EIA Admission: Rig Counts No Longer Predict Production

Last week the U.S. Energy Information Administration (EIA) released their very first Drilling Productivity Report, or DPR (for a copy, see New EIA Drilling Productivity Report: Marcellus Passes 12 Bcf/d!). Yesterday the EIA posted on their Today in Energy blog a bit more of their thinking/rationale for developing the DPR.

And what, you may ask, is the reason the EIA developed yet another report like the DPR for the energy information-addicted (like MDN) to consume? They developed it precisely for the same reason MDN has been trumpeting for nearly two years now: Rig counts are no longer a reliable predictor of production, as they once were. Here’s yesterday’s EIA post that talks about “rethinking” rig counts, and the new DPR…

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