Permian Fracking Activity Slows Amid Tariff Uncertainty and OPEC+ Production Hikes, ProPetro CEO Warns

Fracking in the Permian Basin is slowing down due to trade uncertainty and OPEC+ production hikes, with 70 crews now active, down from 100 at the start of the year. ProPetro's CEO cited increased market uncertainty and idle capacity as reasons for the decline. The company expects 10-11 frack crews in Q3 and may cut that in Q4. Halliburton also plans to park equipment in the US shale patch.

The Permian Basin, a major hub for hydraulic fracturing (fracking), is experiencing a significant slowdown in activity due to trade uncertainties and increased OPEC+ production. According to ProPetro Holding Corp., one of the largest pressure pumpers in the region, the number of active fracking crews has decreased from around 100 at the start of the year to approximately 70 currently [2].

The slowdown is attributed to heightened market uncertainty stemming from tariff implications and OPEC+ production hikes. ProPetro's CEO, Sam Sledge, cited these factors as primary drivers for the decline in fracking activity. He noted that the completions market in the Permian Basin continues to face challenges, with more idle capacity than anticipated [2].

ProPetro, which reported a second-quarter loss and a surprise revenue drop of 9%, now expects to run 10 to 11 frack crews in the current quarter and may reduce that number further in the final three months of the year [3]. This forecast is weaker than initially expected, as indicated by an analyst at Citigroup Inc. [2].

Halliburton Co., the world's largest provider of fracking services, has also responded to the deteriorating conditions in the US shale patch by planning to park some equipment [2]. The company's decision reflects the broader trend of reduced activity in the Permian Basin.

The slowdown in fracking activity could have significant implications for the energy sector. Lower production in the Permian Basin may impact oil prices, which are currently at around $65 per barrel. The break-even point for re-fracking existing oil wells is generally lower than for drilling new wells, suggesting that the industry may prioritize existing wells over new ones [1].

As the industry navigates these challenges, investors and financial professionals should closely monitor the evolving situation in the Permian Basin. The slowdown in fracking activity underscores the importance of trade policies and OPEC+ production strategies in shaping the energy landscape.

References:
[1] https://www.facebook.com/groups/2593621180772599/posts/3645915125543194/
[2] https://www.bloomberg.com/news/articles/2025-07-30/permian-fracking-rates-tumble-as-tariffs-opec-sow-uncertainty
[3] https://www.marketscreener.com/news/propetro-q2-revenue-drops-9-misses-expectations-ce7c5fdfda8af323