West Texas dries its sand

New in-basin dry sand capacity in West Texas aims to cut costs and logistics risk, highlighting an industry shift toward faster, more reliable frac supply chains

12 Jan 2026

A small change in the desert of West Texas may carry large consequences for America’s oil patch. In Kermit, on the edge of the Permian Basin, Wallstreet Sand has expanded dry frac sand operations that reflect a broader rethink of how one of fracking’s dullest inputs is supplied.

The Permian remains the country’s most important oilfield, yet its supply chains are under constant strain. Drilling activity has levelled off, but operators still want wells completed faster and with fewer surprises. That has put pressure on the humble sand that props open shale fractures. How it is processed and delivered now matters almost as much as its price.

Wallstreet Sand’s wager is on proximity. Its expanded site, whose cost has not been disclosed, includes large storage capacity and multiple loading points intended to keep pace with modern completion schedules. By producing dry sand inside the basin, rather than hauling it from farther afield, the firm hopes to shorten truck journeys, cut delays and give customers clearer cost forecasts.

Dry sand sits at the heart of the strategy. Compared with wet sand, it flows more easily through trucks, silos and wellsite equipment, reducing handling problems. It also suits operators’ push to minimise downtime. Although drying sand requires extra processing and capital, reliability increasingly trumps marginal savings. In a basin where a stalled completion can be costly, certainty has value.

Brandon Foster, the firm’s chief executive, says the expansion responds to customer demand, not speculation. Volumes remain undisclosed, but early commercial agreements tied to the new capacity suggest that operators are willing to commit on the basis of location and dependability. That reflects an industry-wide effort to simplify logistics and trim the hidden costs of transport and scheduling.

The move may unsettle incumbents. Suppliers such as U.S. Silica have long shipped dry sand into the Permian from other regions, a model exposed to rising rail and trucking costs. Integrated service firms, including ProFrac, could also face sharper competition from independents offering local supply, though much will depend on contract terms and customer loyalties.

There are risks. Dry sand plants demand higher upfront investment and tighter dust and safety controls. Returns still rise and fall with drilling, which in turn tracks oil prices. Yet most analysts see these projects as signs of a maturing market rather than a glut.

What looks like a single expansion is part of a quieter shift. As operators favour local, resilient supply chains, the frac sand business may increasingly reward not just those who sell sand, but those who deliver it without fuss.