Wiktor Wise
Hydraulic fracturing, or fracking, is a process that involves injecting water, sand, and chemicals into rock formations to extract oil and gas. This process has been around for decades, but it has recently gained prominence due to the increase in the United States' reliance on unconventional sources of oil and gas. The fracking process has several components and involves many different companies, from those that provide the technology and infrastructure to those that supply the chemical additives and proppants. As a result, there are numerous investment opportunities in the fracking industry. Some of the prominent fracking companies include Chevron, ExxonMobil, ConocoPhillips, Halliburton, Schlumberger, Baker Hughes, and Weatherford. Sand suppliers like U.S. Silica Holdings and chemical companies like BASF are also expected to benefit from the fracking industry.
| Characteristics | Values |
|---|---|
| Companies that provide the infrastructure and services to frackers | Schlumberger, Halliburton, Baker Hughes, Weatherford, Chevron, ExxonMobil, ConocoPhillips, U.S. Silica Holdings, Liberty Oilfield Services LLC |
| Companies that maintain the land | Schlumberger, Halliburton, Baker Hughes, Weatherford |
| Companies that prepare and supply the chemical additives and proppants | Schlumberger, Halliburton, Baker Hughes, Weatherford |
| Companies that distribute the natural gas end-product | Schlumberger, Halliburton, Baker Hughes, Weatherford |
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What You'll Learn
Companies that provide fracking infrastructure and services
The fracking process has been simplified and technologized over several decades, with most advances achieved in the last few years. Hydraulic fracturing happens in phases, and there are different companies involved in the technology for each phase. These companies provide the infrastructure and services to frackers and can be a good investment option.
Some of the prominent fracking companies that provide services and infrastructure are Chevron Corp, ExxonMobil Corp, Halliburton, and ConocoPhillips Co. These corporations are energy producers whose upstream operations include oil and natural gas exploration and production. They are also involved in specific projects, making them the chief project operators. For example, Chevron manages the Gorgon Gas Project in Australia, which extracts liquefied natural gas (LNG) from the Greater Gorgon gas fields. Halliburton is one of the leading patent filers on hydraulic fracking, equipment, and services. It has deployed advanced solutions for electric fracturing and launched Expressfiber, a fibre optic cable product that provides real-time insights into fracture growth and well interference.
Another company to consider is U.S. Silica Holdings, which mines, processes, and sells commercial silica in the United States. Sand or ceramic material is used as a proppant to keep the fractures in the rock open, and U.S. Silica is the second-largest holding in the SPDR S&P Oil & Gas Equipment & Services ETF.
Additionally, there are companies that maintain the land, prepare and supply chemical additives and proppants, and distribute the natural gas end product. These companies, involved in each step of the hydraulic fracturing process, have been extremely profitable for investors.
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Energy giants with upstream operations in oil and gas
The fracking process, also known as hydraulic fracturing, is used to extract oil and gas by creating fractures in rock formations using a mixture of water, proppant (sand), and chemicals. This process has been simplified and improved over the years, with the average time to drill a well in the Eagle Ford Shale Reserve decreasing from 40 days in 2010 to 20 days in 2013.
When it comes to investing in fracking, there are various companies to consider, including those providing the infrastructure and services to frackers, such as sand and water suppliers. Some of the largest fracking companies with upstream operations in oil and gas exploration and production include:
Chevron
Chevron is an integrated oil company with a global presence and operations in over 70 countries. The company has upstream and downstream operations, with the upstream division focusing on the exploration and production of oil and natural gas. Chevron is also involved in chemical and mining operations and technology development. They are one of the largest energy producers and manage the Gorgon Gas Project in Australia, extracting liquefied natural gas.
ExxonMobil
ExxonMobil is another energy giant with upstream operations in oil and gas exploration and production. They have a diversified portfolio, spanning every continent, and are committed to renewable energy sources, investing in cutting-edge research and development. ExxonMobil is also involved in downstream refining and marketing, as well as the petrochemical sector.
