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Rigs Productivity WTI

Rig counts, rig productivity, and WTI price normalized to January 2011. This graph shows the lagged relationship and responsiveness of the rig count and WTI price. However, more importantly, the productivity per rig is four times its level in January 2014, thereby making tight oil production less sensitive to decreases in rig counts. This helps explain the resilience of US oil production. The productivity is an average of all shale plays, not just the most productive oil plays.

Source: EIA data on rig counts, productivity, and nominal monthly WTI spot price per barrel