2018 annual report on oil and gas activities2018 annual report on oil and gas activities state oil...
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![Page 1: 2018 Annual Report on Oil and Gas Activities2018 Annual Report on Oil and Gas Activities State Oil and Gas Council Meeting – April 17, 2019 Larry “Boot” Pierce, RG Missouri Geological](https://reader036.vdocuments.site/reader036/viewer/2022081612/5f26f43b08aefb271c57c4bf/html5/thumbnails/1.jpg)
2018 Annual Report on Oil and Gas Activities State Oil and Gas Council Meeting – April 17, 2019
Larry “Boot” Pierce, RG Missouri Geological Survey
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Oil Production in 2018 • 466 active producing oil wells
• 96,147 barrels of oil produced
• Valued at about $5.46 million
• Price per barrel ranged $32.00 – $63.70
• Currently produced in 5 counties
• 21 licensed operators
• 11companies reported production
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5-year Average Price for Missouri Oil
• Average price per barrel in 2018 – $56.85 – (↑35%) (ranging from $32.00 to $63.70)
• Average price per barrel in 2017 – $41.48 – (↑~26%) (ranging from $31.95 to $52.24)
• Average price per barrel in 2016 – $32.77 – (↓~14%) (ranging from $17.13 to $48.14)
• Average price per barrel in 2015 – $38.71 – (↓~47%) (ranging from $24.00 to $53.30)
• Average price per barrel in 2014 – $82.38 – (↓~7%) (ranging from $45.50 to $98.20)
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Historic Oil Production
0
50,000
100,000
150,000
200,000
250,000
300,000
1930 1940 1950 1960 1970 1980 1990 2000 2010
Pro
du
cti
on
in
Barr
els
Year
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2018 Crude Oil Production by Operator
2018 Total Crude Oil Production – 96,147 bbls
Company Production in
BBLs Percent of total
KANSAS RESOURCE EXPLORATION AND DEVELOPMENT 58,129 60.46%
RUNNING FOXES PETROLEUM INC. 8,438 8.78%
INVESTMENT EQUIPMENT LLC 8,366 8.70%
SPIRE MO. 7,901 8.22%
S & B OPERATING LLC 5,228 5.44%
SPIRE OIL 3,354 3.49%
BAUER OIL INVESTMENT LLC 2,449 2.55%
L.T. OIL CO. 1,884 1.96%
BRANT ENERGY 184 0.19%
PALUCA PETROLEUM INC 110 0.11%
BARBARA A GIBLIN REVOKABLE TRUST 103 0.11%
ARROW OIL SERVICES LLC 0 0.00%
JTC Oil 0 0.00%
BEASLEY, MELISSA 0 0.00%
BO JON ENTERPRISES 0 0.00%
MISSOURI IGWT 0 0.00%
MCGOWN DRILLING INC. 0 0.00%
CYRUS RESOURCES 0 0.00%
PALO CHOP DEVELOPMENT LLC 0 0.00%
WARRIOR OPERATING COMPANY INC. 0 0.00%
BLACKSTAR 321 0 0.00%
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0
10000
20000
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50000
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Barr
els
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Oil
Pro
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Operator
2018 Crude Oil Production by Operator
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2018 Oil Producing Counties
Total Production 96,147 bbls
Total Value $5.46 Million
County BBL’s of Oil Production Value
Atchison 8,366 452,571
Cass 65,491 3,685,986
Clinton 0 0
Jackson 2,485 140,240
Ray 0 0
St. Louis 11,256 686,301
Vernon 8,548 501,137
Atchison 9%
Cass 68%
Jackson 2%
St. Louis 12%
Vernon 9%
Production by County
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Oil Producing Counties and Known Fields
Lange Field,
St. Louis
County
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Top Producing County and Pool
Top Oil Producing County
- Cass County
65,491 bbls
68 percent of the total oil
produced in Missouri
Top Oil Producing Pool
Clark-Miller Oil Pool
75,265 bbls
78 percent of total oil
produced in Missouri
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2018 Commercial Gas Production
• 1 Active Company
• 14 active producing commercial gas wells
• Gas Production = 950 MCF
• Commercial Value = $0 (none sold)
• Price per MCF average – $0
• All 14 wells are in Clinton County
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Historic Commercial Gas Production
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1930 1940 1950 1960 1970 1980 1990 2000 2010
Year
Pro
duction in
Thou
sand C
ubic
Feet (M
CF
)
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• 460 Private gas wells
– 56 are known active
– 404 unknown status
• Five counties have active
private gas wells
– Cass (34), Caldwell, Clay,
Clinton and Jackson
• Production reporting is
exempted
Missouri’s Private Gas Wells
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Class II Injection Wells
• Wells that inject fluids in connection with
oil/gas production
– Disposal of produced salt water
– Injection of fluids for enhance recovery
