However, to make the most out of the energy renaissance, investors should look beyond these direct shale plays. As highlighted in The Wall Street Journal, “another boom” is being created in a key ingredient used in hydraulic fracturing: Sand. The WSJ finds that companies that mine the ideal sand used to crack rocks and allow the oil and gas to flow out have increased substantially. For example, since going public in August 2012, shares of U.S. Silica have doubled, according to the WSJ.
Refiners also benefit tremendously. Because crude oil exports are mostly prohibited, the oil is refined before being shipped to the rest of the world. As you can see in the chart, in recent years, the U.S. has moved from importing refined petroleum products prior to 2010 to exporting more than 1 million barrels per day as of September 2013.
In the Streetwise interview, Evan talks about more opportunities he sees in the pipeline. When you have some time over the next few days, I encourage you to read the interview to stay curious and gain insight for your portfolio.