STAGES Update: 8/20/2021

STAGES update for the third week of August:

STAGES Pumped

The frac crew count lost 2 crews returning to losses after a small gain last week

STAGES Created

The horizontal rig count fell this week with the Haynesville, Eagle Ford, Marcellus, and Woodford each losing one rig.

STAGES Ratio

The STAGES Ratio remained flat at 52%. It is still below its 6 mo. moving average.

STAGES News

Drilled but UnCompleted (DUC)

In the Spears podcast (The Drilldown) this week, John and Richard Spears discussed the movement in the frac market over the next 2-3 quarters. They reported the fact that there are 6,000 DUCs in the US, which is much lower than what we’ve seen in the last year. The natural amount of DUCs in the US is 5,000 based on the current rig count and drill time for each rig. The Frac Market has been $12B/year, of which 25% has come from the completion of DUCs. If the market achieves equilibrium between Frac and Drilling, it could reduce the total frac market by 25%. They do expect the drilling rigs to increase by 30% and the frac market to remain relatively flat in 2022.

To learn more, their podcast episode can be found here: https://drilldown.libsyn.com/ep208-frac-pricing