State oil producers returning to old wells
NASHVILLE (AP) — The high price of oil has led Tennessee producers to return to wells once thought tapped.
The state has never been a traditional site for oil, and gas production and most drilling is concentrated on the northern Cumberland Plateau. Last year, the state produced a near record low of about 285,000 barrels.
But Brentwood-based oil producer Bill Goodwin says he’s been taking a second look at wells in Morgan County he bought 30 years ago. When oil was only a couple of bucks a barrel, profitable wells needed to produce much more than today.
With oil priced at more than $100 a barrel, Goodwin says it can be worth the cost to return to an old well, even if it produces just one barrel a day.
State geologists say oil and gas permits have increased and many of the permits are for old wells.
Goodwin, who is the former president of the Tennessee Oil and Gas Association, says the high prices are not yet pushing producers to new drilling.
Information from: WPLN-FM, http://www.wpln.org/
Published in The Messenger 5.7.08