Frac Spread Count 2.0 – June 2016

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click on the image above to see it in full size

by Jake Stevens

Have you prepared for the inevitable?

While a lot of focus is on permits and even the rig count over the last 30 or 40 years, we’ve been distributing a new metric that propelled Primary Vision into the mainstream in the summer of 2015, one we believe is the most important metric of frac activity.  We call it the Primary Vision Frac Spread Count (I might refer to it as the PVFSC or the FSC for the rest of this blog).

A quick summary of what the PVFSC is.  Simply put its a metric for the highest daily value of active frac spreads for a given week.

Ok great, but what exactly is a frac spread.  Well, lets start telling you what it isn’t.  It has nothing directly to do with natural gas prices (the crack spread), natural gas refiners (the fractionation spread) or the value gained from the sale of any natural gas liquid.

Primary Vision knows the who (pressure pumper), where, when, how many, and in most cases what the service providers are pumping, but it doesn’t stop there. We also know for what operators they are pumping for.

To summarize for every frac spread we know the following:

1) Days Active
2) Location
3) Pressure Pumper
4) Operator
5) Volumes of water, proppant, chemicals pumped

This allows us to know the number of active fleets on a given day and allows for the creation of the Primary Vision Frac Spread Count.

We give away for free, updated every week ,the Primary Vision Frac Spread Count National number.  This you can find here. Its updated by 10am every Friday.  Sign up for the free national report and you’ll get an email sent out weekly that includes the historical frac spread data plus the frac spread data for the previous week.  Use the chart and the data as you wish, all we’re asking is that you source us when using the data/image in a commercial capacity.

Its free, and yes you can get started today.

In a few days we’ll highlight what you get with the paid subscription for the Primary Vision Granular Frac Spread Count or you can reach out to us at info@pvmic.com to learn more.

 

A bit on Sales Strategy and Etiquette

by Erik Freitag and Matt Johnson

The VP of Sales and the National Account Manager walk into a bar…

​Erik and I have made a call, sent an email and told a bad joke or two in our lifetimes. Today we want to chat about sales strategy and a bit of etiquette that can help you along the way of pushing a lead to a qualified prospect.

Always have a signature in your email. (both the sales person and the lead/prospect)

Matt: I see a lot of higher ups ignore this tactic either on purpose because they don’t want to disclose their information or because they simply don’t know how to set it up. Obviously this helps the sales person gather information but what if the lead/prospect wants to call you right then and there? I better have my phone number listed in my signature or the body of the email.

Erik: It’s my belief that this is crucial for the sales rep. I’ve also seen leads/prospects remove their contact info from the email chain but at some point, they have usually sent it to us in one way or another. This is why it is KEY to capture the critical contact info from our leads/prospects and immediately transfer it to our CRM database.

How many times is enough to reach out cold to someone new? sales person to lead

Erik: There are various opinions and some of the tactics may change depending on product/industry/person trying to contact. The important factor here is to be direct & clear with voice messages and/or emails. As in any sale, there is a fine line between persistence and overkill. The latter obviously becomes annoying to our prospect and therefore is a poor strategy. I think multiple attempts (3-4) to contact a lead/prospect over an initial 2 week period is more than enough to create an interest or to be ignored and move on.

Matt: A lot of studies have been done on this stuff. I mostly like to reach out 4 different ways to one person and typically wait about 3 months before re-emailing unless you have a dialog going. I had one guy reach out to me 15 different times about one product that we gracefully declined using. It didn’t stop him and now I’m guaranteed to not buy a single thing from his company. Some leads simply die, and when they tell you that they are not interested it’s so simple to respect that. This is sales tact 101.

What tips can help for qualifying someone via first reach phone/email? sales person to lead/prospect

Matt: Often times we’re asked for samples and/or something custom specific to get a “free” answer to a question. I’ve learned the hard way by being eager early on especially when you can pre-qualify someone’s job title, function or the size of the company. Do not send samples without having some type of back and forth dialog. See how quickly they respond and note the time that they respond to your emails. This is key to pre-qualifying someone.

A good trick I learned is when a lead or prospect promises they’ll do something, that they do it. If they say “I’ll call you back soon” or “Lets touch base next week when I’m back in the office” its your job as the salesperson to do that following up. If they don’t reply soon or touch base after a re-reach its a good indicator for you to concentrate on others.

Erik: I personally feel like in all industry, the biggest objection is “please send me info” or “please send me a sample” It is an easy way to get a sales rep off the phone and also alleviates the prospect from having to say “NO.” However, it’s tricky because to close deals, these things often must happen. Therefore, we must pay attention to when they request a sample, how detailed their request is, and what action item they plan to take with that sample. Lastly, we need to ask when it’s appropriate to follow up on that sample for feedback.

