[ihc-hide-content ihc_mb_type="show" ihc_mb_who="10,13,14,16,18,19" ihc_mb_template="1"] By Mark Rossano Private operators remain the biggest drivers of recent activity with more rigs being added throughout the summer months. Spreads will remain range bound for another 1-2 weeks with the cap being around 220. As we head into June, there will be another increase of activity as more is deployed in the Bakken (along seasonal norms) and Permian. The Permian activity is tracking closely to 2017 with more additions set to come across the Williston and Western Gulf. The smaller basins are running very close to seasonal norms (and some even ahead). The biggest difference between 2017 and 2021 remains: Williston, Western Gulf, Denver, and Other. We expect to see an activity push in Williston and Western Gulf, while the remaining two stay fairly depressed. I compare us to 2017 because we are so far seeing a similar rate of change- while at a much lower starting point. To be fair, we don’t need the same level of natural gas spreads we once did to maintain current production levels. Natural gas was about $3.30 in 2017 vs our current $2.95 so there is also “less” incentive to do more. The focus remains on oil and liquids given the current pricing dynamics remaining elevated in the market. The Colonial Pipeline is in the process of coming back online after causing a large disruption across the system. The pipeline was shutdown Friday afternoon and began bringing back the mainlines online Thursday. I bring this up in a frac spread focused update because the prevailing shortage is around truck drivers. The racks in many regions still have enough refined products, but the panic at the retail level has drawn down gas station inventory. The shortage of truckers to ferry product from the rack to the gas station is limited. So, what does this mean for trucking sand from the depot to the well site? We not only have to worry about labor at the well head, but also drivers to get diesel and necessary supplies. Many trucking companies have increased wages and offered up $5k signing bonuses. Inflation is all around us with more sitting throughout the supply chain just waiting to be passed through! [/ihc-hide-content]