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Petroleum Industry in Illinois, 1965

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Petroleum Industry in Illinois, 1965 STATE OF ILLINOIS DEPARTMENT OF REGISTRATION AND EDUCATION PETROLEUM INDUSTRY IN ILLINOIS, 1965 Part I. Oil and Gas Developments Jacob Van Den Berg Part II. Waterflood Operations T. F. Lawry Richard F. Mast ILLINOIS PETROLEUM 83 ILLINOIS STATE GEOLOGICAL SURVEY 19 6 6 URBANA, ILLINOIS STATE OF ILLINOIS DEPARTMENT OF REGISTRATION AND EDUCATION BOARD OF NATURAL RESOURCES AND CONSERVATION Hon. John C. Watson, Chairman Laurence L. Sloss, Ph.D., Geology Roger Adams, Ph.D., D.Sc, LL.D., Chemistry Robert H. Anderson, B.S., Engineering Charles E. Olmsted, Ph.D., Forestry Thomas Park, Ph.D., Biology Dean William L. Everitt, E.E., Ph.D., D. Eng., University of Illinois President Delyte W. Morris, Ph.D., Southern Illinois University STATE GEOLOGICAL SURVEY John C. Frye, Ph.D., Sc.D., Chief PETROLEUM INDUSTRY IN ILLINOIS, 1965 JACOB VAN DEN BERG, T. F. LAWRY AND RICHARD F. MAST CONTENTS Page Page Part I - Oil and Gas Developments Productive acreage 7 Introduction 4 Gas and gas products 9 Oil production and value 4 Underground storage of liquefied 1965 drilling 5 petroleum gas 9 Discoveries 5 Underground storage of natural gas . 9 Exploration 7 Part II - Waterflood Operations Pools revived and abandoned during Introduction 63 1965 7 Summary of waterflood operations . 63 Geologic column 7 Conclusions 64 Crude oil reserves 7 TABLES Table Page 1A - Summary of oil and gas drilling activity and oil production in 1965 10 IB - Summary of underground natural gas storage drilling activity in 1965 11 2 - Nine new pool discoveries in 1965 11 3 - Discovery wells of seventeen extensions to pools in 19 65 12 4 - Discovery wells of two new pays in pools in 1965 12 5 - Selected list of six unsuccessful exploratory tests in 1965 13 - 6 Underground storage facilities for liquefied petroleum gases in Illinois , January 1,1966. 13 7 - Underground natural gas storage projects in Illinois 14 8 - Illinois oil pool statistics, 1965 15 9 - Illinois gas pool statistics, 1965 58 10 - Project numbers by county and summary of waterflood projects in 19 65 65 11 - Illinois waterflood projects initiated prior to 1965 66 12 - Illinois waterflood projects initiated during 19 65 100 13 - Illinois pressure maintenance projects using water injection during 1965 106 14 - Illinois waterflood projects reported abandoned 108 15 - Summary of waterflood statistics, 1949-1965 118 16 - Illinois waterflood operations by counties 120 TABULATIONS Page Daily average crude oil production by quarters during 1965 4 Five leading crude oil producing counties in Illinois, 1965 4 Pools producing more than one million barrels of oil, 19 65 5 Changes in estimated crude oil reserves, 1965 7 ILLUSTRATIONS Figure Page 1 - Major tectonic features of Illinois and their relations to significant holes drilled during 1965 6 2 - Generalized geologic column of southern Illinois 8 3 - Estimated oil reserves versus actual production 9 4 - Oil and gas fields in Illinois. Waterflood and pressure maintenance operations, December 31, 1965 121 Illinois State Geological Survey Illinois Petroleum 83 132 p., 4 figs., 16 tables, 1966 Printed by Authority of State of Illinois, Ch. 127, IRS, Par. 58.25. PETROLEUM INDUSTRY IN ILLINOIS, 1965 JACOB VAN DEN BERG, T. F. LAWRY AND RICHARD F. MAST ABSTRACT Illinois produced 63,708,000 barrels of crude oil in 1965, down 9 . 2 percent from 1964. Approximately 43, 729, 000 barrels, or 68 .6 percent, of this production was from secondary recovery waterflood projects. Until near the end of the year, the price of Illinois crude oil at the wells was based on a gravity scale that ranged from $2.42 a barrel for oil with an API gravity of 20 degrees to $3.00 a barrel for oil with an API gravity of 40-45 degrees. In December the price was increased 10 cents a barrel for all gravities. Total estimated value of crude oil produced in Illinois in 1965 was $186,665,000. Of the 2, 101 drilling operations completed by the oil and gas industry, 1,244 were new holes drilled as oil and gas tests. Of these, 573 were completed as oil wells and 11 as shut-in gas wells. In addition, 62 former dry holes were re- worked and completed as oil wells, and 21 former producers were reworked and com- pleted as oil wells in new pay zones. Of the 1,244 new tests for oil and gas, 315, or 25 percent, were wildcats. There were 131 new service wells drilled and 417 old wells, mostly producers, were converted to service wells . Forty-two oil and gas structure tests were drilled. There were 184 well completions reported in connection with underground storage of natural gas. Nine new oil pools, 17 pool extensions, and 2 new pay zones in pools were discovered in 