What are some things that annoy you when emailing a person?

​Matt: I am very conscious of annoying people (or better worded “not trying to annoy people”). If you get zero response (after 3-4 mixed attempts) from someone I will just push a task, in my crm, to touch base with them on a new product down the road. Or maybe if I know I’m going to be in their area for a conference/event or we were written up somewhere that might interest them I might re-pop them to see if they’re interested.

A big thing, and maybe was the original focus of this blog was to talk about the reply to a reply.

Here is an example:

Hi X,

I am writing to you because you said that I should reach back to you at this time to discuss xyz.

X responds:

Hi Matt,

I’m out of the office this week, but I promise to reach back to you next week.  

I (Matt) does NOT reply here with a simple “ok thanks”. Those emails are time wasters and add up to nothing getting done in the long run. I simply set a task to reach back to that person “next week”. Do the reminding and do the prodding for the lead/prospect.

Point of the story: Don’t reply with “ok thanks” emails. Just setup a task in your crm for them and if they forget or don’t have time for you (or don’t make time for you) after a couple tries that is a good indicator of a lead, who in my opinion, who is either too busy, doesn’t care about your product, or you need to come at them another way to connect with them (sell better).

Erik: I think 3-4 attempts should be enough to provoke an interest or move on. Again, depending on the value of the target, you may want to go further before moving on. Also, it’s important to look for “extra” reach opportunities to all prospects if you read an article or see them I the news.

Communication in most forms today is abbreviated and most professionals feel “busy” all the time and are therefore rushed and short. Having said that, some great rapport can be created using “thank you, how was your weekend, talk to you next week ,etc etc. This is where personality matching can come in handy. A prospect that tends to be more apt to elaborate or ask personal questions, let’s call them a “social prospect,” may react better to small talk and chatter versus a “driver” prospect that just wants info pertaining to business.

Matt’s Parting Thoughts – Erik and I deal mostly with B2B sales. The oil and gas business is built on an old guard of long standing relationships. Bringing a future-forward product to the market like big data and having very few friends in the business beforehand made us think very deeply about how we approach a new customer, how we bring them through the process and how manage the account in post-sale (where I think Primary Vision shines). We always are talking about customers and look to advance some of our open and lining techniques in a tough market place.

Erik’s Parting Thoughts:  We find marketing is so important as a lead that comes to you has a much higher rate of conversion.  Having said that, it is much easier said than done.  When sales reps are on the “hunt” to create business, it’s important to execute a strategy and pay attention to the process.  Making calls simply to make calls will get you nowhere.  Be direct, confident, and persistent, but recognize that certain prospects are not a good target and move on from them cordially.

What’s happening at Primary Vision

originalby Matt Johnson

Primary Vision is growing and is looking at 2016 as a year of opportunity.  Here are a few things that have happened and are happening:

We contributed to an article on proppant in HZ fracs just awhile back with BloombergRead that here

We contributed to an end of year report on proppant usage with the Petroleum ConnectionRead that here

We’re speaking about refracs at the forthcoming SPE Hydraulic Fracturing Technology Conference at February 9th to 11th in The Woodlands.
Are you going?  Email me and let’s meet: mjohnson@pvmic.com
More information can be found here

We’re about to release our January Granular and National ReFrac report, you can learn more about that here.

We have finished our most recent round of updating our frac chemical database and boy is it something.  We believe we have the most comprehensive data set on frac chemicals available today.    Interested in seeing a sample?
Contact us: info@pvmic.com

Don’t forget that we’re now going into our 6 month of the Primary Vision Frac Spread Count.  Some interesting things are taking place with our granular frac spread count product in different oil segments.  Don’t wait another minute if you’re in upstream, midstream or a financial institution, you need this data to compliment your research.

That just brings us through the next month!  Lots more ahead of that.

Stay positive folks we can only go up from here!

-mj

Follow us on Twitter.

 

 

The Primary Vision US Proppant Mass Index

Back in February we launched our US Proppant Mass Index, if you didn’t see it you should check it out here. In brief, the index measures the average proppant mass used in a frac treatment across all US wells. When we published this last, we gave you information up to and including Quarter Four / 2014.

2011 – Q1 100
2011 – Q2 99
2011 – Q3 100
2011 – Q4 98
2012 – Q1 91
2012 – Q2 89
2012 – Q3 93
2012 – Q4 102
2013 – Q1 103
2013 – Q2 106
2013 – Q3 108
2013 – Q4 117
2014 – Q1 131
2014 – Q2 145
2014 – Q3 158
2014 – Q4 172
2015 – Q1 194
2015 – Q2 209
2015 – Q3 219

As we pointed out back in February, we were seeing an increase and its continued to increased quarter over quarter since.

