Archives

Home   >   Archives   

Some Texas oil and gas history that you may not know | OutPut by Rig Lynx

Rig Lynx
  • By Rig Lynx
  • Aug 22, 2018
  • Category : Archives
  • Views : 295

Oil and natural gas are the most valuable minerals produced in Texas. They have been produced from most areas of Texas and from rocks of all geologic eras except the Precambrian. All of the major sedimentary basins of Texas have produced some oil or gas.

The Permian Basin of West Texas has yielded large quantities of oil since the Big Lake discovery in 1923, although there was a smaller discovery in the Westbrook field in Mitchell County three years earlier.

The 1923 discovery, Santa Rita No. 1 in Reagan County, was on University of Texas land, and it and Texas A&M University both have benefited from the royalties.

Although large quantities of petroleum have been produced from rocks of Permian age, production in the area also occurs from older Paleozoic rocks. Production from rocks of Paleozoic age occurs primarily from North Central Texas westward to New Mexico and southwestward to the Rio Grande, but there is also significant Paleozoic production in North Texas.

Mesozoic rocks are the primary hydrocarbon reservoirs of the East Texas Basin and the area south and east of the Balcones Fault Zone. Cenozoic sandstones are the main reservoirs along the Gulf Coast and offshore state waters.

Earliest Oil

Indians found oil seeping from the soils of Texas long before the first Europeans arrived. They told explorers that the fluid had medicinal values. The first record of Europeans using crude oil, however, was for the caulking of boats in 1543 by survivors of the DeSoto expedition near Sabine Pass.

Melrose, in Nacogdoches County, was the site in 1866 of the first drilled well to produce oil in Texas. The driller was Lyne T. Barret. Barret used an auger, fastened to a pipe, and rotated by a cogwheel driven by a steam engine — a basic principle of rotary drilling that has been used since, although with much improvement.

Other oil was found in crudely dug wells in Bexar County in 1889 and in Hardin County in 1893. The three small wells in Hardin County led to the creation of two small refineries in 1896 and 1898.

But it was not until June 9, 1894, that Texas had a major discovery. This occurred in the drilling of a water well for the city of Corsicana. Oil caused that well to be abandoned, but a company formed in 1895 drilled several producing oil wells.

The first well-equipped refinery in Texas was built in Corsicana in 1898, and this plant, which shipped its first production in 1899, usually is called the state’s first refinery, despite the earlier efforts. Discovery of the Powell Field, also near Corsicana, followed in 1900.

Spindletop, 1901

Jan. 10, 1901, is the most famous date in Texas petroleum history. This is the date that the great gusher erupted in the oil well being drilled at Spindletop, near Beaumont, by a mining engineer, Capt. A. F. Lucas.

This was the first salt dome oil discovery, and thousands of barrels of oil flowed before the well could be capped. Spindletop created a sensation throughout the world and encouraged exploration and drilling in Texas that has continued since.

Texas oil production increased from 836,039 barrels in 1900 to 4,393,658 in 1901; and in 1902 Spindletop alone produced 17,421,000 barrels, or 94 percent of the state’s production. Prices dropped to 3 cents a barrel, an all-time low. (continued on page 2)

Check out our other current stories, we dare you…

Offshore, 1908

The first offshore drilling was in shallow northern Galveston Bay, where the Goose Creek Field was discovered in 1908. Several dry holes followed, and the field was abandoned. But a gusher in 1916 created the real boom there.

1911–1929

In 1911, a water-well drilling outfit on the W. T. Waggoner Ranch in Wichita County hit oil, bringing in the Electra Field. Salt dome oil fields followed at Damon Mound in 1915 (Brazoria County), Barbers Hill in 1916 (Chambers County), and Blue Ridge in 1919 (Fort Bend County).

In 1917, came the discovery of the Ranger Field in Eastland County. The Burkburnett Townsite Field in Wichita County was discovered in 1918.

About this time, oil discoveries brought in a short era of swindling, with oil stock promotion and selling on a nationwide scale. It ended after a series of trials in federal courts, but the oil discoveries continued. The Mexia Field in Limestone County was discovered in 1920, and the second Powell Field in Navarro County in 1924.

Another great area developed in 1921 in the Panhandle, with sensational oil and gas discoveries in Hutchinson and contiguous counties and the booming of the town of Borger.

The Luling Field in Caldwell County open in 1922, and 1925 saw the comeback of Spindletop with a production larger than that of the original field.

In 1925, Howard County was opened for production. Hendricks in Winkler County opened in 1926, and Raccoon Bend, Austin County, opened in 1927. Sugar Land was the most important Texas oil development in 1928.

The Darst Creek Field in Guadalupe County was opened in 1929. In the same year, new records of productive sand thickness were set for the industry at Van, Van Zandt County. Pettus in Bee County was another contribution to the 1929 discoveries.

East Texas Field

The East Texas field, biggest of them all, was discovered near Turnertown and Joinerville, Rusk County, by veteran wildcatter C. M. (Dad) Joiner in October 1930. The success of this well — drilled on land condemned many times by geologists of the major companies — was followed by the biggest leasing campaign in history.

The field soon was extended to Kilgore, Longview, and northward. The East Texas field brought overproduction and a rapid sinking of the price. Private attempts were made to prorate production, but without much success.

