Kimberlite Research

📈 Rising Prices for Artificial Lift: How Long Can It Last? Despite concerns about overall market weakness and fluctuating commodity prices, the latest Kimberlite artificial lift study reveals that operators still anticipate price increases for artificial lift products and services over the next 12 months. With budgets and strategic focus increasingly shifting towards production optimization, the demand for artificial lift solutions continues to rise. 🔧 Driving Factors: Operators are placing a higher value on maximizing production efficiency, leading them to favor service companies that deliver consistent, differentiated performance. Many seem willing to pay a premium for top-tier results, reflecting a market dynamic where performance and reliability are highly prized. ⚖ Market Balance: However, with oil prices hovering below $70 and natural gas prices trending lower than expected, the question arises: how long can this equilibrium of rising prices and increased demand continue? The sustainability of this trend will be closely tied to commodity price movements and the broader economic outlook. As the industry navigates these uncertainties, the ability to deliver value through superior performance will remain a critical differentiator in the artificial lift market. #ArtificialLift #OilfieldServices #MarketTrends #ProductionOptimization #EnergySector #Oilandgas #Investing #Investors #Index #Futures

🌍 The Growing Strength of the Artificial Lift Market The artificial lift market remains a critical area of growth for oilfield service companies across various geographies. Despite a slowdown in drilling activity in North America, expenditures on artificial lift and production-related services remain resilient and are set to rise, according to the latest Kimberlite survey. 📊 Positive Spending Outlook: Globally, 41% of survey respondents anticipate increased spending on artificial lift over the next 12 months, with only 5% expecting a decrease. In North America, 37% foresee an increase versus 5% predicting a decrease. The fast-growing international land market is even more optimistic, with 51% of respondents expecting higher expenditures and just 5% anticipating a reduction.   💡 Market Sentiment: When compared to other oilfield sectors such as drilling and completion, the sentiment index for artificial lift services stands out as the strongest market trend. This suggests that oilfield service companies with significant exposure to artificial lift and production are well-positioned to benefit from this continued growth. As the demand for efficient production solutions grows, the artificial lift market remains a key driver of success in the oilfield services industry. #ArtificialLift #OilfieldServices #MarketGrowth #ProductionOptimization #EnergySector #Oilandgas #Investing #Investors #Index #Futures #Energy

🚀 Pushing the Limits: U.S. Land Drilling and Completion Efficiencies The U.S. land drilling and completion market continues to set new benchmarks for efficiency and productivity, enabling the country to achieve strong production levels with historically low numbers of drilling rigs. This remarkable achievement is driven by continuous improvements across multiple variables, as highlighted by the latest Kimberlite data.  📈 Efficiency Gains: Over the past 12 months, drilling days have decreased by an average of 3%, and completion days are down by 1%. At the same time, the average lateral length has surged past 10,600 feet, increasing by 3%, while stages per well have risen by nearly 4%. These gains demonstrate the industry's relentless pursuit of doing more with less.   🔧 Technology and Productivity: The continued drive for innovation in technology, efficiency, and productivity is reshaping the market. Suppliers who can meet the increasing demand for these advancements are poised to succeed in this competitive landscape. As the U.S. land market pushes the boundaries of what’s possible, those who lead in delivering cutting-edge solutions will continue to thrive. #OilAndGas #DrillingEfficiency #CompletionEfficiency #TechnologyInnovation #USLandDrilling #Investing #Investors #Index #Futures #Oilfieldservices

🌍 The Rise of Managed Pressure Drilling: Enhancing Well Construction Managed Pressure Drilling (MPD) continues to gain traction in the well construction space, particularly in the rapidly growing International Land and Offshore markets. Recent developments in MPD have been cited as a top improvement in drilling operations over the past year. 📈 Adoption Trends: With approximately 25% of wells globally utilizing MPD, its adoption is most prevalent in the Offshore environment. This trend underscores the significance of MPD as a key development in modern drilling operations. 🔍 Key Drivers: The primary reasons for adopting MPD include navigating narrow pressure windows, ensuring wellbore stability, and preventing downhole losses—factors that collectively account for over three-quarters of the rationale for MPD use. Additionally, enhancing safety by removing personnel from the red zone is a critical factor driving the adoption of MPD. As the industry continues to evolve, MPD stands out as a vital technology that improves operational efficiency, safety, and overall well construction outcomes. #ManagedPressureDrilling #DrillingTechnology #OilfieldServices #WellConstruction #SafetyInDrilling #Investing #Investors #Index #Futures #Oilandgas

