Seadrill Partners LLC. (fka SDLPQ)

[jugs]

You may be looking at a desired result rather than a simple cause and effect. The reason oil production is dropping is intentional and not merely due to the usual declines we expect. Were producers to continue producing at maximum capacity, the glut would be even worse. There are deliberate actions being taken to slow the flow. The article fails to mention another important point:

With too much oil currently available at very low prices, producers will want to curb the exploration side so as to be more conservative in their lifting efforts. Were they not to do this, depletions would be needlessly quicker without noticeable gain.

Rig counts are down for good reason and not reason for invoking the uh-oh! shudder. As an energy trader, I want to see more rigs taken out of action for I'm positive that anything less will lengthen my own investment pain.