Both Essential Energy Services and Step Energy Services are saying similar things IMO. running harder to stay in the same place - Step does seem to have some hope that price increases will happen.
Step , i realize is not a direct comparable due to proppant sales.
Essential Energy Services outlook
E&P companies have been reluctant to support improved pricing for oilfield services as E&P companies seek to maximize financial performance by controlling costs. Current oilfield service pricing is, however, insufficient to generate appropriate returns.Inflation and cost increases for wages, fuel and inventory are increasing Essential’s cost structure. Given recent cost inflation, current pricing is also insufficient to support the expansion of crews and activation of additional equipment for oilfield services that may be required to meet growing E&P wellsite activity. Retaining and attracting personnel to the oilfield services sector is a challenge in today’s market. Essential is striving to recruit and retain employees in a very tight labor market. In a recovering oil and natural gas market, small and specialized service fleets, including the deep coil tubing industry fleet in western Canada where Essential is a leading service provider, could quickly see service demand outpace supply under these challenging pricing conditions. Step Energy Services
The Canadian market for coiled tubing and fracturing equipment is approaching a balance point. The projected increase in drilling and completions activity is expected to increase calls for additional market capacity. STEP will continue to advocate that the industry should remain disciplined and only add crews once pricing reflects the improved economics from higher commodity prices that producers are realizing.
1 (Canada Economic Snapshot, 2021) retrieved from https://www.oecd.org/economy/canada-economic-snapshot/
2 (United States Economic Snapshot, 2021) retrieved from https://www.oecd.org/economy/united-states-economic-snapshot/
In the U.S, the market for coiled tubing and fracturing equipment is in a slight oversupply position but is expected to reach equilibrium in the near term. The recent increases in activity have resulted in some new small to medium sized entrants to the market. These entrants have largely re-activated legacy assets that do not possess the technology to be as efficient and economical as top tier assets run by STEP and other market leaders. Despite the added capacity from these new participants, the demand for and availability of equipment is expected to tighten as labour shortages will limit the amount of equipment available to the market.
Pricing will need to increase to ensure that the oilfield service industry can keep up with the expected increase in activity and avoid further margin compression due to inflationary pressures. The benefits from higher commodity prices have only marginally transferred to the service industry and pricing for our services remains below sustainable levels. STEP is in pricing discussions with clients in Canada and the U.S., and is expecting to see further pricing improvements through the fourth quarter of 2021 and into the first half of 2022 in both Canada and the U.S.