🌍 Tackling Vibration Challenges in Drilling: The HFTO Dilemma Managing vibration in drilling operations remains a persistent challenge for E&P operators, who are continuously seeking innovative solutions. Approximately 26% of wells globally experience High Frequency Torsional Oscillation (HFTO), which can lead to equipment reliability issues and reduced efficiency gains.  🔧 Leading Solutions: Traditional oilfield service giants like SLB, Halliburton, and Baker Hughes are recognized for providing some of the best HFTO management solutions. However, this market is also seeing significant contributions from other players, including Tomax, DWS, and Neo Oil Tools, who are delivering valuable solutions. The quest to mitigate HFTO and enhance drilling efficiency is driving technological advancements and fostering competition among service providers. Operators are increasingly focused on adopting these innovative solutions to overcome the challenges posed by HFTO, ensuring equipment reliability and operational efficiency. #DrillingTechnology #HFTO #OilfieldServices #InnovationInDrilling #EandPOperations #Oilandgas #Energy #Investing #Investors #Index #Futures

🌟 Liberty's Q2 Earnings: Performance and Differentiation Drive Success Liberty has just announced impressive Q2 earnings, demonstrating resilience in a challenging market environment. Despite declining activity levels in the lower 48 and the seasonal breakup in Canada, Liberty managed to increase revenue by 8% sequentially and improve EBITDA by nearly 90 basis points. 🔍 Key to Success: Performance and differentiation are critical. According to the latest Kimberlite Hydraulic Fracturing report, Liberty consistently leads in performance among its competitors, delivering exceptional value to its clients. This strong performance and customer loyalty enable Liberty to grow its business even in a down market as well as successfully expand their integrated suite of services. Liberty's ability to excel through challenging times underscores the importance of maintaining high standards and building robust client relationships. Their focus on delivering strong service and value continues to set them apart in the hydraulic fracturing industry. #LibertyEnergy #Q2Earnings #HydraulicFracturing #PerformanceLeadership #CustomerLoyalty #Investing #Investors #Oilandgas #Oilfield #Index #Futures

💥 Hydraulic Fracturing: The Backbone of North American Oilfield Services In North America Land, the hydraulic fracturing (frac) market remains the largest and most critical segment for oilfield services, with an annual spend well exceeding $20 billion. As the cornerstone of efficiency and productivity, advancements in frac technology are essential for sustaining US production growth at lower well counts. 🔍 Key Insights from the 2024 Kimberlite Hydraulic Fracturing Report: A significant driver of efficiency and productivity gains is the choice of hydraulic fracturing technology by fuel type. E-fleets and dual fuels have emerged as the leading sources of fracturing power, favored for their efficiency. This trend is so pronounced that operators are increasingly entering into multi-year agreements with best-in-class hydraulic fracturing service providers, moving away from spot market acquisitions. 📈 Technology Adoption: E-Fleets and Dual Fuels: Preferred by operators with large programs (50+ wells) due to their superior efficiency. Diesel: Still commonly used by operators with smaller programs (20 wells or fewer). The shift towards electric and dual fuel fracturing technologies underscores a broader industry commitment to innovation and efficiency. These advancements are key to maintaining the competitiveness and growth of the North American oilfield services market. #HydraulicFracturing #OilfieldServices #FrackingTechnology #EnergyEfficiency #MarketTrends #Investing #Investors #Index #Futures #Oilandgas

