Oil wells sprouting in state
Posted: Thursday, June 26, 2008
SIOUX FALLS, S.D. (AP) -- Most of South Dakota's oil wells are in Harding County, and a huge run-up in oil prices is spurring additional exploration in the county.
Oil companies from Oklahoma and Colorado plan to drill about 14 new wells there this year.
Commercial oil production began in South Dakota in 1954 with two wells.
There were 153 wells last year, producing nearly 1.7 million barrels of oil.
That's just short of the record amount of oil recovered in South Dakota in 1988.
A state official says 95 percent of the state's oil comes from Harding County, with the rest coming from wells in Fall River and Custer counties.
"This year, I think I issued permits for about 30 new wells," said Harding County Auditor Kathy Glines. "There is also a big gas field being developed in the southern half of the county."
Oil production tax revenue this year already is within $200,000 of the $1.6 million Harding County received last year, Glines said.
Diane Haivala and her husband have owned the Tipperary Lodge motel in Buffalo for seven years. For the past few years, rooms that have been empty each winter have been full of laborers, road builders and others.
"There's hardly a slow time anymore," she said.
"There is definitely business coming to town because of the oil."
Fred Steece, supervisor of the Department of Environment and Natural Resources Oil and Gas Program, said that in 2007, oil production shot up to 1.664 million barrels, second only to the record year two decades ago.
"I think there is a lot more room for exploration," Steece said.
Continental Resources of Enid, Okla., is the largest oil producer in South Dakota, with about 2,400 barrels per day. The company plans to drill eight new wells in Harding County this year, costing about $2 million each, according to Mark Monroe, president and CEO.
Continental has about 70,000 acres in oil leases in the county and Monroe said it could develop as many as 200 wells on those leases.
Luff Exploration of Denver also gets oil from Harding County and Bowman County, N.D. Richard George, Luff's engineering manager, said his company plans to drill six to eight new wells this year, mostly in South Dakota, costing between $2.75 million and $3 million each.
Oil companies from Oklahoma and Colorado plan to drill about 14 new wells there this year.
Commercial oil production began in South Dakota in 1954 with two wells.
There were 153 wells last year, producing nearly 1.7 million barrels of oil.
That's just short of the record amount of oil recovered in South Dakota in 1988.
A state official says 95 percent of the state's oil comes from Harding County, with the rest coming from wells in Fall River and Custer counties.
"This year, I think I issued permits for about 30 new wells," said Harding County Auditor Kathy Glines. "There is also a big gas field being developed in the southern half of the county."
Oil production tax revenue this year already is within $200,000 of the $1.6 million Harding County received last year, Glines said.
Diane Haivala and her husband have owned the Tipperary Lodge motel in Buffalo for seven years. For the past few years, rooms that have been empty each winter have been full of laborers, road builders and others.
"There's hardly a slow time anymore," she said.
"There is definitely business coming to town because of the oil."
Fred Steece, supervisor of the Department of Environment and Natural Resources Oil and Gas Program, said that in 2007, oil production shot up to 1.664 million barrels, second only to the record year two decades ago.
"I think there is a lot more room for exploration," Steece said.
Continental Resources of Enid, Okla., is the largest oil producer in South Dakota, with about 2,400 barrels per day. The company plans to drill eight new wells in Harding County this year, costing about $2 million each, according to Mark Monroe, president and CEO.
Continental has about 70,000 acres in oil leases in the county and Monroe said it could develop as many as 200 wells on those leases.
Luff Exploration of Denver also gets oil from Harding County and Bowman County, N.D. Richard George, Luff's engineering manager, said his company plans to drill six to eight new wells this year, mostly in South Dakota, costing between $2.75 million and $3 million each.
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