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Show get a foot bold. they have remained fairly busy, but he emphasized that it has been developing existing fields. Exploration, according to Kulland and others, is the one area which has really been cut. He explained that because the "That's why we 'dont want any rash action on the part of the legislature said Peacock. He said they have seen very slight increases in some areas, but said the overall picture does not look that positive. We have just not seen any concrete evidence that things will turn around. price of oil has dropped from about $39 per barrel to todays level of $25 per barrel, the financing of exploration is very difficult The MAPCO represen- said Peacock. He said that across the country, as in .Utah, refineries have closed and even more have reduced'' their production levels. Local industry representatives painted similar pictures, but one organization has maintained a fairly optimistic outlook tative explained that chill-- . ing may cost as little as 8500.000 in the South Myton area, that for a 5.000 foot welL However, to drill a producing well in for 1983. I would say it will improve quite a little in the next short while, said Darwin Kulland, Produc- tion Superintendent for' MAPCO Production Co. Kulland said they are expecting to drill nearly 20 wells in 1983 compared to five in 1982. He said preparations are presently underway on two rigs and drilling should have begun Monday, December 13, on one rig. Kulland said while they have not seen major increases this past year,' they haven't seen drastic .decreases either. Weve stayed about the same, said Darwin. He said they began 1982 with 28 employees and they have that same number, but expect to add several later. Darwin said . . . the AltamontBluebell field may cost as much as 84 million. For this reason, Kulland said companies are staying in the areas with minimal risks and lower costs. He said the outlook will vary with various companies, and others verified this. Douglas Howard, Bow Valley Exploration District Engineer, said the past eight months hsve been very down. He said they recently picked up two rigs which are now' drilling, one on the west end of Roosevelt, but from late spring until late September they had no rigs working. Howard said they expect to stay much busier during 1983, but added that recovery will most likely be very slow. It will probably be over the next couple of years, said Howard. The Bow Valley representative said an overnight recovery is always possible in the oil industry, but added that it would be very unlikely in this situation. However, this does not mean that interest has decreased hi the Uintah Basin as an oil producing region, Howard said the interest in the area will vary with the individual company, but added tht the smaller companies are hot on the Uintah very ' Basin. He said many of the larger companies presently have alternative areas to turn to which are. paying higher returns with the current price of oil. Unfortunately, the companies drilling fen oil are not the only ones who have been affected by the slump. Compared to the many the service companies, drilling companies employ only a small percentage of the total work force involved with oil production. ' These have companies experienced many of the same declines, and many are about as optimistic as others contacted. The situation doesnt seem to be improving," said David Bell, District Sales Supervisor for Dowell. He said their position has been fairly level for the past few months, and they really dont know if it will increase. Bell said Dowell is attempting, like many . other companies, to make' long range forecasts, but said, Its anyones guess. Bell added that the Basin has not been forgotten as an energy rich area, but becaause of the demand for, and the cost of oil, activity has decreased. I guess I would have to be a little more cautious," said Bell. I have seen no concrete evidence that it is on an upswing. Slightly more positive views were expressed by another service corporation. George Miller, Techincal Service Representative fin Milchem, said they have seen a slight increase in the amount of drilling aevity. As far as their revenues, he said they are up over last year's figures for November, but he added that total yearly revenues are considerably behind last year. Miller emphasized that monthly fluctuations are very common, and do not toll a complete picture. He explained that three problem wells may bring in more revenue for a company than seven other wells. For this reason, drilling can remain low, but revenues may increase for service companies. However, Miller said Milchems 18 months. He added that there is nothing unusual about the cycle in which the oil industry has found itself. We just happen to be in the bottom of the hole now, said Miller. He said they expect improvement, but he cautioned that they dont expect activity to reach 1981 levels for some time, if ever. Milchems Lynn Brandhagen, Area had similar Supervisor, feelings. Next year is hard to Brandhagen. The industry is so volatile that it changes quickly. I hope it picks up, but its hard to say. Brandhagen said that on a scale of one to ten, with ten bring last years activity, this year could possibly rate a five. And optimistic, said Brandhagen. He said the situation is much worse now than one year ago, and they expect recovery to be slow. Brandhagen said they are expecting a growth of possibly five to ten per cent per year. Lynn said several companies are giving drilling projections, but added that most are just wait and see." It appears from all indications that just wait is the only and see summary applicable to the situation. The declined activity is dictated by factors outside the Uintah Basin. Time current tell, but unemployment will figures make one wonder how long some people can hold out. nmntof evdjy hour W "WE YEAR, .OF SOCIAL SECURITY IS RAYING OUT 17000 WORE THAN ITS TAKING IN. IN SHORT. ITS LOSING , $2 BILLION A YEAR EVERY corporate in Denver and Houston have positive views for 1983. Miller said they are projecting growth for this area during the next 12 to offices said predict," 5 thats bring DAY IN TIME FOR CHRISTMAS iE7 - Haich lor our super prizesi non ALSO Elegant Waterbeds in everything from headboards. styles to 4-po- ster mirror-bookca- se 299' Good Selection of Waterbed Sheets I? T & R MERC MINI-MAL- L 722-253- 5 R9- - BOB S2995 BanCardi Layaways DOWNTOWN ROOSEVELT |