Nearly 3,000 permits were issued in February to explore for U.S. oil and gas, a slight increase from January but down nearly 9% from a year ago, according to state and federal data.
Evercore ISI, which tracks oil and gas permitting data, said 2,929 permits gained approval in February, up by 211 or 8% from January and 51.7% more than in February 2021. However, permitting fell from February 2022 by 8.8%.
“Major losses were reported in the Powder River Basin,” analysts said, down by 68 from January or 26% month/month (m/m). Permitting also declined in smaller plays, off by 18% m/m or by 68.
Permitting rose, though, in the Marcellus Shale, up by 199 or 151%, as well as in the Permian Basin, up by 70 from January or 6% higher m/m. Also seeing permitting gains from January were the Denver-Julesburg/Niobrara, up by 62 permits, and the Eagle Ford Shale, up by 46.
The Permian held a 41% share of all issued permits, followed by the Eagle Ford with 11%, small basins at 8% and the Marcellus with a 7% share.
When permits are issued, it usually takes three to six months to begin development onshore.
By state, Texas led the way in permitting, up by 9% m/m or 112 to reach 1,385. Pennsylvania followed with 148 permits, up by 90 or 155% m/m. Colorado recorded 153 permits in February, which was 74 more than in January or 94% higher. Louisiana saw permits reach 102 in February, up by 41 or 67% higher m/m.
“These gains offset major declines in issued permits in California to only 12,” said Evercore analysts. That was a 162 decline from January, or down by 93% m/m. Wyoming also saw a sharp decline to 229 permits issued, off by 71 or 24% lower m/m.
During January, upstream oil and natural gas employment in Texas rose by 13.7% year/year to a total of 198,100 jobs, according to the Texas Independent Producers and Royalty Owners Association (TIPRO). The figure was up by 1,700 jobs from December 2022, the group said, citing data from the U.S. Bureau of Labor Statistics.
Demand for workers remains strong, TIPRO said. It cited 12,478 active unique job postings in the Texas oil and gas industry in January. These included 5,313 new job postings added during the month by companies.
