OFS Data Packet: Q2 2018 – Assessing Permian Bottlenecks
This quarter, we have re-assesed OFS activity in the Permian as bottlenecks become a growing concern. As such, we are now anticipating the Permian rig count to decline by 50-75 rigs by YE while only 10-15 fleets are added to the Permian (had previously expected +30 fleets by YE). With that said, our latest data remains constructive for Permian completions, with recent bottlenecks reflecting a rig count that had surged too high to begin with. Although frac counts are also lower than expected, completions, stage counts, and well intensity can still grow at a healthy level, presenting a more attractive opportunity over the long-term.
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