Some Service Providers Are Now Operating At Cash Costs
Operators now cutting completion budgets on the heels of prior cuts to drilling as the well stimulation sector enters a capacity oversupply scenario. Some service providers now operating at cash costs as per stage pricing falls.
Operators Are Pressing Service Companies For Price Cuts
Operators are pressing pressure pumping service providers for price decreases in the Niobrara Shale while a drop in demand for well stimulation has left the regional pressure pumping fleet in oversupply with contractors looking to rotate equipment out of the Niobrara and into dry gas basins.
Pressure Pumpers Stay Busy In 1Q 2015
Six of eight respondents reported that pressure pumping demand is expected to remain stable in the first quarter since schedules and budget were already set, but most expect demand and pricing to follow fluctuating oil prices.
Pressure Pumpers Expect Stable Demand In 1Q15
"We have had our key accounts confirm work for the first quarter, but everyone has their eye on oil price at this point,” a mid-tier service provider said.
Oil Price Drop Flattens Stimulation Demand
Operators are cautiously continuing with current schedules while watching for prices to recover before planning any expansion.
Demand For Pressure Pumping Holds Steady
Demand for pressure pumping equipment will remain steady in the Bakken Shale through 1Q15 even with lower oil prices.
Operators Experimenting For Efficiency
Slickwater is used equally with crosslink, industry representatives say.