Liberty Energy sees Q4 activity down double-digits

The company states: “Oil markets reflect significant uncertainty across the global economy, OPEC+ production plans, Chinese economic growth and Middle East geopolitical dynamics. Global demand for oil will grow by approximately one million barrels of oil per day this year and is expected to exceed this next year. While global oil production may be in surplus in 2025, oil prices are expected to remain relatively rangebound and supportive of North American activity. Natural gas prices rose in recent weeks after storage congestion concerns eased due to producer curtailments and strong domestic power generation demand, but higher prices may incentivize reversal of curtailments and prove to be transitory. The commissioning of LNG export facilities in the U.S. and Canada is expected to stimulate gas activity in 2025 and support higher sustained natural gas demand. Frac markets are navigating the slowing of E&P operators’ 2024 development programs in response to the strong first-half 2024 efficiency gains from factors including consolidation, longer laterals, and concentration in high-graded acreage. Elevated uncertainty in energy markets has further left operators reluctant to accelerate completions activity in advance of the new year. We now expect a low double-digit percentage reduction in Q4 activity, a bit more than the typical Q4 softening. Completions activity likely increases in early 2025 to support flattish E&P oil & gas production targets. Since late 2023, U.S. crude oil production has been relatively flat and would likely decline if current completions activity levels persist.”