Oil and Gas

2008-03-23T16:27:00.001-07:00

Barnett Shale Links

http://www.txfb.org/texasagriculture/2005/020405/020405gaslease.htm

http://www.realestatejournal.com/buysell/regionalnews/20050504-gold.html

>Devon Energy Slide Show

Oil & Gas Investor - The Barnett Shale Plays

List of Natural Gas Fields - Wikopedia

Oil Online article

PDF - Geological

Assessing Untapped reserves - Excellent images - good for glossary

http://www.energyconnect.com/pttc/archive/barnettshalesym/2003barnettshalesymp.pdf

http://www.energyconnect.com/pttc/BSR/BSRpublications.htm

Assessment of Undiscovered Oil and Gas Resources of the Bend Arch-Fort Worth Basin Province of North-Central Texas and Southwestern Oklahoma, 2003 - USGS.

http://www.aapg.org/eSeries/source/orders/index.cfm

http://barnettshale.com/NPR%20Barnett%20Shale%20story.mp3

http://pubs.usgs.gov/fs/2004/3022/fs-2004-3022.html

Geologists have known for years that shale can hold natural gas deposits, but have not known how to get it out of the porous and complex rock. The answer

According to Dan Jarvie, Humble Geochemical Services, (EnergyConnect)the Barnett Gas Petroleum System is a fully self-contained petroleum system, whereby the source rock serves as the trap and seal and all the related processes such as generation, adsorption, and oil cracking, occur within the source-reservoir rock itself.

Until the Barnett Shale, thermogenic gas production from a source rock was nonexistent since a source rock does not exhibit typical reservoir rock properties such as good porosity and permeability. However, the Barnett Gas Petroleum System has proven to be a highly viable commercial source of natural gas. As such the Barnett Shale of the Ft. Worth Basin provides an excellent geochemical model for evaluation of shale gas plays around the world. (Jarvie)

Advantages of the Barnett Shale

- The Barnett Shale is formed of incredibly dense shale, so dense in fact that it is inconvenient to measure it in the traditional geological sense, and most researchers in the area instead use the angstrom, a measure convenient for the atomic scale. This means two things:

- Natural gas has an extremely difficult time of escaping the shale formation, meaning that the natural gas that is formed stays where it is until a well is drilled.

- The incredible density of the shale provides excellent structural support, far more stable that what driller could conveniently use to support their excavations. Many independent drillers have made a profit from open hole completions, drilling without supportive measures in place.

- It is important to remember that the Barnett Shale is actively producing natural gas. It is not simply a reservoir, and if drillers can overcome the difficulties associated with sustaining the life of the anaerobic bacteria, it is possible to establish long-term energy operations here.

- Researchers speculate that introducing carbon-dioxide, a heavier-than-air gas, into the wells will not only protect the bacteria against oxygen poisoning but also stimulate their metabolic activity, resulting in increased methane production.

Growth and Development in the Barnett Shale

- Drilling began in the early eighties with Mitchell Energy, who became interested in the area after receiving unexpected production from nearby sites.

- They came to find that the Barnett Shale was a quietly powerful investment, earning it the name "The 17-Year overnight sensation."

- Today there are over 100 companies and countless individuals drilling in the Barnett Shale. The price of land has gone up to more than $10,000 per acre where the most action is occurring.

- The Barnett shale is not guaranteed money, however. At least 20 companies have drilled dry wells because they don't understand that shale is a completely new field.

- Companies who know what they're doing invest in a 3D seismic image of their area. Underground faults and water pockets are serious hazards, and can be evaluated and avoided with a 3D image.

Sources:

http://thebarnettshale.com

http://aapg.org

Parker County - Denton County

Oil & Gas Resources

2008-03-23T16:26:00.001-07:00

Oil & Gas Well Drilling Safety Links

Oil & Gas Related Organizations

Association of Energy Servicing Companies

American Petroleum Institute

Drilling Engineering Association - DEA

International Association of Drilling Contractors

Independent Petroleum Corporation of America

Petex - Training for the Oil & Gas Industry

Society of Petroleum Engineers - SPE energy development and production.

IEA Energy Information Center - Energy policy advisor for its 26 member countries.

Completion Engineering Association

List of Government / Quasi/Goverment Agencies - SPE

American Association of Drilling Engineers

American Gas Association

Texas Alliance of Energy Producers

Texas Independent Producers and Royalty Owners Association

Texas Oil & Gas Association

American Institute of Mining, Metallurgical, and Petroleum Engineers

Association of Energy Service Companies

Gas Processors Association

Offshore Operators Committee

Domestic Petroleum Council

Coalbed Natural Gas Alliance

Society of Independent Professional Earth Scientists

Society of Petroleum Evaluation Engineers

Society of Women Engineers

Conversion Calculators

Unit Converter - IEA.org

Hydril Measurement Converter Calculators

Grant Prideco - Engineering Calculator

Process Associates of America - General Conversion Calculator

Oil & Gas eTools

Oil & Gas Drilling & Servicing eTool - OSHA.gov

Oil & Gas Industry Statistics

Industry Statistics - Society of Petroleum Engineers

Oil & Gas Investing Tips

2008-03-23T16:24:00.001-07:00

When reviewing oil and gas prospects for possible investment, every investor should understand that all oil and gas projects have a great deal of risk. That is the nature of the business. Even the safest geologic project can result in disaster due to drilling and/or completion problems. All Operators, Engineers, Geologists, and seasoned oil and gas investors have drilled dry holes and will drill them again! However, some of the risk can be reduced by proper evaluation and asking the right questions. Below is a list of areas that each investor should investigate and understand prior to committing to an ongoing oil and gas project.

