Oil is the largest source of primary energy, serving almost 40% of U.S. energy needs. It is also the largest source of energy for the nation’s transportation sector. With more trucks than ever on our highways and the American consumer’s continued embrace of large sport utility vehicles, oil demand is not likely to decline in the foreseeable future. According to the Department of Energy and Energy Information Administration, nationwide consumption of oil should rise steadily through the year 2025, representing an increase of more than 40% to an estimated 28.7 million barrels per day.

Domestic natural gas consumption should also rise sharply over the next two decades. In addition to its use as a source of fuel for homes and industries, natural gas generating capacity is expected to constitute about 90% of the projected increase in electricity generation through 2025. Electricity generated by natural gas is expected to grow 33% during that time. Natural gas currently accounts for 24% of all energy consumed in the U.S. Through 2025, the Energy Information Administration projects demand for natural gas to increase 51% to 34.2 trillion cubic feet.

Typical Development Timeline

The following outlines how US Energy Partners Inc. develops and brings oil and/or natural gas to market.

Prior to drilling, US Energy Partners Inc. purchases intangibles, acquiring geological reports and leases for proposed sites which are not already controlled by US Energy Partners Inc.

The following is a summary of drilling activities:

  • Site Preparation: The site is prepared by leveling and trenching to satisfy safety regulations. The site may require preparation of a road.
  • Rigging Up: This is the transport and preparation of the drilling rig.
  • Spudding-In: Drilling a starter hole. After completion, a surface casing (lining) is installed to keep earth from crumbling into the well, preparing the well for safety devices.
  • Well Completion: When drilling reaches hydrocarbon-rich formations, production casing is installed and perforated, allowing oil and/or gas to flow. The well is complete after the well head is installed. Pumps are added if pressure is needed to bring oil and/or gas to the surface.
  • Tying In: The well is brought into production by pipe connection to an outlet.