(Bloomberg) -- Explorers are racing to get frack jobs done in the Permian Basin and other U.S. shale-oil fields before higher prices kick in next year, according to research and analysis firm Lium LLC.
The number of hydraulic-fracturing crews deployed across the U.S. shale patch jumped by 10 in recent weeks to 230, Lium analysts said in a note titled “Permianflation” on Friday. A crew typically consists of 25 to 30 workers who operate a huge array of truck-mounted pumps, storage tanks for fluids and sand, hoses, gauges and safety gear.
“Operators are accelerating completions activity in anticipation of 10-15% higher well costs next year,” according to Lium. “Rising well costs could slow down U.S. oil and gas production growth by putting pressure on maintenance capital scenarios.”
A number of shale explorers including Devon Energy Corp (NYSE:DVN)., Diamondback (NASDAQ:FANG) Energy Inc. and ConocoPhillips (NYSE:COP) warned investors this week that inflation could rise 10% to 15% next year as supply-chain snarls make equipment and labor more pricey. Explorers have said they’ve so far been able to manage rising costs through efficiency gains in the field.
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