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Rig Count Oil and gas drillers in shale fields stretching from the Eagle Ford in Texas to the Duvernay in Canada say they’re finally seeing some relief from the rising costs that have restrained profits and production in recent years. “Everything we can see looks stable,” Enerplus Corp. Chief Executive Officer Ian Dundas said of oil field costs. Steel prices might even be slightly deflationary, Dundas said. Enerplus, based in Calgary, operates in the Bakken and Marcellus shale fields in the US. Dundas spoke in an interview on the sidelines at a conference hosted by Bank of Montreal and the Canadian Association of Petroleum Producers in Toronto last week, where other executives echoed his view. While producers in North America, including in the famed Permian Basin, have mostly been prioritizing shareholder returns over output growth, inflation in the oil patch has been part of the equation that’s prompted the production discipline . Everything from expensive steel pipes to shortages of frack pumps hampered growth. Now, the turnaround for costs could allow drillers to start thinking about output increases at a time when suppliers from OPEC+ are holding back. Signs of stabilizing drilling activity point to a continued outlook for […]
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