Frac Price Increases on the Horizon; US Land Achieved Record Frac Stage Counts in 2013 - NEWS10 ABC: Albany, New York News, Weather, Sports

Frac Price Increases on the Horizon; US Land Achieved Record Frac Stage Counts in 2013

Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact

SOURCE PacWest Consulting Partners

HOUSTON, Feb. 20, 2014 /PRNewswire/ -- PacWest Consulting Partners expects improving conditions in the North American market for hydraulic fracturing services, with pricing increases forecasted in many regions by early 2015.  PacWest has just published the 2013 Q4 releases of its PumpingIQ and WellIQ reports.  The reports provide in-depth analysis and forecasts of North American drilling and completion activity and the hydraulic fracturing services market.  

Demand for frac services in the US Land market is expected to increase by 5% in 2014 and an additional 3% in 2015.  The increase is driven by significant growth in the number of horizontal wells and frac stages.  "We estimate that a record-breaking number of frac stages were stimulated in 2013, over 375 thousand," says Christopher Robart, Partner of PacWest Market Intelligence.  "We expect another record year in 2014 - over 400 thousand stages."

Capacity utilization is expected to increase to 77% in 2014; however, potential market improvements are being dampened by frac capacity additions.  PacWest forecasts that frac companies will deploy 400,000 hydraulic horsepower (HHP) of net additions to the US Land market in 2014, after adding 660,000 HHP in 2013.  Frac assemblers and component manufacturers report improvements in newbuild orders; however, the destinations for most of those newbuild orders are for markets outside North America. 

Despite the capacity additions, tightening conditions in key oil/liquids plays will lead to pricing increases by early 2015.  Pricing in gas plays will likely be flat through 2015. 

The Canada market for frac services is expected to develop similarly to the US market; however, improved pricing is expected by late 2014.  Increases in frac demand, led by activity ramp-ups in the Duvernay and Montney plays, will lead to tightening market conditions and increased pricing that will begin in late 2014 and continue through 2015. 

Globally, frac capacity is expected to increase by 11.8 MM HHP (+48%) between 2013 and 2018 (year-end capacity), with markets outside North America accounting for 75% of that growth. China, which overtook Canada as the second largest frac market in the world sometime in 2013, will lead the world in frac capacity additions in 2013. PacWest is pleased to announce the launch of newest market intelligence report, PumpingIQ China, and the opening of an office in Beijing in the Fortune Plaza.

PacWest has recently begun publishing key market figures on our website, with plans to update each quarter, in effort to provide greater transparency into the oilfield services market. Please visit PacWest Market Outlook for more information.

Please join us for a conference call on Thursday, February 27, 2014 at 10:00 AM Central Time to discuss our latest view of the market. Call details are provided below.

Conference Call

Dial-in: +1 (800) 830 3581

Passcode: 2922791

WebEx Presentation 

For more information, contact Jennifer Thomas, 713.929.3285,


©2012 PR Newswire. All Rights Reserved.

Powered by WorldNow
341 Northern Boulevard
Albany, NY 12204
+(518) 436-4822
Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and WTEN. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.