Drilling for Oil In Utah

Drilling for Oil In Utah

Kendra SchmittPhysics: Energy and SustainabilityApril 2,2009

Potential Oil Product Present• Utah ranked 13th in the United

States in crude oil proved reserves, not including Federal Offshore areas, in 2008

• Utah’s refinery capacity– 167,000 bbls per day

• Utah’s refinery inputs– 151,000 bbls per day

• Utah’s spare refinery capacity– 16,000 bbls per day (2006 data) (2)

http://farm3.static.flickr.com/2266/1674769812_414eac3c5b_b.jpg

Actual Oil Yield•Utah produced over 18 million barrels of crude oil in 2008

•There are approximately 8,600 wells currently in production within the state

•Utah contains three of the Nation's 100 largest oil fields (3)

•Utah crude oil production= 50,000 bbls per day (2)

http://oilgas.ogm.utah.gov/Statistics/PROD_Oil_annual.cfm

Drilling Methods• There are over 40 competing drilling

companies which often drill for natural gas as well

• Several of the drilling companies similar to other states, do not originate in Utah (5)

• The most frequent drilling technique uses:

• 1000 HP Mechanical• 12000-15000 ft.• http://www.youtube.com/watch?

v=9dBrkRzzI0Q

Oil Shale• An economic evaluation of a

2,000-b/d 3hale oil facility:

• the operation is potentially viable, if the price obtained for the shale oil residue is in the top range prices projected for this product.

• At $700 to $1,000 per ton of shale oil residue, the estimated discounted cash flow-return on investment (DCT-ROI) is in the range of 18 to 26%.

• This return on investment results in about a 4- to 5-year return of

• capital. (4)

http://www.youtube.com/watch?v=6MJQOyeRvBc

Potential Oil Shale Reserves

•700 million bbls of oil

• 95,000 bbls per day for 20 years (1)

http://geology.utah.gov/emp/oilshale/pdf/oilshale1007.pdf

Works Cited• Berg. Michael T. Vanden. (2007). Utah’s Oil Shale Deposits: Stratigraphy and

Resource information. Retrieved March 12, 2009, from http://geology.utah.gov/emp/oilshale/pdf/oilshale1007.pdf

• Division of Oil Gas and Mining. (2009). Utah Oil Production by Year. Retrieved February 23, 2009, from http://oilgas.ogm.utah

.gov/Statistics/PROD

• Energy Information administration. (2008). Oil Gas and Facts. Retrieved February 23, 2009, from Energy Information http://oilgas.ogm.utah .gov/Facts/Facts.htm

• Smith. V. (1989). Potential Small-Scale Development of Western Oil Shale . Retrieved March 12, 2009, from http://ds.heavyoil.utah.edu/dspace/bitstream/123456789/4903/1/6018281.pdf

• U.S. Department of the Interior Bureau of Land Management. (2009). December 2008 Oil & Gas Lease Sale. Retrieved March 12, 2009, fromhttp://www.blm.gov/pgdata/etc/medialib/blm/ut/lands_and _minerals/oil_and_gas/december_2008.Par.61054.File.dat/BIDDER S%20LIST.pdf