Permit approvals in the Permian Basin for horizontal drilling — which is key to unlocking shale oil — grew to 904 in March.

It’s a record high for the region in West Texas and New Mexico, “driven by elevated oil prices and production demand,” Rystad said.

Yes, but: Don’t expect an immediate production jump.

Artem Abramov, Rystad Energy’s head of shale research, said the permits herald faster output expansion “over the next few months once supply chain bottlenecks ease.”

It “foreshadows a significant increase in supply capacity from early 2023,” he said in a research note. But Rystad cautioned that permits don’t guarantee drilling or production from specific wells.