U.S. Oil and Gas Output Could Grow Without Major Rig Increase

Efficiency gains could help U.S. oil and gas producers raise output without a major drilling expansion and keep the industry’s rig count relatively stable through 2027.

Faster drilling, improved well performance and longer horizontal wells could support production gains. Those efficiency improvements may limit demand for additional rigs and completion equipment, constraining oilfield services revenue growth while lowering producers’ development costs.

Producers are also facing higher costs for diesel, steel tubing, transportation and specialized equipment. Advance purchasing agreements are helping limit the impact of those increases.