As the prices of crude oil continues to drop, creating the lowest prices in just over a year, the situation for oil producers in the Uintah Basin isn’t good. The Utah Small Business Development Center released drilling statistics that highlight the struggle. Oil sent to Salt Lake for refinement have their oil discounted to the point that it is just below break even in pricing. There is no way of telling if the current dip in price will set a new normal or if production will be reduced to push price up. Either option is not indicative of more drilling and production. It is worth noting that Duchesne County has a slight increase in drilling with a rig count of 4, while Uintah County has declined more then half with 1 rig. Uintah County still has more permits than Duchesne County. Factors to look for, the report indicates, are middle east production, unrest in the oil producing countries of South America and any world political upheaval that would disrupt current supply.
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