Numbers of hydraulic fracturing crews have dramatically increased in the past year, according to Bloomberg, but production in the U.S. shale patch has remained relatively flat. Citing data from Primary Vision, which has tracked fracturing crews since 2013, Bloomberg said June 22 the number of crews has increased to 235 after falling to a low of 45 in May 2020 during the global pandemic. Analyst Scott Levine said the number of crews could grow to 250 by yearend.
“But because of the way well production decreases over time,” Bloomberg said, “the jump in crews is only enough to keep output flat rather than boosting it… The U.S. oil market requires more wells to be drilled and completed to replace them and hold output constant.” Primary Vision CEO Matt Johnson added, “Operators are still focusing on getting out of 2021 with a little bit better managed expectations and better hedge profile.”
U.S. Energy Information Administration said Wednesday the U.S. rig count increased in June for the 11th straight month – although it was the smallest monthly increase since September 2020 – and revised crude oil production forecasts are 11.1 million barrels per day in 2021 and 11.85 million b/d in 2022 after 11.3 million b/d in 2020.