ConocoPhillips
ConocoPhillips is one of the largest US companies invested in fracking operations. While they have upstream operations in oil and natural gas, they do not exclusively focus on this area. ConocoPhillips has a large share in specific projects and is a chief project operator.
Halliburton
Halliburton is another large US company with upstream operations in oil and gas. They are included in the SPDR S&P Oil & Gas Equipment & Services ETF, which offers a broad range of pick-and-shovel plays on fracking.
Shell
Shell is an international energy company with a presence in 70 countries. They are involved in the exploration, production, refining, and marketing of oil and natural gas, as well as the manufacturing and marketing of chemicals. Shell is one of the most profitable oil companies in the world.
TotalEnergies
TotalEnergies is a French company that explores and produces crude oil, natural gas, and low-carbon electricity. They also refine and produce petrochemical products and own and operate gas stations in Europe, the US, and Africa.
These energy giants, with their upstream operations in oil and gas, play a significant role in the global energy landscape, navigating the challenges of meeting energy demand while reducing their carbon footprint and investing in renewable energy sources.
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Companies that provide fracking equipment
Fracking, or hydraulic fracturing, is a process that involves creating fractures in rock formations by injecting them with a mixture of water, proppant, and chemicals. This process allows oil and gas resources to flow more freely into the well, where they can be extracted. While there are no companies that exclusively provide fracking services, there are several different firms involved in each step of the process.
Some of the largest US companies invested in fracking operations include Chevron Corp, ExxonMobil Corp, Halliburton, and ConocoPhillips Co. These corporations are energy producers whose operations include oil and natural gas exploration and production.
There are also companies that provide the infrastructure and services for fracking, and investing in these companies could be a better option due to the high competition in the oil and gas extraction market. Examples of such companies include U.S. Silica Holdings, which mines, processes, and sells commercial silica, and Emerge Energy Services LP, which has benefited from increased activity in oil and gas extraction.
Another company to consider is NexTier Oilfield Solutions, a global energy service provider for onshore well construction, intervention, and other supporting oilfield activities. NexTier Oilfield Solutions was formed through the merger of Keane Group and C&J Energy Services.
Additionally, Baker Hughes Company is a leading US-based provider of systems, products, and oilfield-related services for the oil and gas industry. They offer hydraulic fracturing solutions through their Oilfield Services & Equipment business segment, which includes products and services such as drill bits, drilling fluids, and drilling services.
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Companies that supply chemical additives and proppants
Fracking, or hydraulic fracturing, is a process that enables the extraction of natural gas or oil from shale and other forms of “tight” rock. This is done by injecting water, sand, and chemical additives into the rock formation to create fractures. The chemical additives used in fracking serve various purposes, such as dissolving minerals, eliminating bacteria, and improving proppant activity.
While there are no fracking-exclusive companies, there are several different firms involved in each step of the process. Companies that supply chemical additives and proppants play a crucial role in the fracking industry. Some prominent companies in this space include:
- U.S. Silica Holdings (NYSE: SLCA): This company is a major player in the fracking industry and is involved in almost every fracking endeavour in the United States. They mine, process, and sell commercial silica, which is used as a proppant in the fracking process.
- Halliburton: Halliburton is one of the largest fracking companies in the United States and is involved in oil and natural gas exploration and production. They are also a traditional oilfield services company, providing technology and services to the fracking industry.
- Schlumberger: Schlumberger is another traditional oilfield services company that provides technology and services to the fracking industry, similar to Halliburton.
- SPDR S&P Oil & Gas Equipment & Services ETF (NYSE: XES): This exchange-traded fund (ETF) offers exposure to a broad range of companies involved in the oil and gas equipment and services sector, including those that supply chemical additives and proppants.
- Smaller public companies: There are numerous smaller, publicly traded companies involved in oil and gas extraction that may supply chemical additives and proppants. Examples include EOG Resources Inc., Continental Resources Inc., and Whiting Petroleum Corp.
