Author: Todd Bush

Is History Repeating in the US Pressure Pumping Market?

Since 2012, the percantage of horizontal rigs running in the Permian Basin has steadily increased. The percent of horizontal rigs in the Permian grew from 14% in January 2013 to 27% in January 2015. Now, the Permian accounts for over 42% of the active horizontal rigs in the US land market.This year the Permian gained 100 horizontal rigs, a 46% increase in horizontally directed rigs. The year-over-year horizontal rig increase is a staggering 174% for the prolific basin. At this...

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Schlumberger-Weatherford JV Could Challenge Halliburton

On March 24, 2017, Weatherford and Schlumberger announced a proposed joint venture to deliver completions products and services for the development of unconventional plays in the United States and Canada. Going by the name OneStim, the venture will boast one of the largest hydraulic fracturing fleets in the industry, possibly rivaling that of Halliburton.Schlumberger’s hydraulic fracturing fleet currently has 2 million horsepower and Weatherford’s is estimated at 800,000-1 million HHP. The combined horsepower as OneStim exceeds BJ Services’ 1.9 million...

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A Shortage of Frac Sand Will Bring Supply Chain Challenges

Many oilfield service and supply companies, including Halliburton (NYSE: HAL), Hi-Crush (NYSE: HCLP), U.S. Silica (NYSE: SLCA), and Fairmount Santrol (NYSE:FMSA) have cited a shortage of frac sand for the U.S. shale plays, specifically 40/70 in the Permian Basin.Advancements in the horizontal drilling and completion techniques of leading shale E&P’s are driving frac sand demand to new high points. The significance of multi-well pad drilling in the Permian increased each of last several years, even during the downturn. In...

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Sanchez Energy (NYSE: SN) Expects to Double Production in 2017

Sanchez Energy Corporation (NYSE: SN) had a blockbuster 2016, partnering with Blackstone the companies acquired Anadarko’s acreage in the Eagle Ford which is expected to close in the first quarter of 2017. This acquisition adds 132 DUCs, 3,400 drilling locations and 67,000 net Boe per day. The company optimized its well design in Catarina decreasing drilling and completion costs which are currently around $3 million per well.     In 2017, the company is expecting to spend $425 to $475 million and increasing...

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Halcón Enters Southern Delaware Basin, Plans to Expand in Bakken

Halcón Resources Corporation (NYSE:HK) has announced agreements that will mark the company’s entry into the Southern Delaware Basin and released preliminary details on its planned activity for 2017, including expanded activity in the Williston Basin. New Deals Mark Halcón’s Entry Into Delaware Basin The company announced its entry into the Southern Delaware Basin through two key agreements:A purchase and sale agreement with a private operator to acquire 20,748 net acres in the Southern Delaware Basin (the "Pecos County Assets") for $705...

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Proppant Insights: Can a Legacy Pressure Pumper Return to Former Glory?

Well services companies suffered through harsh conditions during the last 18 to 24 months. Weatherford (NYSE: WFT), along with many others, are no longer in hydraulic fracturing business. BJ Services returns to a much different Lower 48 well services landscape.Halliburton (NYSE: HAL) gained strength in the Lower 48 market moving from 27% in 2015 to 30% in 2016. Schlumberger (NYSE: SLB) is the number two pressure pumper in the Lower 48 with ties to large independents in the Eagle Ford...

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Proppant Insights: The Battle for Frac Sand Market Share

The last quarter brought about activity across frac sand suppliers as providers continued moving towards the Permian Basin. For the last three quarters, Permian leads proppant demand. Due to the reporting lag in completions, expect the Q2 numbers to increase by another 10-20%.Since 2015 Q4, E&P companies in the Permian have consumed approximately 11 billion pounds of frac sand. Recent well reports show 1,200 - 1,500 pounds of proppant per lateral foot in the Delaware. A few E&P's are pumping nearly...

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Proppant Insights: Decoupling of Supply Chain Continues

The volatility during the quarter caused more uncertainty in the industry, even though oil stabilized near $40 at the end of Q1’16, Many now believe that “the bottom” was reached earlier this year. In-basin Delivery Becomes Vital The logistics of getting to the wellsite are challenging to say the least. The last mile trucking from terminal to well site is critical, especially in today’s market. Numerous frac sand suppliers and chemical supplier relayed stories of E&P’s expecting in-basin delivery of supplies in...

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