Wyoming Completion Activity Decreases ~70% from One Year Ago but Permitting Continues
The majority of activity in Wyoming has come from the Powder River and Pinedale Basins but most recently Pinedale has seen the majority of activity. Permit activity spiked in the beginning of 2015 peaking in May at 691. Permit activity has increased 19% from February 2015 to February 2016 and has dropped -16% in March from February which had 503 permits.
61% of Activity in Wyoming Concentrated in Sublette County
In the past 6-months activity has been concentrated in the Pinedale basin in Sublette county where both QEP Energy and Ultra Resources have been very active having completed 70 jobs. The second most active county has been Campbell county in the Powder River Basin. Operators active in this county include EOG Resources, Devon Energy and Denbury Resources.
Schlumberger Gains Market Share Holding 25% of the Market
The pressure pumping market in Wyoming has been dominated by Halliburton in the past six months accounting for ~55% of all frac jobs. Although the company holds over half the market, Halliburton has been loosing market share as the prior 6 months they were at ~62% of the market. Schlumberger has gained market share moving from 17% of the market to most recently ~25% in the past 6 months.
Wyoming pressure pumper market from October 2015 to present:
HAL & SLB Operator Ties
Due to Halliburton’s decline in market share, we look at the relationships between the pressure pumper and operators. Halliburton was primarily pumping for two operators QEP Resources and Ultra Resources 6 months ago, frac’ing 66 jobs per operator. In the past 6 months, though, HAL has seen a dramatic drop in the amount of jobs done for QEP. QEP has reduced activity from 3 operated rigs at the end of 2015 and expecting to be down to one rigs as of the second quarter. Review operator and service company relationships across Lower 48.
Schlumberger has seen a decrease in the number of jobs but nowhere near that of Halliburton. Schlumberger has completed jobs for Jonah Energy, BP, and Anadarko in the past 6 months with Jonah Energy and BP making up 94% of Schlumberger’s work.
*Numbers may change due to a delay in reporting