Hydraulic fracturing used in shale oil and gas production declined 25 percent in the U.S. during the second half of 2018, according to a report by Norway-based independent energy research and business intelligence company Rystad Energy.
"... We observe 25 percent contraction in fracking activity between the peak in May-August 2018 and the end of the last year," Rystad said in a statement on Friday.
"It should be noted that in both November and December 2018 fracking activity level exhibits negative year-over-year change," it added.
Hydraulic fracturing, also known as fracking, uses a process of injecting high- pressure water and other agents into a well to create cracks inside the deep rock formations. The pressurized water and agents allow petroleum and natural gas to flow freely to the surface.
The record amount of shale oil and gas production in the U.S. over the last decade owes much to fracking in shale plays in the country.
The U.S.' crude oil production rose from 5 million barrels per day (mbpd) in 2008 to 12 mbpd for the week ending Feb. 15, 2019 -- the latest data available according to the Energy Information Administration shows.
"There is no doubt that a significant part of this decline was driven by seasonal weather and capital constraint factors. Yet we keep hearing about somewhat disappointing pace of post-winter recovery," Rystad said in the statement.
"Essentially, service providers largely agree with the fact that recovery is happening now, but the pace of this recovery is slower than what we usually observe. Lower oil price environment along with focus on capital discipline coming from public pure-shale E&Ps [exploration and productions] is the main explanation behind moderation in activity level," it added.
By Ovunc Kutlu