no standard formula to use? These are common questions asked when mining companies try to compare reconciliation results across operations or attempt to undertake internal or corporate governance reporting processes. For many mining companies the calculation of reconciliation factors is often a very time and resource intensive part of mandatory reconciliation reporting. Some major mining companies, that move millions of tonnes of material per annum, dedicate full time resources to the calculation of reconciliation factors. The willingness of these companies to set aside resources demonstrates the value that operations place on good reconciliation reporting. Reconciliation is about measuring the variance between two like measures at different points along the mining sequence. It can be undertaken between predictive models, forecast plans and actual measured performance. Calculations are used to derive a variance between two sections within the mining sequence, with the result being commonly known in the resources industry as a æfactorÆ. Mining companies use the calculation of reconciliation factors as key performance indices (KPIs) to provide a æhealth checkÆ of their operation, with variances often pointing to issues either with the accuracy of the original estimate or the quality of the measurement being used in the comparison. There are many reconciliation factors that can be calculated and reported. This paper will set out, clarify and provide a recommended standard means of calculating each specific factor that, where adopted by a company, will ensure compliance with the international reporting codes, such as JORC. Using case studies from Rio Tinto Group (Rio Tinto) and BHP Billiton Mitsubishi Alliance (æBMAÆ), and the authors experience across a wide range of mine sites, the outline of a generic solution for tracking a parcel of material from the pit through to the port along with appropriate reconciliation factors is provided. The intention of proposing standardised reconciliation factor terminology and methodology is to provide the foundations of a system to enable communication and comparison across different commodities, companies and mines sites.

Jan 1, 2009

By C. W. Waidner

THE standard scale of temperature that it is attempted to realize in practice is the centigrade thermodynamic scale, as defined by Kelvin about the middle of the last century. This scale would be exactly realized with a perfect1 gas in an ideal gas thermometer, and is closely realized with the more permanent gases. From the departure of certain properties of these gases from those of a perfect gas, it is possible to deduce the amount of the departure of the temperature scales, defined by their use, from the thermodynamic scale. In nearly all the precise experimental work done during the latter part of the last century, it was necessary for the experimenter to establish his own gas-thermometer scale, and the labor involved in this was often greater than that involved in the prime object of the experimental work undertaken. The experimental difficulties involved in gas thermometry led to the establishment of temperature scales differing from one another by amounts considerably greater than could be accounted for by the differences in the properties of the gases used. Results were, therefore, expressed in terms of somewhat different temperature scales, snaking correlation of such results difficult and uncertain.

Jan 9, 1919

By Karl J. C. Harries

"11.1. INTRODUCTIONA royalty is the most common form of interest retained by an owner who is disposing of his property or by a joint venturer who ceases, voluntarily or otherwise, to participate in the joint venture.1 Rarely does a non-participating party have a direct interest in the property and/or assets of a project, except during the period when a non-participating joint venturer may be having his interest diluted.2 In fact, it is most unwise to permit a non-participating party to have such an interest. It may give rise to significant problems that could prevent or substantially delay the development of an orebody and require a considerable amount of time, effort, and money to correct.3In negotiating a royalty, it is important to be aware that there is no law or convention that says, “You just don’t do that in a royalty agreement.” As with any agreement, inventiveness and flexibility on the part of the negotiator are not just assets, but virtual necessities. It is also for this reason that it is essential to read the royalty provisions, particularly the definitions, fully and carefully, especially if you are the recipient. On the other hand, if your inventiveness and flexibility cause your accountant to question the advisability of one of your ideas, pay close attention to him.4 He will, no doubt, have had experience with many royalties, and no competent professional adviser disparages a client’s ideas without good reason. Besides, he will probably be the person who will be determining the royalty or certifying the determination of it. At the very least, he will be auditing your general financial statements, which must, of course, reflect the royalty determination. Heeding his advice not only may make the determination easier but also will probably save you money in professional fees later on. Nevertheless, do not simply accept his comments or recommendations without understanding what they mean, why they have been made with respect to your royalty agreement (sometimes professionals have comments that they make as a matter of course and, even though they may be valid, you should require them to be justified to you), and how they will affect your royalty determination.It is surprising how many corporate payors insist that their standard royalty provisions5 be used as a matter of policy, thereby effectively tying the negotiator’s hands. It is even more surprising, and to professional advisers frightening, how many of the senior employees who insist that such a policy be adhered to, virtually without variation, do not know what is in the standard provisions and would be hard-pressed to explain them to a property owner. If standard provisions are appropriate, by all means use them, but do allow experienced and sensible negotiators some flexibility and make sure that everyone within the corporation who may have to use such provisions – negotiator and supervisor alike – knows what they contain and why they are as they are. For example, there are often good and convincing reasons to describe a deduction in a certain way or to include a certain specific type of deduction. On the other hand, quite often the answer to the question “why?” is that “it has always been there”; this is, or should be, an unacceptable answer. In any event, if you, as the negotiator, appear to know what you are talking about, are familiar and comfortable with your royalty provisions, and are backed up by your boss with the same words or reasoning, a property owner cannot help but be satisfied that you are knowledgeable, even if he still does not agree with your provisions. Finally, if you do use standard provisions, make sure that they are reviewed and updated regularly."

