Texas oil and gas operators are on track to complete fewer wells this year than ever before.
For January-November 2017, the Texas Railroad Commission (RRC) issued 11795 oil and gas permits, a steep increase over the 7,104 for the same time period of 2016.
While permits have increased, completion rates dropped dramatically and 2017 may see the fewest wells completed since before 2008, the earliest record published by the agency.
For November 2017, the RRC issued 1,187 original drilling permits, compared to 673 in November 2016. The breakdown includes:
- 955 new oil or gas wells permits
- 11 to re-enter plugged well bores permits
- 221 for re-completions of existing wells permits
- 358 oil, 66 gas, 682 oil or gas, 57 injection, zero service and 24 other permits
The Midland area continues to lead development for November, with the RRC issuing 657 to the region. Next was the San Antonio region with 131 oil and gas permits issued.
The RRC also reports that there have been 27 new field discoveries since the beginning of the year; 15 oil and 12 natural gas."In November 2017, Commission staff processed 388 oil, 74 gas, 29 injection and one other completions compared to 342 oil, 151 gas, 24 injection and one other completions in November 2016. Total well completions processed for 2017 year to date are 6,291; down from 9,923 recorded during the same period in 2016."
— Texas Railroad Commission November Report