Well Completion Activity - Jan 25

[dan_s]

Well completions are picking up, but supply chain problems and lack of workers will cap growth.

Read: https://www.ttnews.com/articles/oil-exp ... -inflation

Oil explorers are fracking at breakneck pace. Transport Topics.
Shale oil companies are using almost all of the fracking equipment and crews available as exploration expands, accelerating cost inflation and pointing to worsening supply chain disruptions across the industry. North American oil drillers appear likely to expand spending by more than 25% this year while overseas explorers are on course for a more modest increase in the mid-teens, Halliburton Co. executives said Jan. 24 after reporting their biggest quarterly profit in seven years. The world’s top provider of fracking services already is seeing tightening labor, trucking and raw material supplies, and in some regions as much as 80% of workers are transplants recruited from other areas.

I now expect completed well costs to increase by at least 10% YOY.