Texas Oil and Gas Attorney Blog
One oil company active in Texas, Paradigm Oil and Gas Inc., is planning to identify oil wells that can be made more profitable by using advanced technology. Paradigm announced recently that it is ramping up for what it calls a “Production Blitz” in the face of continued conflict in the Middle East. In this “Production Blitz” scheme, Paradigm wants to increase production quickly in the face of growing demand due to instability in oil rich conflict zones. In light of the conflict in Syria, oil supply disruptions in Libya and continued instability in Egypt, Paradigm believes oil prices will remain at above $100 per barrel for the foreseeable future and plans to capitalize on these shortages from the Middle East by bringing more wells into production and shipping oil while the prices are high.
After spending July and August doing a comprehensive survey of its oil and gas wells and assets in Texas, Louisiana, and Oklahoma, the planned production blitz will mobilize personnel and available resources. The company has 23 leases with nearly 200 wells in these three states. Most wells are ready to be worked on, since they were previously acquired by Paradigm. Vincent Vellardita, the president and CEO of Paradigm, said, “We have set one goal for theses leases, get them online and producing!” Paradigm did not give an estimate of their oil reserves or specific production expectations, but in August a Paradigm supervisor described their production in the state of Oklahoma as “booming”.
The “blitz” will work by deploying quick response teams to cover multiple lease sites, commencing in September, 2013. Within ten days of announcing the plan, Paradigm committed to having three wells online in different leases already producing revenue for the company. Most of the leases only require small repairs and maintenance to things like pumps, production lines, etc, to be fully online and do not need significant maintenance to keep them producing. A few wells will require more extensive repairs.
Paradigm’s announcement is interesting because it reminds us that the United States has a huge energy capacity and is capable of relying less on unstable Middle East oil. Towards this goal, Paradigm is not drilling new wells, but instead making existing wells more productive and therefore more profitable. The U.S. Department of Energy expects U.S. crude oil production to exceed US oil imports by October, for the first time since 1995. As conflicts and instability continue across the Middle East and North Africa, looking at home for energy solutions and earning money by exporting extra oil and gas is a solution that can save money, help the economy, and increase American security.
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