Midsized domestic oil drilling companies such as Triple Diamond Energy are not the only types of companies searching for oil in the United States. Smaller oil exploration companies use a process called ‘wildcatting’ in hopes to strike oil. Recently, Kentucky has been a hub for many wildcatting projects.

In states like Kentucky, many family farmers are no longer spending time harvesting their fields. Instead, they are giving up their tractors and other equipment for oil derricks and other wildcatting gear.  As the price of oil continues to reach all new highs, the cost of running a family farm is becoming more expensive.  Instead of working the land, many Kentucky natives are returning to the mines – but not necessarily for the coal.

With the gas prices steadily rising with no end in sight, Americans are desperately searching for another forms of fuel.  Some farmers in Kentucky are hoping to strike it rich quickly by striking oil on their properties.  This might seem like a ridiculous idea to some, but the chances of Kentucky farmer striking oil are not as slim as one might think.  Current geologists believe that nearly five million barrels of oil could be hidden in old Kentucky coal mines.

The Geology of the Appalachian Range

The Appalachian Range has been heavily mined for years in order to utilize all of the minerals they contain.  The Appalachians are a prime source of iron, granite, and coal.  In addition to these minerals, oil and natural gas exist but have largely been untapped.  The reason most oil and natural gas reserves have not been tapped is because the deposits are contained in small fields that are all close to the surface.  These small oil strikes have not attracted major oil drilling companies like Triple Diamond Energy Corp or British Petroleum, but they have attracted smaller companies and individuals.

Since the strikes are so small, the equipment necessary to reach the oil reserves are more affordable to smaller companies and even a few individuals.  Since Kentucky’s oil industry has grown so depressed, there are few in the state that have the skill and experience to properly run a rig. 

Prospective Wells on Kentucky Family Farms

In order to overcome this lack of native skill, smaller oil companies who are eager to cash in on these untapped reserves have begun bringing out of state help to work the rigs while also paying high fees to farmers that allow wells to be dug on their lands.  Since the farmers are promised a large profit sharing deal in addition to initial payments, most farmers are eager to comply.

With oil prices skyrocketing around the world, the $350,000 needed to establish a new well becomes a negligible investment that is usually repaid quickly.  A healthy oil strike can often return that amount in les than one year.  In addition to the money that is earned by the oil strikes, Kentucky is benefiting from the money being added into the local economy. 

Local businesses are able to benefit from the money being spent by the small oil company, out of state employees, and newly prosperous families.  While some might frown at the idea of farmers letting the family land be turned into a small oil field, who can begrudge the entrepreneurial spirit that has become a major part of American society.