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Show The Park Record Wed/Thurs/Fri, December 19-21, 2007 B-13 Utah oil extraction increases unconventional geologic forma- ral-gas wells were drilled for tions once deemed too costly to exploration and production in AP Business Writer 2006, up from 16,728 just four tap. Higher market prices for nat- years earlier. GREATER NATURAL Still, natural-gas producers BUTTES, Utah (AP) - ural gas in recent years have have struggled to keep up with Technological advances and helped spur activity. "Setting aside environmental demand. And despite the surge Americans' hearty appetite for natural gas have given Anadarko goodness and conscience, brute in drilling activity - buoyed by Petroleum Corp. the opportunity economics has driven companies strong market prices - there's to break new ground - literally to say it's in their best interest to no expectation the industry will and figuratively - in this concentrate their footprint and add significant supplies anytime remote, rugged region of the do what they can from a given soon. Another key factor making it location," said Richard Ranger, a Rocky Mountains. On a cliff several hundred feet senior policy adviser for the easier for companies to perform multi-well directional drilling is a above the White River, Texas- American Petroleum Institute. Shell Exploration & new generation of rigs. based Anadarko is drilling 17 Drilling contractors wells from a single location - a Production Co., an arm of Royal dozen more than it's drilled from Dutch Shell PLC, is a good Helmerich & Payne Inc. and Nabors Industries Ltd. in the example. a single site in the past. The company, which began past few years began building Rather than spread the wells across the landscape, they'll be such drilling in Wyoming's natu- rigs with enhanced power that concentrated in a relatively small ral-gas fields about five years customers report is cutting the area. The ultimate goal is to ago, has been moving back to its time to complete drilling operasnake the drill bit thousands of 60 or so existing work sites, or tions by 20 percent to 30 percent. What's more, in many cases, feet into the earth, tapping natu- pads, to produce additional wells ral-gas supplies beneath the rather than creating new pads - the rigs slide on rails to their next destination, greatly reducing disand disturbing more landscape. river. Shell says it built only two turbance to the environment and "The driving factor is being able to get under the river," said new pads this year but added the time it would take to move a conventional rig from one locaJordan Hixson, who supervises more than 70 wells. "This is a major transforma- tion to the next. Anadarko's production operaWilliams Cos., which is using tions in northeastern Utah. "We tion in operating practices in the can't get to it drilling convention- field," said Pete Stark, vice pres- the so-called "flex" rigs in ident of industrial relations at Colorado's Piceance Basin, said al, vertical wells." By using increasingly sophisti- IHS Inc., a provider of technical its practice of drilling 20-plus cated - and more expensive - information and decision-sup- wells per site could enable it to drilling methods and equipment, port tools. "It's a big-time change reduce pad construction by up to Anadarko and others are - a change in response to the 75 percent. The daily rate to use confrontation the new rigs is more expensive - expanding their presence but increasing reducing their "environmental between environmental interests roughly $20,000 a day versus footprint" throughout the and energy-security interests. It about $14,000 for a conventional Rockies and elsewhere. They're started in the Rockies, but it's rig - but the company said the added expense is worth it. doing so primarily by consolidat- spreading elsewhere." Keren Murphy, the Sierra "It takes us less time to drill ing wells to groups of 17, 22 and even larger combinations, then Club's oil and gas expert in our wells, which has more than drilling in a variety of directions Washington, said the environ- made up for the increase in day to reach reservoirs - some pre- mental group acknowledges that rates," said Ralph Hill, president bunching wells together can pre- of Williams' exploration and proviously inaccessible. In Utah, where Anadarko vent disturbance, but it's trying duction business. plans to go from 1,200 to 3,500 to make sure certain