re: Oilfield Folk - Torque & Test Question

Spot prices for Frac horsepower are double or triple what they were 6 months ago. Contract prices are 50 to100% higher. I agree that pumping 60 stages are increasing well costs, and the production may not follow. Regardless, when budgets were made the increases were not incorporated in them. Companies are competing with a much higher baseline than 6 months ago. When horsepower goes from12K per stage to 24K, and sand goes from 4 cents/lb landed to 8, it doesn't take long at 42 dollar oil for activity to slow. Those two items account for over 50% of the cost of a Frac job, so if your Frac that you budgeted went from 2mm dollars to 2.5-3mm it hurts.