Oil and gas permitting slowed in October
Wednesday, November 23, 2022
Oil and natural gas permitting slowed down month-over-month in October; however, the monthly permit count was ahead of 2021 and when compared with pre-COVID numbers in October 2019, according to Evercore ISI data.
Operators filed 3,308 permits in October, which was a 16% decrease when compared to September. Although permitting decreased month-over-month, it was up 25% over October 2021 and 6% over October 2019.
The Permian Basin saw 486 fewer permits in October than in September. The Marcellus Shale and Eagle Ford also saw fewer permits last month than in September, seeing decreases of 149 and 87, respectively.
Learn more: Natural Gas Intelligence > Oil, natural gas permitting tick up in Rockies as Permian, Marcellus Dip
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.