Oslo-based research firm Rystad said April 9 hydraulic fracturing in North America has recovered to almost pre-pandemic levels after the count of started frac jobs reached a 12-month high last month. Rystad counted 1,064 started frac operations in North America in March. The report said completed wells in Permian Basin during 2021Q1 exceeded required output maintenance levels so oil production is expected to rise in 2021Q2. Nearly all major basins are positioned for at least production maintenance in 2021Q2 or some sequential production growth. After forecasts for declines in January, February and March, U.S. Department of Energy forecasts gains in oil production for April and May (to 4.466 million b/d) in Permian Basin.
Rystad said it detected 429 started frac operations in Permian in March after February ended with 260 wells. Artem Abramov, who directs shale research for Rystad, said, “Permian oil production maintenance currently requires about 300 unconventional well completions per month so the basin is set for production growth already in the second quarter.” But he said the recovery “might not be long lasting” as OPEC increases production and oil demand recovery is threatened.