Evercore

Capital discipline appeared to creep into the U.S. drilling permit count at the end of 2019, with slumping activity during December seen across the Lower 48, according to data compiled by Evercore ISI.

Capital discipline appeared to creep into the U.S. drilling permit count at the end of 2019, with slumping activity during December seen across the Lower 48, according to data compiled by Evercore ISI.

The Haynesville Shale drove a “healthy” increase in U.S. natural gas permitting during November, up 20% month/month, and the play has seen an average 14% increase in permitting for four straight months, according to Evercore ISI.

The U.S. offshore proved to be a bright spot for oil and natural gas permitting during September, while the Lower 48 reported sharp declines in several major plays, Evercore ISI said Tuesday.

Permitting to develop oil formations in the Lower 48 recovered slightly in August month/month, and natural gas permitting remained healthy even with commodity price volatility, according to a compilation of state and federal data by Evercore ISI.

A sharp ramp in permit requests for Colorado’s Denver-Julesburg (DJ) Basin/Niobrara formation helped push the June count up to the highest level in three months, but requests for permits in the natural gas-rich Marcellus, Utica and Haynesville shales declined, according to a compilation by Evercore ISI.

Capital discipline by Lower 48 operators and market volatility appeared to temper oil and gas permitting during April, particularly in Colorado and the Permian Basin, according to a review by Evercore ISI.

Global exploration expenditures are forecast to increase by 7.7% this year, down from earlier estimates, but still building on a 9% increase in 2018 and 3% increase in 2017, according to a survey by Evercore ISI.

The capital discipline instilled by many exploration and production (E&P) companies has put the squeeze on permitting in the Lower 48, with a “more opaque outlook” expected in the near term, according to Evercore ISI.