Why Invest in Frac Sand Companies like All Energy
Why Invest in Frac Sand Companies
Fracking to produce oil and natural gas has become one of the most highly debated and controversial subjects throughout the country. The process involves pumping a mixture of chemicals, durable sand, and water into wells that have been drilled into rock deep underground. This creates fractures in the rock, which allow oil and natural gas to escape and be harvested. The durable sand used for fracking is called frac sand, or silica sand. Energy companies have increased their consumption of frac sand 50% in the last year. This substantial increase has not gone unnoticed by people who are looking at investing in fracking stocks.
But why should you invest in frac sand companies? There are several good reasons to invest in the main component of this incredibly popular mining procedure. The typical fracking well uses up to 10,000 tons of frac sand throughout the course of its use. Since around 50 new wells are being drilled each day in the United States, the demand for frac sand is steadily increasing. Several states, including Illinois, Texas, and Wisconsin, are experiencing a rapidly increase in the domestic frac sand market. This is good news for frac sand investors.
In addition to the rise of fracking techniques, a new procedure has started to catch on. This procedure is known as “superfracking,” and is designed to produce more oil and natural gas by making even larger cracks in the rock formations underground. “Superfracking” uses even more sand than the normal fracking techniques. As this extreme method of fracking becomes more and more popular, the demand for frac sand will continue to rise dramatically. In fact, the demand for frac sand is anticipated to grow as much as 96%by 2016 from 2013, while the sand capacity is only expected to grow 76%.
The Future of Investing in Fracking Stocks
Frac sand companies such as All Energy Sands have become a wildly popular investment for many. With new and innovative fracking procedures being talked about every day, the popularity of fracking and the frac sand industry is not expected to deteriorate any time soon. Major frac sand companies have announced their plans to build large-scale storage silos and to upgrade their processing plants. Some frac sand companies in North America have also purchased miles of untouched frac sand deposits. In addition to the anticipated rise of the market, major investors have recently bought shares of several popular frac sand companies.
The time to invest in frac sand companies is now, while they continue to rise in value. While some people are concerned about the environmental risks associated with fracking, recent studies have indicated that there have been no majorly concerning levels of chemical pollution in the drinking water near fracking sites. This is another reason to invest in frac sand companies: as fracking is shown to be an environmentally friendly, or at the very least neutral process, the popularity will only increase even more. If you are looking to invest in a successful industry that is expected to grow significantly over the next few years, investing in frac sand companies is a great option.