There has been considerable attention given to rig counts ever since the price of oil started to decline in early October 2014. The rig count in PA has fallen slightly since that time. In fact, the rig count then was 52. This week’s count is 48 which is a minimal decline compared to the Bakken, Permian, Eagle Ford and Niobrara where the rig counts have declined over 50%.

While the PA rig count has declined slights, the permitting decline is much more drastic. I collected the permitting date from April 1, 2015 to April 9, 2015 which had 307 permits issued. That number, 307, pales in comparison to the last year’s 989 permits during the same period. There are three factors driving the slow down:

1. Natural gas prices
2. Lack of infrastructure – need more pipelines
3. Legislative uncertainty in PA – severance tax and other pending regulatory issues

A look at the permitting numbers to date in 2015:

• Top 5 counties – 26 counties in PA have received drilling permits in 2015
  • Bradford 60
  • Greene 44 – no one every talks about this county, but it’s busy
  • Washington – 34
  • Susquehanna – 33
  • Butler – 17
• Top 5 E&P Companies — 31 companies have received permits
  • Chesapeake – 59
  • EQT – 23
  • Vantage – 21
  • Southwestern – 19
  • Consol – 16

   

  We are satisfied that the attendees found the data presented very helpful as they strategically plan how they will continue to work in the oil and gas business for the remainder of the year.

  For more information about permitting, contact Joe Barone