The hydraulic fracturing market through 2023 is expected to be tight. Horsepower and water demand are both projected to rise next year, and sand will likely continue to be an issue, according to Luke Smith, U.S. onshore analyst at Westwood Global Energy Group. By third-quarter 2023, Smith expects horsepower demand to exceed 14 MMhp. In first-quarter 2022, the active horsepower was 12 million. "That essentially indicates the market will be very tight. They will need newbuild additions or to reactivate Tier 2 crews," he said. But reactivation of Tier 2 crews is unlikely, he said, because the costs associated with doing so can range from $2 million to $8 million per crew, and engines may be six or seven years old. "That's steep," Smith said.
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