Energy Prospectus

Rising sand prices threaten U.S. energy companies. E&E News. The market for sand is surging, spelling trouble for U.S. energy companies that rely on the material for hydraulic fracturing. The price of sand recently reached $40 a ton or more, up from $15 to $20 a ton in the second half of 2016. The increase can be attributed to rebounding U.S. oil production, as energy companies rush back into the oil patch and pour millions of pounds of sand down wells. Energy companies have come to rely on sand during fracking to supersize their wells. The sand props open underground fissures, allowing oil and gas to escape to the surface. Some people have raised concerns that the increased sand prices could stall the drilling renaissance. "Companies are worried about it," said James West, a managing director at the energy investment bank Evercore ISI. "I think the threat of a bottleneck, at this point, is probably understated."