US permits for new horizontal drilling in oil basins fell to a 10-year monthly low in July, Rystad Energy reported Tuesday. U.S. permits for new horizontal drilling in oil basins fell to a 10-year monthly low in July, with just 454 awards, Rystad Energy reported Tuesday. Describing drilling permits as “increasingly reliable indicators of future activity levels,” the consultancy predicted in a written statement emailed to Rigzone that a strong recovery in drilling activity is unlikely this year. The firm also noted that July’s permit figure is the lowest since September 2010, when the number of horizontal permits in oil basins totaled 438. However, it pointed out that activity levels were trending upward at the previous low point – unlike today. According to Rystad, drilling permits traditionally were viewed as low-quality predictors of future drilling activity given operators’ tendency to overbuild their permit inventories. However, the firm contends permits […]