Frac Sand Industry is Helping the Economy
How Frac Sand Helps the Economy
In today’s day and age, helping to promote a healthy economy is vital. One industry that many people are unaware of and that is providing a substantial boost to the company is the frac sand industry. This “frac sand” is a type of extremely durable and crush-resistant quartz sand that is used by the petroleum industry for a process known as hydraulic fracturing. In this process, a well is drilled into the petroleum-bearing zone of the rock that is to be fractured. Next, a mixture of sand and chemicals are put in water that is pumped into the well, creating fractures in the rock through which oil and natural gas escape. The frac sand is one of the most important ingredients in this procedure. Energy companies such as All Energy Sands provide mining companies with this important ingredient.
Over the past year, there has been a 50% increase in the consuming of frac sand, with energy companies consuming as much as 95 billion pounds of sand. A method known as “superfracking” has been largely responsible for this increase in the use of frac sand. “Superfracking” is a fracking technique that focuses on using even more frac sand to create bigger cracks in the rocks that produce more oil and gas. “Superfracking” methods can result in a 30% increase in output, putting frac sand companies among some of Wall Street’s biggest earners. This has attracted the attention of many investors.
Increasing Economic Increase in the Fracking Sand Industry
Some people argue that environmental risks associated with fracking can outweigh the economic benefits. Most people are accustomed to the idea that the natural gas and oil mining methods cause significant air and water pollution. This stereotype makes fracking an unattractive prospect for most of the general public, especially for those who live or own a business near the mining site.
However, according to a preliminary study by the Energy Department, “reports that nothing of concern” has been found with regards to the contamination of drinking water. After a year of monitoring chemical levels near fracking sites, it was found that the chemicals used to extract the oil and natural gas remained thousands of feet underneath the water table from which drinking water is taken. While this study may not be conclusive yet, it is good news for fracking companies.
The boom in the frac sand industry has also been beneficial for rail companies such as Union Pacific (UNP), which now ships more than 20 million tons of silica to oil companies for oil and natural gas fracking every year. Other companies that may benefit from the frac sand industry include technology design companies (such as General Electric), and silica production plants. New technology to improve the safety and effectiveness of fracking is always necessary, resulting in more business for large technology providers such as GE. Since silica sand is often used for fracking, the increase in demand for frac sand will lead to an increased demand for silica, giving more employment opportunities to people across the country.
There are other economic benefits connected to the frac sand industry. When miners utilize fracking to remove valuable minerals from the earth, this supports higher levels of pay. These pay levels, which are much higher than average, create wealth and often has a “ripple” effect that boosts the economy and ensures that the whole community is better off. This is great news for the current economy in many communities.
Though the subject of hydraulic fracturing and frac sand production will most likely remain highly controversial, it should be noted that there are several large economic benefits that can arise from this industry. All Energy is proud to be a part of the fracking movement that has recently become so popular throughout the United States. For more information about us, do not hesitate to contact us or to read more on our website.