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Conventional plays, including California, have been relatively absent from the permit/activity recovery thus far, despite the lower capital barriers, as vertical conventional wells often cost less than 1 million in total drilling and completion costs.

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Evercore expects domestic onshore drilling to outpace market expectations through the year, particularly as completion activity lumpiness and negative exploration and production revisions push North American output growth lower. The inflationary cycle is in full swing, West said, and the.

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The U.S. rig count to date has surprised to the upside, with the count last Friday eclipsing the 1,000 level. The March total count and a multi-year high average over four weeks bode well for continued rig count strength, he.

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The onshore metamorphosis to manufacturing mode is showing in conventional permit trends too. However, the rig count is driving most of the macro models in Evercores North American OFS coverage, and conventional wisdom would suggest that we are still a.

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