farmLose1234, be sure to read the royalty part as you'll probably get a kick out it... get it? kick. Barnett Shale is a geological formation with natural gas deposits. Millions of years ago, during the Mississippian age, three oceans covered Texas. When these oceans receded, it left an enormous amount of organic material. Over time and under intense geologic pressure, this sediment hardened and became hydrocarbons, which eventually produced oil and gas. The Barnett Shale covers about 5,000 square miles and portions of at least 14 counties in North Texas.
Natural gas production in the Barnett Shale has grown sharply in recent years, accounting for 12 percent of Texas’ total production in 2006. Industry observers expect activity to continue for the next 20 to 30 years; however, advances in drilling technology may extend the life of the Barnett Shale even longer.
Barnett Shale Play is currently one of the most exciting natural gas plays in the United States and Barnett Shale Drilling activity is considered extremely active.
Barnett Shale is … What is the Barnett Shale?
The Barnett Shale is a geological formation of economic significance. It consists of sedimentary rocks of Mississippian age in the U.S. State of Texas. The formation is estimated to stretch from the city of Dallas west and south, covering 5,000 square miles (13,000 km²) and at least 17 counties. It is the second largest oil field in the United States.
Some experts have suggested the Barnett Shale may be the largest onshore natural gas field in the United States. The field is proven to have 2.1 trillion cubic feet (59 km³) of natural gas, and is widely estimated to contain as much as 30 trillion cubic feet of natural gas resources. Oil has also been found in lesser quantities, but sufficient (with recent high oil prices) to be commercially viable.
The Barnett Shale is known as a “tight gas” reservoir, indicating that the gas is not easily extracted. The shale is very hard, and was virtually impossible to produce gas in commercial quantities from this formation until recent improvements were made in hydrofracture technology (and recent price increases in natural gas prices made the technology economically feasible).
Barnett Shale Gas
Shale gas is conventional natural gas that is produced from reservoirs predominantly composed of shale with lesser amounts of other fine grained rocks rather than from more conventional sandstone or limestone reservoirs. The gas shales are often both the source rocks and the reservoir for the natural gas, which is stored in three ways:
* adsorbed onto insoluble organic matter called kerogen
* trapped in the pore spaces of the fine-grained sediments interbedded with the shale
* confined in fractures within the shale itself
In the Mid-Continent, numerous shales contain hydrocarbons, including natural gas. Shales include the Barnett Shale, Woodford Shale, Fayetteville Shale, and the Caney Shale.
Economic Benefits of the Barnett Shale | Barnett Shale Money
A recent study reported…
Barnett Shale is contributing more than $5 billion annually to local coffers and has created about 55,000 permanent Barnett Shale jobs in North Texas.
The economic benefits from the Barnett Shale — approximately 5 percent of total economic output.
The Barnett Shale is like the icing on the cake for a city already performing quite well.
Barnett Shale may be responsible for an average of 108,000 jobs and $10.4 billion in output each year through 2015. The economic stimulus from the Barnett Shale ripples through the economy in the form of personal income from jobs, investment and royalty and bonus payments, and from increased tax receipts generated by retail, property and hotel/motel occupancy taxes and local permits and fees.
We are talking about substantial Barnett Shale Money for the DFW economy.
Other Barnett Shale Money Notes:
Barnett Shale Revenue to local governments, excluding Barnett Shale royalty and Barnett Shale lease payments, was about $227.7 million as of 2006 and will likely increase in the future.
Nearly 6 percent of private employment in the region as of 2006 is attributed to the Barnett Shale.
Barnett Shale is contributing $3 billion per year as of 2006 in retail sales in the region.
Every county in the Barnett Shale has gained jobs and income with Tarrant, Wise and Johnson counties as of 2006 leading the pack.
The financial and quality of life enhancements from the Barnett Shale are flowing to people across the region from many different socioeconomic backgrounds.
While some of the effects of the Barnett Shale may be transitory, the investment of payments currently being received stands to permanently change the economy.
Barnett Shale Texas
Where is the economic impact of the Barnett Shale? The Barnett Shale is thriving economically in …
Barnett Shale Clay County
Barnett Shale Cook County
Barnett Shale Denton County
Barnett Shale Erath County
Barnett Shale Hill County
Barnett Shale Hood County
Barnett Shale Jack County
Barnett Shale Johnson County
Barnett Shale Montague County
Barnett Shale Palo Pinto County
Barnett Shale Parker County
Barnett Shale Tarrant County
Barnett Shale Young County
Counties that either have active drilling for, or the potential to have, Barnett Shale production include the following:
Bosque (potential)
Comanche (potential)
Cooke (active)
Denton (active)
Ellis (potential)
Erath (active)
Hamilton (potential)
Hill (active)
Hood (active)
Jack (potential)
Johnson (active)
Montague (potential)
Palo Pinto (active)
Parker (active)
Somervell (potential)
Tarrant (active)
Wise (active)
So How Large is the Barnett Shale? importance … significance …
Barnett Shale natural gas formation near Fort Worth has almost 10 times the reserves originally estimated just eight years ago — more than enough to supply the entire country for a year.
