Energy Demand Continues to Rise Globally
Energy services firm Liberty Energy Inc. predicts that global energy demand will continue to increase due to the rising living standards worldwide.
According to Chief Executive Chris Wright, as the less fortunate population of seven billion people aspire to achieve the energy-rich lifestyles of the lucky one billion, global energy demand will keep rising.
Stable Outlook for the Frac Industry
Looking forward to 2024, Liberty Energy Inc. states that the fundamental outlook for the frac industry remains stable. The company also notes that service prices have remained relatively steady as the industry adjusted its supply of marketed fleets in response to lower completions activity.
Due to accelerated attrition of older equipment and the intentional idling of underutilized fleets to match customer demand, some fleets have left the market, according to Liberty Energy.
Shale Productivity on the Rise
Liberty Energy highlights that shale productivity has been increasing, mainly driven by engineering and innovation. The company states that the trend towards higher intensity fracs is raising the demand for horsepower, ensuring that frac assets are well-utilized and driving service company returns.
Commodity Price Fluctuations in Oil and Gas Markets
The company acknowledges that global oil and gas markets face commodity price fluctuations, influenced by factors such as geopolitics, interest rates, and macroeconomic data. While near-term natural-gas markets are facing pressure, Liberty Energy predicts that domestic power demand growth and increased LNG exports will lead to a more robust market in 2025.
Investing in Alternative Energy Solutions
Liberty Energy recently made investments in Oklo, a small modular nuclear reactor company, and Fervo, an enhanced geothermal technology company. The company believes that these investments have the potential to provide reliable and affordable energy solutions to meet the rising energy demands worldwide.
North American Operators as Leading Providers of Oil and Gas Supply
Long-term demand for reliable and affordable energy continues to rise, particularly with increasing global living standards. Liberty Energy suggests that North American operators are likely to be the largest providers of incremental oil and gas supply globally. Based on these trends, the company expects a durable, multi-year cycle ahead for services.
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