US rig count growth has slowed in recent months despite oil prices hitting multi-year highs as drillers become more efficient and learn to make better use of hydraulic fracturing and completion techniques to boost production. This means analysts and traders can no longer base future production forecasts on the rig count alone and must now take into account other metrics and stats such as number of frack stages, frac sand usage and lateral length.
Rig count no longer a reliable metric for future production, analysts say
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