The new estimate of 26.2 trillion cubic feet is several times the 3.4 trillion cubic feet estimated as recently as 1996, and it means the Barnett Shale drilling boom that has seen more than 3,000 wells sunk north and west of Fort Worth since 1999 will likely continue.
Barnett Shale drilling in this natural gas field’s sweet spots – under Wise, western Denton and northern Tarrant counties – is still expanding at a breakneck pace, such economic growth is expected to continue for years.
Devon Energy Corporation is one of the world’s leading independent oil and gas exploration and production companies. Devon’s operations are focused primarily in the United States and Canada; however, the company also explores for and produces oil and natural gas in select international areas. We also own natural gas pipelines and treatment facilities in many of our producing areas, making us one of North America’s larger processors of natural gas liquids.
This is what Devon Energy has to say about the Barnett Shale and it’s activity in the Barnett Shale:
A decade ago the Barnett Shale formation in north Texas represented a geological puzzle that had gone unsolved for more than 40 years. Geoscientists knew vast energy reserves were sealed inside the tight, black rock formed from organic deposits 325 million years ago. The challenge was recovering them.
The Barnett is not particularly deep or impervious to the drill bit, but it would take more than conventional thinking to recover the gas locked inside the stingy shale known for its low porosity and high complexity.
Devon Energy is a pioneer in the Barnett, using innovations in technology to literally crack open the shale to release the natural gas sealed inside. Engineers are using a method known as fracturing to foster permeability in the shale. Crews inject a mixture of fresh water and sand into the rock at high pressure to fracture the surrounding formation and release gas trapped inside. The technology has given Devon access to vast reserves, transforming this challenging play surrounding Fort Worth into one of the nation’s most important natural gas producing fields.
Devon has drilled more than 1,300 wells into the Barnett Shale since 2002 and has produced more than 800 billion cubic feet of natural gas equivalent. Use of fracturing technology has helped Devon increase its Barnett production from 200 million cubic feet of natural gas equivalent per day in 2002 to more than 600 million today. Devon accounts for nearly half of the field’s overall daily production of 1.4 billion cubic feet of natural gas equivalent.
In all, Devon has more than 2,500 wells in the field, which includes a growing number of wells in the geologically challenging non-core area, where the company uses innovations such as horizontal drilling and advanced seismic technology to ensure each well reaches its full production potential. Devon is optimistic about its future production growth in the Barnett Shale as we continue to expand our ability to recover gas reserves contained under a dominant lease position of more than 733,000 net acres.
Through Devon’s pioneering effort, the Barnett Shale formation has emerged as the largest natural gas field in Texas. Within the past four years, Devon has made significant advances in developing and enhancing production from the Barnett, which has potential to remain one of the country’s most vital energy resources for years to come. Devon’s accomplishments in the Barnett are an example of how technology and innovation are helping to meet growing energy demands by finding new ways to tap North America’s remaining reserves.
Chesapeake Energy Corporation is the third largest independent producer of natural gas in the U.S. Headquartered in Oklahoma City, the company’s operations are focused on exploratory and developmental drilling and corporate and property acquisitions in the Mid-Continent, Permian Basin, South Texas, Texas Gulf Coast, Barnett Shale, Ark-La-Tex and Appalachian Basin regions of the United States.
This is what Chesapeake Energy has to say about the Barnett Shale and it’s activity in the Barnett Shale:
The Barnett Shale in north-central Texas became economically. feasible for
development in the … Today, companies in the Barnett Shale are bringing up more …
Chesapeake’s investment in the
Barnett Shale
Acreage and acquisitions: More than
200,000 acres, with emphasis on
Johnson, Tarrant and western Dallas
counties
Drilling costs: A typical well costs an
average $2.5 million, for a 2007 drilling
budget of $1 billion
Capital expenditures: Invested more
than $2.8 billion at year-end 2006, with
an additional $1 billion investment
planned for 2007
Employees/jobs: Our Barnett-area
employee base should exceed 1,300 in
2007, which includes rig crews and field
office employees in Cleburne, Joshua,
DFW, East Tarrant and our corporate
offices in Fort Worth
Taxes: Paid more than $33 million in
Johnson and Tarrant counties since
2004 for schools, roads and other
government programs.
The keys to success in the Barnett Shale:
• Acreage: Chesapeake’s leasehold in the core area of the
Barnett Shale represents the best-potential production in
the region.
