The index looks at all the frac revenues of all the public frac service companies in the world, indexing these cumulative quarterly revenues to Q1 2013. Eighteen companies are currently included in this index: HAL, SLB, BHI, WFT, BAS, FRAC, Trican, Anton, CJES, PUMP. Over time we’ll rebalance within this index, but our work over the last two years has created a very robust technique.
Why Q1 2013? Q1 2013 is a good place to start: a strong, stable market for the frac industry with logical pricing and spare capacity.
As the Spears Frac Market Index shows, the frac market boomed in 2014, collapsed in 2015, sagged again in 2016, but was already showing signs of recovery before the start of 2017. Since growth was restored in late 2016, the index has grown 10-20% per quarter, and is entering Q1 2018 at a 10% per quarter growth pace.
Over the next several weeks, Spears will introduce additional indices for other bellwether oilfield equipment and service submarkets. As always, stay tuned for leading insights. And plan your business off of real data trends.