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Show 12P ' April Energy Utah adding greatest natural gas reserves leum industry drilling efforts. The interdependent factors The primary reason the are: The price of oil and gas. shortage affects the price is the The success in discovering bet that the United States imof more half the than ports commercially productive nations oil, continues the wells. The price of oil or gas matUtah Geological Survey. In Utah, the average well- ters very little if the compahead price of crude oil pro- nies drill too many dry holes, duced at locations within the points out the state geologistate in 2000 registered at $29 cal survey agency. Ifthat happens, the compaper barrel, more than double nies will leave an area for the cost two years ago. The wellhead price of Utah greener pastures. natural gas has also climbed Fortunately, the dry hole dramatically jumping from an scenario has not been the case average of $2 per thousand in Utah, continues the states cubic feet in 1999 to $3.42 per geological survey department. thousand cubic feet in 2000, Utah recently reported the vey. But the main reason for the according to the state agency. greatest addition of natural Last December, the average gas reserves in the Rocky sharp price increases is the difficulty that American produc- wellhead cost of natural gas Mountain region. Utah natural gas reserves ers have in meeting this grow- registered at $6 per thousand ing demand for petroleum cubic feet, with spikes in ex- increased from the 2.4 trillion cubic feet reported in 1998 to cess of $12, based on southproducts. 3.2 trillion cubic feet in 1999. The members of the Orga- west Wyoming spot prices. nization ofPetroleum ExportHigher petroleum prices not The figures represent a rise of ing Countries control the ma- only impact consumers, but 35 percent. The gas reserve additions jority of the world supply of directly affects the exploration crude oil and, thus, the price and production drilling activi- posted by the state were priper barrel, explains the Utah ties in Utah, indicates the marily due to successful drillstate agency. Geological Survey. ing activities in two areas loTwo key interdependent fac- cated within Utah. The worldwide supply The successful drilling ac shortage, in turn, affects the tors lead to increased petro The average consumer residing in the United States uses 26 barrels of crude oil and 86,000 cubic feet of gas per year. Carbon and Emery County citizens are well aware ofwhat motor fuel prices at the gas pumps have been doing during the past year. And recently, Americans at locations across the United States have witnessed the cost of heating private residents skyrocket. There are many factors that have contributed to the sharp price increases, points out the Utah Geological Sur- price associated with domestic production. in Rockies Utahs 1999 oil reserve additions were also the greatest in the Rocky Mountain rewell in the eastern Uinta Ba- gion. Utahs oil reserve addition increased from the 1998 sin. The Ferron Fairway pro- level of210 million barrels to duces coalbed methane from 268 million barrels, representtiie cretaceous Ferron sand- ing a jump of 32 percent. The additions are attributed stone. The methane gas in Carbon and Emery counties is to recalculation of reserves generated and produced from from existing fields based, in coal. pert, on new models, inHiwifjMi The primary drilling tar- the Utah Geological Survey. The additions are also at- -' gets in the Uinta Basin are tight, low permeability sand- tributed to the successful apstones of the tertiary Wasatch plication of inventive formation and the cretaceous techniques and secmesaverde group deposited by ondary tertiary enhanced oil braided, coastal plain and al- recovery production such as rocks with luvial stream channels. flooding The Wasatch formation and iqjected water to push more of Mesaverde group are 62 mil- the natural resource to the lion to 48 million and 82 to 76 wells. million years old respectively As of Jan. 1, Utah ranked Continued interest in the eighth in proven oil reserves two areas is reflected by the and 12th in production in the high number of drilling per- US. Utah also ranked 10th in mits issued in 2000, particu- proven natural gas reserves larly for Carbon, Emery and and 12th in production. With continued drilling sucUinta counties. The annual number of per- cess and the incentive of mits issued to drill wells in climbing prices, Utah is still Utah climbed from 339 in the place to find oil and gas 1999 to 673 in 2000, reprefor the nations energy needs, senting a 99 percent increase. concluded the state agency. tivities in question occurred on the Fsrron Fairway in Carbon and Emery counties as well-completi- on oil-beari-ng Serving the Mining Industry and our Community for over 13 years Quality Coal Testing We appreciate and thank all our present clients and look forward to working with new ones. 140 East 100 South, Price 435-637-43- 43 2002 P0 Box 995 Fax 435- 637 -9272 |