On Aug. 17, 1931, Gov. Ross S. Sterling ordered the National Guard into the field, which he placed under martial law. This drastic action was taken after the Texas Railroad Commission had been enjoined from enforcing production restrictions. After the complete shutdown, the Texas Legislature enacted legal proration, the system of regulation still utilized.

West Texas

The most significant subsequent oil discoveries in Texas were those in West Texas. In 1936, oil was discovered west of Lubbock in the Duggan Field in Cochran County.

Originally Duggan was thought to be one of two fields, it and the adjacent Slaughter Field, but in 1940 the Railroad Commission ruled that the two produced from one reservoir and called both areas Slaughter. The prolific Levelland Field, in Cochran and Hockley counties, was discovered in 1945. A discovery well in Scurry County on Nov. 21, 1948, was the first of several major developments in that region. Many of the leading Texas counties in minerals value are in that region.

Austin Chalk

The Giddings Field on the Austin Chalk in Lee, Fayette, and Burleson counties had significant drilling in the 1970s that continued into the 1980s.

Can learn more about Texas oil and gas discoveries here

Original Article Here

Check out our other current stories, we dare you…

New community just for oil and gas…

Download the app free right here!

Comments (0)

Leave Comment


Check out our other stories

Rig Lynx
Mar 09, 2023

  Valaris Limited announced new contracts awarded subsequent to issuing the Company’s most recent fleet status report on February 21, 2023.   Three-year contract with Petrobras for drillship VALARIS DS-8. The rig will be reactivated for this contract. The total contract value is approximately $500 million, including a $30 million mobilization fee. 100-day contract with a TotalEnergies affiliate for drillship VALARIS DS-12. The contract is expected to commence in second quarter 2023. 70-day contract with Beach Energy offshore New Zealand for heavy duty modern jackup VALARIS 107. The contract is expected to commence in third quarter 2023. The total contract value is approximately $26 million. President and Chief Executive Officer Anton Dibowitz said, “We are particularly pleased to have secured the award for preservation stacked drillship VALARIS DS-8, for a contract that is expected to generate a meaningful return over the firm contract term, and we remain focused on exercising our operational leverage in a disciplined manner. This most recent award represents the sixth contract awarded to one of our high-quality stacked floaters since mid-2021, and speaks volumes about our demonstrated track record of project execution when reactivating rigs.”   Dibowitz added, “Following the reactivation of VALARIS DS-17 and DS-8, we will have ten floaters working across the golden triangle, including four drillships in Brazil, a market where we expect to see continued growth over the next several years.”   Updated Guidance   As a result of the contract awarded to VALARIS DS-8, which will require the rig to be reactivated from preservation stack, we are updating our first quarter 2023 and full-year 2023 guidance provided on our fourth quarter 2022 conference call on February 21, 2023.   First Quarter 2023   Contract drilling expense is expected to increase by approximately $5 million to $385 million to $395 million. Adjusted EBITDA is expected to decrease by approximately $5 million to negative $5 million to breakeven. Adjusted EBITDAR, which adds back one-time reactivation expense, is expected to be $25 million to $30 million, unchanged from the guidance provided on our fourth quarter 2022 conference call. Full-Year 2023   Revenues are anticipated to be $1.8 billion to $1.9 billion, unchanged from the guidance provided on our fourth quarter 2022 conference call. Contract drilling expense is expected to increase by approximately $60 million to $1.49 billion to $1.59 billion. Adjusted EBITDA is expected to decrease by approximately $60 million to $180 million to $220 million. Adjusted EBITDAR, which adds back one-time reactivation expense, is expected to be $280 million to $320 million, unchanged from the guidance provided on our fourth quarter 2022 conference call. Capital expenditures are expected to increase by $60 million to $320 million to $360 million. Source: Valaris Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here  

Rig Lynx
Mar 09, 2023

  Seadrill Limited announced that the West Neptune has executed approximately six months of term extensions with LLOG Exploration Offshore, L.L.C in the US Gulf of Mexico.   The extensions will commence in direct continuation of the existing term, and will keep the rig busy until Q3 2024, furthering Seadrill and LLOG’s long-term association. Total contract value for the extension is approximately $79 million. Source: Seadrill   Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here  

Rig Lynx
Mar 09, 2023

  Semisub rig owner Dolphin Drilling has inked a new contract with Peak Petroleum in Nigeria for its 1974-built Blackford Dolphin.   The firm contract, which follows the letter of award in January, gives the Euronext Growth-listed owner of three rigs the potential to extend the unit’s backlog by a minimum of 120 days and up to 485 days. The deal adds to and will be a direct continuation of the previously announced 12-month contract with General Hydrocarbon Limited (GHL).   Øystein Stray Spetalen-backed company said the effective dayrate associated with the minimum firm period of the contract is $325,000, including the mobilisation fee.   “The final award of the contract for Blackford Dolphin shows the opportunities in Nigeria at a strong dayrate, in addition to building on the backlog for the rig. It also underlines the attractiveness of our assets, and we look forward to returning to revenue-generating operations in 2023,” noted Bjørnar Iversen, CEO of Dolphin Drilling.   Source: Dolphin   Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here