Users, short of gas, take to drills in self-help effort

Journal Article · Mon Mar 28 04:00:00 EST 1977 · Energy User News; (United States)

OSTI ID:7113304

Beiser, M

A self-help approach has enabled some manufacturers to secure adequate natural gas supplies by drilling their own wells. A number of Ohio companies were able to remain open during the winter when gas supplies were curtailed. The state's geology indicates an unproven reserve of 2.8 to 7 trillion cubic feet from the Clinton Sandstone Formation is available. Over one hundred companies have filed applications to drill gas for proprietary purposes since 1973 when the self-help program was initiated by the Public Utilities Commission of Ohio (PUCO). The plan allows a company to explore and drill for gas and then arrange transportation with an intrastate pipeline. The pipeline delivers 75 percent to the producer's plants for a transportation fee or it credits the amount of gas to the producer. The remaining 25 percent is sold to the pipeline for general public use. None of the gas can be used for boiler fuel except in very special circumstances. Ohio is planning a conference series around the state to promote the program, which is also under development in other states. Some producers, such as General Motors with its 179 wells for 22 plants, were still not able to keep all their plants operating during the coldest weather. Park-Ohio has made its gas drilling effort a significant part of the company's operations and a major profit center. Companies need to be cautious about getting into the drilling business because of the large capital investment involved in geological surveys, site development, drilling operations, and transportation, all of which average about $100,000 per well. (DCK)

• OSTI ID: 7113304
• Journal Information: Energy User News; (United States), Journal Name: Energy User News; (United States) Vol. 2:12; ISSN EUSND
• Country of Publication: United States
• Language: English

Related Subjects

03 NATURAL GAS
030100 -- Natural Gas-- Reserves-- (-1989)
030300 -- Natural Gas-- Drilling
Production
& Processing
032000 -- Natural Gas-- Transport
Handling
& Storage
29 ENERGY PLANNING, POLICY, AND ECONOMY
294003* -- Energy Planning & Policy-- Natural Gas
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320301 -- Energy Conservation
Consumption
& Utilization-- Industrial & Agricultural Processes-- Energy Sources
AVAILABILITY
DISTRIBUTION
DRILLING
ENERGY DEMAND
ENERGY SHORTAGES
ENERGY SOURCE DEVELOPMENT
ENERGY SOURCES
EXPLORATION
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
GEOLOGICAL SURVEYS
INDUSTRIAL PLANTS
INDUSTRY
INVESTMENT
LEASES
NATURAL GAS
PIPELINES
PRODUCTION
WELL DRILLING