U.S. Well Services Inc. has executed a long-term electric frac fleet contract of up to four years with all options exercised with SWEPI LP, a subsidiary of Shell, on March 11.
Under the terms of the agreement, USWS will begin operations in the first-quarter of 2020 utilizing USWS next generation, rapid deploy newbuild electric frac fleet.
The signing of this agreement marks the fourth customer commitment to USWS’ next generation patented electric frac fleet. USWS has recently ordered this fleet, which is in addition to the three new build electric fleets previously announced. Three of the four new fleets are set to commence operations in the first half of 2019, the first of which began operations in early January.
USWS continues to advance commercial contract discussions with numerous customers for further new build electric fleets and plans to place additional orders as contracts are signed.
“We are excited to resume our long-term relationship with Shell, who was one of the first customers to utilize our electric frac technology,” Joel Broussard, president and CEO of USWS, said.
“Our electric frac fleets are powered by natural gas sourced directly from the field and have the significant benefits of lower carbon emissions per hydraulic fracturing job, enhanced ambient air quality, reduced fuel costs, improved operational efficiencies and safety, and reduced noise,” Broussard added.
“Our commitment to safe and responsible energy development shapes every decision we make,” Gretchen Watkins, president of Shell Oil Co. and executive vice president, Shell Unconventionals, said. “Deploying an electric hydraulic fracturing fleet in Permian demonstrates our steadfast pursuit to achieving sustainable energy solutions for our business.”
Steamboat I plant will reinforce Meritage’s infrastructure footprint in the basin.
Industry-funded, integrated research seeks to improve unconventional and conventional reservoir characterization for onshore, offshore field production and development.
1 million bbl/d project has been considered unlikely to go forward.