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With all the national political chatter over the need for more energy drilling, you'd be forgiven if you thought none was going on. But in fact, Utah is setting all-time records for drilling.
What does this mean and not mean for the prices you have to pay at the pump?
Most of the controversy has been about energy companies getting the right to drill off-shore and to drill the Arctic National Wildlife Refuge. Meanwhile, it's boom time for energy companies drilling close to home, right here in Utah.
Big drilling rigs move from place to place, wherever the action is. And lately, that's Utah. In the last half of August an unprecedented 50 drilling rigs were at work in the state, more than double a few years ago. Energy companies have big incentives with prices at record highs.
Lee Peacock, President of the Utah Petroleum Association, said, "Demand is also going up dramatically. The two are tied together."
The industry often accuses environmental groups of slowing things down. But the facts on the ground tell a different story, according to SUWA, the Southern Utah Wilderness Alliance.
SUWA's Steve Bloch said, "(There were) about 9,000 new drill permits approved under the Bush administration. SUWA and other conservation groups have challenged roughly 3 percent of those. So it's easy to say that environmentalists are standing in the way. The facts and figures just simply don't bear that out."
Peacock said, "We have been hampered to some extent. There are known areas of oil and gas, or at least suspected areas of oil and gas that have been off limits to drilling."
At this point, you're probably wondering "What's in it for me?" Energy prices keep going up. The politicians keep saying, "More drilling and the prices will come down."
Prices are at or near all-time highs, even though the number of wells in Utah and the volume of gas and oil are up more than 40 percent in the last five years.
"It is making an impact," Peacock said. "I think that prices would be even higher if we weren't having success as an industry both in Utah and across the nation and even the world."
Bloch said, "It confirms that there's really no connection with pushing for drilling and lowering the prices."
Most of the increased drilling has been for natural gas. Much of the drilling is in proven energy reserves in Uintah and Duchesne counties. But actual exploration is underway too. Energy companies are trying to strike it rich in Central Utah as well.
E-mail: hollenhorst@ksl.com
