By Edward McAllister (Corrects Nov. 7 story to repair spelling of a name in the last 2 paragraphs) NEW YORK (Reuters): Unfazed by dropping oil rates as well as battering in the stock exchange, companies that provide sand as well as guar gum for shale oil and gas business are not prepared yet to call an end to a four-year boom stimulated by hydraulic fracturing technology. Simply putting on an endure face as a slump looms? Probably, however the optimism might additionally mirror confidence that the UNITED STATE shale sector is more resistant to retreating oil costs than financiers may believe. Oil costs have fallen 30 percent since late June and also shares of such companies as UNITED STATE Silica Holdings as well as Hello there Crush, which supply sand to UNITED STATE drillers, followed, dumped by investors anticipating 2015 outcome cuts and also a decline in demand. Nonetheless, the solution firms claim business remains as solid as ever before. Furthermore, they direct out that many of their supply has been acquired under lasting agreements implying following year needs to be good also. “We have not seen any type of data or had any sort of conversations that indicate reduced demand for our sand,” said Robert Rasmus, Co-Chief Exec Policeman of sand producer Hi-Crush after the company stated record 3rd quarter profits this week. Hi Crush’s share price has actually dropped greater than 40 percent given that the beginning of September, but Rasmus claimed almost 90 percent of the firm’s sand result was cost 2015. His remarks echoed those of various other firms that provide sand as well as various other materials to oil drillers. U.S. Silica Holdings, whose oil as well as gas industry profits increased in the 3rd quarter of this year, continues to be positive concerning its expectation. “We are definitely talked with our consumers regarding their future development, and also none has reduced their projected needs,” chief executive officer Bryan Shinn told financiers recently. Demand for sand and also the powder-like gum made from guar seeds has soared in recent times. Both are made use of in exactly what is referred to as “completion” of an oil well, which happens after drilling as well as during fracking to keep open small cracks in shale stone to allow oil to leave. REBOUND WISHES? Experts claim that in comparison to investors that have currently priced in a drop in 2015 output as a result of sliding oil prices, service companies could still wish for a rebound and hold back with cutting their overviews. Their optimism could possibly also be an indication that the shale oil boom, which has changed UNITED STATE power market since completion of last decade, has sufficient drive to keep result as well as service firms’ business rising next year and also maybe past even as some drillers already start cutting their 2015 financial investment plans. Sector professionals state existing wells that have actually been drilled but not yet fracked will keep outcome surging for months as well as many have actually hedged next year’s production well over present prices In addition, while UNITED STATE oil prices hit a three-year low below $76 a barrel this week, numerous shale oil firms have actually indicated they would certainly stay rewarding if prices remained above $70. That said, a more slide as well as drawn-out weakness could possibly require shale oil business and also their providers, numerous of which have yet to weather a recession, to draw back. Some clouds are currently appearing. Diamondback Energy, an oil manufacturer in the Permian Container in Texas, claimed this week that it would certainly start 2015 with 5 drilling rigs as well as hang around to view what oil rates do prior to including 3 even more rigs as earlier intended. Various other firms have likewise signified prospective 2015 spending cuts ought to oil rates remain low or slide further, ultimately weighing on their suppliers’ business. Analysts are carefully viewing the oil rig matter for any very early indications of a stagnation. The variety of oil rigs in North America is near all-time high, according to a weekly survey from service firm Baker Hughes. “Everything depends just how low oil prices go and just how long they remain there – and also the court is still out on that,” said Judith Dwarkin, supervisor of energy study at ITG Investment Study in Calgary. “We will be viewing the rig deployment.” In the meantime, some firms still wager on a continuous shale boom. United Guar, a Houston-based firm that provides guar gum to U.S. drillers, intends to triple its handling capacity over the next 18 months, the company’s president Aamer Sarfraz claimed in an interview, confident that rates will certainly recover. “I do not care if fracking slows in the United States,” Sarfraz claimed. “You need to take a longer term view.” (Reporting By Edward McAllister; Modifying by Tomasz Janowski)BusinessSectors & & Industriesoil rates