PRODUCTION EFFICIENCY SERIES

August 2020 Supplement: Rig counts fall but new-well production per rig rise as new-well production persists. Where productivity was more focused on increasing the quantity being manufactured, efficiency refers to the quality and effectiveness of the work being done. September 2020 Supplement: With low rig counts, the inventory of drilled but uncompleted (DUC) wells provides short-term reserve for completions of new wells. January 2021 Supplement: Base production in North Dakota has fully recovered after a significant reduction. Zhang, Meng and Gao 7 calculated the average technical efficiency of corn production in the Xiliao River Basin to be 0.88, based on the DEA of investment-ori-ented BCC model. September 2021 Supplement: Gas-to-oil ratios in U.S.

PRODUCTION EFFICIENCY SERIES

The DPR methodology involves applying smoothing techniques to most of the data series because of inherent noise in the data. This effect has been observed during winter weather freeze-offs, extreme flooding events, and the 2020 global oil demand contraction. The DPR metric legacy oil/natural gas production change can become unstable during periods of rapid decreases or increases in the volume of well production curtailments or shut-ins. The metric does not represent new-well oil/natural gas production per newly completed well. Production efficiency looks different for. Production inefficiency is when resources are wasted, or when production levels are lower than their potential.

The metric uses a fixed ratio of estimated total production from new wells divided by the region's monthly rig count, lagged by two months. The production possibilities frontier can illustrate two kinds of efficiency: productive efficiency and allocative efficiency. Peak production efficiency, or productive efficiency, is when a company is producing the maximum amount of one good without wasting resources or lowering the production level of another good. The Drilling Productivity Report (DPR) rig productivity metric new-well oil/natural gas production per rig can become unstable during periods of rapid decreases or increases in the number of active rigs and well completions.