The Outlook for Louisiana's Offshore Production
- S.V. McCollum (Tennessee Gas and Oil Co.)
- Document ID
- Society of Petroleum Engineers
- Journal of Petroleum Technology
- Publication Date
- July 1960
- Document Type
- Journal Paper
- 28 - 28
- 1960. Original copyright American Institute of Mining, Metallurgical, and Petroleum Engineers, Inc. Copyright has expired.
- 5.2.1 Phase Behavior and PVT Measurements, 1.10 Drilling Equipment, 1.6 Drilling Operations
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Statistics Reflect Erratic Growth
The offshore area offers more challenge, more promise, more problems, more heartaches and more disappointments than any other oil and gas producing region in the world.
The growth and development in the offshore area of Louisiana has been a series of ups and downs, as verified by figures on the active drilling rigs running in the Gulf of Mexico since 1947.
From 1947 until the early part of 1953, there was a period of "no leasing". In early 1953, there were approximately 10 rigs running seaward from the Chapman line. There was a steady increase in drilling operations up to the middle of 1956, when the U.S. Supreme Court issued its injunction that shut down everything within the disputed area.
When the agreement between Louisiana and the Federal Government was reached, the number of rigs operating increased to 106. This peak period, with over 100 rigs operating, lasted until the latter part of 1957. The operators then decided that it would be wise to shut down and "look at their hole card"; maybe offshore drilling was not the "economic plum" they had thought. This offshore recession lasted until the latter part of 1958, when the operators began a cautious recovery climaxed by the sale in Feb., 1960.
As of April 1, 1960 (according to industry statistics), there had been 3,091 wells drilled in the offshore Louisiana area. Of these, 1,799 were completed as oil wells, 418 as gas wells and 874 (or 28.3 per cent) were dry. Production of oil and condensate is approximately 226,000 B/D, and gas production is averaging 909 MMcf/D.
At the present time, there are approximately 3,375,000 acres under lease, with an accumulative investment in this acreage of $616,266,000. At the last offshore lease sale held Feb. 24, 1960, 454,046 acres were sold for $246,379,283. Left on the table was $133,078,895.
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