With frac crews and equipment tight, is smooth sailing still an option for upstream oil in 2023?

The pace of drilling and well completions activity in US oil and gas fields has slowed in late 2022 from the ramp up seen earlier in the year as premium equipment and crews to run it have become increasingly tight. But overall, 2023 should be a year of growth, although much depends on upstream operators' capital budget decisions this year as well as a host of uncertainties, from inflation to the duration of the Russia-Ukraine war. And one of the biggest uncertainties for 2023 is the availability of hydraulic fracturing equipment, since limited frac crews and equipment could affect the domestic output profile. S&P Global senior editor Starr Spencer spoke with Matt Johnson, CEO of Primary Vision Network, a consultancy that tracks the hydraulic fracturing count, about these issues facing the upstream patch in the coming months, including labor scarcity. Johnson pointed to the frac count as a major uncertainty for oil market growth although he expects it to be resolved early next year. He believes that at $80-$100/b -- the current oil price range -- the E&P sector should continue to see modest growth over the next 12 months. Stick around after the interview for Jeff Mower with the Market Minute, a look at near-term oil market drivers.