Know Who You Are Dealing With

The main things to look at are the Geologist and Operator. Try to avoid a group that is just “getting started” or has more dry holes than producers. That is never a good sign. This could mean they are promoters and not earning their living by producing oil and gas. Know the group that you are dealing with or know someone else that recommends them. In short, it is best to bet on the rider and not the horse. The best geological prospect can be a disaster with the wrong operator.

Diversify

Once you make the decision to invest in oil and gas ventures, set a reasonable amount of money that you want to invest. In Las Vegas, that would be called “limiting your loss.”

Most importantly do not try to put all the chips down and hope for the best. No matter how good a deal looks, it has risk. After you have selected the group you would like to work with, select numerous projects to invest in. Always diversify into numerous wells to spread the risk. This will increase the chances of hitting a successful well. Your investment will result in either a non-producer, a well that exceeds your expectations or somewhere in the middle. If an oil and gas investor properly diversifies, the “bell curve” will hopefully be in the middle.

Understanding Monthly Revenue

At the end of each production month, the landowner’s portion or royalty (generally about 25% of production) is deducted from the month’s production revenue. Once deducted, your proportionate share of the oil and gas is divided up and allocated to your account. The expenses are then divided up and allocated to your account. A good thing to remember is the landowner has royalty so they do not pay the lease expenses. That means you pay 100% of the lease expenses and receive 75% of the production.

Ongoing Investment

Investing in oil and gas is a long term investment. Each well can last several weeks to several decades. As the well produces, it is natural for pressure and the resulting production to decline. At some point the production will decline to a point that expenses will catch up with production. At this point the well should be plugged. Until the well is plugged or until the project is sold, the investors have an active investment. Each investor will from time to time vote on the future of the project, such as re-working, plugging, or selling.

Education Reduces Risk

Oil and gas investing can be exciting and rewarding. The best way to reduce the risk is to learn about the energy industry. As you are involved in projects, learn about geology, drilling, and completion phases of the project. Make sure you receive and read the drilling and completion reports. Understand the revenue checks. Do not be afraid to ask questions to the group managing your investment. That is their obligation since you are a potential owner in the project or well(s).

Additional Tips for Oil and Gas Investing

Use the internet.

Subscribe to Oil and Gas Investor Magazines

Ask questions before you invest.

Take time to learn about your investment.

Oil & Gas Articles & Links

2008-03-23T16:23:00.001-07:00

The Costs of Oil & Natural Gas - IPAA Article

Where and How to Find Information on the Oil and Gas Industry?

Glossary of Terms - SPE Glossary / General Drilling Terms

In The Pipeline - Dallas Business Journal, March 24, 2006

Fields of Dreams - Fort Worth Star Telegram

Not Far Afield - Dallas News

Is The World Running Out of Oil? - Wall Street Journal, October 8, 2005

Down and Over - Fort Worth Star Telegram, June 7, 2005

The New Boom - Fort Worth Star Telegram, May 1, 2005

Barnett Shale Play Going Strong - AAPG Explorer, May 2005

The Drill Teams - Fort Worth Star Telegram, August 23, 2004

Buried Treasure - Fort Worth Star Telegram, August 2, 2004

Home of the Perfect Mud - Fort Worth Star Telegram, August 2, 2004

High Natural Gas Prices Driving Exploration - Fort Worth Star Telegram, March 1, 2004

The Nation's Next Energy Crisis Won't Be At The Corner Gas Station - Investor's Business Daily, June 2. 2003

Texas Alliance - Texas Alliance of Energy Producers

Natural Gas, the Fuel of Choice

2008-03-23T16:22:00.001-07:00

When we hear the word gas, most of us think of gasoline that fuels our cars. But natural gas is different. In fact, it has nothing at all to do with gasoline.

Unlike gasoline, natural gas is not a liquid, it is actually a gas. More than half the homes in the United States use natural gas for heat. Your house may be full of natural gas applications: furnaces, outdoor lights, water heaters, and stoves all use natural gas to operate.

In the commercial sector, large scale users include food service providers, hotels, hospitals, and office buildings. They rely heavily on natural gas for cooking and heating, as well as refrigeration and air conditioning. Industry is the fuel's largest consumer, accounting for 43% of natural gas use across all sectors. Besides heating and cooling, natural gas helps in the manufacture of pulp and paper, metals, chemicals, stone, clay, glass--even in processing some foods.

Gas is also widely used in the process of drying plastics, pharmaceuticals, and candy. In addition, it is commonly used for treating waste materials and for incineration. Today there are more than 100,000 natural gas vehicles on the road in the United States.

Overall, natural gas accounts for nearly one quarter of our nations energy consumption. The popularity of natural gas is due to its unique ability to give off heat and light without emitting high levels of harmful bi-products into the air. It burns cleanly making it the fuel of choice and the fastest growing primary energy source in the world.

It is also reliable. Natural gas pipelines are buried underground so storms and freezing weather don't effect deliverability. For these reasons, natural gas is becoming increasingly important in meeting both domestic and global energy demands. The Energy Information Administration projects that the world's natural gas consumption will increase by 67% from 2001 to 2025.

Historically the demand for natural gas has been cyclical depending on the time of year and weather conditions, peaking during the coldest months and bottoming out in the warmest. Residential and commercial heating requirements are the main drivers of demand. Recently, however, the shift to natural gas for the generation of electricity has greatly minimized this seasonal yo-yo effect.

Natural Gas Drilling

2008-03-23T16:21:00.001-07:00

Natural Gas Drilling

Natural Gas Exploration has changed dramatically in the past 20 years. In the past, natural gas exploration was conducted by searching for evidence at the surface, such as natural gas seepages. We now know that very few deposits of natural gas actually seep at the surface, leaving a lot of natural gas formations untapped.

