Efficiency seen lifting US frac capacity

Operational efficiency is increasing overall capacity to hydraulically fracture wells in the US without a corresponding increase in equipment, report analysts at UBS Securities LLC.

The efficiency gains, say Angie Sedita, analyst, and associate analysts Sasha Sanwal and Paul Choi, come from faster frac crews, better frac design, engineering improvements, and growth in 24-hr operations.

The pressure-pumping industry began 2013 with 20-25% excess capacity while the well count was expected to increase 8-10%. But as much if not more pressure-pumping equipment is idle now as then.

Compared with less than a year ago, “the industry is able to do more with less,” the analysts say.

“It can complete twice as many frac stages as only 6-9 months ago, perform the job more quickly and efficiently, better design a frac job, and still manage to use even less and less horsepower than before,” they write in a Sept. 23 report.

They estimate efficiency gains such as those have increased “virtual” pressure-pumping capacity by 10-15% and expect the trend to continue.

While growth in the number of frac stages eventually will diminish, they add, improvements can continue in frac design, engineering capability, fracing efficiency, zipper fracs, pad drilling, crew speed, and technology.

Related Articles

GET OFF ENVIRONMENTAL SIDELINES

01/01/1990 The petroleum industry's political challenge for the 1990s is to get back into the environmental debate. It won't be easy. But industry h...

SHELL HOMES IN ON TROLL FIELD DEVELOPMENT

01/08/1990 Norske Shell will recommend to partners that Troll gas field in the Norwegian North Sea be developed using multiphase flow pipelines and onshore pr...

WASHINGTON TO DETERMINE OCS LEASE SALE SCHEDULE

01/08/1990 Patrick Crow Washington Editor The U.S. government will make critical decisions on the future of Outer Continental Shelf leasing this year. And it ...

SANTOS TESTS QUEENSLAND OIL DISCOVERY

01/08/1990 A Santos Ltd. partnership plans to begin producing a Southwest Queensland oil discovery in February. The 1 Bowen, drilled on the Naccowlah block of...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected