Why the rig count in going up

The Dallas Morning News:

Many regional oil and gas exploration companies say crude oil prices are high enough for new drilling in some parts of the major Texas, Oklahoma and Louisiana oil fields. On the other hand, there are some parts that won't open back up until the prices get a lot higher. And more companies say they'll be shedding employees this year than say they'll be adding jobs.
The price for continued operation of existing wells is much lower:

This suggests one of the reasons why the OPEC strategy has been so ineffective.


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