MICHIGAN OIL AND GAS NEWS
"A Periodic News Service of the Michigan Oil And Gas Association, Lansing Michigan; (517)487-1092.
Reporting Progress of Michigan's Petroleum Exploration & Production Industry"

MICHIGAN'S OIL & GAS EXPLORATION-PRODUCTION INDUSTRY AT A GLANCE

Total Michigan Counties - 83 (15 Upper Peninsula; 68 Lower Peninsula)

Michigan counties with oil and/or gas production, 2002 - 64 (Lower Peninsula only)

Michigan land area - 36,500,000 acres (does not include 25,000,000 acres of Great Lakes bottom land in State ownership)

Michigan mineral ownership - State - 5,900,000 acres (does not include Great Lakes bottom)
Private - 29,000,000 acres*
Other - 1,400,000 acres*

Michigan acreage under oil and gas lease, thru September 2000 - State - 612,756 acres
Private and others - 13,000,000 acres*

Michigan oil and gas fields, 1/1/98 (latest figures available)
Oil fields - 714
Natural gas fields - 332
Natural gas storage fields - 60
LPG storage fields - 5
Michigan oil and gas producing well count, 1/1/98 TOTAL=11,538
Oil (TOTAL) - 4,673
Oil producing - 3,695
Oil shut in - 978

Gas (TOTAL) - 6,865
Gas, producing - 6,241
Gas, (shut in) - 624
Gas, temp. abandoned - 17

Facility Wells

Disposal: Brine disposal - 600, Shut-in Brine disposal - 42

Secondary Recovery: Water injection - 574, Shut-in Water injection - 22

Gas injection - 4, Shut-in gas injection - 3

Storage: Storage wells - 2,562
Observation wells - 525, Shut-in Ovservation - 5
LPG storage facility wells - 40

Michigan drilling activity, 2001
Wildcat: oil - 1
gas - 4
dry - 12
production cased - 1 (as of 12/31/01)
Development: oil - 13
gas - 292
dry - 11
production cased - 99 (as of 12/31/01)
Facility Wells - 20

 

MICHIGAN'S OIL & GAS EXPLORATION-PRODUCTION INDUSTRY AT A GLANCE

Michigan drilling rig availability, 2002
Contractors - 7
Rotary rigs - 17

Average cost to drill & equip a Michigan well, 1996*(Latest data available)
Oil wells - $198,647/well; $42.64/ft
Gas wells - $151,403/well; $108.03./ft
Dry holes - $273,036/well; $62.36/ft
Overall - $162,107/well; $95.55/ft

Michigan new reserves, as of 12/31/97
Crude oil - 1,233,000,000 barrels (bbl)*
Natural gas liquids - 264,000,000 bbl*
Natural gas - 4,835 billion cubic feet (Bcf)*

Michigan cumulative production, through 2001
Crude oil and condensate - 1,222,655,199 bbl*
Natural gas - 5,913,557,397 thousand cubic feet (Mcf)*

Michigan oil and gas production, 2001
Crude oil and condensate - 7,374,132 bbl
Natural gas - 268,061,340 Mcf
(1979 was record year for production of liquid hydrocarbons - 34 million bbl)
(1997 was the record year for natural gas production - 280,500,000 Mcf)

Michigan cumulative production by geologic formation, through 1986 (latest available)
Oil: Marshall - 96,682 bbl
Berea - 4,789,243 bbl
Traverse - 109,567,107 bbl
Dundee-Reed City - 351,475,181 bbl
Detroit River - 92,463,809 bbl
Salina-Niagaran - 325,865,774 bbl
Trenton-Black River - 131,207,757 bbl
Prairie du Chien - 230,581 bbl
Gas: Glacial Drift - 8,180 Mcf
Mich. Stray-Marshall - 213,710,056 Mcf
Berea - 13,092,847 Mcf
Antrim Shale - 8,421,134 Mcf
Traverse - 12,857,985 Mcf
Dundee-Reed City - 41,590,401 Mcf
Detroit River - 99,095,104 Mcf
Salina-Niagaran - 1,936,208,354 Mcf
Trenton-Black River - 243,326,492 Mcf
Prairie du Chien - 15,641,475 Mcf
(From Michigan's Geo.Survey OFR-89-1 for 1985-86 - latest figures available)

