Consolidation In The Pressure Pumping Secture

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Having a quite-fleet might not be enough to survive in the ever-volatile pressure pumping sector. As the fracking companies push for more economically viable frac spreads, the competition is getting fierce. so seeing mergers in the pressure pumping industry is expected, as more companies try to focus on new technology and make their companies viable in the “New oilfield” sector.

That brings us to the Two Houston oilfield services companies that said would merge in an all-stock deal valued at about $2 billion.

“The merger of equals unites two great companies, resulting in a broader portfolio of well completion services across an even greater footprint in the U.S., benefiting our combined employees, shareholders, customers, suppliers, and the communities in which we operate,” Keane CEO Robert Drummond said in the statement.

It’s important to note this volatility is also one of the reasons millennials don’t like to work in the oilfield.

1 COMMENT

  1. Decreased demand during the downturn forced some pumpers out of business and spurred consolidation, resulting in high personnel turnover in the field. Meanwhile, exploration and production (E P) companies are drilling longer laterals faster and expecting similar efficiencies from pressure pumpers. Hoping to get the absolute most out of their wells, operators are intensifying completions by using more stages, water, and frac sand.