Oil and LNG, page-40

I'm in Texas and although not in the business I can tell you what I am observing and hearing. I am not as concerned about rig count as some are. There are a lot of older generation rigs stacked but I'm seeing the pad sights getting bigger and the Gen II walking rigs still running. Drill times from 1st generation rigs that had to be broken down and moved for every hole were averaging 40 days on a hole and then had to knock it down and move it. Some of these new rigs have cut drill time down to 15-20 days per hole and then just waddle over to the next one on the same pad. Time is money. I have seen as many as ten pump jacks on a single pad in the Eagle Ford shale so production may not drop as dramatically as some are projecting.