Demand For Wisconsin Frac Sand Expected To Rise In Future, Analyst Says

Prices, Demand Have Bottomed Out In Past Year


It’s been nearly a year since Wisconsin frac sand companies started feeling the pain of falling oil prices. But even though their stock prices are near all-time lows, analysts see another boom on the horizon.

Last summer, Wisconsin’s largest frac sand companies were living high on the hog. For example, Emerge Energies, which owns Superior Silica Sands, saw stock prices as high as $144 per share. A year after OPEC countries flooded the world’s oil market, those stocks are around $20 a share. But energy writers like Adam Galas of The Motley Fool says the lull will not last.

“So, even though in the short term we’re looking at a 30-40 percent decrease in demand for frac sand and price is down 20-25 percent, in the long-term this is just a great opportunity for long term investors,” he said.

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Galas expects oil prices to hit $100 a barrel again in three to five years, but more importantly he said global demand continues to rise, as will demand for U.S. shale oil and Wisconsin frac sand.