Each week more drilling rigs are being deployed as drilling counts increase. These newly added and active drilling rigs are being deployed in highly anticipated areas of the Permian and Delaware Basins, and shale plays of far West Texas and New Mexico. The drilling rigs being put to work are trying to secure, through exploration, literally millions of acres of newly leased and acquired minerals. These exploration companies are proving up major reserves with their drilling rigs in the developing area of the Delaware Basin going from West Texas up into southeastern corners of New Mexico.
EOG recently paid over $2 billion for the Yates just to secure their land position in the Delaware Basin. If you were in West Texas, you sure would never think you are in a downturn! It looks like there is a lot more success at these adjusted economics which is very promising for US shale players, and of course, those steel fabricators making the much needed equipment, like Royalty Fabricators, LLC!