Jan 1, 2003

By Krzysztof Filek, Anindya Sinha, Bernard Nowak

Taking into account the possibilities of condensation of water vapour contained in air during its flow through a series of spot coolers as well as formation of eventual fog, a mathematical model of dynamic temperature, specific humidity and degree of fogging of cooled air in underground mining galleries with direct ventilation is developed. In the gallery, there situated various heat and moisture sources both of distributive and of concentrated types. The model is represented by three partial differential equations of first order. The cases of cooling with full as well as with partial air stream flowing through the gallery are distinguished. Owing to the fact that in practical designing, more important is the knowledge of the variation process of temperature, specific humidity and fogging of cooled mine air at steady state conditions, the model is modified to a set of three nonlinear ordinary differential equations. Based on the presented algorithm, the obtained set of ordinary differential equations is numerically solved which enables to: • specify the distribution of temperature, specific humidity, relative humidity and degree of fogging of cooled air in mining galleries; • determine the cooling powers of air coolers for their known locations; • indicate the locations of the coolers of known cooling powers. Exemplary calculations of temperature and relative humidity of cooled air are presented graphically in a number of diagrams.

Jan 1, 1997

By C. W. Huggins

The objective of this Bureau of Mines research was to compare the size distribution of respirable quartz collected at coal mines with that of several reference standards used to quantify quartz in coal mine dust samples. Particle size measurements were made on 23 samples and 4 ref-erence standards using a scanning electron microscope in the backscatter electron mode of operation, interfaced with an image analysis system. The Mine Safety and Health Administration provided the 23 respirable coal mine dust samples, which were collected at surface and underground coal mines in 7 States. The accumulated particle size measurements in-dicate three of the reference standards, minus 5-um Min-U-Sil, minus 5-um Supersil, and NBS 1878, would be preferred over the fourth, Silver Bond B, for quantitative quartz determinations in coal mine dusts by X-ray diffraction and infrared spectrometry.

Jan 1, 1985

By David A. Milligan

This paper describes the Darwin Silver Recovery project, located 66 km (40 miles) outside of Lone Pine, near Darwin, Inyo County, California. A lead-zinc mine and a flotation concentrator were operated there from 1945 to 1957. By the time the mine was shut down, 1.53 Tg (1.69 million short tons) of tailings had been stored in ponds. An average silver assay of 47 mg/kg (1.38 troy oz/st) of tailings stimulated interest for commercial silver recovery. A heap leach process was developed in 1981 at the Tucson Research Center of Anaconda Minerals Company, a division of Atlantic Richfield Company. Agglomeration techniques were used on the ore since the fine grind did not allow direct heap leaching. Lime and cement were required as binders, Early laboratory tests showed that recoveries equal to those from an agitated leach could be achieved at lower capital and operating costs. Laboratory tests determined cyanide requirements, lime and cement usages, and percolation or leach rates, as well as confirming that a zinc precipitation step could recover the silver from the leach solution.

