Learning About America’s Recent Oil Shale Discovery
Posted by | Posted in Law Advisor | Posted on 13-01-2012
Photo Courtesy of Flickr
The United States is a wealth of undiscovered oil, and many oil companies and geologists are discovering these oil shale formations at an alarming rate. The newest oil shale to be discovered is the Niobrara Shale Formation, which is located in Colorado, Kansas, Nebraska, and Wyoming.
The discovery of the Niobrara Shale Formation is so new that it has not become a part of the general public’s knowledge. Here is a look a general look at what this oil shale is, what it produces, and what is in store for the future of this oil shale.
What is the Niobrara Shale Formation?
The Niobrara Shale is a vast area of land that encompasses northeast Colorado, southwest Nebraska, northwest Kansas, and southeast Wyoming. Deep below the land, at a depth of 3,000 to 14,000 feet sits a vast amount of oil and natural gas. Oil companies set up their rigs and oil reserves, and begin the drilling and mining process to extract the oil and natural gas. Some companies have even leased as much as 400,000 acres of land along the Niobrara Shale Formation.
How do Oil Companies Get Land in the Niobrara Shale Formation?
Oil companies that wish to take part in this type of production, like bakken companies, must apply for lease on the land. The leasing process requires the oil companies to pay an initial application fee, as well as a monthly lease on the land. There is no limit on how much land a company can lease.
The leasing process also requires companies to submit paperwork that outlines what they plan on doing with the land, and how many oil rigs they plan to build. This information is carefully considered before granting an oil company a land lease.
Photo Courtesy of Flickr
What is the Future for the Niobrara Shale Formation?
Oil companies and investors are predicting a bright future for the Niobrara Shale Formation. In news conferences and reports, oil companies are comparing this particular oil shale to some of the biggest and best in the United States. Land leases for the prime zoning areas have been quickly picked up by hundreds of oil companies, and thousands of barrels of oil were produced in one year alone.
The discovery of the Niobrara Shale Formation might have been unexpected but it one that brings many jobs and revenue to the area. Although this oil shale is still in its infancy, there are many oil companies and investors who are predicting a bright future for this land.
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