The relentless escalation in well productivity is proving as impactful to exploration and production (E&P) operators as are commodity prices, say analysts with Raymond James & Associates Inc. The production growth largely has been credited to the discovery of new resources and the elevated rig count, noted analysts John Freeman, J. Marshall Adkins and Praveen Nara. But that’s not necessarily the headline. “The bigger driver is the fact that, on a per-well basis, production rates have continued to move higher in almost every formation where horizontal drilling is being applied,” said the trio. “This more important part of the story is clearly evident” based on recent initial production (IP) rate trends for several horizontal plays, including the Bakken, Eagle Ford and Marcellus shales. Most attention each day is given to commodity prices and now they drive production and E&P value because the price to sell oil and gas has […]