A long awaited drop in the cost of drilling and maintaining wells has finally materialized, easing the pressure on oil and natural gas producers whose profits are being squeezed by lower prices.
Executives at the companies that own and develop fields complained for months that as tumbling energy prices ate into revenue, margins were being hurt by the stubbornly high cost of materials, labor and drilling services needed to get oil and gas out of the ground. In recent weeks, that has finally begun to change.
Lower costs, along with a modest rebound in oil prices to more than $55 a barrel, helped several companies deliver better-than-expected earnings in the first quarter.
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