Rig Counts Flat -- January 13, 2022

Link here.

The thing is this: rigs counts are not increasing despite $80-WTI, and, the number of DUCs are declining. There are three reasons given for rig counts not increasing:

• operators showing restraint; focused on free cash flow, not growth;
• supply chain shortages impacting oil industry;
• labor shortage.

It's a labor shortage. But the industry is also highly dependent on technology (think "computer chips") and supply chain shortages are impacting drilling.

But the long pole in the tent: labor. 

I don't see it getting better any time soon.

But "restraint." LOL.

So, if operators want to grow, how do they do it? Simply buying land / mineral rights won't be enough. They need to acquire entire companies: drilling assets and human resources.

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A Musical Interlude

Total Eclipse of the Heart, Bonnie Tyler