Industrialized processes, scale efficiencies can mitigate high cost variability of shale wells, lower risks

摘要

Everybody's been through a roller coaster, going from 800 rigs to a low of around 250 - an unprecedented drop. We've seen the oil price recover somewhat since then and stabilize in the mid-$40s range. We've also seen natural gas prices move up, "and we're seeing the onshore rig count work its way toward 400 rigs. Things have somewhat recovered, but the full rebound has yet to develop, and we have to recognize that E&P priorities have shifted a little bit. We're pivoting away from a decade of investors rewarding production growth to where they're more strictly prioritizing shareholder returns and free cash flow. That spending discipline is going to limit new investments in drilling assets and tighten the industry's focus on cost efficiency.