Oil prices are not the only determinantJames Stafford of Oilprice.com wrote:
While oil prices slumped in October, drilling activity continues to rise, according to Baker Hughes, the third-largest oil services company. Baker Hughes' rig count is up 3.8% in the fourth quarter of this year, compared to the third quarter.
RBC Capital Markets estimates that 20,061 horizontal wells will be drilled in the United States alone this year, with that number increasing by well over 1,000 in 2015. Overall, analysts are projecting a 5% increase in the US land rig count next year, with horizontal drilling rigs--already up 24% over last year--being the real movers here.
Oil prices are "no longer the only driver of that bus because continued efficiencies from pad drilling, hydraulic fracturing and increased stages per well continue to increase recoveries and lower costs per unit of oil and gas produced", Natural Gas Intel quoted analysts as saying.