Calfrac joins Canadian operators redeploying equipment to U.S. oil and gas plays
March 1, 2018
Hydraulic fracturing firm Calfrac Well Services is the latest Canadian operator to move equipment into the busier U.S. oil patch.
While the good news may be that the company deployed an incremental fracturing fleet in Canada’s Montney/Deep Basin region during the first quarter, the bleaker sign for the the Canadian industry is that Calfrac is also in the process of transferring 30,000 horsepower that is currently idle into the United States.
“After the transfer, Calfrac's Canadian operation will retain approximately 70,000 horsepower of idle equipment, and will prudently analyze the commercial and strategic options across all of its active operations for opportunities to deploy this equipment,” the company said on Thursday in its fourth quarter results report.
In January, Calgary's Akita Drilling and Trinidad Drilling both announced they would move rigs from Canada to the U.S. to chase brighter opportunities.
“Most companies with the means to do so are exploring opportunities down south,” Mark Scholz, president of the Canadian Association of Oilwell Drilling Contractors, told the Canadian Press. He pointed out that the Trump government's recent corporate tax cuts are making the U.S. even more attractive.
“It's easier to do business down there, you can operate year-round. The margins and economics down there are much better. Both the federal government and the state governments have really indicated they are interested in expanding oil and gas development and exploration.”
Story: JWN Energy