Starting a Frac Sand Hauling Business

Isn't it amazing how service quality means absolutely jack #### anymore. All the companies are worried about is the line item it doesn't matter what the overall cost is as long as the line item is cheaper.


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If the wells get shut down enough they will change to the dependable to get it done right the cost to recover from a shutdown frac job can cost a lot more. Beau

 

Beau, I hope you are right! They did shut down one of our wells and we are getting more work because of it, the problem is they still caused the low rates. They cut a deal with this particular service company and are pre-paid so they are coming out on top by being kicked off and having their trucks sit, for now anyway. I know that they are pre-paid but not sure for how far in advance or what percentage of their over all pay. It was a big deal when they were kicked off the well. The company man kicked them off the first day. Service company sent them back to well and told us they had already paid for their services. The second day the energy company had a meeting on location with service company and SNI. They haven't been back on any of the jobs for that particular energy company since. They are supposed to be going through a 14 day training period and then they will be used again.

 

yes they do muddy the water when they the dont deliver. What we need is a good cold winter for work to pick back up. Do you have any O/O?

 

Beau, yes we do have O/O. We are extremely selective about who we lease on. When we lease O/O on its a long-term lease. Our DOT and insurance as many of our customer require this. We own just over 50% of our approximate 100 trucks we have running.

 

Wish I had thought to ask sooner. I like to think I would fit in with your company. Have just finnished all of the hoops at D and T. Will Keep in touch with you and see how things go here and see what happens. Beau

 

Beau, I am new to the forum so I can not respond to PM. My number is (210) 289-9774. Feel free to call, I always have my phone on.

 

We changed companies and we are now running into south TX as well. SNI is like a leach, they are sucking the life out of the industry down here. The sad part is, they are hiring rookies and asking them to be pro's. It is only a matter of time before they get someone really hurt or killed on one of these wells. All of this to get a back, the oil companies need to open their eyes and pay attention to how much they will loose when they get sued for a death because of people like SNI.

 

I heard the company we left, just lost their largest account to a company that owns the sand plant. Looks like that is the way the industry is moving now. Might pay to just go and haul the oil instead. At least that will be steady. Since the rates have been slashed so much, we are not making any money here any longer. Something to think about I suppose

 

I know this might sound crazy and may not work but I am interested in talking to the owners of some of these bigger frac sand hauling outfits. I would like to setup a board with members from each company that all have a voting say so. I think if we worked together we could solve this problem quick and in a hurry. Right now all the companies in South Texas are fighting each other for rate and everyones service is being sacrificed. Drivers are getting harder and harder to find and retain as the word is spreading about the rates. From my experience this all started late last year early this year when work slowed due to the drop in Natural Gas prices. Everyone paniced as they heard and saw companys like SNI come into town and started droping rates to get the work. The rest is history.
My family is in the manufactured and modular home business. We did exactly what I am talking about and it bennefited all involved. It allowed all the independents to have more leverage with the factory on pricing and service issues. There were also other bennefits but those were the biggest two. If anyone is interested in this idea please let me know. If you have criticisim to the idea I would love to hear it. That will help me make it sucessful when I get it done!