The oil price that companies need to profitably drill new wells has closely tracked prices for long-dated oil futures in recent years. The emergence of U.S. shale production seems to be playing a large role in anchoring long-term oil prices.
The Railroad Commission of Texas (Commission) issued a total of 1,137 original drilling permits in March 2019 compared 1,220 in March 2018. The March 2019 total included 1,005 permits to drill new oil or gas wells, 14 to re-enter plugged well bores and 118 for re-completions of existing well bores. The breakdown of well types for those permits is 315 oil, 69 gas, 688 oil or gas, 56 injection, one service and eight other permits.
AUSTIN, Texas (RRC) –– Crude oil and natural gas production as reported to the Railroad Commission of Texas (RRC) for December 2018 came from 179,434 oil wells and 89,562 gas wells. The RRC reports that from January 2018 to December 2018, total Texas reported production was 1.281 billion barrels of crude oil and 8.6 trillion cubic feet of total gas.