#futureoffrac #digitaloilfield #technologytrumpstoughness
Earlier this month, Evercore ISI, an investment banking market research group focused on oilfield services, equipment, and drilling, released a market exposé The Next Revolution in Frac.
The report acknowledges the strong industry demand for U.S. shales converting to “manufacturing mode” where operators are finding new ways to deliver low cost well site speed increases and engineering the labor component to a more reasonable figure.
Renegade has recently moved away from the manufacturing names as separate up pieces equipment, where now the FracLock™ & FracScorpion™ package is referred to globally as Automated Frac Equipment (AFE). To keep things easy to identify on-location, FracLock™ is the Hydraulic-Wellhead-Locking-Assembly (HWLA) that interconnects the wellhead to the pumps and creates a hands-free stabbing environment. FracLock™ can be used stand-alone. FracScorpion™ on the other hand, is the robotic boom arm that navigates between wellheads and has numerous smart features that set it atop the market. This is the only product on the market that has the definitive potential to save operations the time that they are demanding in program optimization.
It’s of no surprise to our clients, staff, and followers that AFE cleans up the sheer volume of equipment on-site, reduces the headcount required, and all while speeding up operations in the magnitude of 50% more stages per day are possible. E&P firms in major shale basins in the US have touted continual percentage gains on both drilling and completion costs, as well as similar spud-to-production metric improvements since recovering from the downturn in 2017-18 to the present, and this is undeniably going to contribute to continued success.
The study estimates that the implementation of FracLock HWLA alone will result in a 24% reduction in legacy completion practices we see today. FracLock™ can drive an additional 13% cost reduction if you factor in the reduction in the staff requirement caused by the 50% reduction in required equipment, which by estimation from Renegade works out to roughly an 85% reduction in scattered dumb iron. It will be interesting to see our clients’ investor update that harnesses the full Renegade product line and see the bolt-on efficiency take shape in their programs – talk about value! For those of you on lease roads that may see us on location, circle back to that operators slide deck and see if you can find the updated (public) completion stats. We would be hard-pressed to believe Renegade Services wasn’t the major driver as the simplest changes can deliver some of the most quantifiable changes.
When you get rid of all that iron, a trickle-down effect emerges to sweeten the deal. Since the AFE replaces the majority of the dumb iron, the risk of injury on staff is greatly reduced. The report states that OSHA claims roughly 33% of reported injuries occur during the rig up/down process within hydraulic fracturing. With AFE, crews can start pressure pumping operations as soon as 30 minutes after beginning to rig up, rather than 2-3 days. Even after a quick pressure test on a rigged-up AFE, the potential for chasing leaks across a nest of dumb iron is simply eliminated.
WEAR AND TEAR
Across the AFE package, the frac fluid velocity is reduced by 20%, which doubles the lifespan compared to legacy equipment configurations. The maximum nominal flow rate is 130 barrels per minute so ‘made-time’ is not lost, nor does it come at an equipment opportunity cost because it is back at the shop.
What Renegade is attempting to do by bringing products that are notably FRAC products, like AFE, is to consolidate disjointed services. We have achieved this by backing the development of products that created a synergy design and innovation of a specific segments of the completions side. We were the first. We have followed and been involved in the AFE project from R & D to investment, we will be the first in the field with AFE and all this means that no one knows this tool better than us.
We believe that regardless of available crews, regardless of DUC well increases, operators driven to optimize completion programs will find tremendous value in AFE™. The technology accompanied by entrepreneurial field hands and supporting cast is the reason why operators are excited to work with Renegade. As a company, we live in the technological frontier bound only by those resisting change who corrode the creative vision towards a better oilfield. For those who can see our mission, we as passionate about passing through value. There has never been a more exciting time in this gold-rush. So here, take a pickax-FracLock™ and the FracScorpion™. Its a sure-shot at turnkey improvement.
DISCLAIMER: Renegade Services remains a neutral-party to all of other companies referenced in any blog post listed on our website. The opinions in any blog post do not necessarily reflect the views, opinions, or position of Renegade Services at any point beyond our current time of publishing.