• Missouri has 365 active Class II Wells • Saline Water Disposal – 9
• Enhanced Oil Recovery – 354
• Abandoned Class II wells – 69
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Saline Water
Disposal
Wells – 9
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Enhanced Oil
Recovery
Wells – 354
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2018 Permits Issued
Jackson County 1 Oil Production Well
Nodaway County 10 Strat Test Wells
Total permits 11
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Historic Permitting
0
100
200
300
400
500
600
700
800
900
1,000
1965 1972 1979 1986 1993 2000 2007 2014
Pe
rmit
s
Year
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2018 Well Permits by Type
Well Type Total Active
Under
Construction Shut-in
Temporarily
Abandoned Plugged Cancelled
Oil Production 1 0 1 0 0 0 0
Injection EOR 0 0 0 0 0 0 0
Injection SWD 0 0 0 0 0 0 0
Stratigraphic Test 10 0 0 0 0 10 0
Observation 0 0 0 0 0 0 0
Private Gas 0 0 0 0 0 0 0
Commercial Gas 0 0 0 0 0 0 0
Area Permits 0 0 0 0 0 0 0
Total 11 0 1 0 0 10 0
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Wells Plugged
Includes oil, gas, injection, stratigraphic test
• 2012 – Wells Plugged = 44
• 2013 – Wells Plugged = 348
• 2014 – Wells Plugged = 354
• 2015 – Wells Plugged = 139
• 2016 – Wells Plugged = 129
• 2017 – Wells Plugged = 31
• 2018 – Wells Plugged = 64
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2018 Staff Efforts
• MITs were performed on = 203 wells
– Staff witnessed MIT’s = 4 well (2%)
• Field inspection of wells = 781
• In-office well reviews = 177 wells
• Lease site visits performed = 53
• In-office lease reviews = 50
• Oil/gas phone calls and inquiries = 1,724
• Wells plugged with Oil and Gas remedial
funds = 0
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2018 Enforcement Actions
• Compliance Assistance Letters = 10
• Letters of Warning = 1 – Cases started at LOW = 0
• Notice of Violations = 0
• Total Cases = 10 – Resolved cases = 7
– Resolved at CA letter = 7
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2018 Enforcement Actions
• Unresolved cases = 3 – Bo Jon Lake enterprises – Compliance
Schedule plugging planned for April.
– KRED and S&B, Signage needed on wells,
Compliance Schedule - 25 wells per company
per month, until all wells have signs.
– Arrow Oil, Shut-in wells to have MIT,
Compliance schedule – 6 month to complete
with a March 14, 2019 deadline • Failed to complete - 20/78 wells completed
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Missouri Total Open Wells Item Well Type Number of Wells
Total Open Wells 5,933
Post-Law Wells 1,326
Pre-Law Well 4,607
Abandoned Wells 4,843
Post-Law Commercial 348
Post-Law Private Gas 8
Pre-Law Commercial 4,091
Pre-Law Private Gas 396
82 percent of all open wells are abandoned
85 percent of all abandoned wells are commercial wells
As of 3-1-2019
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Fund and Bonding Balances
• Oil and Gas Remedial Fund balance as
of March 1, 2019
– $8,482
• Oil and Gas Resource Fund balance as
of March 1, 2019
– $108,256
• Total Bonding held as of March. 1, 2019
– $1,041,453
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Comparison of 2016, 2017 and 2018 Item 2016 2017 2018
Active Oil Wells 559 443 466
Oil Production in bbl 115,765 114,895 94,147
Average Price/bbl $32.77 $41.48 $56.85
Total Oil Value* $3,835,648 $4,802,587 $5,466,235
Active Gas Wells 14 1 14
Gas production in MCF 1090 820 950
Average Price/MCF $0 $0 $0
Total Gas Value* $0 $0 $0
Permits 1 2 11
Wells Inspected 233 151 781
MITs Performed 26 41 203
MITs Witnesses 0 0 4
Leases Inspected 51 55 53
Phone Inquiries 1,090 948 1,724
* Total commodity value based on price at which commodity was sold, not the average commodity price
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Questions?
Larry Pierce 573-573-368-2191 or 800-361-4827
dnr.mo.gov
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Oil and Gas Unit Updates and Upcoming Council Activities State Oil and Gas Council Meeting – April 17, 2019
Larry “Boot” Pierce, RG Missouri Geological Survey
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Unit Activities • ERU is currently going through an EPA program
review for both:
– 1425 Class II
• Oil and gas injection wells
– Disposal and EOR wells
– 1422 Class V
• Other injection wells
• Working with EPA to conduct a “Crosswalk”
– Comparison of state and federal rules to ensure our
program is meeting all federal requirements
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Questions?
Larry Pierce 573-573-368-2191 or 800-361-4827
dnr.mo.gov