1965. Estimated crude oil reserves declined from 404.7 million barrels at the end of 1964 to 363.4 million barrels at the end of 1965. There are 21 underground natural gas storage projects in operation or being developed in Illinois for gas from other states. Estimated ultimate capacity is 740 billion cubic feet. There are 10 underground mined caverns for storage of liquefied petroleum gases with a total capacity of 2,786, 500 barrels. Controlled waterfloods reported at the end of 1965 totalled 933. There were 115 new projects reported during 1965, offset partially by 35 abandonments. Of the 45,006,000 barrels of oil produced from secondary recovery during 1965, controlled waterflood projects reported 43,729,000 barrels. Five pressure maintenance projects produced 777,000 barrels, and dump floods produced 500,000 barrels of crude oil. At the end of 1965, cumulative oil produced by fluid injection, including that by dump floods and pressure maintenance projects, was 531, 102,000 barrels At the end of 1965, 340, 097 acres were under fluid injection. This includes 32,721 acres brought under fluid injection by the 115 new projects. 2 . PART I. OIL AND GAS DEVELOPMENTS Jacob Van Den Berg INTRODUCTION of secondary recovery by waterflooding in 1943, but the decline continued to a low of 59 million The oil and gas industry of Illinois con- barrels in 1953. Then the use of hydraulic frac- tinued to make a major contribution to the economy turing and an increase in waterflooding brought of the state in 1965, with a total production val- about an increase in production to a peak of over ued at an estimated $186, 665, 000. 82 million barrels in 1956. An annual production This report for 1965 is similar in form to of near 80 million barrels was maintained through the 1964 annual report. 1962, but since then production has declined Part I gives information about crude oil fairly rapidly. production, pool development, exploratory drill- Average daily production of crude oil in ing, crude oil reserves, productive acreage, gas 1965 was 174,542 barrels as compared with production, and underground storage of natural gas 191,716 barrels in 1964. Following is the daily and liquefied petroleum gas. average crude oil production by quarters in 1965: We are grateful for the help of the many individuals and companies whose cooperation Quarter Barrels Quarter Barrels made this report possible. First 176,391 Third 173,776 Second 178,157 Fourth 169,927 OIL PRODUCTION AND VALUE Table 1A lists by counties the number of permits issued, number of holes drilled, footage Illinois produced 63,708,000 barrels of drilled, and production for 1965. Holes drilled crude oil in 1965, down 6,460, 000 barrels or 9 . are classified as tests for oil and gas, structure percent, from the 70,168,000 barrels produced in tests, service wells, and old wells reworked 1964. The state maintained its position of eighth or converted place among the oil producing states, accounting Table IB lists by counties the number of for about 2.3 percent of the nation' s total pro- holes and footage drilled in connection with un- duction in 1965. It ranks first among states east derground storage of natural gas. of the Mississippi River. With a combined production of 37,794,931 Cumulative production of crude oil in Illi- barrels of oil in 1965, the five leading producing nois to date is 2,595,336,000 barrels. Oil was counties in Illinois accounted for 59.3 percent of first discovered in Illinois in 1889 at Litchfield in the state' s total as follows: Montgomery County. Between 1889 and 1904 about 2 2, 000 barrels were produced . With the discovery of the Southeastern Illinois Field in 1904, pro- Percentage duction rose rapidly, reaching an annual peak of 1965 production of state nearly 34 million barrels by the end of the decade. County (M bbls) total Production then began a gradual decline until 1937 Fayette 10,903 17.1 when the Clay City pool was discovered in the Marion 7,827 12.3 deep part of the Illinois Basin. The very suc- Lawrence 6,908 10.8 cessful drilling programs that followed this dis- White 6,515 10.2 covery brought about an increase in production that Wayne 5,643 8.9 reached a peak of 147, 647, 000 barrels in 1940. The rapid decline in production that followed the peak Total 37,796 59.3 year of 1940 was slowed down by the introduction OIL AND GAS DEVELOPMENTS - Eight fields produced over one million Total footage drilled in 1965 was 3, 02 5, barrels of oil each in 1965. Their combined pro- 292 feet, including 2,870,948 feetfor oiland gas duction of 42,743,643 barrels of oil accounted tests, service wells, and structure tests; and for 67.1 percent of the state' s total production 154, 344 feet for underground storage of natural during the year, as follows: gas.
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