After a quieter second half in 2024, the West Texas oil and gas sector is showing strong signs of recovery in the first quarter of 2025. According to licensing data, Q1 2025 saw a marked increase in drilling license activity, with over 1,565 new licenses issued between January and March. That’s a notable uptick compared to the average monthly volume seen in late 2024.
📊 Monthly License Activity
Below is a visualization of license volume by month, highlighting the surge in Q1 2025:
🔄 From Slowdown to Surge
During the latter half of 2024, license volumes trended downward, bottoming out in October and November. But January 2025 kicked off the year with 523 new licenses, followed by 507 in February and a sharp increase to 565 in March. This Q1 rebound suggests growing confidence among operators, likely driven by stabilization in commodity prices and a continued focus on Permian Basin efficiency.
🛠 Top Operators Driving the Rebound
The companies leading the charge in Q1 activity are among the most aggressive Permian drillers:
📍 Leading Counties by License Volume
The Permian Basin continues to dominate, with counties like Midland and Martin setting the pace for drilling activity:
🧭 Outlook
If this momentum continues, 2025 could mark a return to pre-slowdown license activity levels. Operators are signaling a clear shift toward operational expansion, and the data shows that West Texas counties remain at the center of this resurgence.
