• 4 minutes "Natural Gas Trading Picks Up Considerably Amid High Volatility" by Charles Kennedy - ...And is U.S. NatGas Futures dramatically overbought at the $6.35 range?
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 day What China is Learning from Russia's War in Ukraine and its Consequences
  • 6 hours Natural Gas is the Cleanest and most Likely Source of Energy to Fuel the World.
  • 2 hours Advancing Fundamental Drilling Science - Geothermal drilling successes offer potential gain for petroleum industry
  • 5 days Revisiting: "The U.S. Grid Isn’t Ready For A Major Shift To Renewables" from March 2021 by Irina Slav at OILPRICE
  • 3 days Failure To Implement Russian Oil Ban Could Send Oil Crashing To $65
  • 12 hours "Russia will stop 'in a moment' if Ukraine meets terms - Kremlin" by Reuters via Yahoo News...but Reuters suddenly cut out the balanced part of the story.
Editorial Dept

Editorial Dept

More Info

Premium Content

The Energy Commodities Struggling With Supply Gluts

1. Frac sand miners drowning in supply

- The share prices of frac sand miners have plunged by more than 70 percent over the last two years, as a wave of new supply has hit the market all at once.
- Bloomberg reported that one company, Shale Support LLC, has started to export frac sand to Argentina, a move that boosted profits by 20 percent.
- But that is a relatively small market. For now, U.S. sand miners are battered because supply has grown by 50 percent in the last three years. In 2019, supply is expected to rise to 229 million tons, while demand will only reach 123 million tons, according to Bloomberg and Rystad Energy.
- Many new mines have opened in Texas, close to drilling operations. The older mines from Wisconsin are now struggling to stay afloat. 
- One company, Covia, has shut down 7 million tons of supply, the largest volume out of any other company, according to Bloomberg and Evercorse ISI.

2. U.S. refiners ramp up

- Refinery runs averaged 17.3 mb/d in 2018, the highest annual average on record and the fifth consecutive year that the industry broke a new record, according to the EIA. 
- One of the reasons for higher throughputs is the high margins for diesel, an attractive incentive for refineries to ramp up processing. Gasoline margins have been depressed, but diesel is much more profitable. 
- As refiners chase diesel, they have exacerbated the glut of gasoline since both fuels…





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News