Jan 1, 1983

By S. Rupprecht

"This article addresses the prevalence of poor public reporting practices of coal exploration results, coal resources and coal reserves in southern Africa. Currently, the reporting of coal tonnage without supporting coal qualities or saleable tonnes and quality is a poor reporting practice that occurs far too often. Not all coal is equal — therefore it is extremely important that investors or potential investors are provided with the full details of both run-of-mine (ROM) and saleable coal tonnage, their associated qualities and other material and relevant information.Competent or qualified persons should note that publicly reported information should be sufficient to enable an informed reader to make a reasonable and balanced assessment of the significance of the information provided. “Companies are encouraged to provide information in their public reports, which is as comprehensive as possible (CRIRSCO, 2013).” However, too often this isn’t the case, and material matters are either not reported or inadequately disclosed.According to the South African National Standard (SANS) 10320:2014 draft document, “tonnage and coal quality that will be available for sale, either in the raw ROM state (raw saleable) at a specified moisture content, or after beneficiation of the ROM coal by processing operations to produce materials at specified qualities, size ranges and moisture contents. The assessments must demonstrate that at the time of reporting, the marketing of the products is reasonably justified. The basis of the predicted practical product yield to achieve the saleable coal reserve must be stated. The moisture basis of reporting shall be stated.” An example as to why coal qualities are so important to the public, the requirements of South Africa’s electric public utility (Eskom) power stations are detailed in the followint paragraphs. The Kendal power station, commissioned in 1988, operates at a calorific value (CV) range of 19 to 20 MJ/ kg, an ash content between 29 and 34 percent and volatiles between 20 to 21 percent. Other power stations, such as Kriel or Hendrina, may require different qualities, such as a CV range of 22 to 23 MJ/kg, an ash content between 20 and 28 percent and volatiles between 22 to 23 percent. Thus, in terms of domestic saleable coal, it is not just about reporting the coal qualities but also informing the investor as to which power station the coal is intended to be sold as “boilers are designed to burn particular qualities of coal” and “it is not always possible to transfer coal between stations because of different quality requirements at each station (Chetty, 2010).” Sulfur content is another important quality with the ideal coal content having a quality of less than 1 percent sulfur."

Jul 1, 2019

By Paul M. Tyler

Hafnium appears to be among the more abundant of the newly discovered elements . Though quite widely distributed in nature , its compounds chemically so resembled those of zirconium , its sister element , that it escaped detection until 1923 , when Coster and Hevesy announced the discovery of the element , to which they gave the name of " hafnium " , from Hafniae , the Latin name for Copenhagen , where their research work was performed . Hafnium has so far been found only as a minor constituent of zirconium minerals . Zirconium as an element was discovered more than 140 years ago , but only a few unimportant uses were found for the metal or its compounds until some 18 years ago ; it is still classed among the rarer commercial metals . It is not surprising , therefore , that hafnium has not yet found a definite place for itself in industry . Nevertheless it has commanded a considerable interest among scientists ; and in 1930 some 70 grams of perfectly pure oxide of hafnium were prepared in Europe . A commercial future for hafnium is already glimpsed in the radio industry , and its high melting point and electronic emissivity have already led to the taking out of patents for its use in radio tubes and incandescent electric lamp filaments and for the cathode surfaces of devices such as X- ray tubes and rectifiers .

Apr 1, 1931

By Edmund C. Pechin

I REGRET that I am unable to present this subject in definite form and detail. All I shall attempt at this meeting is to lay before you some curious facts, the bearings and explanations of which must be reserved for future consideration. I hope before the next meeting to have carried experiments far enough to furnish a more important contribution to the science of iron metallurgy. The Wickersham process consists in the introduction into the molten metal, as it runs from the furnace, of air from the hot blast. Mr. Samuel Wickersham is the originator of the plan, as applied in practice, although Mr. Martien had the idea a long time ago, and, I believe, went to England about it. But at that time Mr. Bessemer was coming before the public with his invention, which engrossed the attention of iron-masters, and Mr. Martien accomplished nothing. The principal difficulty in our experiments at Dunbar was to get a practicable runner or trough, through which the molten metal should pass, and in which it should be exposed to the action of the Mast. The runner we used was ten feet long, and perforated on the sides to permit the entrance of the air-currents. When we used a cast-iron and fire-clay runner, the heat was so great that before we were more than half done with a run, the lower part of the runner was melted, and we had a magnificent Fourth of July display of fireworks until the blast was shut off. We had to abandon fire clay. The runner with which we have had the best success is made of wrong- ht-iron tubes, 29 inches in diameter, attached to a wrought-iron frame, and lined with a mixture of crushed conglornerate (quartz) and a little fire clay to give it cohesion. The wrought-iron shell curves inward over the upper edges, so as to catch and throw back into the current the flying sparks and particles of metal thrown out by ebullition. With this we have been able to run 12 to 14 tons at a heat with great ease. Mr. Wickersham has since prepared this material (pounded quartz) into a shaped brick or tile, with the necessary perforations for the passage of the air, which promises to answer every requirement for steady working. As regards the improvement in the quality of the iron, there seems to be no question. A large number of practical tests were made in

By William F. Hahn

The Bureau of Mines recognized the problems encountered in low seam mining illumination systems. It was determined that the best way of implementing an illumination system is to integrate the design during the design and fabrication of new machinery at the factory. The purpose of this program was to integrate an approved lighting system in a low seam battery powered scoop and evaluate its performance. This report documents the work performed on this program and the results obtained.

