BPI

A New Era In Rig Productivity & The BENTEK Productivity Index™ (BPI)

For decades the tight correlation between the rig count and natural gas production has enabled the energy industry to accurately forecast future natural gas supply. In the past, when the rig count increased, production growth was soon to follow. When the rig count fell, production eventually declined.

However, the active rig count is down significantly from the peak seen in October 2008 and at the same time, year-to-date gas production has continued to increase.

This divergence has perplexed gas industry observers because many of its underlying causes have gone unnoticed. A Market Alert from BENTEK Energy, "A New Era In Rig Productivity," provides insight into the many dynamic changes currently taking place with natural gas production and introduces a new tool, the BPI, to better understand production efficiency gains.

Market Alert Highlights:

• Natural gas production is now a function of rig efficiency, not the absolute number of rigs.
• To accurately measure rig productivity, BENTEK has developed the BENTEK Productivity Index™ (BPI).
• The BPI is a more accurate predictor of future production than the simple rig count.