Hydraulic Fracturing Services
Market, Supplier, Risk and
Competitive Intelligence

Industry Outlook & Drivers

• Global Market Outlook on Hydraulic Fracturing Services

• The global hydraulic fracturing services market is estimated to be valued at $31.4 billion by the end of 2020, and it is anticipated to reach $37.2 billion by the end of 2023, with a CAGR of 5-7 percent
• The US is the significant market for hydraulic fracturing services, which accounts for more than 85 percent of the market in North America

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