Frac Revolution and Benefits
Horizontal drilling and multi-stage fracturing technologies since the early 2000s unlocked massive domestic energy supplies. Hydraulic fracturing makes it possible to undertake multi-pad drilling and uses fracturing equipment capable of deploying massive horsepower, typically from 40,000 to 70,000 HP. Over the last 20 years, the U.S. shale revolution has created over 20 times as much new energy as the entire U.S. wind and solar sector, nearly five times as much as global wind and solar. The rapid increase in domestic oil and natural gas supplies from shale, coupled with the freedom to export, has increased the supply of U.S. shale oil. According to a Dallas Federal Reserve estimate, it helped lower oil price volatility and reduce global benchmark oil prices.
LBRT’s Frac Spread Innovations
Over the past 13 years, pressure pump’s large diesel engine technology has evolved through three stages: Tier II dual fuel (substituting some natural gas for diesel), Tier IV diesel, and Tier IV dual fuel. Liberty currently has more than 40 frac spreads and 30 wireline spreads. Liberty is now rolling out next-generation natural gas-powered frac fleets. Its digiTechnologies reduce CO2e by 40% and NOx by 60% while significantly reducing the cost-of-service delivery. Here are some of LBRT’s key innovations.
- digiTechnologies: Liberty has developed technologies that reduce noise and emissions while reducing cost-of-service delivery. The suite consists of modular solutions for frac, including mobile power generation, digiFrac electric fleets, digiWire electric wireline, and digiPrime. LBRT’s Q3 2023 plans included operating ten digiFleets by January 2024. So, it will maximize diesel displacement with natural gas.
- digiFrac (Electric frac): Liberty developed the first purpose-built fully electric frac pump, which was introduced to the market in 2023. The grid or low-emission digiPower mobile generators can power these electric pumps.
- digiPrime: The industry’s first natural gas hybrid frac system, offering a lower emission profile, higher power density, and 45% thermal efficiency.
- Liberty Power Innovations: This addition of LPI (acquired in 2023) provided an integrated alternative fuel and power solution, supplying the digiFleet with reliable compressed natural gas. Integrating Siren into the LPI platform expanded the customer base for drilling and completion and expanded its gas compression capacity in the Permian Basin and the DJ Basin. Plus, it has improved its fleet of CNG trailers and logistics services. It has added field gas processing and treating facilities in the Haynesville and Permian. LPI has acquired and built a gross compression capacity of 38 MMcf per day by the end of 2023, which will likely double in 2024.
- Sand Mining – Freedom Proppant: Liberty’s frac sand mining division offers eight million tons of sand mining capacity in the Permian Basin annually, ensuring a reliable product flow to all operations. PropX (acquired in 2021) and Liberty’s collaboration has led to further expansion of technology. PropX’s second-generation sand delivery system, the Sand Scorpion. This system is purpose-built for wet sand, ensuring consistent on-site product delivery. The ownership of these mines and the expansive partnership network ensures a reliable product flow. This also provides cost and supply stability for its customers throughout all market conditions.
- Sentinel platform: This is an advanced system that harnesses real-time data from every frac location to predict on-site proppant inventory precisely.
Conclusion
Energy transition and decarbonization have become buzzwords in today’s world, and energy producers are required to adapt to new realities and standards. Despite accelerated growth in alternative energy production, total global energy supplied by renewable energy has increased slightly over the past several decades to 15%. Assuming renewable energy accounts for 20% of the total energy supply projection for 2050, natural gas will likely remain the dominant source. The trick for energy producers and hydraulic fracturing & equipment providers is to work in the most efficient manner that produces a minimum carbon footprint. LBRT’s digiFrac electric fleet investment, coupled with technological upgrades to dual fuel equipment, allows customers to serve the purpose of lowering emissions and providing fuel cost savings. The company will remain a leading player in the fracking industry for the medium to long term.