Jan 1, 1980

By Hande Cavus, Ibrahim Yusufoglu, Cem Kahruman

"In this study, ammonium tetramolybdate (ATM) was obtained as the intermediate product of ammonium heptamolybdate tetrahydrate (AHM). The thermal decomposition mechanism of ATM was investigated under nonisothermal and isothermal conditions in air and inert gas atmospheres. Nonisothermal experiments were carried out by TGA/DTA/MS while TG was used for isothermal conditions. Characterization of the decomposition products were carried out by XRD and FT-IR. The thermal decomposition of ATM in air proceeds in a single step and forms M0O3 while [(ÍÇ4)2è]ïïï83Ìïè3 and molybdenum suboxide (Ìïè3.÷, ÷=0.025) were obtained in the first and the second steps of thermal decomposition in He, respectively. Activation energies, frequency factors and kinetic model equations were determined for thermal decomposition reactions. Fractional conversion-time diagrams were compared with diagrams drawn according to kinetic model equation.IntroductionM0O3 is usually used as catalyst in industry [1]. AHM is the basic source to produce molybdenum containing catalysts used in petrochemistry [2]. The oxides of Li, V, W, Te, Bi and Sn are doped in M0O3 to produce catalysts, which find commercial applications in the industry. The properties of M0O3 are affected by dissolution, settling, calcination, drying and thermal decomposition processes [1]. There are several studies in the literature about the thermal decomposition of AHM and the characterization of the decomposition products in different gas atmospheres and at various heating rates [3-19]."

Jan 1, 2012

By Fred D. Gustafson

With the postwar emergency for new housing and for new industrial buildings, much research has been done on lightweight aggregates for use in concrete and plaster. The trend toward lighter weight aggregates to relieve the dead load on the higher, steel frame- work buildings started toward the end of the last century. Progressively the requirements be- came more stringent, crushed bank slag, weighing 80 lb per cu ft as com- pared to 100 lb for crushed rock, was supplemented in some sections by foamed slags and expanded shales weighing from 40 to 60 lb per cu ft. In other sections cinders were used weighing from 40 to 50 lb, including sand. Sections favored with more recent vulcanism turned to pumice weighing from 30 to 60 lb, whereas other localities made use of diatomite, from 28 to 40 lb. Exfoliated vermiculite weighing from only 6 to 10 lb per cu ft came into use. As the search for lighter weights in aggregates continued so did the search for other desirable properties such as nailability, ease of cutting or channeling, and good insulation to both sound and heat. This search eventually led to a widespread interest in the expansion of perlite, or similar volcanic glasses, with the result that in 1946, the Office of the Housing Expediter&apos; listed eleven firms reporting the operation of processing plants either on pilot or commercial scale producing aggregates weighing from 2 to 16 lb per cu ft.

Jan 1, 1949

By Jin-Wei Huang, Bradley J. Fleming, Sri Sritharan

"Although soil improvement and its application to deep foundations is gaining popularity in the engineering community, this technique is not widely used in high seismic regions due to lack of fundamental understanding of both the behavior of improved soils under high-strain cyclic loading and the interactions between the pile, improved soil, and unimproved soil. This paper describes part of an ongoing Network for Earthquake Engineering Simulation (NEES) project, where two identical full-scale steel pipe piles were driven at a soft clay site in Oklahoma. The soil surrounding one of these piles was improved using the cement deep soil mixing technique in order to enhance its lateral load behavior. Both piles were tested for seismic resistance using dynamic and quasi-static loading.The pile in unimproved soil provided larger displacements with limited lateral force resistance. This pile was subjected to lateral displacements of up to 400 mm, but experienced minimum inelastic actions. On the other hand, the pile in improved soil reached its lateral capacity at a displacement of 100 mm, at which point the critical region at the base of the pile just above the improved ground experienced buckling and fractured due to low cycle fatigue. Compared to the pile in unimproved soil, the improved ground increased the system strength by 42%. Although the soil was improved over 2900 mm, the effective improvement depth was approximately 1300 mm below the ground surface.In this paper, it is demonstrated that the effects of block type soil improvement of limited horizontal and vertical dimensions can be described using a simplified theoretical approach involving a modification to the well-known p-y representation of soil response. An example using this method is presented and shown to give adequate support to a standard 12-inch diameter steel pipe pile embedded in soft soil,IntroductionPilings are the preferred foundation support for many civil engineering structures including highway bridges, railroad bridges, and port wharves. These structures and their foundations are subjected to forces created by earthquakes, wind, waves, water current, vessel impact, ice, and gravity. All loads applied to the superstructure must be transmitted to the foundation where they are resisted by the surrounding soil. With significant lateral loads, use of pile foundations may be the only solution to transmit large structural loads to competent soils. Piles supported by competent soils are relatively easy to design and costs are often attainable. However, thick layers of weak soils such as soft clays are widespread in high seismic areas (e.g., San Francisco, southern Nevada, Washington, Eastern Missouri, and Arkansas), exacerbating design challenges. Soft clays reduce the lateral resistance of the pile-soil system, making the pile foundation less cost effective. In this case, the current design practice is to use an increased number of larger diameter piles, which is a costly alternative (see SDC, Caltrans 2010). An innovative and more cost-efficient solution to this problem is to improve the soil within a short depth surrounding the foundation, thereby increasing its lateral stiffness. Some well-known methods for improving soil include deep soil mixing, stone columns, and simple soft soil replacement with select granular material."

