Hydraulic Fracturing Services
Market, Supplier, Risk and
Competitive Intelligence

Industry Outlook & Drivers

Global Market Outlook on Hydraulic Fracturing Services

The overall global hydraulic fracturing services market is estimated to be $62.5 billion in 2018

• The global hydraulic fracturing services market is forecasted to grow at a CAGR of 9–10 percent to reach $82.1 billion by 2021
• The US is the significant market for hydraulic fracturing services, which accounts for 85 percent of the global hydraulic fracturing activities
• The global hydraulic fracturing market is estimated to reach $ 62.5 billion by the end of 2018, and it is expected to grow at a CAGR of 9–10 percent during 2018–2021

• Plug & perforation and sliding sleeves are the two primary technologies used for simulation in multi-stage fracturing
• Plug & perforation is the most dominant hydraulic fracturing technique and accounts for over 80–85 percent of the global market. Sliding sleeve technology is still in the development phase and is increasingly used in open-hole and naturally fractured formations
• Shale gas and tight gases account for about 55 percent of revenue of global hydraulic fracturing
• North America, followed by LATAM and APAC, are the major regions with a significant level of hydraulic fracturing activity

Global Hydraulic Fracturing Market Drivers and Constraints

Drivers

• Promising comeback of crude oil prices has  attracted E&P operators to increase their CAPEX spend
• Due to technological optimization in fracturing method it is more widely adopted in regions likeLATAM, Europe and APAC after North America
• Technical advancements, like slide sleeving, are changing the fracturing method. Many companies are exploring the possibility of using it over the traditional method of plug and perforation
• In the US, an increase in the number of unfinished wells in shale basins is expected to drive the demand for hydraulic fracturing (as a part of completion)

Constraints

• Stricter policies and environment laws are limiting the scale of fracturing operations in several regions across the globe
• Governments cite possible contamination to the aquifers a concern in limiting the fracturing activity
• Water scarcity in parts of the US and China limits the spread of hydraulic fracking

Cost And Pricing Analysis for Fracking Services

• Consumables (frac proppants, chemicals, etc.) account for 45 percent of the total frack operation cost
• The US market has the highest prevailing monthly rates because of the high number of call-out operations
• Long-term contracts with an assured number of jobs can provide better cost efficiency to the operator

Labor Cost Breakup

• The typical fracking service crew consists of a frac supervisor, a hydraulic fracture engineer, three senior operators, a well head specialist, a senior lab technician, a data acquisition technician, a senior mechanic, a blender operator and a hydration unit operator
• The crew works on a call-out basis and is charged on day-rate basis

Hydraulic Fracturing Services Cost Breakup

• The cost structure is based on a daily rentals basis, wherein the operator wants service company to provid equipment and personnel on call-out basis