Monday, April 2, 2018

Oil Production Per Rig -- EIA Data May Be Very, Very Wrong -- April 2, 2018

I apologize to a reader for the late response / delayed posting of his note. The reader sent me two notes regarding my post regarding "oil production per rig."

In the first note, the reader wrote: I read somewhere using Oil Production Per Rig as a metric for the Permian was inaccurate because so many newly drilled wells go into DUC status.

He then backed up that statement with a link to this site: EIA driling production report misleading the market, dated July 25, 2017.

My hunch is that the reader is completely correct. But if this is the way the EIA is calculating rig efficiency, wow -- talk about huge mistake. It certainly misconstrues everything.

Very, very bothersome.

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