This Week’s Market Buzz

• 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.

• Canadian Pacific (CP) posted higher quarterly revenue and operating income and CP executives said they expect double-digit-percentage volume growth through the end of the year due to strong demand, including record U.S. grain volume, an average Canadian grain crop, growth in frac sand due to increased oil drilling, new refined products and plastics facilities coming online, and strong demand for intermodal and automotive shipment

• Halliburton Co.’s CEO Jeff Miller warned hydraulic fracturing equipment is in short supply and could hamper fracking growth. Another oil/gas executive echoed the same warning this week and said bottlenecks could persist through 2023. “Availability of frac fleets is one of main bottlenecks impeding oil and natural gas production growth for the next 18 months,” Robert Drummond, chief executive officer of fracking firm NexTier Oilfield Solutions, told Reuters.

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