“Baker Hughes released more bad news for drilling companies recently, as it seems week after week large numbers of drilling rigs are being de-commissioned. Since the peak last September of 1,931 total rigs in the United States, nearly 600 fewer rigs are working now. That’s about one-third. Yet, with that many fewer rigs, crude oil production keeps going up. What’s going on?
One factor is efficiency. Trimming the fat, if you will. Many of those rigs were either less efficient equipment or were located in less-promising areas. There’s been a re-shuffling of sorts, where producers are totally concentrating on the most productive areas, where they can extract oil and gas at the most economical prices. The Permian Basin is a perfect example of that, where current production is likely to be profitable at these prices…”
Continue listening to the Podcast here or you can visit Crude.com to read the full transcript:
http://www.crude.com/media/OGIR-Rig-C...
One factor is efficiency. Trimming the fat, if you will. Many of those rigs were either less efficient equipment or were located in less-promising areas. There’s been a re-shuffling of sorts, where producers are totally concentrating on the most productive areas, where they can extract oil and gas at the most economical prices. The Permian Basin is a perfect example of that, where current production is likely to be profitable at these prices…”
Continue listening to the Podcast here or you can visit Crude.com to read the full transcript:
http://www.crude.com/media/OGIR-Rig-C...
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