Author: Tyler Webb

Permian Jumps 15% in Horsepower Demand in Q4’19

Permian HHP demand is forecasted to trough in 1H’19, declining roughly 19% from the 2Q’18 peak to 5 million HHP before takeaway capacity comes online in 2H’19 and operators begin completing deferred activity. Active Permian crews are likely to decrease an additional 7% from Q4'18 levels, to match an 8% decline in HHP demand over the same period.Westwood estimates a 15% sequential increase in HHP demand from Q3’19 to Q4’19, with a 1% increase in active, or marketed, supply. Pressure...

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Pressure Pumpers Fall Prey to Efficiency

Completion efficiencies in the Marcellus/Utica formations of the US Northeast have changed the perception of the mature gas basin. The implementation of longer laterals and increased proppant loading intensity have lowered production costs and raised production. However, pressure pumpers in the Appalachia are expecting a slow-down in the back half of 2018 due to operators reaching production targets sooner than expected given increased operational efficiencies.Recent data shows a 9% decline in Marcellus fleet utilization. In June, utilization totaled approximately 93%...

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The Proppant Demand Dichotomy in Appalachia Super Laterals

While the Appalachia Basin only accounts for roughly 15% of total proppant usage in the Lower 48, the US Northeast has some of the highest proppant amounts per well. In 1Q18 a typical completion in the Appalachia Basin averaged roughly 16 million pounds, or 8,000 tons, representing a 7% increase year-over-year. Comparatively, the US average is roughly 13 million pounds or 6500 tons. This is partially attributable to specific operators in the region testing longer “super laterals.” Figure 1. Proppant Amount and...

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Marcellus Longer Laterals

Super Laterals Trending in the US Northeast

Operators across the Lower 48 are continuously enhancing their drilling and completion techniques to extract the most out of any given well. While lateral length trends vary in each basin, operators in the Marcellus and Utica in the US Northeast are testing some of the longest laterals in the country—beyond 20,000’ in some cases—and are showing no signals of slowdown. Operators in the Marcellus and Utica are drilling 9,035-foot average laterals in 2017. Year-to-date in 2018, the average lateral length...

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