Michigan cumulative total number of wells drilled through 2001
Oil wells 14,730 - 29.97%
Gas wells 10,696 - 21.76%
Dry holes 20,874 - 42.47%
Facility wells 2,850 - 5.80%
TOTAL 49,150 - 100%

Michigan's deepest producing well
Crude oil --- 10,515 ft.
Gas --- 11,635 ft.

Michigan's deepest well drilled
1975 McClure-Sparks, et al. #1-8, Gladwin Co. 17,466 ft.

Michigan's Nation-wide rank among 33 oil and gas producing states
Rank ------- Crude oil -- Natural Gas
Wells drilled -- 18th ------- 8th
Production -- 17th ------- 10th
Reserves -- 17th ------- 12th

Michigan oil and gas wellhead values, calendar year 2000
Crude oil and condensate - $186,831,057
Natural gas - $953,218,967
Total Oil & Gas Wellhead value - $1,140,050,024

 

 

MICHIGAN'S OIL & GAS EXPLORATION-PRODUCTION INDUSTRY AT A GLANCE

Average Michigan wellhead prices, 2001
Crude oil and condensate - $25.34 bbl
Natural gas - $3.56 Mcf
(Calculated from Michigan gross values, Dept. of Treasury Severance Tax reports)

Percentage Change in average wellhead prices, 1987 to 1998

Crude oil and condensate = 2000 was +79.84% from 1999, 1999 was +17.76% from 1998; 1998 was -32.72% from 1997, 1997 was +.05% from 1996; 1996 was + 36.57% from 1995; 1995 was +13.8% from 1994; 1994 was -16.1% from 1993; 1993 was -9.8% from 1992; 1992 was - 2.5% from 1991; 1991 was -4.6% from 1990; 1990 was +23.4% from 1989; 1989 was +15.2% from 1988; 1988 was +11.7% from 1987.
Natural gas = 2000 was +55.28% from 1999, 1999 was -10.56% from 1998; 1998 was -17.35% from 1997, 1997 was -0.91% from 1996, 1996 was + 32.33% from 1995; 1995 was -14.8% from 1994; 1994 was -17.6% from 1993: 1993 was -12.1% from 1992; 1992 was -2.5% from 1991; 1991 was -6.7% frpm 1990; 1990 was -1.0% from 1989; 1989 was - 2.0% from 1988; 1988 was -5.2% from 1987.
(Calculated from data supplied by the Department of Natural Resources, Geological Survey Division and Michigan Department of Treasury)

Michigan production royalties paid, October 1, 1997 thru September 30, 1998
State minerals - $34,188,850
Private and other minerals - $66,974,344 (calculated based on typical 1/8 royalty)

Taxes and fees paid to State of Michigan, 2001

†Severance tax - $54,936,610 (Reported by State Treasury)
               Oil & Gas fees - $ 10,811,722

Number of Active Michigan oil and gas producers, 2000
Approximately 191 companies and individuals (Extracted from listings in the annual Michigan Petroleum Directory and Almanac, 2000 edition)

Number of operators who drilled in Michigan, 2000- 44(listed as operator of record on State drilling permit)

Number of Michigan individuals whose livelihoods are derived from oil & gas industry - 1998 - Approximately 9,887*

(Based on estimates from Michigan Oil And Gas Association membership survey. Includes those directly involved in exploration and production, plus those providing contract services, supplies and other industry support services.)

Note: A variety of sources have been used to compile the information appearing on these pages. Principal among them have been the MI DNQ, Geological Survey and DEQ Real Estate Division, the MI Department of Treasury, various publications produced by the IPAA and API and records compiled and maintained by the Michigan Oil & Gas News. An asterisk (*) denotes estimates)

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