The Permian’s New Gold Rush: Frac Sand

Chevron leads a push for bigger wells and smarter sand logistics as shale drilling shifts to fewer, more productive sites.

15 Apr 2025

Shale producers in the Permian Basin are driving strong growth in demand for frac sand as they move towards larger, high-output wells aimed at improving efficiency and reducing costs. Chevron is among the companies leading this shift, increasing the use of high-intensity well completions and accelerating drilling times.

The US energy group plans to triple its number of high-volume completions by 2025 while cutting well completion times by almost 25 percent. Chevron said its strategy focuses on increasing output from each well while using fewer rigs and limiting the surface footprint.

To meet this demand, sand logistics are rapidly expanding. Atlas Energy Solutions launched the Dune Express conveyor system in January 2025, creating a direct route to deliver frac sand to key Permian sites without using trucks. The company said the system reduces road congestion and shortens delivery times. Hi-Crush, a major sand supplier, is also expanding its in-basin terminals to raise capacity and improve delivery speed.

Industry analysts see the changes as a structural shift in shale production. “By increasing sand volumes per well, operators are improving recovery rates while reducing surface impact,” said one analyst. The trend is encouraging investment across mining operations and transport infrastructure.

Challenges remain, including truck shortages and environmental concerns, but suppliers are moving quickly to add capacity and improve logistics. Companies are adopting faster delivery systems to serve shale operators, focusing on fewer but much more productive wells.

With output increasingly concentrated in larger completions, the Permian Basin is becoming a center for efficiency-driven growth in US shale. Industry groups expect sustained high demand for proppant, the material used in hydraulic fracturing, as drilling strategies continue to evolve.