• Data: extensive 3-D seismic teamed with the highly skilled
engineers and the industry’s most successful drillers result
in a 98% success rate.
• Technology: Our horizontal drilling technology, noise,
light, water, security and traffic management techniques
reduce neighborhood inconveniences and are environmentally
friendly.
• People: Our people, whether they work in north-central
Texas or across the nation, are dedicated to making their
communities better places.
Chesapeake Energy and Barnett Shale Development:
Site selection and preparation: 3-D
seismic testing, road and drill pad
construction on two to five acres of
land.
Drilling: Each well takes three to four
weeks to drill in an around-the-clock
operation. Average vertical depth is 1.5
miles and the horizontal reach from the
vertical well bore can be nearly a mile.
Completing the well: Hydraulic
fracturing, or “frac,” begins a process
that takes several days. Water mixed
with sand is pumped under high
pressure, creating fractures in the rock
and releasing additional gas volumes.
Production equipment is then installed,
including storage tanks for produced
water, meters, pumps and safety
equipment. This takes about a week.
Marketing the gas: Small-diameter
gathering pipelines are installed, very
similar to utility lines. Access to
transmission lines could take two to
three weeks.
Reclaiming the site: Site is restored,
landscaped, fenced and regularly
monitored.
Major elements of a mineral lease agreement:
• Length of lease
Initial lease term typically three to five years, which means
drilling activities must begin within that time frame
Lease expires with no drilling by end of term. After drilling,
lease is held for productive life of the well
?? Surface-use agreement
Determines uses and compensation for using an area on
the surface to access the minerals below
?? Bonus payment
A per-lot or per-acre, one-time payment made up front to
secure the lease
?? Royalty payment
Payments are based on the percentage of natural gas
produced and sold that is shared with the mineral owners.
Payments vary, based on market price of natural gas and
volumes produced.
Payments usually decline by 50 percent after first year,
reflecting normal production decline.
Patterson-UTI Energy, Inc. is one of many Barnett Shale companies who provides onshore contract drilling services to exploration and production companies in North America. The Company has approximately 340 currently marketable land-based drilling rigs that operate primarily in oil and natural gas producing regions of Texas, New Mexico, Oklahoma, Arkansas, Louisiana, Mississippi, Colorado, Utah, Wyoming, Montana, North Dakota, South Dakota and western Canada. Patterson-UTI Energy, Inc. is also engaged in the businesses of pressure pumping services and drilling and completion fluid services. Additionally, the Company has an exploration and production business.
Who is EOG Resources?
EOG Resources, Inc. is one of the largest independent (non-integrated) oil and natural gas companies in the United States with proved reserves in the United States, Canada, offshore Trinidad and the United Kingdom North Sea. EOG Resources, Inc. is listed on the New York Stock Exchange and is traded under the ticker symbol “EOG.”
At December 31, 2006, EOG’s estimated net proved natural gas reserves were 6,095 Bcf and estimated net proved crude oil, condensate and natural gas liquids reserves were 118 million barrels. Approximately 60 percent of EOG’s reserves on a natural gas equivalent basis were located in the United States, 20 percent in Canada, 20 percent in Trinidad and less than 1 percent in the United Kingdom North Sea. At year-end 2006, EOG had approximately 1,500 employees.
Who is Encana?
EnCana is a leading North American natural gas producer and a technical and cost leader in the in-situ recovery of oilsands bitumen.
Among the largest holders of oil and gas resource lands in onshore North America
Natural gas represents over 80% of production
A technical and cost leader in in-situ recovery of oilsands bitumen
Approximately 6,500 staff
Encana in the Barnett Shale: Our U.S. subsidiaries have assembled a significant land position in the prolific Barnett Shale play in the Fort Worth basin.
With about 160,000 net acres of undeveloped land, they are applying horizontal drilling and multi-stage reservoir fracturing to unlock the potential of one of our newest resource plays.
Natural gas production averaged 101 million cubic feet per day (MMcf/d) in 2006.
Who is Crown Exploration?
Crown Exploration, Ltd. is an energy entity based in Carrollton, Texas. Our Oil & Gas Drilling history includes over 100 wells with 90 of those wells spanning our premier area, the Barnett Shale of North Texas. Since 2001 our revenues from production to-date totals over $55,000,000.
Crown specializes in all aspects of exploration and Natural Gas Drilling with special emphasis on the Barnett Shale play of North Texas.
Here is what Crown says about the Barnett Shale:
The Barnett Shale Formation
Drilling for Natural Gas Reserves in the Barnett Shale
Nestled directly beneath the booming metropolis of Fort Worth and north central Texas lies the Barnett Shale formation. This night-black rock oozes natural gas and is considered the largest natural gas field in Texas and one of the most important gas fields in the nation. Formed from organic deposits millions of years ago, it consists of a wedge of rock packed with an estimated 30 Trillion cubic feet of gas.
