New Frac Sand Mines Opening In Wisconsin Despite Industry Slowdown

Wisconsin’s frac sand mining activity continues to slow down in the face of stagnant oil prices, but even with poor market conditions, new plants are being built.

Consumption of Wisconsin frac sand is down by around 21 percent compared with last year, according to industry analyst firm IHS. The firm’s Director of Consulting Samir Nangia said that’s because hydraulic fracture drilling for oil and natural gas has dropped by 40 percent. Two large sand mines have publicly announced layoffs and Nangia said others have quietly done the same. But despite this, he said six new mines are coming online in the state.

“It was quite a surprise for me that even in this market, the number of mines is going up. But that’s just because all of the activity that was already in the works from last year,” he said.

Nangia said nationwide, frac sand production is actually increasing by a robust 11 percent because companies that are still drilling are using up to 5,000 tons in a single well.