Senior economist for the Dallas Fed shares how oil and gas companies can spend less money, keep the rig count flat and grow production. How can oil and gas companies spend less money, keeping the rig count relatively flat all while growing production? Jesse Thompson, senior business economist for the Federal Reserve Bank of Dallas, answered this question earlier this week at the Mergermarket Energy Forum in Houston. He said there’s three pieces to the puzzle on how companies can do this. Growth in Productivity. “Petroleum engineers are really good at their jobs and they’ve beaten everyone’s expectations for productivity growth for the past 10 years. That’s how companies are going to get more oil out of the money they do spend.” Oilfield Services. “They have very little pricing power, if any, their margins are razor thin and they have an oversupply of capacity,” said Thompson. He said equipment […]