Liberty Oilfield Services - How Frac Crew Efficiency May Impact Future Frac Fleet Demand

OPEC recently revised downward its outlook for global oil demand to an average of 90.2 MMBOPD (million barrels of oil per day) in 2020. That reflects an average 2020 demand contraction of 9.5 MMBOPD year-on-year, or close to a 10% reduction.

For 2021, it expects global oil demand to grow by 6.6 million bpd to an average of 96.9 MMBOPD next year. For the United States, EIA expects U.S. crude oil production to fall from an average of 12.2 MMBOPD in 2019 to 11.4 MMBOPD in 2020 and 11.1 MMBOPD in 2021.

US Shale represents a growing share of all US (crude and condensate) production. As we infer from the graph below for March 2019, 54% of all US production came from shale; 14% from deep water; and, 32% from conventional.

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