RE:RE:RE:RE:RE:RE:RE:RE:RE:NR Thoughts.Being sick from Covid or no having a vax was causing labour shortages.
In Alberta, this year is the fastest I have seen companies tie in wells.
IPO, YGR, OBE, BNE...everyone is going from drilling to well on production in record times.
Been such improvements.
Most of the rigs that are not working have obselete technology that requires more people or takes longer to drill a hole. Some drilling companies are sitting on rigs that are inefficent and not needed anymore.
And the biggest thing is less wells need to be drilled as companies are all drilling the expensive long and hard frac wells.
Service companies are still doing a bunch of abandonment work as more equipment out there then needed.
Even look at trican...they have their fleet to highest horsepower and most efficent that is workng.
perstrudent wrote: Main reasons berish on US Shale:
Steel...steel and more steel....casing and tubing almost impossible to get currently 7to 12 month timeline for orders. Sure can steel some old used tubing from existing less productive well but casing cant do that....plus then the old tubing well has to be shut in...eventually this will get solved but doesnt look anytime in the near future
Labor...so many skilled labors have left the oilfield myself included and have no interest in going back
Shale is very Class 1 intensive..we all know how much sand material, chemical, etc is needed for a shale well....rates for Class 1 drivers for jsut highway trucking have increased dramatically making the oilfield much less appealing...would you rather drive interstate or be chaining up trucks to go through mud and snow lease
Sand is in short supply...no idea why I thought local texas mines were flush before covid...but currently sand in Canada and USA is ahrd to get
Rigs increasing are needed just to counter the rapid decline in ducs....frac spreads are what need to dramatically increase...
As shale ramps up again that treadmill goes faster and faster..that much more sand, casign tubing etc all needed to maintain that extra 1 million a day.
It can be argued shale was rolling over on its own Dec 2019 to Feb 2020 right before covid on its own...
Time will tell I guess