RRC Energy Minute, Volume 15, June 2020 Page: 1 of 1

                                
Our mission is to serve Texas by our stewardship of natural resources and the environment, our concern for person
and community safety, and our support of enhanced development and economic vitality for the benefit of Texans.
Update: COVID49 mpactonTexas' EnergySec

Statewide Update
Between January and May 2020 Texas experienced
a substantial decline in oil and gas production activity.
Shocks within the energy commodities market, including
the oil demand collapse associated with the COVID-19
pandemic, prompted energy producers to scale back
drilling operations between January and May. The num-
ber of active drilling rigs in Texas, as reported by Baker
Hughes, fell by one half, as the number of drilling permits
issued by the RRC declined by nearly 80%. During this
time the number of wells spudded in Texas (the process of
drilling a new oil or gas well) fell from a high of 853 in
January to a low of 132 in May.
Permian Basin Update
The Permian Basin is Texas' most prolific energy basin.
Between January and May the total number of drilling
rigs in the Permian (including Texas and New Mexico)
fell from 403 to 219 - nearly 45% -- according to
Baker Hughes' rig count. Drilling permits issued by RRC
dropped by nearly 80%. The number of wells spudded
in the RRC districts that include the Permian Basin fell
from 579 to 99 new drilling projects in May, a decline
of over 80%.
Eagle Ford Shale Update
The Eagle Ford Shale is Texas' second-most prolific energy
basin. Between January and May the number of drilling
rigs in the basin fell by over 50%, while the number of
drilling permits issued by RRC declined by over 85%. The
number of wells spudded in the RRC districts that include
the Eagle Ford fell by 98%, from a high of 173 wells
spudded in January to a low of 4 wells spudded in May.

1300
1100
900
700
500
300
100

800
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600
500
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100
0

Statewide Activity: January - May 2020
403
394
3132
601 20
181            132
January  February  March  April   May
-   Drilling Permits - Wells Spudded - Rig Count
Permian Basin

403         405        415
710                          31
45,        1
579
477      419
326
116

January    February    March      April

219
56
99
May

-    Drilling Permits  -  Wells Spudded  -    Rig Count

250
200
S 150
S100
50
0

Eagle Ford Shale
67          70            6
173
137
125
41

January     February      March

41    ~30
April   May

-    Drilling Permits  -   Wells Spudded   -     Rig Count

al
tor

450
400
350
300
250
200
150

400
350
300
250
200
150

75
70
65
60
55
50  c
45
40
35
30
25

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