Analysis of Permitting Efficiency in the Permian Basin

This technical report examines the permitting information for oil and gas wells in the Permian Basin, highlighting its significance as a readily available indicator of industry activity. The report notes that while permitting data is often viewed as a poor predictor of future drilling activity, it can provide insights into operational intentions. Companies may hold large inventories of permits for flexibility or to obscure plans, whereas some operators only permit wells they intend to drill. The report introduces permit usage efficiency scores derived from Enverus Core data, which measure the percentage of approved permits that progress beyond initial approval in the well life cycle. A higher efficiency score indicates a more reliable forecast of future drilling activity. Additionally, the report ranks major operators in the Permian based on their average permit usage efficiency over the past five years, providing a comparative analysis of their operational strategies.