With frac crews and tools tight, is clean crusing nonetheless an choice for the upstream oil sector in 2023?

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The tempo of drilling and properly completion exercise within the U.S. oil and fuel fields has slowed towards the tip of 2022, in comparison with what was seen earlier within the yr because the premium tools and crew to run it turn out to be more and more tight.

However general, 2023 ought to be a yr of development, though this yr depends upon various uncertainties starting from inflation to the period of the Russo-Ukraine conflict, together with capital budgeting selections of upstream operators. And one of many greatest uncertainties for 2023 is the provision of hydraulic fracturing tools, as restricted frac crews and tools may influence home output profiles.

S&P International senior editor Star Spencer spoke with Matt Johnson, CEO of Main Imaginative and prescient Community, a consultancy that tracks hydraulic fracturing counts, in regards to the points upstream patches are going through within the coming months. together with labor scarcity. Johnson pointed to the frac depend as a serious uncertainty for the event of the oil market, though he expects this to be resolved early subsequent yr. He believes that $80-$100/b – the present oil worth vary – the E&P sector ought to proceed to see modest development over the subsequent 12 months.

Following Jeff Mower’s interview with Market Minute, this is a have a look at near-term oil market drivers.

Associated Content material:

Patterson-UTI Added at the least 90 rigs to US land-drilling fleet in subsequent 15 months: CEO

Halliburton sees E&P sector development from years of upstream under-investment in 2023: CEO (Premium Supplies)

US oil, fuel rig depend jumps from 8 to 890 in week; Permian sees large development: Enverus (Premium Content material)


Extra listening choices:




Platts Capital Crude Podcast on Spotify




Platts Capital Crude Podcast on Apple Podcasts




Platts Capital Crude Podcast on Google Podcasts

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