Rig Effectiveness, Increased Efficiencies, Baker Hughes To Report Well Counts Alongside Rig Counts

Because of increased efficiencies due to pad drilling in unconventional shale, Baker Hughes will now start reporting the number of wells being drilled as well as rig count, which they have always reported.

Yahoo!News is reporting.

Halliburton noted, “In spite of a relatively flat sequential U.S. rig count, drilling efficiencies in the trend towards multi-well pads are driving a more robust well count.” Producers are still eager to drill wells, and even if rig counts are flat, other services such as well completion are still needed, providing revenue to oilfield service names in the situation of higher well counts. In recognition of this need, as a service, Baker Hughes has begun to report well counts alongside rig counts. Plus, normal seasonality heading into 4Q13 is likely to negatively impact US rig counts.

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