The divergence between active drilling rigs and active completion crews continues to run a “shock and awe” campaign with my understanding of what’s going on.  In that – I don’t. 

Last week, horizontal rigs in the US increased by 10 and at the same time, it is easy to hear whispers of completion crews being run close to a loss just to keep them working.  

Half cycle economics – like those you have when a well is already drilled but not completed –  are substantially better and yet… DUCs grow. Rigs grow.  Inventories grow.  Production grows.  And prices ….. rise?

I am already looking forward to Q1 earnings calls to explain to me what the hell is going on.  

 #hottakeoftheday