It was a lively year in Texas’ oil patch
The proof is in the numbers. Crude oil traded above $60 per barrel for most of 2018, and the higher prices resulted in more drilling activity in Texas, data from the Railroad Commission of Texas shows.
Some 1,020 oil and natural gas companies asked state regulators for 13,294 original drilling permits through Dec. 26 of this year. The figures mark two consecutive years of growth for exploration and production activity in Texas.
The Houston oil company EOG Resources was the top Texas driller in 2018 with 556 drilling permits filed, with more than 70 percent in the Eagle Ford and 27 percent in the Permian Basin. The Permian, meanwhile, was the top destination in Texas for oil and natural gas companies, accounting for more than 60 percent of drilling permits filed in the state.
The 2018 figures show that the shale revolution is still going strong. Horizontal drilling projects accounted 67 percent of exploration and production activity in Texas while vertical wells accounted for nearly 30 percent.
Permian Basin
Some 407 companies filed 8,039 drilling permit applications for projects in the Permian Basin. Endeavor Energy Resources of Midland was the top company in the region with 440 drilling permit filings. Owned by wildcatter billionaire and reality TV star Autry Stephens, the company has become an acquisition target for major oil companies seeking to boost their presence in the West Texas shale play. More than 69 percent of drilling permit applications filed in the Permian Basin were for horizontal drilling projects.
Eagle Ford Shale
In the Eagle Ford Shale of South Texas, 187 companies filed 2,920 drilling permits. EOG Resources was the top company in the region with 392 drilling permit applications. Most of EOG’s leases are in the oil-rich central region of the shale play. More than 90 percent of drilling permits filed in the region were for horizontal drilling projects.
Barnett Shale
In North Texas’ Barnett Shale, 142 companies filed for 462 drilling permits. The Mexican company PetroBAL was the top driller with 42 permits followed by Devon Energy of Oklahoma with 34. With 86 drilling permits, Jack County was the top destination for oil and natural gas companies in the Barnett. Eighty-one percent of drilling permits filed in the region were for vertical drilling projects.
Haynesville Shale
Forty-nine companies filed for 407 drilling permits for projects in the natural gas-rich Haynesville Shale of East Texas. Rockcliff Energy of Houston was the top company in the region with 56 drilling permits. Rockcliff is a pure-play Haynesville company that uses horizontal drilling techniques to develop natural gas wells. Nearly twothirds of drilling permits filed in the region were for horizontal drilling projects.
Conventionals
A large amount of exploration and production activity goes on outside of the state’s four shale basins. More than 376 companies filed for 1,466 drilling permits in these conventional oil fields, led by Frostwood Energy of Houston with 85, followed by Hilcorp Energy, also of Houston, with 79. Founded in April 2016, Frostwood has developed a mix of horizontal and vertical wells in Victoria County and surrounding areas. With 104 drilling permits, Wichita County was the top destination for conventional drillers.