This Week’s Market Buzz

• Emerge Energy Services, Fort Worth, Texas, said it is buying a small operation south of San Antonio to transform it into a much larger mine to serve the hydraulic fracturing needs of the oil sector. The mine, owned by Osburn Materials of San Antonio, produces sand for building materials, golf courses and baseball fields. Emerge is buying it for $20 million with plans to spend more to rapidly expand it for the oil and gas sector. Emerge borrowed $40 million to finance the acquisition and expansion, according to regulatory filings, said the San Antonio Express-News.

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This Week’s Market Buzz

• Mammoth Energy Services has agreed to acquire frac sand mining company Taylor Frac and two oilfield service businesses for issuance of 7 million common shares. Based upon Mammoth Energy Services’ March 20 closing price of $19.06/share, the value of the transaction is $133.8 million, including the assumption of $7.3 million in debt. Mammoth Energy Services said it plans to expand the Taylor Frac processing facility to 1.75 million tpy by year-end 2017 at an estimated cost of $23 million. Chieftain Sand and Proppant LLC won a bankruptcy court order approving its $35 million sale to Mammoth Energy Services as well.

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This Week’s Market Buzz

• U.S. crude stockpiles have been rising for seven consecutive weeks, and forecasts of an eighth build of 2.9 million barrels last week fueled worries that demand growth may not be sufficient to soak up the global crude oil glut. U.S. benchmark West Texas Intermediate crude was holding at $54.01 a barrel. Benchmarks Brent crude oil was at $55.56 a barrel.

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This Week’s Market Buzz

  • According to Stratistics MRC, the global proppant market is estimated at $58.46 billion in 2015 and is expected to reach $143.46 billion by 2022 growing at a CAGR of 13.68 percent from 2015 to 2022. A shift towards alternative energy resources is the key factor favoring market growth. The increasing demand for energy and unconventional gas are the key drivers, whereas the high logistics cost is inhibiting proppant market growth. The future growth lies in potential explorable reserves. Frac sand is the leading segment accounting for around 86 percent of the market, while resin-coated proppants and ceramic proppants stand at around 14 percent. North America accounted for the highest market share as compared to other regions.

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This Week’s Market Buzz

• Oil prices rose on February 23 after U.S. data showed a surprise decline in inventories, suggesting that a global glut may be ending after moves by OPEC to cut production. Benchmark Brent crude oil was up $1.05 a barrel, or 1.9 percent, at $56.89, recovering from a drop of 82 cents. U.S. light crude rose $1, or 1.9 percent to $54.59 a barrel. It fell 74 cents in the previous session.

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