Real Estate Boom in Vernal, Utah - What You Need to Know Before...

How is the domestic oil industry changing the city of Vernal?

Vernal, a city located in Uintah County, Utah, United States, has traditionally been a small, average town with just a handful of residents. However, its fate changed with the boom of the domestic oil industry in the United States. It is estimated that there is more oil deposited under the soil of the Vernal area than in the Middle East. The United States has over 2 trillion barrels of oil in its reserves, and if utilized effectively, it could eliminate the country’s dependence on oil from the Middle East, Africa, and South America for hydrocarbons. Research indicates that more than 70 percent of U.S. oil reserves are in the Green River Formation, which spans parts of Utah, Colorado, and Wyoming. Since Uintah County is also part of the Green River Formation, large-scale oil production in this region could lead to immense growth for the city of Vernal.

Some residents have already experienced the real estate boom and other significant changes. Recent data shows that the average home price in Vernal was around $100,000 but has now increased to over $185,000. Additionally, the basic land price, which was about $40,000 per acre, has jumped to around $70,000. This demonstrates how the oil industry is reshaping the economic structure of the city.

Unfortunately, extracting oil from the Vernal, Utah, area isn't easy because the land is full of shale rock, making extraction cost more than the average sale price. The average cost of oil pumping in the Middle East is about $5 per barrel, whereas in Vernal, Utah, it can reach up to $25 per barrel, increasing costs for end users. However, if oil prices continue to rise as they have recently, there may come a time when drilling in Vernal, Utah, becomes economically viable. Major oil companies like Shell, Exxon, and Chevron-Texaco have assessed the oil deposits in this area and started heavy investments.

Although oil exploration around Vernal and in Utah began in the early 19th century, commercial production only started after 1925 when three companies—Utah-Southern Oil Company, Midwest Enterprises Company, and John Howard's Utah Oil Refining Company—began drilling in Utah. Vernal, Utah, experienced its first major oil boom in 1948. The growing oil industry has helped Vernal become a popular hotspot for those looking to invest and live in the area. As global oil prices increase, the new domestic oil industry in Vernal, Utah, will likely change perspectives for people who currently depend heavily on the Middle East and other politically unstable countries for supplying oil to the United States. Thanks to the oil boom, Vernal has been able to capitalize on its growth and improve welfare for its residents.