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Drilling raises some hope for return of Tuscaloosa Marine Shale oil

The drilling of a few oil wells in southwest Mississippi and the recovery of the price of crude have awakened hopes, however slight, of a revitalization of the Tuscaloosa Marine Shale “play.”

Prices plunged from about $100 in mid-2014 to the low point of around $40 by the end of that year.

But the price of West Texas Intermediate crude reached $76.91 last month, nearly a four-year high, though it has slipped since, settling on Tuesday at $62.21 on the New York Mercantile Exchange.

It will probably take a sustained price of $80 to $90 a barrel to support broader production out of the formation, said Bernel McGehee, who tracks the industry in the Tuscaloosa Marine Shale, which straddles southwest Mississippi and southeast Louisiana. McGehee operates a website, TMS Horizons.

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About the Author:

The Louisiana Oil & Gas Association (known before 2006 as LIOGA) was organized in 1992 to represent the Independent and service sectors of the oil and gas industry in Louisiana; this representation includes exploration, production and oilfield services. Our primary goal is to provide our industry with a working environment that will enhance the industry. LOGA services its membership by creating incentives for Louisiana’s oil & gas industry, warding off tax increases, changing existing burdensome regulations, and educating the public and government of the importance of the oil and gas industry in the state of Louisiana.

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