US sand production will ramp up over the coming quarters, supported by rising prices and a robust project pipeline in response to growing demand from the oil and gas industry. Sand producers will prioritise projects in close proximity to active shale operations around the Permian basin to integrate logistics and boost cost competitiveness.
US coal miners will continue to rein in output and lay off workers to withstand the weak coal price environment over the next few quarters. The Powder River Basin and Illinois Basin will remain relatively resilient than the Appalachian Basin, due to lower operating costs.
Peabody Energy's bankruptcy highlights the extent of the industry's rout, giving way to further consolidation. The announcement comes on the back of industry-wide challenges, namely high debt levels, low energy prices and increasingly stringent environmental regulations.
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Thanks, BMI Research