Natural Gas Exploration

Now that we understand more about geology, natural gas exploration and extraction is more accurate. The process still starts at the surface. Oil and gas experts examine the earth's surface for signs of natural gas using techniques and devices such as the following:

Anticlinical Slope - A dome-shaped formation caused by the earth folding on itself, known as an Anticlinical slope, is a good place to find natural gas deposits.

Seismology - Using seismic charges to study the vibrations of the earth can help determine if rock, natural gas, or something else is beneath the surface.

Magnetometers - Studying the magnetic properties of the earth can help scientists locate natural gas deposits.

Gravimeters - Variations in the earth's gravitational field can help geophysicists find likely deposits of natural gas.

Exploratory Wells - Drilling an experimental well is the best way to find out what is really underground. This is very expensive and time-consuming, so it is only done when there is a high probability that natural gas will be found.

Back to Top

Natural Gas Drilling / Extraction

Drilling and extracting natural gas from the earth is a delicate process. You must know exactly where to drill for the most cost effective and efficient natural gas extraction.

Back to Top

Natural Gas Drilling- Onshore

Cable tool drilling, also known as percussion drilling, was the first drilling method used to reach oil and water deposits. It is not commonly used today, but is still used in some regions where shallow wells are needed for natural gas extraction.

A heavy metal bit is attached to the cable and dropped repeatedly into the ground. The bit breaks up the rock and eventually punches a hole in the earth to the required depth. Originally these drills were powered by people, but steam engines made the process a lot faster and allowed the wells to be much deeper.

Rotary drilling is much more popular than cable tool drilling today. Rotary drilling involves a sharp, rotating drill bit that plows through the earth and can bust through even the thickest rock.

Back to Top

Parts of a Rotary Drilling Rig

The prime movers power the rotary drilling rig. Steam engines were the first prime movers, while diesel is the most common method for powering a rotary drilling rig today. Some rigs are powered by natural gas or gasoline. The deeper the well that is being dug, the more horsepower required. Most rigs range from 500 to 3,000 horses. Prime movers power the drilling equipment as well as the lights, water and compression tasks needed to drill a well.

Hoisting equipment raises and lowers the other equipment that is required to actually dig the natural gas well. The derrick is the most visible part of the hoisting equipment, and it provides the structure for the cables and pulleys that lower and raise the drill pipes and drill bits that are actually used to dig the well.

The rotating equipment is the mechanism that actually causes the drill pipes and bits to move, allowing the natural gas well to be dug. The drill bit is attached to 30-foot sections of drill pipe, which is rotated by a device known as a rotary, powered by the prime movers. A piece attached to the hoisting equipment called the swivel carries the weight of this whole system.

Different drill bits can be used in different situations. The most common drill bits are steel-toothed rotary bits. Insert bits are steel bits with tungsten carbide inserts. Polycrystalline diamond compact bits are insert bits with polycrystalline diamonds attached. And diamond bits have diamonds inserted into them, allowing them to break through the most difficult rock formations. There are also other hybrid bits used for different purposes depending on the conditions inside the natural gas well.

Finally, a circulating system is needed to keep the well pressure down, remove debris and keep the drill bit cool. Liquid is usually used for this purpose, though gases can also be used. When a gas is used as the circulating system, it is known as air drilling, though the gas could be air, exhaust, or even natural gas. Air drilling cuts the time and cost of drilling.

The most common circulating system is known as "mud," a combination of clay, chemicals, water, other gasses, and weighting materials. Different mixtures of liquids are used in different situations, depending on the composition of the earth where the well is being dug. The circulating system needs to be light enough to flow around the bit easily, but heavy enough to carry off the cuttings from the drill bit.

Back to Top

Natural Gas Drilling Techniques

It used to be that the only way to drill a natural gas well was to drill straight down, but technology has advanced so much that wells can now be horizontal, slanted, or even tightly curved.

Directional drilling is handy when the surface directly above a natural gas deposit is not easily accessible, such as when the natural gas is under a lake, railroad, or other feature that cannot easily be altered. It's also used in offshore drilling a great deal, because many wells can be connected to a single rig.

Modern horizontal drilling is very sophisticated and can make 90-degree turns in a matter of a few feet. Horizontal drilling has been a breakthrough in the natural gas drilling industry because it has allowed access to deposits that before would have been completely inaccessible. More natural gas can be pulled from each location, and spots that might not have been seen as very productive in the past can now be drilled and extracted.

Horizontal drilling is more economical and allows more natural gas to be extracted with fewer wells. Horizontal wells cost more to drill than vertical wells, but they are more productive so the benefit is much greater when using horizontal natural gas wells.

Natural Gas Demand

2008-03-23T16:20:00.001-07:00

Natural gas use for power generation is forecasted to grow at more than twice the rate of the residential and commercial sector from 2000 to 2030. Of course, all of this leads to higher demand, and natural gas prices are directly affected by the supply's ability to meet that growing demand. When demand exceeds supply, prices go up.

For example, in 2003 US prices nearly doubled from 2002 due to increased demand caused by shrinking imports and diminished production from old wells. An upward price trend should continue for the foreseeable future. Projections for natural gas consumption in 2025 range from 29.1 to 34.2 trillion cubic feet per year, compared to 22.6 trillion cubic feet in 2002.

The United States is the world's largest consumer of natural gas and its second largest producer, but, domestic production has not kept pace with demand. In 2003, US production fell 3% while demand rose 2.2%. The US Energy Department estimates that domestic gas demand will be 28% more than domestic out-put by 2025.

Natural Gas Benefits

2008-03-23T16:17:00.000-07:00

Natural Gas Benefits

Natural Gas has many applications from creating paint and photographic film to cooling office buildings, and heating over half of the homes in America. There are so many uses it’s hard to provide a comprehensive list. Even propane, which many Americans use as barbecue grill fuel, is made from natural gas. In fact, around 23% of US energy usage is fueled by natural gas, making it a critical element of the US energy supply.

