Halliburton has announced plans for Blackrock Inc to fund $500 million into drilling existing shale wells.
This move is the first by a major oilfield services provider in the midst of a global turn away from drilling new wells.
Schlumberger and Baker Hughes have both cited refracking as a potential money saver for oil producers. Refracking is where exisiting wells are fracked; therefore reducing spend on the drilling aspect of a project, which can account for up to 40% of the cost of a new well.
Some oil and gas companies have said that a level of unpredictability around refracking means that it is not yet a viable option. However, some are utilising new and innovative technology to revive output from existing wells.
Halliburton’s shares rose 2.7 percent following the announcement.