Pressure pumpers of the future need to overhaul their business models and become efficiency fanatics to succeed in a permanently changed environment, said Energy and Industrial Advisory Partners (EIAP) in its recent The Pressure Pumper of the Future Report.
According to the boutique strategy consulting firm, pressure pumpers faced challenging conditions even before the current industry downturn from decreasing demand, an oversupplied and fractured market, weak frac pricing, and margin erosion from lower pricing and decoupling of sand and chemicals.
The rapid demand destruction from the COVID-19 pandemic and OPEC+ supply increases could not have found pumpers more ill-prepared, said Sean Shafer, EIAP managing partner, as both public and private companies faced balance sheets that were already raising questions about the need for widespread restructurings in the sector.
https://pubs.spe.org/en/jpt/jpt-article-detail/?art=7249
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