ONEOK, Inc. has been clear in recent commentary: the Permian Basin remains structurally undersupplied on Gathering & Processing (G&P). While takeaway pipelines tend to grab headlines, the real pressure point is closer to the wellhead — compression, treating, and processing capacity needed to handle rising associated gas volumes.
Glasscock County, Texas is a textbook example of why.
Glasscock County drilling surged in 2025
In calendar year 2025, Glasscock County recorded 169 wells drilled, placing it firmly among the most active counties in the Midland Basin. Activity was highly concentrated among large, gas-heavy operators:
- OXY USA drilled 72 wells
- Exxon (XTO) drilled 43 wells
Together, those two operators accounted for nearly 70% of all drilling in the county. This level of concentration matters — not just for oil output, but for associated gas volumes that must be gathered, compressed, treated, and processed immediately as wells are brought online.
This was not sporadic drilling. Rig utilization data shows repeat deployment of the same high-spec rigs across multiple pads, signaling sustained development programs, not short-cycle experimentation.
Top operators drilling in Glasscock County (2025)
| Operator | Wells Drilled |
|---|---|
| OXY USA Inc. | 72 |
| Exxon (XTO) | 43 |
| Crescent Energy (Vital) | 15 |
| SM Energy (Civitas) | 11 |
| Hannathon Petroleum | 10 |
| Diamondback Energy | 7 |
| Black Swan Oil & Gas | 5 |
| Ovintiv USA | 4 |
Why drilling intensity turns into a G&P problem
Permian wells — especially in the Midland Basin — are increasingly gas-rich, even when oil remains the economic driver. As drilling density rises:
- Gas volumes ramp faster than legacy infrastructure can absorb
- Bottlenecks appear first at compression and processing, not long-haul pipelines
- Operators face curtailments or flaring risk if G&P lags development
This is exactly the dynamic ONEOK referenced when discussing more than 550 MMcf/d of new G&P capacity expansions across the Midland and Delaware basins, describing them as necessary, volume-backed investments, not speculative growth.
Medallion’s Glasscock County permit confirms the trend
That macro view is now showing up on the ground.
A recently filed air permit for Medallion Gathering & Processing’s “Garden City Station” in Glasscock County points to new or expanded midstream surface infrastructure — likely compression, treating, or inlet facilities feeding a broader processing system.
This is how Permian G&P expands in reality:
- Not megaprojects
- Not splashy announcements
- But incremental stations added exactly where drilling density demands it
Glasscock County’s 2025 drilling profile makes this permit unsurprising — and highly logical.
What this permit actually is
This is a Texas Title V / Standard Permit (New Registration) air permit for a new or newly registered oil & gas surface facility.
Key facts pulled straight from your record:
- Permittee: Medallion Gathering & Processing, LLC
- Facility name: Garden City Station
- County: Glasscock County, TX
- Region: Midland (Region 07)
- Status: PENDING (submitted Feb 12, 2026)
- Rule: §116.620 – Oil and Gas Production Facilities
- Permit type: Standard Permit – New Registration
📍 Location-wise, this is right in the Midland Basin core, near TX-158 — classic midstream siting.
ONEOK’s thesis, validated at the county level
ONEOK’s assessment that the Permian is structurally undersupplied on G&P isn’t theoretical. It’s visible when county-level drilling data is layered over real permitting activity.
- High drilling density
- Gas-heavy operators
- Sustained pad development
- Follow-on G&P permitting
Glasscock County checks every box.
The takeaway
The Permian’s next constraint isn’t rigs or takeaway — it’s gathering and processing. Glasscock County’s 2025 drilling surge, combined with new G&P permitting, reinforces ONEOK’s view that incremental midstream capacity must continue to be added near the wellhead to keep development moving.
In the Permian, steel follows wells — and right now, Glasscock County is leading the signal.
