The latest comparison between our March and May 2026 Account Reports shows a clear shift in market activity across the U.S. oil and gas sector.
The data points to a more active drilling environment, with operators increasing rig activity, expanding permit inventories, and bringing new drilling programs into the market.
1. Overall Activity Continues to Move Higher
Between March and May, operator activity strengthened across nearly every leading indicator.
• Active rig counts increased as operators expanded drilling programs.
• New well permitting accelerated significantly, signaling future drilling activity.
• Wells drilled more than doubled, confirming that permits are translating into field activity.
• Operator participation continued to grow, bringing additional opportunities into the market.
For service companies, this is an encouraging signal that demand for drilling, completions, production, construction, logistics, and support services is moving in a positive direction.
Between March and May 2026:
Key takeaway: Permit growth (+34.2% in the last 60 days) significantly outpaced operator growth (+4.2%), suggesting existing operators are becoming more aggressive with drilling plans rather than growth coming solely from new entrants.
2. The Largest Operators Are Driving Growth
Many of the industry’s largest operators increased activity during the period.
Companies such as Devon Energy, OXY, Exxon (XTO), Permian Resources, and Diamondback Energy showed some of the strongest momentum through a combination of:
• Increased rig activity
• Growing permit inventories
• Higher recent permitting activity
• Expanded drilling programs
The significance is that growth is not being driven by a handful of small operators. Many of the largest and most influential companies in North America are actively increasing development activity.
Some of the largest increases among the top operators included:
These five operators accounted for a large portion of the increase in permitting activity and represent some of the strongest business development targets heading into summer.
3. New Operators Are Entering the Prospect Pipeline
One of the most encouraging trends is the appearance of new operators moving toward drilling activity.
Several operators entered the May report with meaningful permit volumes and active drilling programs, including:
• 3R Operating
• California Resources Corporation
• Double Eagle V
• Eagle Mountain Energy Partners
• Finley Operations
These companies represent fresh opportunities for oilfield service companies looking to identify emerging customers before activity reaches full scale.
The May report added several operators that were not previously appearing as significant drilling prospects:
The standout is California Resources Corporation, which combines:
- 25 permits in the last 12 months
- 16 permits in the last 60 days
- 27 wells drilled in 2026
That combination suggests active development rather than simply appearing due to permit qualification thresholds.
What This Means
The strongest signal in the market today remains recent permitting activity.
Permits are often the first visible indicator that future drilling, completions, facility construction, and production activity are being planned.
Compared to March, the May data shows a market that is becoming more active, with more rigs running, more permits being filed, and more operators preparing to drill.
For companies focused on business development, the opportunity set is expanding.
Author: phinds