Permian: Operators Prepare for 2nd Half of Year with New Drilling Permits
The month of August has seen oil prices continue to slide to six year lows dropping into the low $38 range which hasn’t happened since February 2009. Land rig counts as well as permit activity declined too. The Permian had a total of 142 permits issued during the week of the 21st (20150821) this is down -209% from the same week last year which had 439 permits issued.
Midland, Lea, and Eddy are Strongest Counties in August
The top permitting week in August was the week of the 21st (2015-08-21) with 142 permits up from the previous weeks 98 permits. Counties with the most activity were Andrews county with 25 permits up from the prior week of 7 permits and Midland County with 15 permits increased from 12 the week before. Other active counties included Lea and Reeves county which had 11 and 10 permits respectfully having amplified activity over the prior week which had 3 permits in Lea county and 5 permits in Reeves county.
Public E&Ps Lead Permian Activity
The most active operators during the month so far have been ExxonMobil (XTO Energy) having a total of 35 permits with 24 of them being issued during the week of 20150824. Pioneer Natural Resources continues activity during the month with 11 permits issued during the first week and of August then having 7 permits for the week of 20150714 and another 11 for the week of 20150821.
ConocoPhillips, Encana, and Shell were also active during August. August was more active as many of these operators prepare for the second half of the year.
Keep up with all E&Ps with our Oilfield Activity plan that includes daily coverage of all the major shale plays. http://www.energentgroup.com