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OIL.ASC
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1990-09-18
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Oil and gas drilling in Northwest Louisiana has increased during 1990,
putting more people to work in oil-related jobs and bringing an increase in
oil related businesses. * Applications to drill new wells in Northwest
Louisiana for the first six months of 1990 have increased about 7 percent
over the same period in 1989. * Hughes Tool Co. reports the number of rigs
actually drilling holes in North Louisiana at the end of June increased
from nine in 1989 to 22 in 1990. * Dr. James Robert Michael of the Business
Research Department at Louisiana Tech reports total mining employment in
the area (which is mostly in the oil industry) increased about eight to 10
percent from 1989 to 1990.
"We are pleased but at the same time somewhat surprised at the results
for the year," Joseph DeVall, Shreveport District manager for the Department
of Conservation said Tuesday. "With all the rain and then the flooding that
affected the state earlier this year and particularly Northwest Louisiana, we
really expected to find a downturn in activity since operators could not get
into rig sites. "Furthermore, we have not been receiving as many requests to
drill as we expected since the rains let up and the flood waters receded."
Discovery of rich gas-condensate-bearing sands along the Arkansas state line
in Webster and Claiborne Parishes and also in Bienville Parish have been
responsible for much of the area's increase in activity. Marathon Oil Co.,
Fina Oil and Chemical Co., Phillips Petroleum Co. and Penzoil Co. have been
activity leaders.
By the end of June, 257 permits to drill new wells had been issued by
the Shreveport District Office, Devall said. For the same period in 1989, a
total of 239 permits had been issued. Oil field equipment supply companies
are reflecting the rising activity too. Gerald Talley, manager of the Smith
International oil field supply operation in Bossier City, says their business
has been "real good," showing about a 30 percent increase over 1989. "Our
activity has been increasing particularly in Claiborne, Webster and Bienville
Parishes and Panola County in East Texas," Talley said. Smith supplies
drilling bits and rents downhole tools for drilling companies. Gary Larrew at
National Oilwell supply on North Market in Shreveport said sales are up and
they plan to stay very busy.
"We have had to add one new man to our staff here," he said. National
is also finding growing activity in the same areas of East Texas and in North
Louisiana. "Up until 1987, we had a lot of regular activity in the Caddo Pine
Island field around Oil City, but since the oil price slump, activity there
has been very low and doesn't appear headed for change any time soon," Devall
said. "Now, instead of the shallow, low production wells, we are getting more
and more quality wells - wells that are aimed at deeper gas and oil producing
sands.
W.C. "Dub" Allen, a longtime oil operator in the Caddo Pine Island
field, says for more than 10 years he kept several drilling crews busy but
when prices dropped he "just quit." "There just seems to have been one
problem after another, but with these low-production wells in our field, it's
just not practical from an economic standpoint to drill new ones," he said.
"I think this holds true for about all the operators here. "If we can get oil
prices back up into the $20 to $23 price range I'll start drilling again and I
think others will also."
*** From The (Shreveport) Times, Shreveport, LA ***