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Increasing rig count not leading to more production

ENERGY

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:
Source: Bloomberg
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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:
Source: Bloomberg