Shale Brings High Hopes In Mississippi, Louisiana
GILLSBURG, Miss. (AP) — Residents living above an oil-rich shale formation that stretches across southwest Mississippi and Louisiana have been waiting on a boom for years. A steady trickle of drilling is already boosting the rural region's economy, and spending by two oil companies could make 2014 the year that many other locals finally cash in on the oil far beneath their feet.
Already, Max Lawson has spent hours watching the round-the-clock work of shoving pipe into the ground in his back pasture. The process began two years ago when Encana Corp. built a big gravel pad, but didn't take off until late last year when a convoy of 200 trucks carted in a drilling rig and other equipment to bore into the earth looking for oil.
"They call it the Gillsburg Christmas tree," he said while standing near the brightly lit rig. "It looks like a little city over here at night."
Gillsburg and surrounding Amite County lie above a prime section of the Tuscaloosa Marine Shale, a geologic formation that stretches in boomerang shape across Louisiana's midsection and into southern Mississippi. Drillers have known about the formation north of the Gulf of Mexico for years, but affordable technology to remove the oil from the shale's tight pores was slow to develop.
Thanks partly to advances in hydraulic fracturing techniques, Encana Corp. and Goodrich Petroleum plan to spend hundreds of millions of dollars in the area in 2014. So far, Goodrich and others have drilled more than 30 wells across the region, trying to find the right methods.
Goodrich Chief Operating Officer Robert Turnham said that number could double or triple in the area straddling the state line just this year if drillers continue to make progress.
"It's at a stage where you need more wells that have consistent results, that show the repeatable results there are in other plays," Turnham said.
12345
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Total Makes Significant Oil Find
- Dana Terminates Maersk Drilling Deal
- ENOG Takes Karish North FID
- Feds Decline Comment on Exxon Permian Probe Report
- NS2 Set to Finish Bulk of Work on One Line in June
- How Quickly Will US Fossil Fuel Output Rebound?
- Total Drops API Membership
- Spirit Energy Contracts Rig for UKCS Infill Well
- US Targets CNOOC in Late Anti-China Push
- Oil Retreats as Stronger Dollar Dents Rally
- Ex-Shell Manager Joins Galp
- Paradigm Drilling Makes Strategic Deal with Oil Services Firm
- Subsea 7 Director Stevens Passes Away
- Equinor Bags Largest Ever US Offshore Wind Award
- ADNOC Creates New Directorate
- Saudis Curb Crude Supplies to Some Buyers
- Total Makes Significant Oil Find
- Dana Terminates Maersk Drilling Deal
- Total Becomes French Leader in Renewable Gas
- US Labels Houthis Terrorists After Tanker Attacks
- Executives Predict 2021-End Oil Price
- Biden Picks Energy Sec Nominee
- Shale Needs More to Boom Again
- Canada Gov Supports Hibernia Project
- Troops Fight Off Attack Near $20B LNG Project
- India Asked to Pay $1.2B to Cairn
- Pacific Drilling Expects Ch11 Emergence by End 2020
- Qatar and Four Arab States to Fully Restore Ties
- BLM Finalizes Alaska Activity Plan
- OGUK Reacts to Brexit Deal