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We can provide a similar index based on our user’s requirements. Example Analysis: horizontal wells only, vertical wells only, directional wells only, by operator, by service company, by region or a combination of them all.

Please contact us for more information about these indexes, or if you have any questions about our capabilities, services, or products.

July ReFrac Report – Permian Basin Style

July Update

Primary Vision has been working hard to improve our ReFrac report offering.  We’ve added some additional charts for you focused on the Permian Basin, changed some charts that were hard to read, added a printable version, upgraded our delivery method from an attachment to a link, etc. etc.  A lot of changes that required a lot of testing and we’re not gonna stop there.  Look for us to add in additional analytics, chemicals and production before the end of the year.

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Refrac’ed Wells from 2011-2015 Year To Date

side note: We’re also looking to add an account based system as well as additional reports (hint: Frac Fleet report)

In addition to our reports, we’re going to soon be adding production data, additional completions data and making our trek to the great white north (yes, Canada)!  All a part of the continued evolution of our comprehensive U.S. frac data products.

Survey Forthcoming

Some time this week we’re going to release a survey on our refrac report and a bit about what’s important to you frac data-wise.  Should be super easy, ten questions or less.  Thanks in advance!

Shameless Plugging

Still thinking about ordering our Granular ReFrac Report?  Get July’s instantly and be setup for August where we’ll focus on the Barnett and maybe one additional surprise. You’ll have to subscribe to find out!

How to Subscribe:

You can order here for just $99 (or jump on our soon to change yearly pricing of $899) that is packed with 30+ pages of information including…
Number of ReFrac’ed Wells by Quarter, Region, Orientation and Trajectory
– 
Updated from June!
ReFrac’ed Wells by Year by Top 10 Operator (ALL and HZ wells separately)
– Updated from June!

ReFrac’ed Wells by Year by Service Company (ALL and HZ wells separately)
– Updated from June!

Average Proppant Mass by Proppant Type (ALL and HZ wells separately)
– Updated from June!

ReFrac’ed Wells by Year by Proppant Type (ALL and HZ wells separately)
– Updated from June!

Proppant Mass Comparison Between Original and Second Frac (ALL and HZ wells separately)
- Updated from June!
Heat maps for Re’Frac wells for each year
- Updated from June!
Additionally we drilled down into the Permian Basin in July, so additional slides focused on that region are included.

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2011-2015 Permian Basin Heat Map of refracs

Summer is half way over, get outside!

Primary Vision Team

ReFrac Report Redux & Eagle Ford Drill Down

Updates, Refracs and Future

The rig count has gone up for the first time in 2015 and more permits were issued last week than in any week since February. Good news?  Kinda!

The grass is fairly green here as we move past the half way point of 2015 and boy is the refrac market heating up!

According to Forbes “1 in 2″ frac’ed wells in the United States are candidates to be refrac’ed.

According to our frac records that is almost 50,000 candidate wells!

Halliburton and Schlumberger seem to be gearing up technically and financially to make a big splash into refracs in the second half of 2015.

Let that sink in a second…

Where are the candidate wells?  
What operators are testing and what operators are ready to turn the refrac machine on?  
How much proppant is being used in those refracs?
What is the chemical system that is being used?  
What is the secondary frac chemistry?

All of these questions have been asked to Primary Vision in the last month! We can help you and your team learn more about the buzzy topic, so lets get started with our June report right now.

You can order here for just $99 (or jump on our soon to change yearly pricing of $899) that is packed with 30+ pages of information including…

Number of ReFrac’ed Wells by Quarter, Region, Orientation and Trajectory – Updated from May!
ReFrac’ed Wells by Year by Top 10 Operator (ALL and HZ wells separately) – Updated from May!
ReFrac’ed Wells by Year by Service Company (ALL and HZ wells separately) – Updated from May!
Average Proppant Mass by Proppant Type (ALL and HZ wells separately) – Updated from May!
ReFrac’ed Wells by Year by Proppant Type (ALL and HZ wells separately) – Updated from May!
Proppant Mass Comparison Between Original and Second Frac (ALL and HZ wells separately) – Updated from May!
Heat maps for Re’Frac wells for each year – Updated from May!
and we drilled down (all puns intended) into The Eagle Ford as well as made our prediction on total refracs for 2015.

Next month we’ll cover the Permian Basin and soon be releasing our second report based around pressure pumpers. Things are getting exciting!

