Reports make it official: Oil and gas are booming

Fuel Fix ^ | April 4, 2013 | Jeannie Kever

[thackney]

My sisters and I got a notice that a geological survey for gas and oil will be done on our land in Lee county soon. Hoping for good news.

Do you have an lease agreement already, or is this being done in advance of a lease? No problem if you don't want to share that much of private business. We recently leased but have no activity on property south of the Haynesville shale.

[Dusty Road]

Thack I’ve got buddie in Haynesville and he said it’s really died down, gas from the Haynesville shale was to dry. Out here in the permian Basin we’ve got some really wet gas and they are going after it and oil, starting to see a couple of horizontals being drilled in our area.

[thackney]

I hear holding backing drilling up in ND is just the lack of storage/pipeline to put the oil.

More oil currently moves out of North Dakota production on rail than on pipeline.

Oil Train Revival: Booming North Dakota Relies on Rail to Deliver Its Crude
http://news.nationalgeographic.com/news/energy/2012/11/121130-north-dakota-oil-trains/
November 30, 2012

Crude oil take away capacity continues to be adequate with a majority of North Dakota’s oil now shipped by rail to east coast, gulf coast, and west coast destinations.
https://www.dmr.nd.gov/oilgas/directorscut/directorscut-2013-03-15.pdf
3/15/2013

[thackney]

Haynesville is quite dry and has had the deep drop in interest as you would expect.

Our lease is depth limited and specifically excludes the Haynesville formation, even though we are likely 5~10 miles too far away to be commercial at today’s technology even if the prices doubled.

My understanding is they are after the James Lime, but it would be wildcatting in our area. There is production from that layer both east and west of us but quite a few miles away.

The family has had leases on the property going back ~80 years but never a commercial producers. A few dry holes were drilled shallow in the 60’s.

[Arrowhead1952]

We have a five year lease on the properties and have mineral rights included. We were notified that there was a survey crew that would be in our area in the near future. There is an area on my property that has had several exploration lines that are within a 200 foot circle. The first one were when they drilled the 250 foot deep (or something like that) holes and shot off dynamite with sensors on land lines picking up the seismic waves.

[American Constitutionalist]

I am aware that you would need a huge infrastructure with power lines, huge gas industral generators, but ? it's a shame to just burn that gas into the air and not use it for some purpose.
Instead use that flaring gas to run generators and make avalible to small towns near by electric.
Yes, I know the cost and major understaking it would be to bring that electric to small towns, or even oil rigs, the cost would out weigh the benefits.

Still, it's a shame to just burn it into the air.

Has any of those natural gas companies who flare that gas into the air thought about piping it to some huge gas turbine generator to produce electical power either to the gas & oil rigs or some small town near by ?

[TexasFreeper2009]

sure, if you pay for the pipeline :)

and I am 100% sure they will gladly use it to ship the gas to where it is needed, for a reasonable charge.

the problem is the lack of infrastructure, and the high cost of alternative methods of shipment.

[okie01]

Still, it's a shame to just burn it into the air.

What else would you propose doing with it, if it isn't economical to bring to market and sell?

A separate pipeline system is necessary to collect and distribute natural gas production from an oil well. If the gas production is insufficient to warrant the construction of the infrastructure, it's going to get flared off at the wellhead.

Note that when the situation is reversed -- when a gas well is also producing some liquids -- the liquids are captured at the wellhead and stored in tanks at that location. Then trucks run regular routes to pick up the liquids. In this case, the required infrastructure is economical, so the by-product is collected and marketed.