High Grading Drilling Rigs

Shale oil drilling rigs are being moved to more productive areas in the Permian Basin and Eagle Ford Play.  Goldman Sachs analysts said the process is called high grading, and Baker Hughes representatives confirm that while overall drilling is still in decline, the more productive counties in the Permian Basin and Eagle Ford are experiencing an increased drilling rate. ”High grading, with producers eliminating the least efficient rigs first and moving rigs to more productive areas, could help stabilize production." Baker Hughes suggested that the U.S. drilling collapse may be coming to an end as oil prices show recovery.