Drilling continues to increase in activity as new drilling rigs are being activated. U.S. energy companies continue to drill new wells economically, even at $45 oil prices.
This is great news for service companies like Royalty Fabrication, Eckard Enterprises’ steel fabrication company. These wells need tanks and other steel products that Royalty makes and designs.
Drilling activity is up almost 100% in less than 12 months. Each new well drilled in shale plays will typically require between 4-16 new tanks. Reworks and the re-stimulation of older wells is also demanding new tanks to be built.