areas don't For now, the Interior wells, the company is targeting become "throwaway zones." Department's Bureau of Land "It does help protect areas Management will continue to 24-well combos next year. Its 17well site occupies about 7 acres; a that are deemed pristine, but it strongly suggest drillers use single-well pad is typically 2 to 2 also has the potential to create multi-well pads on public lands, some sacrifice zones." Murphy though it may eventually require 1/2 acres. it, said BLM spokeswoman Royal Dutch Shell PLC, said. The move to multiple wells off Jaime Gardner in Colorado. Williams Cos. and others are expanding their use of the prac- single pads also is linked to enerPublic lands managed by tice in Wyoming, Colorado, New gy companies' expanding pro- BLM produce 18 percent of the duction of unconventional nation's natural gas and 5 perMexico and other states. Such clusters cost more sources such as "tight" sands and cent of its oil. BLM manages 258 because they require the latest shale - geographic formations million acres - about one-eighth equipment and techniques in that make it tougher to unlock of the land in the United States. directional drilling. But analysts gas and typically require more "Within the regulatory say the economics make sense wells. framework, we try to encourage because multiple-well operations "They're getting more out of all the best and new technology allow companies to work more the ground, but it's taking more out there," Gardner said. "By efficiently, decrease environmen- holes to do so," Stark said. drilling from multi-well pads, tal disturbance and, in some The U.S. Energy Information the impacts are very much cases, find new sources of fuei in Administration says 31,587 natu- reduced." Please Help Us This Christmas! You can give a delicious Christmas dinner to a hungry and homeless person for $1.83. By JOHN PORRETTO Salt Lake City Mission will serve turkey and dressing, mashed potatoes and gravy, green beans, corn, a roll and a big piece of pumpkin pie. Your help will also provide clean clothes, spiritual encouragement and so much more to each person. We expect to serve 8,000 meals this Christmas season. • • • • • D $18.30 for 10 hungry and homeless people $36.60 for 20 hungry and homeless people $54.90 for 30 hungry and homeless people $73.20 for 40 hungry and homeless people $183.00 for 100 hungry and homeless people Other $ , CnM> jrc U|]pri]-vinin(c, include opcruliun e^pcr^cv nn<J may be uicd for program-, lo tielp ihc homeless ihrou^houi the year, Nol ;ifniiulcd wilh the Rcxtut: Mi-.iion of Snll Lake. Name _Apt._ Address. Ciiy/State/Zip_ A good meal is often the first step to a new life! You will receive a tax-deductible receipt, -j Please mail your gift today! O , Suit Luke City Mission P. O. Box 142 Sail Lake Cily. UT 841 10-0142 for more info VIMI our web site at www.salllakccitymission.org. Complimentary Design & Estimate* Park Gty Showroom By Appointment 8O1-S72-7712 435-655-2678 Draper Showroom 9 to 5 M-F10 to 3 Sat cEassycl05ets.com JjTl ilfltjj CLASSY CLOSETS© closets * hom£ offices • 1st Annual ALENDAR FSMA benefit Night "V" All proceeds from Christmas Pay sales at Pandits' &rill £ Par go towards Families of Spinal Muscular Atrophy krecord. www.parKrecord.com BaUndng Life's Tough Times™ "Team Sarah" Hi! My name is Sarah Barber. I have been a Park City local my entire life - nearly 4 years. In April of 2006, just after my 2nd Birthday, I was diagnosed with Spinal Muscular Atrophy. SMA is a motor neuron disease that effects my voluntary muscles that I use for activities such as walking. My Mom and Dad have spent endless hours educating themselves and others on my disease and are fighting to help find a cure to make my life and all those who struggle with SMA a better life! Families of SMA is the largest private funder of SMA research and is leading the way to find a cure. I believe that there is a cure early in my lifetime. With your help, we can find a cure! V if your social life yourself & friends reminders of events events weeks in advance fe:- TUESDAY, PECEM&EK 25th &awdit$'Opens at 4:00 p.m. your own calendar of events Ponations to FSMA can be made at Pandits' Grill £ Par or atfirstgiviHg.com/sarahsheros Thank you for your support r H ' . : g ' l t - .J..SA. „ PARK CITY. UTAH . . . . . r,: , :: •: ::•.}• y^<^r •I ' The Park Record Online CalendaFis sponsored by The Canyons '440 MAIN STREET 435-649-7337 'M. |