Want to get on the early bird list for that? Email me at mjohnson@pvmic.com

Introducing: The Primary Vision National & Granular ReFrac Report

Refracturing treatments (“refracing”) has the potential to have major impacts for operators, oilfield service companies, and their suppliers. Initial evidence indicates refracing can reduce average cost per barrel of oil when used on top candidate wells. There is still a lot of experimentation and technology being developed in this space that will continue to improve returns, and provide a strong market for those companies with appropriate technologies.

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This topic has been super hot lately.  Are operators seriously considering refracs?  What service companies are involved?  What basins have historically been refrac’ed?

Our National ReFrac Report is free and our Granular ReFrac Report is $99 per month (or $899 per year) via subscription here.

Included in our Granular Report:

Number of ReFrac’ed Wells by Quarter, Region, Orientation and Trajectory
ReFrac’ed Wells by Year by Top 10 Operator (ALL and HZ wells separately)
ReFrac’ed Wells by Year by Service Company (ALL and HZ wells separately)
Average Proppant Mass by Proppant Type (ALL and HZ wells separately)
ReFrac’ed Wells by Year by Proppant Type (ALL and HZ wells separately)
Proppant Mass Comparison Between Original and Second Frac (ALL and HZ wells separately)
Heat maps for Re’Frac wells for each year

What would you like to see in our reports?  Do you need a custom report?  Are you interested in purchasing a subscription in bulk for your company?

Contact us at info@pvmic.com if you have questions.

COMING SOON
We’ll dig deeper into the Eagle Ford Region ReFracs
Production Correlations
Predictive Analysis
& More

Introducing The Primary Vision US Proppant Mass Index

We are pleased to announce the launch of the Primary Vision US Proppant Mass Index. This index will measure the average proppant mass used in a frac treatment in the United States across all wells.

2011 – Q1 100
2011 – Q2 99
2011 – Q3 100
2011 – Q4 98
2012 – Q1 91
2012 – Q2 89
2012 – Q3 93
2012 – Q4 102
2013 – Q1 103
2013 – Q2 106
2013 – Q3 108
2013 – Q4 117
2014 – Q1 131
2014 – Q2 145
2014 – Q3 158
2014 – Q4 172

Early data for 2015 – Q1 is showing an increase. We will see if that continues.

US Proppant Mass Index - Feb 2015

Proppant Trends in the United States

We can provide a similar index based on our user’s requirements. Example Analysis: horizontal wells only, vertical wells only, directional wells only, by operator, by service company, by region.

Please contact us for more information about these indexes, or if you have any questions about our capabilities, services, or products.

 

2014 – Q4 Shows 6% Increase In Frac Water Volume Over Previous Quarter. Feb 2015 Primary Vision US Frac Water Index Update

We saw a 6% increase in 2014 – Q4 over 2014 – Q3 in average frac water volumes. It will be interesting to see if this trend continues with recent oil price declines.

Here is the latest update to the Primary Vision US Frac Water Index. You will notice some slight differences from last time we published. We have updated our methodology to give a more accurate representation of average frac water volumes in the region.

Quarter    Index
2011-Q1    100.0
2011-Q2    97.3
2011-Q3    98.4
2011-Q4    93.1
2012-Q1    89.4
2012-Q2    89.5
2012-Q3    87.6
2012-Q4    96.2
2013-Q1    101.5
2013-Q2    103.4
2013-Q3    108.7
2013-Q4    117.1
2014-Q1    129.6
2014-Q2    140.1
2014-Q3    147.9
2014-Q4    156.4

Frac Water Trends in the United States

Frac Water Trends in the United States

Have questions about our methodology or about Primary Vision’s products and services? Reach out to us here: info@pvmic.com and one of our advisors will reach back to you.

Introducing the Primary Vision US Frac Water Volume Index

We are launching the Primary Vision Frac Water Index today to show on how the average amount of water used in a frac job has changed over time.

Quarter Index
2011-Q1 100.0
2011-Q2 99.7
2011-Q3 103.0
2011-Q4 95.6
2012-Q1 90.3
2012-Q2 92.6
2012-Q3 87.3
2012-Q4 94.9
2013-Q1 101.3
2013-Q2 100.1
2013-Q3 107.1
2013-Q4 116.6
2014-Q1 137.1
2014-Q2 145.8
2014-Q3 150.4

US Frac Water Volume Index

Frac Water Trends in the United States

Going forward this index will be published once per quarter. Available to our subscribers are more detailed indexes broken down by trajectory, region, pressure pumper, and operator. If you are interested in these more detailed indexes please email us.

Please contact us for more information about these indexes, or if you have any questions about our capabilities, services, or products.