The shale patch is shedding rigs at the fastest pace since the height of the Covid-19 pandemic despite healthy oil prices. Even though larger public companies mostly aren’t shedding oil rigs, they aren’t growing rapidly either, as they adhere to investors’ desire for capital restraint. As pandemic lockdowns lifted and economies reopened, smaller drillers tried to deploy rigs to tap soaring oil prices. In the Permian, private drillers’ share of rigs has shrunk to 42%, according to Enverus—a level not seen since May 2021. Analysts said the brightening outlook is motivating many public companies to hold rigs to reap the benefit of lower drilling costs going into next year.

Source: Wall Street Journal July 17, 2023 18:50 UTC