Abstract

Not surprisingly, 1986 was a bad year for drilling activity in the Permian Basin. In west Texas and eastern New Mexico 3,849 wells were drilled; a decline of 50.0% from 1985. The success rate for all wells was 72.4%, down 7.5% from 1985. This sizeable drop was due to the decrease in the price of oil. Marginal wells were completed as dry holes resulting in the decrease of the success ratio. The number of exploratory wells drilled was 31.1% lower than 1985 and the total exploratory footage drilled was down almost 30% as well. The exploratory success rate suffered a decrease of 4.2% to 19.6% for 1986. Seismic crew activity decreased 46% to its lowest level since 1973. 1986 also experienced a 53.2% decrease in development well drilling as well as a 52.5% decrease in development footage drilled. Oil production for 1986 was 524,836,270 bbls, down 3.3% from 1985 and gas production was 1,811,214 mmd, down 8.1%. Leasing activity decreased sharply from 1985 continuing the downward trend which began 1981.