Motley Fool on The "Rig Count"

Regular readers know my opinion on "the rig count."

Here is Motley Fool's opinion:

As for the oil-directed rig count, while it started the year strong, it has declined every month since August. Meanwhile, the supply of crude oil has soared.

The primary reason for this has been incremental technological improvements that have allowed for greater efficiency in drilling.

For instance, Whiting Petroleum registered a massive reduction in drilling expenses thanks to a successful transition toward multi-pad drilling, which has allowed the firm to drill just as many wells but with fewer rigs. And numerous other operators have reported dramatic reductions in the number of days it takes them to drill and complete a well.

For instance, Kodiak Oil & Gas reported that the average number of drilling days from spud to rig release averaged between 20 and 25 days in the third quarter – a major improvement over an average of nearly 35 days a year earlier.