May 19, 2022 13:56 GMT
Increasing rig counts is not translating in to increase production
- The US oil and gas rig count has increased by 28% between October 2021 and April 2022, according to Baker Hughes data.
- Well completions from Permian, Bakken, Eagle Ford, Niobrara, Anadarko, Haynesville and Appalachia increased by only 2% over the same period according to Bloomberg
- Supply chain shortages in labour, parts, equipment, and materials are delaying completions.
- The graph below shows the change in total rig counts compared to oil and gas production since Oct21: