Frackers Are Making Bigger Profits as Prices for Drilling Services Climb
(Bloomberg) -- Inflation in the U.S. shale patch is money in the bank for fracking companies.
Prices for drilling services are rising faster than the cost of labor and raw materials, Richard Hubbell, chief executive officer at pressure pumper RPC Inc., said Wednesday in an earnings statement. He echoed similar comments last week from Halliburton Co., the world’s biggest fracking provider.
As a rally in crude and natural gas prices boosts explorers’ cash flow after a disastrous 2020, oilfield service providers are trying to win back pricing power. But the price increases aren’t even across the board. Liberty Oilfield Services Inc. said late Wednesday that “serious” supply-chain issues are causing its costs to outpace what it can charge oil producers.
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