For a company that pumps about 4 million tons of sand per year—enough to fill Oklahoma City’s Chesapeake Arena six times—it’s no wonder that thoughts turned to self-sourcing when free-cash-flow neutrality and reducing debt were goals.

“We have saved over this last year $100 million by supplying our own sand. That’s massive for us,” Jason Pigott, executive vice president of operations and technical services for Chesapeake Energy Corp., told attendees at Hart Energy’s DUG Sand conference in April. Added benefits included reducing nonproductive time (NPT) by 92% in the last few months with no negative impact on production, he said.

The accomplishments didn’t require adding another division to the company’s supply chain group as he originally feared. They came by adding two people with expertise to the organization, forming valuable partnerships and lots of planning. Although the Oklahoma-based company does not have any assets in the Permian Basin, Pigott said the company’s sand story is universal to everyone in the E&P business.

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