The outbreak of the epidemic in the first half of 2020 has hit all industries, in which the oil sector has not escaped this disaster. In the first half of 2020, the global oil demand market plummeted, and international oil prices fell sharply. Under such an impact, most companies were unable to survive and eventually went bankrupt, including Chesapeake Energy Company, one of the pioneers of shale gas, and BJ Services, one of the pioneers of fracturing technology. Finally, a group of enterprises with comparative advantages in management, operation, and technology are left. As the epidemic eases, how to survive and rise in the industry for these companies?
Cost reduction has become an important entry point for all companies, which stems from the current oil prices forcing shale oil and gas manufacturers to further reduce operating costs to obtain more profits. The link that accounts for the largest proportion of costs in the process of shale oil and gas exploitation is naturally the main goal of reducing costs.
Data shows that hydraulic fracturing is the link with the highest proportion of shale gas production costs, reaching 28%, and the current fracturing link itself has many shortcomings, thus, it has become an important breakthrough in reducing costs.
At the beginning of this century, technologies such as clean water fracturing and horizontal well fracturing improved the fracturing process, which directly reduced the cost of shale gas production. After 2002, a variety of hydraulic fracturing techniques were applied to the exploitation of shale oil and gas, which improved the efficiency of exploitation and reduced the cost of shale gas exploitation. In 2004, clean water fracturing technology and horizontal well-staged fracturing technology were introduced into the production. In 2005, after the use of hydraulic jet fracturing technology, the production of shale gas increased significantly.
Further innovation and progress in the fracturing process have played a significant role in reducing shale gas development costs. Rapid development in fracturing design, fracturing technology, fracturing tools, new fracturing materials, and evaluation methods can be developed for different types of shale reservoirs, well types, and development needs, which is beneficial to improve the technology for production, thereby promoting the overall progress of the shale gas development technology system.
New Fracturing Equipment Such as Electric Drive and Turbine Have Become the Key to Further Reducing Costs and Increasing Efficiency
High-horsepower fracturing equipment is the most important large-scale equipment in the fracturing process. Previously, fracturing equipment used traditional diesel engines as power driving means. However, diesel fracturing equipment has room for improvement in energy consumption, noise, environmental protection, and maintenance.
Electric drive fracturing equipment has significant advantages over traditional fracturing equipment in terms of performance, price, and noise.
Equipment performance and efficiency have been greatly improved. In the current domestic fracturing market, the 2500 fracturing truck is a traditional fracturing truck model with a higher market coverage, while mainstream electric fracturing equipment at the same price generally has a water horsepower of 5000HHP, which is more powerful than the traditional two. This means that the purchase cost per unit of water horsepower is reduced by 50%;
Economic performance is greatly improved. Due to the increase in the power of a single machine, calculated on the same output water horsepower, the wellsite can use less equipment to achieve better operation results, and the equipment purchase cost is greatly reduced. The reliable performance of the complete set of products also greatly reduces the equipment operation and maintenance costs;
It is more environmentally friendly. Electric drive fracturing equipment through supporting environmental protection and integrated environmental solutions can improve resource recovery and utilization;
Electric drive fracturing equipment can achieve lower noise. The noise generated by fracturing equipment is less than 85 decibels. Previously, a single fracturing truck has a noise of 115 decibels, which not only restricts night-time construction of shale gas mining, but also brings a lot of trouble to local settlements.
Compared with traditional equipment, turbo fracturing technology has a smaller volume and higher unit output power, with the working principle that the turbine engine with a reduction box drives the fracturing pump through the drive shaft. Unlike traditional diesel fracturing, turbo fracturing equipped with a dual fuel supply system of diesel and natural gas is energy-saving and environmentally friendly and has strong continuous operation capabilities, which greatly reduces the maintenance and investment costs of the service company.
Electric Fracturing Has Passed the Lead-In Period and Will Enter A High-Speed Growth Period
Electric drive fracturing equipment was first introduced by the USWS in the United States, and began field trials in the Marcellus of the United States in 2014. Electric drive fracturing equipment uses electric motors and frequency conversion equipment to replace diesel engines and gearboxes. Traditional diesel-driven pump equipment usually has a large radiator at the gooseneck. In the electric drive pump, no radiator is needed, instead a variable frequency equipment room and two independent variable frequency equipment are used. Besides, the electric drive pump does not require agitators, moisturizing equipment, large fans, sand control equipment, and vacuum dust removal equipment.
The Fuling shale gas field is China's first large-scale shale gas field, which is also the world's largest shale gas field outside of North America. In the development of shale gas, the Fuling shale gas field has passed the lead-in period of electric drive and traditional hybrid construction, which completed the trial of all-electric drive fracturing technology. In March 2020, Fuling Shale Gas Company boldly used all-electric drive fracturing technology, that is, all-electric drive fracturing equipment is used in fracturing on one platform. Compared with diesel fracturing units, the use of electric drive fracturing skids can reduce fuel costs by 49%, reduce noise by 13%, and reduce construction personnel by 50%, which also has significant energy saving and environmental protection benefits. Both Sinopec and PetroChina have begun to adopt electric fracturing equipment on a large scale, in which the electric fracturing permeability has reached 6% from the perspective of leasing demand.
The United States Will Still Be the Main Part of the Global Demand for Fracturing Equipment, And the Domestic Market Is More Promising
The demand for fracturing equipment in the United States accounts for 70%, among which, one-third of fracturing equipment has reached more than 10 years of life. It is expected that in the next five years, the number of new fracturing vehicles will increase to 25-33% of the total number of fracturing vehicles in the United States. In addition to the United States, Canada, China, Argentina, and Brazil have also actively tried shale oil and gas exploration.
There are about 1,000 fracturing equipment in China, of which only 300-400 fracturing equipment suitable for shale gas operations above 2500HHP, and the existing fracturing equipment accounts for about 5% of the global fracturing equipment inventory. However, due to the seven-year action plan for increasing oil and gas production and the new well sites equipped with corresponding power grids, it is expected that the electric fracturing permeability will also increase rapidly.
According to a neutral forecast of 30% permeability of new fracturing vehicles in 2025, the global market size of new fracturing vehicles will exceed 11 billion yuan in 2025. From 2020 to 2025, the average annual compound growth rate of the market size will reach 42.2%.
Yantai Jereh has realized that the core spare parts have been supplied exclusively to fully self-produced, and the production capacity is no longer restricted by overseas procurement. Released the world's first electric drive fracturing complete set of equipment, equipped with the world's most powerful plunger pump, which has few rivals in the domestic market.
Yantai Jereh has realized the fully self-produced supply of core spare parts, which is no longer restricted by overseas procurement in the production capacity and has released the world's first electric drive fracturing complete set of equipment, equipped with the world's most powerful plunger pump. And there are Hanyang Fourth Machinery Plant and Honghua Group that have outstanding performance in the field of electric fracturing equipment.
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