Those who track drilling and fracturing equipment are apt to mention zombies. That is the living-dead machinery still counted as available to work, but more likely now to be used for spare parts or scrapped.
In both those equipment markets, one-quarter or more of capacity is expected to disappear over time, but it is a slow-moving sort of destruction with an uncertain outcome.
Richard Spears, vice president of Spears & Associates, sees fracturing trucks massed at a service company repair facility in his hometown of Tulsa, but no one ever seems to be working on them.
“There has never been a time when the fleet has not been maintained. Based on our research, capacity falls by 5 million horsepower through the bottom of the market in the summer of 2016,” said Spears, who works for a company tracking the fracturing service business.
That represents about one-quarter of the capacity of the fracturing business where the total horsepower indicates how much water and sand can be pumped into a well to fracture the rock....
Living-Dead Equipment Adds to Oversupply
Stephen Rassenfoss, JPT Emerging Technology Senior Editor
28 January 2016