Demand for hydrofracking equipment has been quickly outpacing supply lately, causing a serious parts shortage that is beginning to hamper the expansion of U.S. oil and gas production.
Halliburton Company warned in July that “supply chain bottlenecks, even for diesel fleets, make it almost impossible to add incremental capacity this year.”
The Texas-based energy company and its rivals are also reconditioning existing equipment, rather than investing in new models, due to the earlier downturn in demand during the pandemic, hampering profit margins in the industry.
“Availability of frac fleets is one of main bottlenecks impeding oil and natural as production growth for the next 18 months,” Robert Drummond, CEO of fracking firm NexTier Oilfield Solutions, said on Wednesday….