Aligned with the oil boom, Texas rig permits have spiked since 2016, but experts warn the rate might not be sustainable

Since last year, the rate of oil drilling permits in Texas nearly doubled, according to a report by United Press International (UPI).

Just last month, the Railroad Commission of Texas, which regulates the state’s energy production, issued 1,011 permits.

At the same time last year, this number was 631.

Of the current new permits issued, almost 900 were for oil or natural gas drilling, accounting for around half of the active drilling wells in the nation.

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Texas shale in particular is the most prominently-drilled oil resource in the nation, producing the highest productivity rates in the entire U.S.

Productivity from two large shale basins in Texas – the Permian shale basin and Eagle Ford – is expected to increase by 2.5 percent, or 1.38 million barrels per day, according to the Energy Information Administration.

Judging by the number of rigs, however, the Federal Reserve Bank of Dallas said the exponential increase in production could drop off in the second half of 2017.

Though the number of new wells being drilled is up, production may decline relative to the amount because no new oil is coming from the wells yet.

They are drilled, but not prepped for production.

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Despite the long-term uncertainty, the Permian region alone is expected to represent 30 percent of total crude oil output for the U.S. next year.