Fort Worth, Texas sits proudly atop huge deposits of gas in the Barnett Shale. New exploration technology such as Horizontal Drilling has made the Barnett Shale gas more accessible, even below populated areas.
The Barnett Shale is actually three distinct shale formations in north-central Texas formed by three separate oceanic events some 300 to 600 million years ago. During these events, Texas was actually under a very shallow ocean that stretched up the Central Plains as far north as Canada. Because the ocean bed was less than 100 feet deep, it is theorized to have had an extraordinary phytoplankton and zooplankton population, and with that, massive coral reef beds were created by filtering the plankton population.
When the oceans receded, the shale was formed around the life existing in the oceans. Today, anaerobic bacteria are alive inside the shale formation, feeding on the decomposed coral reef.
Unlike most natural gas formations which are found in sandstone or limestone, the Barnett holds its gas in shale. Finding a way to get the gas out of the shale has puzzled scientists for decades as traditional drilling methods fell short. Today that’s all changed. Thanks to the recent advances in drilling technology described below, the Barnett Shale is now one of the largest producing natural gas fields in the United States.
Gas hides within microscopic pores of the Barnett Shale. The fracturing process helps get the gas out of the rock and lessens the chance of a “near miss”.
Fracturing is a drilling innovation that allows for the expulsion of gas through the wellbore. During the process, water is pumped forcefully down the wellbore, and fractures, (or breaks-up) the rock. The more the rock is crunched, the more gas is liberated. Once the gas is released, it comes back up through the wellbore. The gas is then separated from the water, the water is hauled away, and the gas is sold.
Horizontal Drilling is ideal for exploring under a city. Since the gas reserves of the Barnett Shale are positioned beneath densely populated areas, the horizontal drilling method allows operators to drill under parks, schools or housing.
In Horizontal Drilling, the drilling rig can be erected in a vacant field, while the bit probes more than a mile beneath the surface. The operators drill down vertically, then the flexible drill pipe makes a 90 degree turn and continues horizontally for thousands of feet.
Horizontal Drilling in the Barnett Shale:
As of 2007, recent advances in the technology of horizontal drilling have opened up the potential of the Barnett Shale as a major producer of natural gas. Horizontal drilling has changed the way oil and gas drilling is done by allowing producers to drill horizontally beneath neighborhoods, schools and airports. Since much of the gas in the Barnett Shale is lodged beneath the City of Fort Worth, this new drilling technology has created a boom for the city. The new technology has brought in a tremendous number of independent producers both large and small.
In 2005-2007 horizontal drilling in the Barnett Shale extended south into Johnson, Hill, and Bosque counties, with a 100% success rate on completed wells. An experimental vertical well is being drilled in McLennan County (near Waco) to assess the potential for development along the Ouachita Fold, a geological barrier which defines the southern limit of the Barnett Shale. Lease bonuses paid to landowners in the southern counties range from $200-$2000 per acre with royalty payments in the 18%-25% range, much greater than what was being offered as few as 3 years ago. One lease in Johnson County now has 19 wells permitted. New drilling permits in Johnson County are being approved at an average rate of 60 per month, and Hill County at a rate of 20 per month.
In addition, the gas pipeline network needed to transport the gas to market is being aggressively expanded. The completion of a 42″ natural gas transmission pipeline through Hill County will open up new areas for drilling. Barnett Shale Money? Barnett Shale Investing? Hundreds to thousands of individuals, businesses, landowners, school districts, universities, cities, counties and others have negotiated leases with Barnett Shale Drilling Companies in order to reap their share of the Barnett Shale Money. Fort Worth, Arlington, TCU and DFW Airport are a few who’ve made headline news regarding Barnett Shale Gas Drilling.
The financial reach of the Barnett Shale touches all facets of life, generating a $5 billion local economic impact and more than 55,000 jobs. DFW Metroplex Barnett Shale.
The Texas Railroad Commission recent reported the following Barnett Shale Gas financial footprint on Texas:
108,000 – Jobs to be gained each year by Barnett Shale activity through 2015
$10.4 billion – Generated each year in Barnett Shale gas drilling, exploration and development, pipeline construction, royalties and other payments
$227.7 million – Direct and indirect revenue to local governments, excluding royalty and lease payments, through 2006
$153 billion – Real gross product generated by the Barnett Shale in the
14-county region by 2015
$3 billion – Retail sales that the Barnett Shale is contributing per year
6,000 – Producing natural gas wells in the Barnett Shale
20-30 years – How long the Barnett Shale is expected to produce activity