The paper you wrote on today, the glass window you opened, the bricks used to build your house, and the electricity you ran through it – may all have been made using natural gas. Indoors and out, natural gas finds its way into our homes. Outdoors, natural gas is used in pool, patio and spa heaters, outdoor lighting, and snow melt systems which literally melt the snow as it hits the pavement.

Many new home appliances also use natural gas. It is an exciting form of energy that lets us dry our clothes, refrigerate our food, and cook our dinner in cheaper and more environmentally friendly ways. Its use spans not only residential and commercial sectors, but industrial sectors as well. Uses for industry range from food processing, brick manufacturing, to mineral processing and chemical manufacturing.

Increasing in use is the application of natural gas for electric power generation, cooling, and even fuel for transportation using Natural Gas Vehicles, including larger vehicles currently using diesel fuel and smaller transportation vehicles. Ease of handling, availability, price, and environmental benefits also make natural gas a key and preferred fuel for Cogeneration Plants.

Environmental benefits of natural gas extend to our ozone layer by eliminating the harmful elements typically emitted by traditional air conditioning units. With all the benefits of natural gas such as financial and environmental, it is not difficult to understand why its use is the fastest growing among energy sources.

1031 Exchange

2008-03-23T16:10:00.001-07:00

Certain oil and gas royalties are considered "like-kind" property, and can be eligible for tax deferment benefits of a 1031 Exchange. Section 1031 of the US Tax Code, enacted in 1990, allows owners of certain real and personal property to sell such like-kind property and defer taxation of capital gains. The like-kind provision is broad, including land, rental, business property and oil and gas royalties, any of which can be exchanged for the other. The rule also requires that the "Exchanger" use a safe harbor to hold the proceeds while the exchange is in progress.

Is the World Running Out of Oil?

2008-03-23T16:07:00.000-07:00

Wall Street Journal - Saturday, October 8, 2005

THE MAIN EVENT

Oil prices stayed above $60 a barrel for a 10th straight week, stoking fears about inflation and fueling the debate over whether the world's supply is running short. With the Gulf Coast and oil markets battered by Hurricane Katrina, President Bush last month made an appeal to the public to conserve energy in order to help alleviate the strain of tight supplies. And last week, he called for more oil-refinery construction. "The storms have shown how fragile the balance is between supply and demand in America," President Bush said. But the big question is whether the current imbalance is a temporary disruption or an indication that oil output has peaked and is no longer sufficient to meet global demand. Pessimists argue there's simply not enough oil to meet the booming demands coming from developing countries like China and India and still satisfy the voracious appetites of U.S. consumers. Optimists point out that some experts have been predicting a scarcity of oil for nearly a century -- and yet the oil keeps coming.

To be sure, oil is a finite resource. The U.S. Geological Society estimates there is only enough oil from traditional sources to last between 30 and 40 years, based on current rates of consumption and world reserves estimates. But that doesn't take into account the wealth of nonconventional resources, such as oil shale or sand oil, which lie largely untapped because of cost. The Athabasca region in Alberta, Canada, for instance, theoretically could produce about 1.7 trillion to 2.5 trillion barrels of oil from its 54,000 square miles of oil-sands deposits -- making it second to Saudi Arabia in oil reserves. The Athabasca reserves remain largely untapped because getting the oil out of the sand is expensive and complicated. It takes about two tons of sand to extract one barrel of oil. But if oil prices remain near current levels -- indeed, if prices stay above $30 a barrel, as they have since late 2003 -- oil-sands production would be profitable. Limited investment and production has been under way in Athabasca.

The Bakken Formation: Williston Basin Montana

2008-03-23T16:03:00.000-07:00

Advances in oil and gas drilling technology have revived the Bakken Shale play in the Williston Basin. Recent industry activity has focused on the middle Bakken siltstone reservoir in Richland County, Montana.

Recent advances in horizontal drilling, completion and fracturing technology, have turned the known reserves in the Bakken Formation into a commercial drilling opportunity.

Operators in the Bakken Shale are reaping impressive success rates from wells that test 500 barrels of oil per day, on average. Companies are now extending the play into other parts of the Basin.

The Williston Basin

The Williston Basin is in the north central United States, underlying much of North Dakota, eastern Montana, northwestern South Dakota, and southern Saskatchewan and Manitoba, Canada.

The current U.S. development activity in the Bakken Formation is located in Richland County, Montana,
and McKenzie, Golden Valley, and Billings Counties, North Dakota. The largest Bakken Shale Formation resources uncovered recently is the Elm Coulee Field of Richland County, Montana.

Elm Coulee Field

Montana reports that the Elm Coulee Field, located in the middle Bakken siltstone region, has doubled its oil production in 2005 for the third year straight. The production area of the middle Bakken dolomite spans some 60 to 70 miles long by 12 to 15 miles wide. This reservoir is described as a 30 to 70 foot sandy dolomitic horizon sandwiched by highly organic black shale source rock. Existing wells in the Bakken Shale area are typically drilled to a true vertical depth of approximately 10,000 feet with horizontal extensions of 10,000 feet or greater.

Bakken Shale Resources

Speculations about the resources contained in the Bakken Shale are astronomical. Headington Oil Company, one of the two largest Operators in the Elm Coulee Field speculates that the area contains 5 million barrels per square mile. Prominent geochemists estimate the recoverable resources in the Bakken from 271 to 503 billion barrels. Consider that current estimates of the total amount of recoverable oil in the United States, not including Bakken oil resources, is 174.67 billion barrels.

