The Oil Boom in Oklahoma

Optimistic Outlook for Oklahoma Oil Fields

There has been encouraging news from the latest tests being conducted in the oil fields in Oklahoma.  According to these tests, these oil fields, which is already the fastest developing ones in the world, may be containing considerably more oil than assessed earlier.

Continental Resources Inc., which has been conducting these tests, has already finished the probe test well into the rock layer which is underneath the Bakken Shale Field situated in Montana and North Dakota.  The results from the tests conducted in this oil field, which is already yielding producing oil, has been very heartening, according to company officials.  The company officials believe that the oil fields in Williston Basin might contain up to five layers of rock which may yield more oil and they are planning to conduct further tests.

Most of the 5000 salt wateroil wells in the area are drawing their production from the Bakken Shale layer, which is the uppermost, and Three Forks 1, which is below that.  The Continental’s latest well would be the first one to drill to Three Fork3 layer, whereas drilling of two wells into Three Forks 2 has already been completed.  The drilling of well to the deepest Three Forks 4 is planned to be done next year by the Oklahoma City Company.  However, the company officials are crossing their fingers about the final results from these explorations. Commercial saltwater disposal has also seen an increase in demand, as a large majority of wells bring up salt water as a byproduct. The increase in natural gas has also lead to a boom in gas wells and fracking efforts that produce large amounts of saltwater backflow.

The current prediction by Continental, based on the latest estimates in the lower Three Forks Rocks, is that these oil fields contain about 903 billion barrels of oil.  This is an increase of about 57% from the earlier estimates in 2012 that Bakken fields may contain about 577 billion barrels of oil.  Based on the calculation that 3 to 5 percent of oil can be recovered using latest technology, these fields may produce between 27 billion and 45 billion barrels.

The stock price of Continental has already felt the benefit of this good news coming from tests.  The stock price of the company gained by 4.2% when the news was announced and it is currently at the level of $81.60 in the New York Stock Exchange.