ABSTRACT
Exploratory drilling declined in the region during 1988, both in numbers of wells and in average depth per well. The bright spot was Nevada, where exploration for oil in Tertiary volcaniclastics and in Paleozoic rocks continued strong.
The number of development wells increased nearly 50% from 1987, due to a boom in drilling for coalbed methane in the San Juan basin. Average depth of a development well was reduced because of the large numbers of relatively shallow wells drilled for methane.
Oil production continued to fall during 1988, and gas output nearly equaled that of 1987.
The boom in coalbed methane drilling will continue through 1990 or the end of tax advantages. Oil drilling will continue to slide as long as OPEC is able to maintain a benchmark price close to $18.00/bbl.