Bakken Shale Formation

The Bakken Shale Formation was deposited during the Upper Devonian Period and Lower Mississippian Period, some 417 to 350 million years ago.

The Bakken Formation has three members:

1. The Upper Member, a 23-foot thick black marine shale;

2. The Middle Member, an 85-foot thick interbedded layer of limestone, siltstone,

dolomite, and sandstone; and

3. The Lower Member, a 50-foot thick black marine shale.

Drilling Challenges

Though Operators and the USGS have known about the potential of the Bakken Formation for years, drilling challenges have made recovery difficult. The issues stemmed from the connection of vertical conventional wellbores with the natural fracture system without ruining the wellbore by the introduction of drilling fluids.

The drilling process presented the following hurdles:

1. When shale is exposed to water it swells, potentially sealing off productive fracture systems.

2. Iron pyrite within the Bakken sediments forms an iron hydroxide precipitate when exposed to hydrochloric acid, thus causing irreparable well damage.

Drilling Technology Advancements

Recent combinations of horizontal drilling combined with tried and true hydraulic fracturing have been developed allowing Operators to
fracture stimulate horizontal laterals in the Bakken Formation’s Middle Member. A technique used by Lyco Energy and Halliburton calls for aligning the wellbore such that induced fractures have longitudinal orientation to the wellbore. The formation is fractured and produces back through an uncemented pre-perforated liner.

Resources Used for this Article

Technology-Based Oil and Natural Gas Plays: Shale Shock! Could There Be Billions in the Bakken?

Marathon Oil

Pogo acquires stake in Bakken Shale Play in North Dakota

Press Release - Markets.Chron.com

Findley - aapg.org

Press Release- Search and Discovery

Solutions - PTTC.org

Bakken Practices - Mines.edu

Bakken Article - Rig Zone

The Barnett Shale Formation

2008-03-23T16:01:00.001-07:00

Drilling for Natural Gas Reserves in the Barnett Shale

Nestled directly beneath the booming metropolis of Fort Worth and north central Texas lies the Barnett Shale formation. This night-black rock oozes natural gas and is considered the largest natural gas field in Texas and one of the most important gas fields in the nation. Formed from organic deposits millions of years ago, it consists of a wedge of rock packed with an estimated 30 Trillion cubic feet of gas.

Fort Worth, Texas sits proudly atop huge deposits of gas in the Barnett Shale. New exploration technology such as Horizontal Drilling has made the Barnett Shale gas more accessible, even below populated areas.

Barnett Shale News

2008-03-23T15:59:00.001-07:00

Westside Energy Reports 2.1 MMCF/D Test Rate From Third Hill County Horizontal Well

DALLAS, Aug. 23 /PRNewswire-FirstCall/ -- Westside Energy Corporation (Amex: WHT), an oil and gas company with operations focused on the exploration and development..

DTE Energy Announces Second Quarter 2007 Earnings

DETROIT, Aug. 13 /PRNewswire-FirstCall/ -- DTE Energy (NYSE: DTE) today reported second quarter 2007 earnings of $385 million, or $2.20 per diluted share,...

Carrizo Oil & Gas, Inc. Announces Record Production, Revenue and EBITDA in Second Quarter 2007 Financial Results

HOUSTON, Aug. 8 /PRNewswire-FirstCall/ -- Carrizo Oil & Gas, Inc. (Nasdaq: CRZO) today reported the Company's financial results for the second quarter of..

Barnett Shale: Fuel for the Economy

The Barnett Shale play throughout Tarrant and Denton counties and beyond has,
in the last decade, become the largest source of natural gas in Texas. A recent
study by economist Ray Perryman, of The Perryman Group in Waco, puts the basin's
economic impact at $5 billion for the 14-county area it encompasses...

City's largest public companies weather challenges of 2006 well

A glance at the area's Top 10 public companies -- or Top 100, for that matter -- provides solid evidence that Houston, despite its diversification, remains an energy town.

Barnett Shale Location

2008-03-23T15:58:00.001-07:00

The major geographic elements in the Barnett Shale are the Ouchita Mountains to the east, the Muenster Arch to the northeast and the Bend Arch that defines the western margin of what is called the Fort Worth Basin. The oil is encased in a layer of tight black shale that ranges in thickness from 50 feet near the Bend Arch to nearly 1,000 feet near the Muenster Arch. (Fort Worth Business Press)

According Wikopedia, the following counties have active drilling for Barnett Shale Production:

Bosque (potential)

Comanche (active)

Cooke (potential)

Denton (active)

Ellis (potential)

Erath (active)

Hamilton (potential)

Hill (active)

Hood (active)

Jack (active)

Johnson (active)

Montague (potential)

Palo Pinto (active)

Parker (active)

Somervell (potential)

Tarrant (active)

Wise (active)

Drilling The Barnett Shale, Fort Worth, Texas

2008-03-23T15:56:00.000-07:00

Drilling for Natural Gas Reserves in the Barnett Shale

Unlike most natural gas formations which are found in sandstone or limestone, the Barnett holds its gas in shale. Finding a way to get the gas out of the shale has puzzled scientists for decades as traditional drilling methods fell short. Today that's all changed. Thanks to the recent advances in drilling technology described below, the Barnett Shale is now one of the largest producing natural gas fields in the United States.

Fracturing

Gas hides within microscopic pores of the Barnett Shale. The fracturing process helps get the gas out of the rock and lessens the chance of a "near miss".

Fracturing is a drilling innovation that allows for the expulsion of gas through the wellbore. During the process, water is pumped forcefully down the wellbore, and fractures, (or breaks-up) the rock. The more the rock is crunched, the more gas is liberated. Once the gas is released, it comes back up through the wellbore. The gas is then separated from the water, the water is hauled away, and the gas is sold.

