Cost & Risk - Fracking Well Personnel
To gain understanding of the labor-related costs of having technology personnel onsite at a fracking well project, to better inform cost-benefit analysis.
Fracking salaries located
- Fracking hourly employees, including fuel specialists, average $17/hour.
- Fracking engineers have an average annual salary range of $67k-$76k
Cost and Profit Factors
- Overall profit margins from fracking are kept low due to high competition with the multiple agencies involved in creating and maintaining the well.
- Costs of using fiber optics permanent installations tend to be high, which limits the number of wells a company constructs, cutting into potential profits and raising costs.
- The use of downhole fiber sensing is not common in fracking due to the high costs of installation of the system.
- Some companies, such as Silixa, began using a "low-frequency strain and microseismic monitoring" program called Carina XwellXpress, to allow monitoring and immediate maintenance, which provides real-time data and cuts down costs compared to the permanent fiber optics method.
Contracting Technology Services
- Technology services in fracking tend to be contracted, and specific quotes are not publically available. A business would need to contact a company offering fracturing services, such as Schlumberger.
- The business manager would provide specific information, such as the services needed and location of services, to connect with a sales associate to obtain a cost quote.
- In general, a hired contractor will charge the company 10-25% of the total cost of the project. Fracking likely sees similar charges from contractors.
Summary of Early Findings
Specific information regarding the costs of personnel involved in fracking technology was not available on public websites. Obtaining cost quotes required specific contact with a contractor and providing project-specific information, and therefore could not be conducted by researchers. While multiple resources referenced high costs of fracking technology and possible alternatives, specific cost information was not available. However, some proprietary research may be of further assistance.
Proprietary Research Available
We found some proprietary research from one of our data partners which may be helpful:
1. Hydraulic Fracturing Market — Growth, Trends, and Forecast
Section 4.7.5 Competitive Rivalry (Mordor Intelligence, LLP, $168.36)
Section 4.7.3 Threat of New Entrants (Mordor Intelligence, LLP, $141.40)
If you’d like us to purchase any of these reports on your behalf, just let us know!
Proposed next steps:
You need to be the project owner to select a next step.
Additional research is recommended involving data and technology options available for fracking wells. Specifically, we can identify 2-3 options used in fracking wells for data collection and management. For each option, we will gives an overview of what the option is, how it is used in fracking, and any risks or benefits related to the technology option.
Alternatively, we can provide an overview of cost-saving methods used in fracking wells in the United States. Specifically, we can identify 2-3 methods fracking companies are using to limit overall costs, discussing the method, any statistical information regarding cost savings if available, and risks and benefits of the method.