Sunday, July 6, 2008

Oil & Natural Gas Exploration in Indiana

FORT WAYNE, Ind. - Record oil prices are spurring some companies to look for oil in Indiana.

Deka Exploration -- an Oklahoma-based company that drilled for oil in Steuben County a decade ago before deciding to go elsewhere -- is giving northwest Indiana another look. Others are also exploring for oil.

Indiana permit applications for oil and natural gas wells have increased to levels not seen in at least 20 years, according to the Indiana Department of Natural Resources' oil and gas division.

Improved technology has led to more accuracy in drilling. But the main motivation for the increased exploration is rising oil prices, said Herschel McDivitt, director of the Indiana Department of Natural Resources Division of Oil and Gas.

"They tend to make operators a little more willing to take some risks," he said.

Indiana production of crude oil has averaged about 1.73 million barrels annually in recent years. That's a small portion of consumption -- the U.S. uses more than 20.6 million barrels of petroleum every day.

No comments: