From the perspective of the pressure pumper who is vying to complete the inventory of DUC wells, there will be impacts to pricing. As noted by the ND Industrial Commission (March 2016), there are about 20 frac crews in the state.
Based on Energent Group data and conversations with Bakken operators, the active number of frac crews is likely around eight currently. The equipment in some cases is still available; however, the crews have been laid off.
Trican, for example, sold the U.S. pressure pumping business to Keane.
Sanjel, once a top pressure pumper in the Bakken, is now bankrupt and sold off their assets to Liberty Oilfield Services. Liberty, like other pressure pumpers, is advancing technology during this downturn to frac wells with reduced budgets and halted drilling programs. Liberty Oilfield Services, the top pressure pumper in the Bakken in 2016, introduced a new “Quiet Fleet” that reduces noise by three times compared to other frac fleets.
With fewer frac crews available, pressure pumpers will likely continue to consolidate and find new ways to pump more stages in less time.Much, much more at the link, including some great graphics.
May's Turn To Cook Tonight
One of my favorite dinners: broccoli, asparagus, artichoke, and salmon (with a bit of Lawry Teriyaki coating), house Chardonnay: