State isn't a major player in oil industry despite abundant reserves
Just don't expect it to happen anytime soon, if ever.
Utah's geology is rich in reserves of conventional oil and gas, oil sands (formerly called tar sands) and oil shale particularly the last. But many factors have prevented the state from becoming a major player in the oil field.
Utah's oil and natural gas production has climbed steadily for years. John Baza, director of the Division of Oil, Gas and Mining, noted that in 2004, the state's oil rigs yielded 14.7 million barrels; in 2005 it was 16.7 million barrels; in 2006, 17.9 million barrels; and for the first six months of 2007, production reached 12.7 million barrels, a rate that would put the year's total at 25.4 million barrels.
"Obviously, oil production is on the increase. I think the new well drilling that's going on is just kind of keeping up," he said. Much of a sharp increase in drilling is because of companies searching for more reserves as older sources are used.
"Drilling is still very active in the Uinta Basin," he added. And while the area had a slight increase over last year's pumping, "it's not what I'd call a real production boom."
Two years ago, a Michigan company, Wolverine Oil and Gas, reported a major oil strike in central Utah. Word quickly spread that it could be the harbinger of a vast new oil region 150 miles long. In 2005, some petroleum pundits predicted production could reach 500 million barrels.
So far, no discoveries much beyond the initial Wolverine strike have been reported.
"It represents a substantial part of the state's oil production profile," Baza said of the Wolverine field. That might be around 10 percent of Utah's total, but it's not an immense boom so far.
"I believe there's 10 or 11 producing wells in the immediate vicinity of the original discovery. So it's just a single field discovery to this point."
Perhaps half a dozen exploratory wells were drilled around this area, but he hasn't seen evidence of much from them. Still, Wolverine continues to drill new wells, and seismic exploration has been going on, which means "they're obviously seeing something that they like," Baza said.
In few parts of the state does the petroleum industry carry as much weight as the Uinta Basin, a vast region of northeastern Utah including Uintah and Duchesne counties.
According to Allen E. Isaacson, research analyst with the University of Utah Bureau of Economic and Business Research, 19.9 percent of the jobs and 34.8 percent of wages in the Uinta Basin of northeastern Utah are directly due to oil and gas exploration and production. When the multiplier effect is considered, such as cars sold to oil-rig workers, the figures jump to 49.5 percent of jobs and 60.1 percent of payrolls.
Recent comments
There is another source for water. Thousands of barrels of water...
Oilfield Non-Trash | Sept. 11, 2008 at 3:52 a.m.
Well, I like water coming out of my tap too, "reply to Mae West". And...
reply to reply to Mae West | Jan. 17, 2008 at 7:01 a.m.
You have a bad case of NOT IN MY BACK YARD. So do the greenies and...
reply to Mae West | Jan. 15, 2008 at 10:14 a.m.
- LDS seminary principal arrested 11:01 p.m.
- New charges in 'Hipster Grifter' case 11:00 p.m.
- Normal fire season predicted 10:59 p.m.
- World datelines 10:55 p.m.
- Experts to advise on arthritis options 10:54 p.m.
- Pakistani refugees returning home 10:54 p.m.
- Uighur women leading protests 10:53 p.m.
- 7 beheaded by Islamists in Somalia 10:53 p.m.
- Deaths raise British doubts on war 10:53 p.m.
- Obama: Global collapse avoided 10:52 p.m.
- LDS seminary principal arrested
- Jazz talking Boozer trade?
- Reactions on Boozer speculation
- Stadium of Fire flag burning was fake
- Blazers offer Millsap 4-year deal
- Jazz in back of line for free agents
- A primer for the 6th Potter film
- Okur signs two-year extension
- Jazz won't meet Lopez on Europe trip
- Restaurant destroyed by fire
- Letters: Palin mistreated
142 - Bronco collecting a galaxy of recruits
141 - LDS seminary principal arrested
137 - Jazz talking Boozer trade?
136 - Blazers may offer Millsap a contract
123 - Stadium of Fire flag burning was fake
94 - Fairness of BCS debated
81 - Blazers offer Millsap 4-year deal
78 - Chaffetz eyes challenging Bennett
74 - Letters: Single-payer system best
71
As more and more dads are put out of work in this economy, I've been...
The photographs are mysterious, brooding, dark. They show dimples and...
Actually, based on the choices we have, or likely to have Cherilyn Eagar is...
Thank you, Bishop Wester, for all of the goodness you add to our community.
Why is everyone coming down on Millsap? He's only 24 years old, hasnt hit...
> Every single student I know with whom he came in contact adored him. I...
Very intelligent, chrismatic, and socialy gifted people easily eliciting the...
Boozer doesn't have that much value until he gets games under his belt. Calm...
IF BOOZER AND MILSAP ARE WORTH 12.8 AND 8 MILLION A YEAR THEY HAVE TO BE...
I have an idea, lets tax the people who go to years and years of school and...
Your right borhter pratt is a good man but its still a crime that hurt more...
I hope everything goes well for the owner and the family and the employs god...


