The Permian basin experienced a decrease in drilling in 1976. The number of wells drilled represents an 8.7% decrease from 1975 with a corresponding 7.5% decrease in total footage. In contrast, exploratory drilling increased by 16.2% in West Texas and by 15.4% in eastern New Mexico, reflecting industry-wide effort to find new hydrocarbon reserves. The wildcat success rate rose to 34.7% in West Texas and held at 35.4% in eastern New Mexico. Development drilling registered a decrease of 13.3% compared to 1975, and the success rate dropped by 3%.

Oil production in West Texas and eastern New Mexico again declined. Production for the combined area decreased by 12,776,428 bbl, or 1.7%. Natural gas production declined by 243 Bcf, or 7.2% below 1975.

Geophysical prospecting activity declined by 4.3% in the Permian basin in 1976.

Leasing activities continued strong and were especially competitive in the gas provinces where open acreage was scarce.