Some Oklahoma-based oil and gas companies are among those cited as beginning to increase their drilling again as oil prices are in the low $40 range.
They include Devon Energy, even Chesapeake Energy, the Oklahoma City company that recently filed for Chapter 11 bankruptcy.
Drilling permit requests have increased by 15% from May to June according to a report by Barron’s which stated that federal authorities approved 1,238 permits, which included 126 more oil permits and 40 more gas permits than in May.
Larger companies are more involved in the growing permits because of their capabilities of obtaining financing as compared to small and midsize companies.
The nation’s increase in drilling permits saw some of the majors, Exxon, Chevron and Royal Dutch Shell account for a large share of the increased drilling permits.
Devon Energy is reported to be expanding its operations in the Permian Basin, having applied for 31 drilling permits in the past few weeks. Diamondback Energy applied for a dozen permits in the oil-rich basin of West Texas and southeast New Mexico.
The Bakken formation has seen increased drilling activity too as ConocoPhillips added 21 wells in North Dakota and Montana. Marathon Oil, a firm with activity in Oklahoma added 15 wells recently in the Bakken.
Chesapeake Energy was reported to be adding wells too.