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Analysis-Sliding US rig count outpaces efficiency gains, threatening onshore oil output [Yahoo! Finance Canada]

Baker Hughes Company (BKR) 
U.S. energy companies are producing record amounts of oil, much of it from onshore shale fields. New techniques and technology, like longer lateral wells, automation and more powerful equipment, have driven productivity gains across the industry that have allowed oil companies to pump more with fewer rigs and less capital. But the number of rigs working in U.S. shale fields has almost fallen so low - and is projected to keep falling - that those improvements will not be enough to keep onshore U.S. production rising, or even steady in some basins, analysts say. The anticipated decline comes as U.S. President Donald Trump seeks to raise oil and gas output, and as OPEC+ lifts its production targets in an attempt to take back market share from the U.S. and other rival producers. In April 2019, the last time over 1,000 rigs were consistently deployed across the U.S., oil output stood at 12.14 million barrels per day (bpd). Today, there are just 540 rigs in operation, while output ha Show less Read more
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