Jan 1, 2017

By C. Q. Cupps

n view of increased interest in secondary recovery of oil in the Cut Bank field, Montana, a review has been made of unpublished data obtained during a 1943-44 study of reservoir oil characteristics in this field. Considerable uncertainty was attached to interpretations of subsurface oil sample analyses from six Cut Bank zone wells, one Lander sand well, and one Moulton sand well, because of adverse sampling conditions and wide range in the data. Much of this uncertainty has been removed by this review which has shown two of the Cut Bank zone samples and the Moulton sand sample to be representative of the reservoir oils. Estimates of original reservoir oil characteristics derived from differential-liberation analyses of these samples show that the oil in the Cut Bank zone was initially saturated at the gas-oil contact pres-sure, 750 psia, and the oil in the Moulton sand was undersaturated with a saturation pressure of only 380 psia. The rest of the samples were indicated to be nonrepresentative of the reservoir oils because of a disproportional vaporization of heavier components of the solution gas. The vaporization of these components is believed to be a cumulative effect of contact of the oil with bypassing, light-gravity gas which had been liberated at higher pressures from solution in oil farther back in the formation, or which had come from the gas cap, rather than from the singular effect of gas evolution caused by excessively low bottom-hole pressures. Change of oil composition caused by the latter was found to conform closely to that occurring during a differential liberation of gas in the laboratory.

Jan 1, 1967

By Mark J. Zdunczyk

"Frac sand is industrial silica sand much like glass, foundry, filtration and blast sand. The sand must meet certain specifications set forth by the industry that consumes the product. The production and consumption of frac sand has experienced record growth in the last 10 years because of new oil and gas drilling, new horizontal well drilling, multi-stage fracturing and the stimulation of older wells that have little or no production. Frac sand is needed to “prop open” the fractures in the rock reservoirs to allow oil and gas to flow out more freely.According to the U.S. Geological Survey (USGS), the estimated production of frac sand in 2015 was 71 percent of the total production of industrial silica sand or 67.4 Mt (74.3 million st). This is a decrease of about 12 percent from 2014. However, the silica sand industry and other industry sources estimate only 50 Mt (55 million st) of frac sand were produced in 2015. In recent years both the USGS and industry studies have been very close in estimating the production of frac sand but with the recent downturn in frac sand production, perhaps, reporting to the USGS was not as accurate. These discrepancies may be that the USGS statistics are based on voluntary reporting by the industry and some companies report their approximate production, others may not. It is always difficult to obtain accurate production figures of any industrial mineral or construction aggregate operation as most companies tend to keep those figures somewhat confidential. It is certainly accurate to report that the production of frac sand had decreased since the last quarter of 2014 and through 2015. The oversupply of oil and natural gas has led to this decline in frac sand usage. Oversupply has idled drilling rigs and well completion activities. World Oil Magazine reports that 2015 was the worst year for rigs in a quarter century. The only wells being completed are those that have contract agreements to do so, others have been capped. Very few new wells are being drilled. Since about 98 percent of well completion is sand and water, the sand supply has caught up with the demand. There are some bright spots in the “oil patch” as the Permian Basin in Texas and the Woodford Shale in Oklahoma have kept pace somewhat with drilling and completion. It has been reported that the frac sand producers in the Brady-Voca, TX area are producing to nearly capacity. The northern frac sand producers like those in Wisconsin, Illinois and Minnesota are feeling the downturn because of the cost of shipping sand to these moderately active basins and plays. The “rule of thumb” is that freight is 2/3 and sand is 1/3 the cost."

Jul 1, 2016