While the city of Detroit and the surrounding areas may be having financial trouble in some areas, there is some hope on the horizon for the struggling locale. According to recent reports, the number of lease deals regarding mineral rights for property owners in metro Detroit is rising, as many drilling companies have been eyeing the area. The regulatory officials in the state say that the number of permit requests in recent years have been on the rise, particularly in the area of Southeast Michigan.
The area around Detroit has actually been able to provide a number of oil deposits. While they are not as large as deposits in some other areas might be, they are nonetheless a good option and drilling companies are starting to take notice. Most of the deposits are in relatively shallow areas, and this offers two benefits. First, because they are shallow, they tend to be quite a bit easier to spot. Second, it will help to make the drilling cheaper.
Across the state this year alone, the Office of Oil, Gas, and Minerals claim there have been 86 drilling permits granted, and 20 of them have been in the southern part of Michigan. The number will likely continue to grow throughout the remainder of 2014, which appears as though it will greatly outpace the totals from 2013.
The counties that are making up the majority of these permits include Macomb, Livingston, Washtenaw, Oakland, and Wayne. Interestingly, those counties only accounted for a mere 33 permits from 2005 to 2008. The increase in the number of permits shows there is greater interest in these areas today, and that the drilling companies believe that the potential to find more areas with oil, even moderate amounts of oil, is high. Since they are able to drill within the state, it makes it far more cost effective for those companies, so it is only natural that they would be exploring as many options as possible in the area.
It should be interesting to see just how many more permits are filed in the coming months and years, as well as just how much oil the Motor City might actually have beneath the surface.
Oil Works, Inc. is a complete drilling rig equipment manufacturer and service provider based in the Permian Basin for over 20 years. OWI’s product and service offerings include Derricks, Substructures, Drawworks, Mud Systems, Walking Systems, Power Generation, Control Systems, Iron Roughnecks and complete Rig Solutions built to API and ISO standards. OWI is also proud to offer 24/7 Service and Support.