Horizontal Drilling

Horizontal Drilling is ideal for exploring under a city. Since the gas reserves of the Barnett Shale are positioned beneath densely populated areas, the horizontal drilling method allows operators to drill under parks, schools or housing.

In Horizontal Drilling, the drilling rig can be erected in a vacant field, while the bit probes more than a mile beneath the surface. The operators drill down vertically, then the flexible drill pipe makes a 90 degree turn and continues horizontally for thousands of feet.

Barnett Shale TX News & Links

2008-03-23T15:54:00.000-07:00

Barnett Shale living up to its potential - July 2002 Explorer article

Barnett Shale - Information on Barnett Shale from Wikipedia, the free encyclopedia.

Barnett Shale: The 17-year Overnight Sensation - Barnett Shale Play Going Strong.

Gas Drilling - City of Fort Worth Gas Drilling information.

Barnett Shale Production Map - GeoMap of Barnett Shale production.

Barnett Shale Editorial - Texas Drilling Observer editorial on the Barnett Shale.

target=_blank>Green Car Congress - Information on the DFW Airport and its relation to the Barnett Shale.

target=_blank>Barnett Shale Info - Cathodoluminescent Textures and the Origin of Quartz in the Mississippian Barnett Shale, Fort Worth Basin, Texas.

target=_blank>Barnett Shale: The 17-year Overnight Sensation - Barnett Shale Play Going Strong.

Barnett Shale Field Overview Overview of this field of natural gas reserves.

The Barnett Shale History

2008-03-23T15:52:00.000-07:00

Drilling for Natural Gas Reserves in the Barnett Shale

Prehistoric Formation

The Barnett Shale is actually three distinct shale formations in north-central Texas formed by three separate oceanic events some 300 to 600 million years ago. During these events, Texas was actually under a very shallow ocean that stretched up the Central Plains as far north as Canada. Because the ocean bed was less than 100 feet deep, it is theorized to have had an extraordinary phytoplankton and zooplankton population, and with that, massive coral reef beds were created by filtering the plankton population.

When the oceans receded, the shale was formed around the life existing in the oceans. Today, anaerobic bacteria are alive inside the shale formation, feeding on the decomposed coral reef.

Barnett Shale FAQs

2008-03-23T15:49:00.000-07:00

Drilling for Natural Gas Reserves in the Barnett Shale

How large is the Barnett Shale?

The Barnett Shale formation is estimated to stretch from the city of Fort Worth west, covering 5,000 square miles (13,000 km²) and at least 17 counties. (Wikopedia)

Which is the most prolific Barnett Shale field in the Fort Worth basin?

The Newark East Field, the core Barnett Shale producing area in Wise and Denton counties, is now one of the very largest gas fields in Texas. Some 900 wells are currently producing more than 400 million cubic feet of gas per day from the Mississippian-age, organic-rich source rock.

What is the estimated Barnett Shale Reserves?

According to the NPR, there is 30 Trillion Cubic Feet of gas in the Barnett Shale, enough to satisfy the country for one year.

How many companies are drilling in the Barnett Shale?

There are over 60 companies participating in the play with 55 rigs actively targeting the Barnett Shale. (EnergyConnect)

When was the first well drilled in the Barnett Shale?

The first well was drilled in the Barnett Shale in 1981. (EnergyConnect)

How long will the wells be in place?

That depends on the amount of natural gas found in the adjacent area. A very good well can continue extracting natural gas for 10 to 15 years or longer. (City of Fort Worth.org)

Exterra Increases Working Interest in Barnet Shale Assets

2008-03-18T03:13:00.000-07:00

Exterra Energy Inc. announced last March 12 that it has increased its Working Interest in 12 producing gas wells in the core area of the Barnett Shale gas field of North Texas.

Full Story

Know more about oil and gas royalty trust from this premier oil and gas royalty company.

TAQA completes $4.6 billion acquisition of PrimeWest Energy Trust

2008-03-14T05:36:00.000-07:00

Ottawa should welcome any Canadian acquisitions TAQA makes in the future, the chief executive of the Abu-Dhabi-based energy titan said Wednesday, as it wrapped up its $4.6 billion takeover of Calgary-based PrimeWest Energy Trust.

PrimeWest is a conventional oil and gas royalty trust that acquires, develops, produces and sells natural gas, crude oil and natural gas liquids.

TAQA is a global energy company with operations in power generation, desalination, oil and gas production, pipelines and gas storage. It has C$15.6 billion in assets.

Full Story

TXCO Resources Expands Texas Holdings for Nearly $20M

2008-03-11T02:58:00.000-07:00

"TXCO Resources Inc. bought additional acreage and oil and gas reserves in East Texas for $19.6 million." - San Antonio Business Journal

Discover how to make the most of your oil and gas royalty investment.

Crude Price Jumps $5/bbl as Inventory Drops - Oil & Gas Journal

2008-03-07T02:35:00.000-08:00

"An unexpected drop in US crude inventories caused the front-month crude contract to jump $5 to new highs above $104/bbl Mar. 5 on the New York market, although many of the industry's biggest participants and closest observers report no changes in supply and demand fundaments to justify that fly-up. "

Full Story

Noble Royalties, Inc. provides an alternative for those seeking positions in the energy sector. Know more about oil and gas royalty acquisition now.

Mariner Announces West Texas Acquisition

2008-03-04T06:22:00.000-08:00

Mariner Energy, Inc. announced yesterday that it has closed on the acquisition of an additional 5% working interest in the Mariner-operated Spraberry Aldwell Unit in the Permian Basin for approximately $21.7 million. Mariner estimates net proved oil and gas reserves attributable to the interests of approximately 14.0 Bcfe (65% oil and liquids). Current production from the property is approximately 1600 Mcfe per day. The interest was acquired from Plains Exploration & Production Company through Mariner's exercise of a preferential right to purchase in connection with Plains Exploration & Production Company's transaction with Oxy USA Inc. dated December 14, 2007.

