The weekly rig count report that Baker Hughes releases is probably on everyone’s not-to-miss schedule. However, its days as one of the most reliable U.S. oil industry growth metrics seem to be numbered: the shale industry has advanced beyond rigs. Just a few years ago, the number of rigs was conclusively indicative of oil production growth: more rigs equaled more oil. But over the past couple of years, forced by low prices, drillers have sought and found other ways to increase production without adding more rigs. That’s why in recent months production figures and Baker Hughes rig counts have sometimes been in conflict: rigs falling and production growing, or rigs flat but production still growing. The reason for the confusion is that drillers have learned how to boost production from one single well without adding more rigs. They have learned to make longer laterals—the horizontal part of the well […]