Welcome to OilGasTech

The process of discovering Louisiana crude oil and natural gas is not alchemy which depends upon pure luck, nor is it straight science with known and predictable results.

Oil and gas discovery, and investment, involves a combination of hard data and creative interpretation. The success of an oil venture in 2009 depends upon a harmonious melding of these two ingredients.

OilGasTech is built on this premise. Probably the greatest factor, as in most fields of human endeavor, in determining success is new ideas.

Background

              For one who has closely followed oil exploration for some period of time, particularly in South Louisiana, the current situation there and now is mind boggling.

              As an oil province of great magnitude, Louisiana having produced a large percentage of the nation’s oil and gas for many years, one would think that the areas resources would be near exhaustion. The fact is, and this particularly applies to South Louisiana, the surface has only been scratched.

              Standard Oil, then as now, the nation’s largest oil company, operating, after divestiture and name change to Exxon, early on established one of the world’s largest refineries at Baton Rouge.

              The exploration activities of Standard-Exxon never kept pace with its refining activities. Today it ranks low among Louisiana producers.

              The major companies, in general, were looking for the giants. A fifty million barrel field was hardly worth the effort.

              The result is that there are many fields bypassed. The independents have sought out some of them as well as entering undrilled fault blocks that subsist in the intricate faulting found in most Louisiana fields.

              The approach of many operators, particularly the majors, is what could be called an emphasis on defense.

              The odds against successful completion of a wildcat are seven to one. The low ranking geologists that first review an oil prospect by a major company don’t want to have their record besmirched and are consequently prone to nullify a prospect.

              Even the more adventurous independents are affected by this syndrome.

              There is an inclination to require scientific proof of the existence of oil and gas rather than relying on the oil finding instinct derived from many drilling attempts which invokes the mental subtleties generated by a mind which has experienced both success and failure in such undertakings. Considerations then surged forth that are not inscribed on any list.

              There was the fellow in Oklahoma, who, having paid his dues while riding on a train in Oklahoma, noticed that although the terrain appeared flat to the eye, that the train slowed down, indicating the presence of an underground hill. He returned, leased up the land, and brought in an oil field.

              There was the fellow in Mexico who observing tar on the ground, decided that it had once been oil underground and proceeded to drill the property and brought in an oil field.

              There was Colonel Lucas, who as a salt dome expert, concluded that salt domes were conducive to oil accumulation, and then brought in two giant fields, Spindletop, which is still pumping, and Jennings which was the first oil discovery in Louisiana and remains in production.

              There are many such instances in the interesting history of oil discoveries.

              Sometimes, even when oil is discovered in novel circumstances or formations, there is reluctance particularly on the part of the majors to pursue the target with aplomb. This was evidenced in the development of the Tuscaloosa where even after a blowout that signaled the presence of considerable oil and gas Chevron took two years before continuing development of the field.

              I have already related the difficulty encountered in persuading others of the existence of the Mallet’s Bluff Field which I knew was there.

              I became involved in the Tuscaloosa trend and negotiated the drilling of the Marathon-J.Burton LeBlanc No. 1 to a depth of over 21,000 feet, at that time one of the deepest wells that had been drilled in Louisiana.

              However, the oil situation is in a state of turmoil.

              Fundamentals are not in control.

              The psychological milieu bred by the financial impasse has skewed other businesses into ununderstandable dimensions.

              The oil business and particularly the exploration business is no exception.

              There is no doubt that the price of oil will hover around fifty dollars or rise higher.

              The projected consumption of oil in the world is not a mystery.

              There is no question that it will increase.

              There is considerable question whether the discovery of new oil and gas will keep pace with the demand.

              It would seem to be a simple proposition that there should be an expansion of oil and gas exploration, and yet there seems to be a contraction. This, of course, does not make sense.

              Anyone who has taken the time to analyze the possibility of alternative energy sources supplying the impending shortage of energy needs knows that they cannot diminish the need for oil and gas.

              Therefore reason would indicate the additional exploration efforts should be undertaken.

              Now, it so happens that now is an opportune time to launch exploration efforts.

              The first cost in exploration are the lease costs.

              Some prices in lease cost had been run up to astronomical levels by shortsighted operators and landowners.

              It will now be possible to obtain good leases at reasonable rates.

              Timing is crucial when it comes to making business decisions.

              There will now be a period during which leases can be obtained reasonably.

              One is unable to forecast how long this period will last. It is therefore an opportune time to obtain prospective leases.

              Although there is always a time lag in such matters, drilling costs had also reached unreasonable levels. One can be sure that with the sudden reduction of drilling undertakings that their cost will be reduced substantially. Again, it is not known how long such a period will encompass, and for this reason should be taken advantage of when it exists. If drilling costs do no decline as rapidly as lease costs it would be wise to take longer time leases, in anticipation of a subsequent decline in drilling costs.

              The clamor that had existed to eliminate or reduce the tax advantages that exist for investors in oil operations has subsided due to the obvious need for more oil and gas.

              In fact a strong argument could be made that these benefits should only extend to operations conducted within the United States.

              The bottom line is that now is the ideal time to invest in oil and gas exploration particularly in the acquisition of very prospective leases.

              Our principal who was instrumental in developing a major oil field representing large landowners in the field, has had many contacts with key landowners and is in a position to acquire attractive leases at reasonable cost

              In summary, there is no better time to get into the business of oil and gas exploration, and there is no better place than South Louisiana.

The people associated with OilGasTech are outstandingly innovative thinkers, dedicated to serving you, our client in finding oil, and making successful investments in oil and gas fields.

Explore our Web site now and learn more about OilGasTech, and how we can assist you.

Then contact us for more detailed information!