Full Story

Oil and Gas Royalties by Noble Royalties offering cash for mineral rights on lucrative properties.

Oil and Gas Activity in Permian Basin to be High but Equal to 2007 Levels

2008-02-28T03:18:00.000-08:00

Oil and gas operators expect to be quite active in the Permian Basin in 2008, where Hughes Christensen says more than 200 rigs are at work in the West Texas and southeastern New Mexico counties that comprise the region.

Full Story

Oil & Gas News Resources

2008-02-25T20:18:00.000-08:00

Get oil and gas news from the following locations:

Oil & Gas Journal Online

Barnett Shale Rig Report

2008-02-25T20:17:00.000-08:00

Barnett Shale Rig Report

New drilling rigs operating in the Barnett Shale natural gas field for the week ended Friday.
Tarrant County
Carrizo Oil & Gas, Houston: horizontal off Pecan Street, 4.8 miles north of Interstate 20 and Farm Road 157.
Chesapeake Operating, Oklahoma City: horizontal off Forest River Court, south of Richland Hills.
Chesapeake Operating: horizontal off Stewart Feltz Road, 3.5 miles west of Crowley.
Chesapeake Operating: horizontal off Randol Mill Road, southeast of Richland Hills.
Chesapeake Operating: horizontal off Forest Hill-Everman Road, 1.6 miles east of Garden Acres.
Chesapeake Operating: horizontal off South Crowley Road, Crowley.
Devon Energy, Oklahoma City: horizontal off Dido Hicks Road, 5.6 miles south of Newark.
Devon Energy: horizontal off John Day Road, 12.1 miles southeast of Rhome.
EnCana Oil & Gas, Denver: horizontal off Ben Day-Murrin Road, 2.65 miles southeast of U.S. 377 and Farm Road 1187.
Range Production, Fort Worth: horizontal off John Burgess Road, 1.2 miles northeast of Interstate 35W Everman Parkway exit.
Hollis R. Sullivan, Wichita Falls: horizontal off Texas 360, 5.1 miles north of Webb.
XTO Energy, Fort Worth: horizontal off Farm Road 718, 3.9 miles east of Pecan Acres.
XTO Energy: horizontal off Liberty School Road, 1.9 miles east of Peden.
Cooke County
Joint Resources, Arlington: vertical off County Road 388, 8.1 miles south of Muenster.
Denton County
Devon Energy: horizontal off Jim Barker Road, 4.2 miles west of Farm Road 156 and Farm Road 1384.
Devon Energy: horizontal off Texas 114, 2.5 miles east of South County Line Road.
Devon Energy: horizontal off County Road 4840, 3.7 miles east of U.S. 287.
XTO Energy: horizontal off Wolf Run Road, Bartonville.
Erath County
EOG Resources, Houston: horizontal off Farm Road 1188, 4.9 miles east of Morgan Mill.
EOG Resources: horizontal off County Road 147, 3.5 miles east of Morgan Mill.
EOG Resources: horizontal off County Road 154, 3.9 miles southeast of Morgan Mill.
Hill County
Range Production: horizontal off County Road 1458, southwest of Itasca.
Hood County
ConocoPhillips, Houston: horizontal off Paluxy Highway, 8.2 miles north of Chalk Mountain Highway.
Devon Energy: horizontal off Farm Road 51, seven miles northwest of Waples.
EnCana Oil & Gas: horizontal off Old Granbury Road, 12 miles south of Southwest Loop 820 and U.S. 377.
Quicksilver Resources, Fort Worth: vertical off Farm Road 2425, 7.5 miles southwest of Granbury.
Quicksilver Resources: horizontal off Halo Court, west of DeCordova.
Quicksilver Resources: horizontal off Farm Road 2174, southeast of DeCordova.
Johnson County
Chesapeake Operating: horizontal off County Club Road, Cleburne.
Chesapeake Operating: horizontal off County Road 605B, 3.5 miles west of Lillian.
Chesapeake Operating: horizontal off Loy Street, Burleson.
Chesapeake Operating: horizontal off Wicker Hill Road, Burleson.
Chesapeake Operating: horizontal off County Road 1217, northwest of Cleburne.
Chesapeake Operating: horizontal off Texas 171, 5.7 miles southeast of Cresson.
Chesapeake Operating: horizontal off County Road 1020, west of Burleson.
Devon Energy: horizontal off County Road 1230, south of Godley.
EOG Resources: horizontal off High Meadow Drive, two miles east of I-35W.
EOG Resources: horizontal off County Road 1234, south of U.S. 67 near the Somervell County line.
EOG Resources: horizontal off County Road 1015A, south of Fort Worth.
XTO Energy: horizontal off County Road 809, southeast of Briaroaks.
XTO Energy: horizontal off County Road 1200, east of Rio Vista.
Palo Pinto County
ConocoPhillips: horizontal off Texas 337, 5.5 miles west of Mineral Wells.
Parker County
David H. Arrington, Midland: horizontal off Farm Road 51, 6.2 miles south of Weatherford.
Devon Energy: horizontal off Aledo-Iona Road, west of Markum Ranch Road.
Rimrock Energy, Denver: horizontal off White Bull Lane, southeast of Millsap.
Wise County
Century Petroleum, Jacksboro: vertical off County Road 3838, 7.1 miles south of Runaway Bay.
Cholla Petroleum, Dallas: vertical off County Road 3737, 1 mile west of Boonsville.
ConocoPhillips: horizontal off Farm Road 2264, eight miles southeast of Decatur.
Denbury Onshore, Plano: horizontal off 4WD Road, southwest of Aurora.
Devon Energy: horizontal off County Road 4511, southeast of Decatur.
Devon Energy: horizontal off Farm Road 2264, 1.2 miles north of Farm Road 407.
Devon Energy: horizontal off Malone Drive, 2.6 miles north of Decatur.
Williams Production, Tulsa: horizontal off County Road 4421, north of New Fairview.
Information provided by Rigdata

Texas Oil and Gas Drillers must replace old fittings

2007-11-06T22:09:00.000-08:00

AUSTIN – The Railroad Commission of Texas voted 2-1 Tuesday to order natural gas utilities to dig up and replace old compression-style pipe couplings that have been implicated in North Texas home explosions.

Full Story. (Dallas News, Nov. 6, 2007)

Oil & Gas Blogs

2007-10-28T00:46:00.000-07:00

Pipeline - NY Times Oil & Gas Blog by Lisa Margonelli
Oil Prices - Pipeline Blog Post
Strategic Petroleum Reserve - Our secret stash of oil.
The Price of Oil in Texas - Video of Texas City Disaster
Betting on Peak Oil - Freakanomics by NY Times Steven Levitt

Government Demands Bigger Share of Oil

2007-10-28T00:26:00.000-07:00

Government Wants Bigger Share of Oil - ABC News

The oil industry is under assault globally by nations and even provinces who want companies like Exxon Mobil, Chevron and Suncor to cough up more royalties they can use to address issues like poverty and education.

Oil Ripple Could Effect Slow Economy - ABC News Video

2007-10-28T00:18:00.000-07:00

Oil Ripple Could Effect Slow Economy - ABC News Video

Oil and Gas Information

2007-10-19T11:32:00.000-07:00

Business.com is one of the best places for recent and up-to-date oil and gas info on the web. From Oil and Gas Financing to Investments.

Oil and Gas Information

Oil falls after record of $90 per barrel

2007-10-19T10:59:00.000-07:00

Oil prices receded on Friday as the dealers took profits from a record rally of over $90 per barrel that was spurred on by winter supply worries and the weakening U.S. dollar.

The U.S. crude has dropped $1.37 to $88.10 per barrel by 1:29 p.m. EDT, down from the all-time high of $90.07 hit earlier in the day. London Brent crude lost $1.29 to $83.29.

These prices have rallied more than 11 percent over the past 9 days as the dollar slipped to record lows against other currencies, fueling concerns about their effects on the economy of top consumer, the United States.

Oil and Gas Development

Oil & Gas News of Interest

2007-09-30T17:58:00.000-07:00

Stock markets move higher amid rising oil prices, positive data - Chronicle Journal
Oil prices rose back above US$83 a barrel, sparked by a decline in crude inventories at a key Oklahoma terminal. A barrel of light sweet crude rose 29 cents to $83.17 in premarket trading on the New York Mercantile Exchange.

Mayor Says Oil & Gas Income Not a Conflict

2007-09-30T17:44:00.000-07:00

Fort Worth Mayor Says Oil & Gas Income Not a Conflict - Mayor receives income from oil and gas on his family's farm in Parker County. Is this a conflict? Judge for yourself.

Oil & Gas Royalties - Long-Term Income Stream

2007-08-31T09:42:00.000-07:00

Royalties interests in Oil and Gas Wells are a wise choice for long-term income streams. Companies that offer Oil & Gas Royalty services many times do not drill themselves, but provide extensive research on wells, their production history, and access to investment opportunities.

Other companies can provide royalty management software to help you manage your oil and gas assets. Join other profitable oil and gas royalty investment owners today and put your long-term income stream in place for your future.

Barnett Shale News Aug. 2007

2007-08-28T09:50:00.000-07:00

Major Barnett Shale Driller Sues Competitor - Chesapeake Energy has sued Fort Worth Energy Co. and an affiliate for allegedly reneging on an agreement to sell Chesapeake leases and drilling sites in Tarrant and Parker counties. (Fort Worth Star Telegram)

Chesapeake buying 8,500 acres of leases in Barnett Shale - Chesapeake Energy said Monday it is buying about 8,500 acres of undeveloped leases in Tarrant County from Four Sevens Resources, Sinclair Oil & Gas Co. (Fort Worth Star Telegram)

Nine-Month Operations Report: Ignis Barnett Shale Drills Nine Wells - Press release.

New Barnett Shale in West Texas? Terrell County? - Posted in Oil and Gas Forum.

Gas well drillers set sights on western Dallas County - Gas companies hoping Barnett Shale extends into western areas (Denton Chronical)

Making Big Gas Bearable - How will the city will balance the industrial nature of Barnett Shale gas development with the pastoral nature of Azle neighborhoods. (Azle News)

New frac mapping tool unveiled in Washington - After more than two years of research with Houston-based Pinnacle Technologies, the DOE announced Wednesday the successful development of a new mapping system for fracturing tight-sand formations, coal seams and shale plays. (Weatherford Democrat)

Barnett Shale - Fort Worth, TX

2007-01-23T09:51:00.000-08:00

The Barnett Shale is the location of a vast amount of natural gas reserves buried beneath the City of Fort Worth. Recent advancements in horizontal drilling technology have made way for oil and gas exploration companies to tap into the natural gas buried beneath homes, schools, shopping centers and even the airport. The City of Fort Worth owns much of the producing land in the Barnett Shale, and they are none too dissappointed about the financial windfall. Residents of Fort Worth are also experiencing financial gains as they hold on tight to their mineral rights while receiving monthly royalty checks.

Oil and Gas Blog

2006-09-05T08:06:00.000-07:00

Here at Oil and Gas we'll provide you with all the news you need to know about oil and gas exploration, oil and gas investment and oil and gas royalties. Thanks for joining us!