New data on drilling permits from the Texas Railroad Commission (RRC) suggests we are one step closer to a full recovery.
Related: Eagle Ford Oil Production to Rise
The RRC reported this week that they approved 991 drilling permits for February, up from 573 in 2016.
The total breakdown included:
- 847: new oil or gas wells
- 11: re-enter plugged well bores
- 133: re-completions of existing well bores
- 258: oil
- 37: gas
- 640: oil or gas
- 43: injection
- 1: service
- 12: other
The Eagle Ford Shale sits within District (1) One, and was issued 133 permits in February. The following image form the RRC shows other permits issued across the state.
The oil and gas industry has taken a beating over the last two year, but there are small signs that recovery is in the air. Last month, the EIA reported it expects that production for the region will rise by 14,000 bbl/d to 1.08 MMbbl/d in March. This is a reversal of a trend since oil production in the Eagle Ford has not risen since 2015.
Rig counts across the state are also on the rise. Baker Hughes showing 396 rigs active in Texas this week, with 80 of those being in the Eagle Ford Shale.