Oilfield services company ProPetro estimated that there are 20 hydraulic fracturing fleets operating in the Permian Basin.
Reuters reported this as a significant fall from the 172 that were running in the US field a year ago.
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According to the news agency, a sharp decline of oil prices triggered by the Covid-19 outbreak is the main reason behind the reduction of the company’s frac fleets in operation.
It comes after several oil and gas companies reduced spending following the Covid-19 pandemic.
ProPetro Chief Executive Phillip Gobe was quoted by Reuters assaying: “I would caution everyone, activity could pick up, but it may not be profitable activity.
“If you see others activity picking up ahead of us, it might be more of how they’re pricing their equipment to go to work.”
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By GlobalDataSince March, the company had reduced its workforce by more than 65% as a result of the Covid-19 pandemic.
ProPetro also noted that it expects only three to four hydraulic fracturing fleets to be fully working this quarter, down from 19 in the last quarter.
In January last year, ProPetro closed the $400m acquisition of the pressure pumping assets of US-based exploration and production company Pioneer Natural Resources.
The agreement was announced in November 2018. According to the agreement, ProPetro offered $110m of cash and 16.6 million shares of common stock to Pioneer.
