The number of drilling permits issued in July 2022 for Permian Basin hit a three-year high of 1,526, according to Enverus and investment banking advisory firm Evercore. Houston Chronicle said that’s an increase of 22 percent from July 2021. In Texas oilfields, there were 901 approved drilling permits in July – an increase of 16 percent from July 2021 – after 1,146 permits in June and 963 in May.
With the price of oil climbing above $100 a barrel, the number of drilling permits hit its highest since 2019. Analysts from Evercore said 40 percent of permits issued in U.S. are in Permian Basin and 13 percent are in Eagle Ford. Oslo-based research firm Rystad Energy said daily production in Permian is expected to reach 5.6 million barrels this year and 6.5 million in 2023.