Graph illustrates the correlation between industry revenue flow and domestic footage from oil and gas drilling. The graph illustrates that revenue flow into the industry from oil and gas production correlates well with reinvestment in drilling. In this case monthly footage serves as a proxy for drilling levels. Basically the direction in trend from revenue flow corresponds to the direction in trend for footage. The footage portion of the graph is lagged three months.

by Richard Mason. Contact the author at rmason@hartenergy.com