As the U.S. rig count unmercifully gets cut by 53% since March 30th and is now 2/3rd below levels at the beginning of 3Q18, a lot of attention will be placed on the completions side of the U.S. hydrocarbon production equation. At some point in the not-too-distant-future, U.S. shale could well be on its way to producing 10MMbpd of crude as it shrinks to a $40B-$50B annual market and this will undoubtedly change how business is done in the Oil Patch – 100%. Recently we embarked with a privately-backed company that is looking to change the U.S. hydraulic fracturing game as we explore the nuances of the pressure pumping market. Last week we unveiled Part 1 of our mini deep-dive with MGB Oilfield Solutions<https://mgb-oilfield.com/mgb-powercell/> and there we focused on fuel costs. Today we’re going to explore maintenance costs, an ever-growing slice of any operators well completion program and one that will grow in importance given the levels of underspend currently underway.

Do you know the typical capital outlays required for a diesel-powered frac spread? How about the monthly or yearly maintenance costs and which components require repair and to what extent? This episode will help you frame this critical piece of expenditure in a way that few have before – and we don’t need to provide you with a nauseatingly-long +250 page novel on the topic. Mark Bishop and Barry Ekstrand MGB were generous enough to break down the key costs of doing business in the U.S. hydraulic fracturing market and this is the episode for you if you’re keen on learning the unit economics. For our 3rd installment, we’ll be back soon to look at the costs associated with the actual pressure pumping process and a lot of the high-pressure iron used throughout. Stay tuned.

– James