Morning all,Well we are not the only ones. Even the big boy's...

Morning all,

Well we are not the only ones. Even the big boy's are unhappy with the availability of fraccing crews.


EOG considers options


EOG Resources Inc. said it has no plans to buy pressure-pumping equipment but that its contemplating its options given what its executives call an unacceptable tightness in availability of frac crews and equipment.

We are discussing other avenues, and we have a plan that we will discuss in mid 2011, Mark Papa, EOG chief executive officer, told analysts during a third-quarter earnings conference call. He reported waiting for months on fracturing services across most of its operating divisions.

These delays wont go away anytime soon, Papa said. The biggest improvement we see in the frac situation is if the gas rig count drops 200 rigs. He forecasts that could happen around mid 2011 or later.

Papa said fracing delays hold up numerous wells simultaneously because EOG is developing clusters of wells in the South Texas Eagle Ford play where it expects significant production increases next year. EOG has a 10-rig drilling program throughout most of 2010 and plans to average 14 rigs in 2011.

El Paso Corp., Houston, said it has dedicated frac crews in place in its Eagle Ford and Haynesville plays. Brent Smolik, president of El Paso E&P Co. LP, said El Paso was pretty well covered for 2011 with frac contracts for those two plays.

Were looking for frac crews now in Wolfcamp, Smolik said (OGJ, Nov. 15, 2010, p. 25).

Southwestern Energy said it has a standing agreement for fracing services in the Fayetteville shale. The agreement comes up for pricing changes annually, executives said during a Nov. 4 conference call. Their current frac agreement expires Mar. 1, 2011.



http://www.ogj.com/index/article-display/9754946043/articles/oil-gas-journal/drilling-production-2/drilling-operations/2010/11/frac-services_costly.html