Moody’s Investor Services said in a recent research report that sand prices for oil and gas fracturing and valuations of sand mining companies are expected to remain depressed as supply continues to outpace demand. The report said “frac sand castles may crumble” as prices remain low. Moody’s said sand prices have declined 20 percent in the last year. Sand mines in Wisconsin and south Texas have closed in recent months.
Also, Norwegian research firm Rystad Energy said U.S. oil and gas sand demand will grow by 10 percent this year and by 17 percent in 2020, and fracturing sand supplies will increase by 10 percent this year.