Monday, May 09, 2005

Utah Oil


This is pretty cool. A small oil company believes they have stumbled onto a major oil field, the largest on-shore oil discovery in 30 years. The initial response is cautious, but the discoverers are talking big.

The region around Richfield is no stanger to oil; up until about ten years ago a small refinery operated in Richfield processing crude from several small producers. It has since closed down and been dismantled, I believe.



Oil has never played a major role in the Utah economy until the last 20 years or so, and that emergence has been due more to the decline of mining than the rise of oil production and refining. The fossil fuel that dominated the Utah landscape (and so far still does) is coal, which is mined most profitably in a region west and south of Price, Utah.

So while caution is advisable, I think this is something to watch. It could be big.

More at Google News.

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