I have a confession, but before you hear it, hit the weekly poll.
Last week out of 76 votes, 76% were bullish and 24% bearish.
I have never seen or been on a drilling rig.
I know! I have a collection of more financial data on the oil & gas industry than most yet I have never seen or touched what is the beginning of the entire energy value chain.
I hope to remedy that one day.
Below is a pictorial history of oil & gas drilling in the U.S.
Prior to the shale revolution the relationship between well completions, rigs and especially drilling footage was very linear.
But as we know now, a massive productivity boost was gained. More footage could be drilled with fewer rigs
Not something you want to hear when your sole business is providing such rigs.
Another way to show this is in the chart below which shows active rigs in the U.S. and utilization rates, HP 0.00%↑ included.
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