Texas oil, gas drilling permits slide by 33pc in March

Texas drilling permits for oil and natural gas fell in March by 33pc from a year earlier on declines across all major producing regions.

There were 669 permits issued in March for drilling oil, drilling gas, or drilling for both oil and gas across the state, according to the Texas Railroad Commission (RRC), down from 999 in the same month last year. Permits ticked higher from the 659 recorded in February.

The year-on-year drop was led by the Midland region, or District 8, where permits fell in March to 328, down by 133 permits from a year earlier, and lower by five compared to February.

Also down from a year earlier were permits issued in the San Angelo region, or District 7C, to the immediate southeast of Midland. The regulator issued 60 permits there in March, lower by 39 from March 2023 but up from 42 permits in February.

The westernmost San Antonio region, or District 1, saw permits slide to 79 in March from 166 a year earlier. This was also down from 95 in February.

WTI crude prices at Cushing, Oklahoma, averaged $80.41/bl in March, higher by $7.03 from the same month last year, while average spot natural gas prices at Henry Hub fell by 55pc in the same period to $2.30/mmBtu.

By Brett Holmes