Natural Gas Boom Will Spur a Shortage of US Fracking Gear, Shale Boss Says

Article content(Bloomberg) — Rising US natural gas exports and soaring domestic demand for the power-plant fuel will lead to a shortage of fracking gear later this decade, according to the head of one the country’s top drilling contractors. Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentActivity in US shale fields is expected to ramp up toward the end of this year into 2027, primarily driven by gas consumption, Patterson-UTI Energy Inc.

Chief Executive Officer Andy Hendricks said in an interview. That could lead to a deficit of equipment to frack gas wells in two to three years, particularly in the Haynesville basin of Texas and Louisiana, he said.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentHendricks’ remarks underscore a broader industry push to build pipelines connecting the Haynesville and other gas basins in the US South with new Gulf Coast export terminals. More equipment and infrastructure would align with President Donald Trump’s efforts to expand US shipments of the fuel to overseas buyers and dominate global energy markets. Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentGlobal demand for US liquefied natural gas has jumped as the war on Iran disrupts supplies from the Middle East, but Gulf Coast plants are already running at full capacity and other facilities there are still under construction. Meanwhile, domestic US gas consumption has skyrocketed as data-center developers rush to build power plants to run artificial intelligence.Article contentIn the Haynesville, the number of drilling rigs has surged over the past year as new pipelines shuttle gas from that basin to export terminals. Producers there are likely to favor fracking equipment that runs on cheaper gas versus diesel, leading to a shortfall of that gear, Hendricks said. Article content“All the horsepower that we have that can burn natural gas as a fuel is sold out today,” he said. “There’s going to be a call on equipment in the Haynesville over the next two to three years. We’re going to have to increase the amount that’s working over there and it’s going to require new equipment to be manufactured and put to work.”Article contentPatterson-UTI is also evaluating opportunities to operate in Venezuela, but that will take time, Hendricks said.Article content“I think a realistic timeline is when somebody signs some concessions to do something, you could still be nine months to a year away before you’re actually drilling wells,” Hendricks said.Article content—With assistance from David Wethe.Article contentTrending Should couple in their 50s who want to retire tap into RRSPs or apply for CPP?

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Family Finance Posthaste: Canada is losing the productivity battle, even in the grocery aisles News Here's why bets are rising for interest rate hikes including for Canada Economy Canada weighs options to boost oil supply as Iran war causes market turmoil Oil & Gas Saudi Aramco chief warns of ‘catastrophic consequences’ in biggest crisis region's oil market has faced Oil & Gas