Investing in companies that provide the infrastructure and services for fracking, such as those that supply chemical additives and proppants, can be a wise decision. These companies are integral to the fracking process and can offer stable investment opportunities, particularly as the fracking industry continues to evolve and advance its technology.
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Companies that distribute natural gas
When considering companies to invest in for electric fracking, it is important to note that fracking companies are responsible for extracting natural gas and oil by breaking up rocks to speed up the extraction process. While fracking has negative environmental associations, it is a major source of natural gas, with approximately 78% of US natural gas production derived from this process.
There are several companies that provide the infrastructure and services for fracking, and these could be a good investment opportunity. These include companies that provide the ""picks and shovels" of hydraulic fracturing, such as US Silica Holdings, which mines, processes, and sells commercial silica.
In terms of natural gas distribution, there are several companies that are involved in the exploration, production, refinement, and distribution of this energy source. Here are some of the top companies in this sector:
ExxonMobil
Headquartered in the United States, ExxonMobil is one of the largest natural gas producers in the world. The company's natural gas production includes extraction from shale formations and conventional sources. They are involved in pipelines, storage, processing facilities, and liquefied natural gas (LNG) export terminals. ExxonMobil produced 2.75 billion cubic feet of natural gas per day in the US in 2021.
Chevron
Chevron is a multinational company and one of the largest natural gas producers in the US. In 2021, Chevron produced 1.69 billion cubic feet of natural gas per day in the US alone. The company explores both conventional and unconventional gas resources and is actively developing new technologies. Chevron also manages the Gorgon Gas Project in Australia, which extracts liquefied natural gas (LNG) from the Greater Gorgon gas fields.
Range Resources
Range Resources is a natural gas and oil exploration and production company based in Texas. It is one of the largest independent producers of natural gas in the US, with operations in the Appalachian Basin, the Barnett Shale in Texas, and the Marcellus Shale in Pennsylvania. In 2021, the company produced 2.130 BCFE of natural gas per day and has been investing in new technologies to improve shale development, with a focus on sustainability and emission-reducing technologies.
BP
BP is a multinational oil and gas company that is involved in the production and distribution of natural gas. They are one of the biggest companies in the world and have a significant presence in the exploration, production, refining, and marketing of energy resources. BP's natural gas operations include extraction, transportation, storage, and distribution to customers.
Sinopec
Sinopec is a Chinese oil and gas company that is involved in the production and distribution of natural gas. It is one of the largest oil refiners in the world and has a significant presence in the Chinese market.
Saudi Aramco
Saudi Aramco, officially known as the Saudi Arabian Oil Company, is the national oil company of Saudi Arabia. It is state-owned and engages in the exploration, production, transportation, and sale of crude oil and natural gas. The company has a market cap of $1.8 trillion.
These companies are some of the top distributors and producers of natural gas, and they have a significant presence in the energy sector. They are constantly innovating and improving their processes, which makes them worth considering for investment opportunities.
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Frequently asked questions
Here are some companies that are invested in fracking operations: Chevron Corp (NYSE: CVX), ExxonMobil Corp. (NYSE: XOM), Halliburton NYSE: HAL and ConocoPhillips Co. (NYSE: COP).
Fracking has been a controversial topic due to environmental concerns. There are worries about the potential impact on water tables and the risk of triggering earthquakes. The industry's future is dependent on governmental priorities and regulations, which can vary.
The fracking industry offers a range of investment opportunities. You can invest in companies that provide infrastructure and services to frackers, such as those supplying sand and water, or chemical companies. Additionally, you can consider investing in ETFs like the SPDR S&P Oil & Gas Equipment & Services ETF (NYSE: XES) or the Invesco S&P SmallCap Energy ETF (NASDAQ: PSCE), which offer exposure to a diverse range of companies in the fracking industry.
