Permian Bears Brunt of Declining Permit Requests, but Activity Off Nationwide

As Lower 48 operators have slashed spending and activity, the Permian Basin has taken the biggest hit to well permitting, according to an analysis of August data by Evercore ISI.

Overall permit activity fell nationwide by 28% in August month/month to 1,119 permits, according to the analyst team led by James West. Most of the applications (87%) were to drill for oil.

Public exploration and production (E&P) operators cut requests for oil permits by 29% from July. Permian activity fell 12%, while other onshore plays saw an overall decline of 51%.

In Texas, with the bulk of Lower 48 activity, the Railroad Commission of Texas (RRC) OK’d 339 new drilling permits last month, down 14% from July. Of the total, the majors requested 11%, large caps 14% and small-to-mid-cap E&Ps...