State's oil, gas permit applications up for 2008

According to a DNR news release, the council received 144 permit applications in the first four months of 2008, with gas at $86 a barrel. In all of 2007, with gas at $61 a barrel, the council received 129 applications, the release said.

Many of the applications come from parties who want to conduct stratigraphic tests to determine if the potential for oil or gas exists. When found in sufficient quantities, requests must be submitted for permits to drill full-scale oil or gas wells.

“Record oil and gas prices contribute to increased interest in oil and gas potential in Missouri,” said Mimi Garstang, state geologist and director of the Division of Geology and Land Survey, in the release.

The Division of Geology and Land Survey, based in Rolla, is responsible for approving permits for approving permits for oil and gas exploration in the state. Permitted parties must follow regulations set forth by the State Oil and Gas Council as well as state regulations protecting the environment.

“While interest in Missouri’s heavy oil has significantly increased with higher energy prices, we must make sure we develop any energy resource in a safe and responsible manner,” Garstang added.

Some companies are drilling in Missouri’s established gas and oil areas, while others are looking at areas not previously considered for that purpose.

“Advancements in recovery techniques may be the key that enables companies to successfully tap into the oil in Vernon County, where the oil is very thick,” said Scott Kaden, a DNR geologist, in the release. He noted that MegaWest Energy Corp. is using steam to help thin the oil and make it easier to remove from the ground.

According to the release, the break-even point for the production of heavy oil from Vernon County is $50 a barrel.