The Dune Express

The longest conveyer belt in the U.S. is moving sand in Texas

The Dune Express in West Texas. Courtesy of Atlas Energy

It's longer than the width of Rhode Island, snakes across the oil fields of the southwest U.S. and crawls at 10 mph – too slow for a truck and too long for a train.

It's a new sight: the longest conveyer belt in America.

Atlas Energy Solutions, a Texas-based oil field company, has installed a 42-mile long conveyer belt to transport millions of tons of sand for hydraulic fracturing. The belt the company named “The Dune Express” runs from tiny Kermit, Texas, and across state borders into Lea County, New Mexico. Tall and lanky with lids that resemble solar modules, the steel structure could almost be mistaken for a roller coaster.

In remote West Texas, there are few people to marvel at the unusual machine in Kermit, a city with a population of less than 6,000, where the sand is typically hauled by tractor-trailers. During fracking, liquid is pumped into the ground at a high pressure to create holes, or fractures, that release oil. The sand helps keep the holes open as water, oil and gas flow through it.

But moving the sand by truck is usually a long and potentially dangerous process, according to CEO John Turner. He said massive trucks moving sand and other industrial goods are a common site in the oil-rich Permian Basin and pose a danger to other drivers.

“Pretty early on, the delivery of sand via truck was not only inefficient, it was dangerous,” he said.

The conveyor belt, with a freight capacity of 13 tons, was designed to bypass and trudge alongside traffic.

Innovation isn't new to the oil and gas industry, nor is the idea to use a conveyor belt to move materials around. Another conveyer belt believed to be the world’s longest conveyor — at 61 miles long — carries phosphorous from a mine in Western Sahara on the northwest coast of Africa, according to NASA Earth Observatory.

When moving sand by truck became a nuisance, an unprecedented and risky investment opportunity arose: constructing a $400 million machine to streamline the production of hydraulic fracturing. The company went public in March 2023, in part, to help pay for the conveyor belt and completed its first delivery in January, Turner said.

The sand sits in a tray-shaped pan with a lid that can be taken off at any point, but most of it gets offloaded into silos near the Texas and New Mexico border. Along its miles-long journey, the sand is sold and sent to fracking companies who move it by truck for the remainder of the trip.

Keeping the rollers on the belt aligned and making sure it runs smoothly are the biggest maintenance obstacles, according to Turner. The rollers are equipped with chips that signal when it's about to fail and need to be replaced. This helps prevent wear and tear and keep the machine running consistently, Turner said.

The belt cuts through a large oil patch where environmentalists have long raised concerns about the industry disturbing local habitats, including those of the sagebrush lizard, which was listed as an endangered species last year by the U.S. Fish and Wildlife Service.

“In addition to that, we know that the sand will expedite further drilling nearby,” said Luke Metzger, executive director of Environment Texas. “We could see more drilling than we otherwise would, which means more air pollution, more spills than we otherwise would.”

The Dune Express currently runs for about 12 to 14 hours a day at roughly half capacity but the company expects to it to be rolling along at all hours later this year.

In New Mexico, Lea County Commissioner Brad Weber said he hopes the belt alleviates traffic on a parallel highway where car crashes are frequent.

“I believe it’s going to make a very positive impact here,” he said.

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A View From HETI

ExxonMobil Chairman and CEO Darren Woods said the company was weighing whether it would move forward with a proposed $7 billion low-hydrogen plant in Baytown this summer. Photo via exxonmobil.com

As anticipated, Spring-based oil and gas giant ExxonMobil has paused plans to build a low-hydrogen plant in Baytown, Chairman and CEO Darren Woods told Reuters.

“The suspension of the project, which had already experienced delays, reflects a wider slowdown in efforts by traditional oil and gas firms to transition to cleaner energy sources as many of the initiatives struggle to turn a profit,” Reuters reported.

Woods signaled during ExxonMobil’s second-quarter earnings call that the company was weighing whether it would move forward with the proposed $7 billion plant.

The Biden-era Inflation Reduction Act established a 10-year incentive, the 45V tax credit, for production of clean hydrogen. But under President Trump’s One Big Beautiful Bill Act, the period for beginning construction of low-carbon hydrogen projects that qualify for the tax credit has been compressed. The Inflation Reduction Act called for construction to begin by 2033. The Big Beautiful Bill changed the construction start time to early 2028.

“While our project can meet this timeline, we’re concerned about the development of a broader market, which is critical to transition from government incentives,” Woods said during the earnings call.

Woods had said ExxonMobil was figuring out whether a combination of the 45Q tax credit for carbon capture projects and the revised 45V tax credit would enable a broader market for low-carbon hydrogen.

“If we can’t see an eventual path to a market-driven business, we won’t move forward with the [Baytown] project,” Woods told Wall Street analysts.

“We knew that helping to establish a brand-new product and a brand-new market initially driven by government policy would not be easy or advance in a straight line,” he added.

ExxonMobil announced in 2022 that it would build the low-carbon hydrogen plant at its refining and petrochemical complex in Baytown. The company had indicated the plant would start initial production in 2027.

ExxonMobil had said the Baytown plant would produce up to 1 billion cubic feet of hydrogen per day made from natural gas, and capture and store more than 98 percent of the associated carbon dioxide. The plant would have been capable of storing as much as 10 million metric tons of CO2 per year.

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