February 17, 2017

DRILL BABY DRILL: The rig count increased this week, a small increase but still an increase. Right now there are 597 drilling rigs operating in the U.S.

U.S. crude inventories rose to 518.1 million barrels last week, the highest in weekly data going back to 1982, according to the Energy Information Administration.

There’ve been a couple of prior Instapundit posts about oil prices and U.S. frackers. I thought I’d add a comment. About three years ago a petroleum engineer and an engineer who does reservoir analysis independently told me they believed Texas drillers would “soon” be able to breakeven in the $40 to $45 a barrel range. They meant energy companies could drill new wells and make money in that price range. Improved technology and new techniques for using existing technology were reducing drilling and production costs. FWIW, one of the men was disputing estimates by “other experts” that frackers needed $60 a barrel to breakeven. Yes, they offered opinions –informed opinions– but this article indicates both gentlemen made good guesstimates.

InstaPundit is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.