Increasing Adoption of Rotary Steerable Systems in Well Construction Rotary Steerable Systems (RSS) continue to gain traction as a well construction solution, now featuring in 38% of North America land wells and up from 20% in 2016. Rotary Steerables continue to exhibit strong use offshore at 80% of wells drilled followed by international land wells at 67%; up from 40% in 2016.    🔧 Key Benefits: As operators push the boundaries of drilling efficiency and intensity, RSS is playing a crucial role. These systems offer more precise steering, smoother wellbores, and improved rates of penetration, making them an essential tool for enhancing efficiency and productivity. In North America land, RSS use is principally used in the lateral and an increasing number of operators are able to drill the lateral in a single run translating into significant value delivered. 🌍 Global Impact: The rising adoption rates highlight the global industry's recognition of RSS as a transformative technology. Whether in offshore environments or on land, RSS is enabling operators to achieve more efficient and effective drilling operations. As the industry continues to evolve, the role of advanced technologies like Rotary Steerable Systems will be pivotal in driving operational excellence and maximizing resource extraction along with continued improvements in data transmission, HFTO mitigation, bit design and motor & MWD reliability.  #RotarySteerableSystems #DrillingTechnology #OilAndGas #Efficiency #WellConstruction #Oilfieldservices #Investing #Index #Investors #Futures

🌎 NAM Land Fundamentals Improving into 2025. Offshore and International Growth Moderates According to the latest Kimberlite 2024 drilling study, North America is witnessing a significant transformation in drilling activity, driven by operator consolidation coupled with continued drilling and completion efficiency allowing operators to effectively "accomplish more with less". Offshore and International continue to drive growth into 2025, but the pace of growth exhibits slowing or moderation from recent double digit levels.   📈 North American Trends: While NAM land operators are on pace to drill approximately 9% fewer wells in 2024 versus 2023, lateral lengths are increasing by nearly 5% lessening the impact on footage drilled and completed. Looking ahead to 2025, NAM land operators are projecting to drill 1-2% fewer wells in 2025 versus 2024 but if lateral lengths continue to increase, overall footage drilled and completed may remain on par Y/Y or slightly higher allowing operators to leverage completion & technology efficiencies to maintain production levels or perhaps drive modest increases.  🌍 International Outlook: On the international front, the drilling sector is poised for continued expansion. International operators report plans to increase drilling by 7% in 2025 versus 2024. Offshore activity is forecasted to lead growth rates at 9% year over year in 2025, although it's likely to hit a plateau within the next 24 months. This plateau is due to the unavailability of additional rigs and day rates that do not currently justify new capital expenditures on rig construction.  Oil and gas demand will continue to increase requiring additional investment to meet the world's needs. Kimberlite will continue to track future expenditure plans and operational efficiencies and report updates. Feel free to reach out to discuss.  #DrillingEfficiency #OilAndGas #MarketTrends #OperationalExcellence #Oilfieldservices #Rigcount #Investing #Investors #Index #Investing

🤖 The Journey to Fully Automated Wells: A Shifting Timeline The concept of a fully automated well has captivated the oil and gas industry for years. Since 2018, Kimberlite has been probing industry leaders with the question: "What share of wells to be drilled in the next five years will be fully automated?" Initially, there was a strong optimism that significant strides in automation would be made swiftly, leveraging advanced downhole sensors and automated rig equipment to adjust wellpath and direction seamlessly. 🌐 Changing Expectations: In 2018, the consensus was that over 40% of wells would be fully automated by 2023. However, as we progress through 2024, this prediction has not only been unmet but adjusted downwards. Current expectations now suggest that only 26% of wells will be fully automated by 2029.   🛠 Technological and Operational Challenges: This recalibration of expectations highlights the complex technological and operational challenges that the industry faces in moving towards full automation. While the technology has advanced, integrating it into consistently reliable systems that can operate across diverse geological formations presents ongoing challenges.   🔎 Future Outlook: The journey towards fully automated drilling is more gradual and nuanced than initially anticipated. It underscores the need for continued innovation and adaptation within the sector. As we look to the future, the focus will likely shift towards incremental improvements and pilot projects that pave the way for broader implementation. The path to automation in drilling is a testament to the industry's ambitious vision and the practical realities of technological integration. It invites a broader discussion on the pace of innovation and the realistic timelines for such transformative changes. #OilAndGasIndustry #DrillingAutomation #InnovationInEnergy #FutureOfDrilling #Oilfieldservices #Oilandgas #Investors #Investing #Index #Futures