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Area oil activity lagging, despite strong year for state

It has been a busy year for the Nebraska Oil and Gas Conservation Commission, as there has been quite a bit of activity in the state, according to Deputy Director Stan Belieu—although search and drilling operations have not been consistent across Nebraska.

“There’s not much activity around Sidney,” Belieu explained. “Production has increased in the state, but decreased locally.”

Two large wells were drilled near Potter and one west in Lorenzo. The wells have not been offset, meaning oil companies have not drilled more around them.

In 2012, Nebraska produced over 3 million barrels of crude oil, compared to about 1.8 million in South Dakota. The figures pale next to the nearly 49.4 million from Colorado wells and over 57.7 million in Wyoming, according to the U.S. Energy Information Administration (EIA).

The EIA recorded oil production figures by state from February through July of 2013. In this time frame, Nebraska produced nearly 1.3 million barrels as opposed to 906,000 in South Dakota, 28.97 million and 31.2 million in Colorado and Wyoming, respectively.

The purpose of the Nebraska Oil and Gas Conservation Commission is to regulate oil and gas exploration and production in the state.

Nebraska and South Dakota are Petroleum Administration for Defense District (PADD) two, while Colorado and Wyoming fall into PADD four. The PADDs are different districts of the United States, which yield data to assess regional production and patterns. PADD two is the Midwest region while PADD four is the Rocky Mountain region.

 

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