Archive for Thursday, March 16, 2006

Archive for Thursday, March 16, 2006

BLM’s drilling requests climb

March 16, 2006

The energy industry is looking for oil and gas reserves in Moffat County at two times the rate it did last year, a Bureau of Land Management official said Wednesday.

Jerry Strahan, assistant field manager for the bureau's Little Snake Field Office in Craig, said applications for drilling permits are on pace to more than double last year's numbers.

In 2005, the Little Snake Field Office received 25 applications.

Officials expected that number to go up to about 40 this year, Strahan said.

But three months into 2006, the office is on track to receive 60 applications this year, Strahan said.

The increase in oil and gas activity is most likely the result of rising energy prices, Strahan said.

"It's a demand-driven thing," he said.

The majority of the applications are for drilling in the far northwest corner of the county, Strahan said.

Although the applications for drilling are on the rise, Strahan said drilling in Moffat County is still nowhere near the level of activity in Rio Blanco County, where 400 applications could come in this year.

"Our area is not a real big producer," Strahan said. "We have moderate production here."

But Marianna Raftopoulos, a spokeswoman for energy companies operating in Northwest Colorado, said natural gas exploration in the area will continue to increase.

As demand for natural gas increases worldwide, Moffat County will continue to see increased exploration, she said.

"This is an area that is very strong in natural gas," said Raftopoulos, a former Moffat County commissioner.

The companies that are coming into the area expect to stay for as many as 30 years, she said.

"It is more long term than it has been in the past," Raftopolous said.

Brandon Johansson can be reached at 824-7031, ext. 213, or bjohansson@craigdailypress.com.

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