Development of Cotton Valley gas in Carthage Field--price was the key. [Texas]
Development of the Cotton Valley formation in East Texas has been stimulated by the economics of higher gas prices. The combined actions of the industry, Congress, the Federal Energy Regulatory Commission (FERC) and the Texas Railroad Commission (RRC) have added to the market gas reserves that were discovered in 1937, but were not economical to produce until the 1970's. The Cotton Valley formation in Carthage Field, Panola County, Texas, was first penetrated in 1937, and cores from that well indicated the presence of gas. Drill stem tests in 1944 confirmed the presence of gas in these deep, low permeability sands. The gas price then was $0.03 per MCF. The first gas production was recorded in 1968, from one well, and by 1975, seven wells were producing. Gas prices had now increased to $0.62 per MCF. When the price of gas reached $2.49 per MCF in 1979, development increased rapidly with 117 new wells being drilled and completed that year, 86 wells in 1980 and 53 wells in 1981. The drilling of these wells was a result of higher gas prices under the Natural Gas Policy Act of 1978 (NGPA), the ''tight'' gas classification by FERC on October 24, 1980, and Railroad Commission approval of 320-acre spacing on February 9, 1981, to permit additional drainage wells on the 640 acre units. The price of gas is now over $6.00 per MCF, and more than 400 wells are producing from the Cotton Valley as development continues.
- Research Organization:
- Pennzoil Producing Co.
- OSTI ID:
- 5323821
- Report Number(s):
- CONF-820927-
- Journal Information:
- Soc. Pet. Eng. AIME, Pap.; (United States), Vol. SPE11153; Conference: 57. AIME Society of Petroleum Engineers annual technical conference and exhibition, New Orleans, LA, USA, 26 Sep 1982
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
NATURAL GAS
PRICES
NATURAL GAS DEPOSITS
EXPLOITATION
NATURAL GAS FIELDS
FINANCIAL INCENTIVES
TEXAS
LAND LEASING
NATURAL GAS POLICY ACT
SOCIO-ECONOMIC FACTORS
US FERC
ENERGY SOURCES
FEDERAL REGION VI
FLUIDS
FOSSIL FUELS
FUEL GAS
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GAS FUELS
GASES
GEOLOGIC DEPOSITS
INSTITUTIONAL FACTORS
LAWS
LEASING
MINERAL RESOURCES
NATIONAL ENERGY ACT
NATIONAL ORGANIZATIONS
NORTH AMERICA
RESOURCES
US DOE
US ORGANIZATIONS
USA
030300* - Natural Gas- Drilling
Production
& Processing
030600 - Natural Gas- Economic
Industrial
& Business Aspects