Permian Operators Rethink Sand as Wells Grow Bigger

Industry observers say in-basin dry sand is tightening Permian supply chains, reducing logistics risk as newer well designs drive higher proppant intensity

2 Feb 2026

A gradual shift in frac sand supply is reshaping operations in the Permian Basin, as oil and gas companies look to reduce logistics risk while managing rising material demand. The change comes as drilling and completion activity increases and newer well designs require larger volumes of sand.

The latest sign of this trend is the launch of dry frac sand operations by Wallstreet Sand Co at its facility in Kermit, Texas. The move underscores how supply reliability is becoming a more important factor for operators as completion schedules tighten.

The Permian has for years led the use of in-basin sand, cutting costs and reducing dependence on long-distance rail shipments. As completion designs have evolved, however, industry attention has shifted again. Analysts and company executives say proppant intensity per well has risen steadily over the past decade, driven by longer horizontal laterals and tighter spacing of fracture stages.

In this setting, dry sand is attracting renewed interest. Unlike wet sand, it can be stored for longer periods and handled more flexibly, making it easier to manage sudden changes in completion timing. Suppliers and operators say these features can help limit delays when equipment and crews are already on site.

By adding drying and storage capacity in Kermit, Wallstreet Sand Co is expanding beyond traditional wet sand supply. Producing and processing sand close to the basin’s most active drilling areas reduces exposure to trucking constraints and infrastructure bottlenecks, which tend to worsen during periods of high activity.

Analysts say this approach reflects broader completion trends. As wells become larger and more complex, even short interruptions in sand delivery can lead to costly downtime. In-basin dry sand is increasingly viewed as a buffer against weather disruptions, congestion and scheduling conflicts that can disrupt frac operations.

The growth of dry sand capacity is also intensifying competition in the regional market. Greater local supply challenges older models that relied on distant sources and long-haul transport, potentially offering operators more predictable access to materials.

The shift is not without challenges. Dry sand production requires additional energy and careful dust control. In Texas, producers must meet strict environmental and permitting requirements, making compliance a key consideration as capacity expands.

Even so, industry participants say frac sand is no longer treated as a basic commodity. Instead, it is becoming a strategic input closely tied to execution speed and operational reliability in the Permian Basin.