8 fewer rigs in the Permian
2% less from last week and 13.3% less since last year. Eventually this will matter and show in production numbers.
Joseph on the BNE board posted that U.S. onshore production is now showing a 35% annual decline rate. This is incredible considering that shale is far from 100% of that production with California, Alaska and other legacy fields. So to see any kind of rig count decline and lower completion activity in the Permian per SLB and HAL has to mean lower production with decline likely approaching 50% per year!
With financial discipline being demanded by investors, a mountain of debt coming due in 2020 and all the issues that we have heard about, it seems impossible for U.S. production to grow unless the oil price goes up at least over $60.