PacWest Consulting Partners, an IHS company, was quoted in Bloomberg on crude pricing drop in India, which accelerated when the Organization of Petroleum Exporting Countries, whose members control about 40 percent of global oil production, voted in November to maintain output in an effort to protect its market share.
“We have seen buyers of all sorts of consumables, like guar, putting new purchases on hold over the last couple of months, as they try to understand how the oil price fall is going to play out through the supply chain over the next six months,” Alexander Robart, a partner at Houston-based PacWest Consulting Partners Ltd., said in an e-mail. “Purchases will resume eventually, but at a lower level to support the ‘new normal’ activity levels.”
For the full article, please visit http://www.bloomberg.com/news/articles/2015-02-09/u-s-fracking-bet-haunts-vikas-after-oil-plunge-corporate-india
Senior Consultant Caldwell Bailey quoted in Gannett Ohio arrticle, “Low gas prices may slow fracking growth.”
We will host a conference call on Thursday, December 11, 2014 at 9:30 am CST to discuss the market outlook from our latest WellIQ and PumpingIQ reports.
In addition to the forecasts contained in these latest, leading reports on drilling and completion activity and hydraulic fracturing — published October 24 and November 14 of this year, respectively – we’ll present a revised set of downside forecasts that reflect changes in the market since Thanksgiving.
The North American market for hydraulic fracturing services is preparing for a downturn in 2015 due to rapidly falling oil prices. Service providers and equipment manufacturers report that the market and their customers have not yet changed, but all expect changes in the immediate future and are developing plans to deal with the downturn.
In our revised downside scenario, we expect a 12 percent decrease in the number of horizontal wells frac’ed in the US Land market in 2015 and an 8 percent decrease in frac demand for 2015. These figures represent a significant downgrade from the base case scenario forecasts published in the recent WellIQ and PumpingIQ reports – a 6 percent increase in the number of horizontal wells frac’ed and an 8 percent increase in frac demand for 2015.
Despite the imminent downturn, equipment delivery books still appear strong for 2015, particularly for the first half of the year. In our base case scenario, we expect 1.4MM horsepower (net capacity additions) to be delivered into the US Land market in 2015, representing an 8 percent increase in hydraulic fracturing capacity from the previous year. However, in the revised downside scenario, we expect only a moderate reduction in net capacity additions, from 1.4MM to 1.1MM horsepower. In this scenario, we expect some H1 2015 orders to be delayed to H2 2015 and 2016 and some orders to be cancelled.
Falling frac demand and increasing frac capacity will quickly lead to falling capacity utilization in 2015. This will create challenging market conditions for many service providers and equipment manufacturers.
“The frac industry is preparing for a tough 2015,” said Ryan Carbrey, project lead. “Many service providers have just begun to see improvements in pricing and margins. This downturn will drive a focus on improving efficiencies and cost containment. Additional industry consolidation is also expected.”
We will hold a conference call on Thursday December 11, 2014 at 9:30am CST to discuss our outlook for the market. Call details are provided below. The call is open to the public.
Dial-in: +1 (800) 830 3581
International Dial-in: (262) 320 4698
For more information, contact Jennifer Thomas, 713.929.3285, firstname.lastname@example.org.
It is our sincere pleasure to announce that PacWest Consulting Partners has been acquired by IHS Inc. (NYSE: IHS – www.ihs.com). IHS is a leading global provider of business information, insight, and analytics for a wide range of capital-intensive sectors including the energy industry.
Both the PacWest and IHS teams are extremely excited about the positive impact that this acquisition will have on the value that we deliver to you and your organization. You can find the full text of the official news release here.
First and foremost, we want to assure you that delivery of your current PacWest products and services will continue uninterrupted and your account contact will remain the same. You can expect the same level of insight and service that you have become accustomed to receiving from PacWest.
Over the past four years, the PacWest team has built the leading suite of market intelligence products covering global unconventional oilfield services and equipment markets, as well as the leading strategy consultancy serving the global oilfield services and equipment value chain. We are proud of what we have accomplished and expect that as part of IHS we will be able to develop new, market-leading products that offer unparalleled market insights covering emerging and underserved topics.
As you may know, IHS offers a broad array of energy-related data, research, consulting, and advisory services. IHS has been delivering critical data, insights, and consulting services to its customers for more than 50 years and became a publicly traded company on the New York Stock Exchange in 2005. The company is headquartered in Englewood, Colorado, USA, and employs more than 8,000 people in more than 30 countries around the world. We are excited about combining the talents, vision, analytical tools, and data of IHS and PacWest to enhance and expand our suite of products and services.
We will continue to support all existing products and platforms from PacWest while actively exploring opportunities to enhance and expand the range of products that we provide to our customers. This new alignment will strengthen our ability to provide you with even better, actionable insights.
We would like to personally thank you for your business and support to-date. Please continue to interact with your existing PacWest contacts as we proceed through our transition. We are excited about the opportunity to continue serving your needs.