New oil and gas well permits dropped nearly 40% in November as a result of the recent plunge in oil prices. Via Reuters, 4,520 permits were approved last month, down from 7,227 in October. There were 38% less permits approved in the Permian Basin, while permits in the Eagle Ford and the Bakken shale fell 28% and 29%, respectively. Ten other regions showed declines as well.
Drilling Info CEO Allen Gilmer told Reuters the dropoff in permits is a “quick response” to the price plunge by drillers who opted to retain current inventory levels. Gilmer said fewer permits would impact the U.S. land rig count “in a couple of months.”
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