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Reuters: Low-Cost Fracking Offers Boon to Oil Producers, Headaches for Suppliers

Pump jacks operate at sunset in Midland, Texas, U.S., February 11, 2019. Picture taken February 11, 2019. REUTERS/Nick Oxford.

At a dusty drilling site east of San Antonio, shale producer EOG Resources Inc recently completed its latest well using a new technology developed by a small services firm that promises to slash the cost of each by $200,000.

The technology, called electric fracking and powered by natural gas from EOG’s own wells instead of costly diesel fuel, shows how shale producers keep finding new ways to cut costs in the face of pressures to improve their returns. … While a handful of oil producers are capturing savings from lower well costs, the picture is less rosy for oilfield service providers. These systems can cost them up to twice that of conventional fleets to build.

Click here to read the full article on Reuters.

 

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