Productivity gains have caused record production, falling prices and a year-long decline in drilling and well completions. U.S. rig numbers at have fallen to their lowest since February 2018. According to Baker Hughes figures, rig numbers have fallen from 1,054 in September 2018 to just 860 this month (Sept. 28 2019). Continued gains in productivity have caused record production of oil and gas, falling prices and a year-long decline in drilling and well completions. Likewise, the share prices of producers and field service companies have fallen. For example, leading shale producer Exxon’s shares are down to $71 a share compared with $85 a year ago. Similarly, oilfield services companies have suffered with National-Oilwell Varco’s shares almost halving from $42 a share a year ago to just $22 today. Broader trends A combination of factors is responsible for the decline in U.S. rig activity. Chief amongst which, thanks to new […]