Exclusive: New U.S. Oil And Gas Well November Permits Tumble Nearly 40 Percent

[Purveyor]

Source: REUTERS

By Kristen Hays
HOUSTON Tue Dec 2, 2014 5:46pm EST

(Reuters) - Plunging oil prices sparked a drop of almost 40 percent in new well permits issued across the United States in November, in a sudden pause in the growth of the U.S. shale oil and gas boom that started around 2007.

Data provided exclusively to Reuters on Tuesday by industry data firm Drilling Info Inc showed 4,520 new well permits were approved last month, down from 7,227 in October.

The pullback was a "very quick response" to U.S. crude prices, which settled on Tuesday at $66.88 CLc1, said Allen Gilmer, chief executive officer of Drilling Info.

New permits, which indicate what drilling rigs will be doing 60-90 days in the future, showed steep declines for the first time this year across the top three U.S. onshore fields: the Permian Basin and Eagle Ford in Texas and North Dakota's Bakken shale.


Read more: http://www.reuters.com/article/2014/12/02/us-usa-oil-permits-idUSKCN0JG2C120141202

[MindMover]

1. We need to get to a 100% tumble, sooner rather than later...nt

[Hekate]

2. Hmmm, any word on the supposedly fast tracked Keystone, which has malingered for 6 years? nt

[JohnnyRingo]

3. I recall they were capping local gas wells here several years ago.

...when the prices were low before. Just like OPEC: cut the supply until demand increases, then raise prices and let it flow again to greater profit.

Probably not so nefarious as it is a lucrative business decision. Nothing that is unprecedented in commodity trading, but it means current low prices will be short lived. Should have seen it coming, especially with the Keystone deal languishing. Perhaps a spike in energy prices in the near future will put it front and center on the American's scope of vision once again.

Can't beat 'em, can't join 'em either.

[Champion Jack]

4. Crash Baby, Crash

[belzabubba333]

5. this is why the suadi's are not increasing production, to drive out the other competitors

once theyre gone - goodbye to cheaper gas - and they'll bounce back hi to make up for the lost revenue