Fracking Growth ‘Almost Impossible’ This Year, Halliburton Says

Halliburton warned oil companies that don’t have fracking equipment leased for new wells that they’re probably out of luck for at least the rest of this year. This is reported by Bloomberg.

Supply-chain snarls mean oilfield-service providers like Halliburton can’t expand fracking fleets any time soon, Chief Executive Officer Jeff Miller told analysts during a conference call Tuesday. The hitch may represent yet another blow to US President Joe Biden’s efforts to expand worldwide crude supplies and relieve some of the inflationary pressure on consumers.

The oilfield-gear market is so tight that oil explorers already are talking to Halliburton about 2023 drilling and fracking schedules, “well in advance” of the typical planning cycle, he said. Even the diesel-powered fracking equipment that is being gradually supplanted by more climate-friendly electric equipment is scarce.

Oilfield services provider Halliburton posted a 41% increase in second-quarter adjusted profit compared to the first quarter, and predicted years of growth in demand for drilling. Driven by high oil prices, the gain was in spite of a $344 million hit from the company winding down assets in Russia in response to its invasion of Ukraine.