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2014-10-25 Arabia

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Posted by Fred 2014-10-25 00:00|| || Front Page|| [2 views ] Top

#1 The disaster was not only in the financial bleeding of those oil producing states, but many of them have what was known as stripper wells that bump between 5, 000 -- 10, 000 bpd. And if such wells are closed because of the low prices, they would never be opened again.

Total bullshi*! Firstly, 5-10k bpd does not fit my definition of a stripper well. Higher oil prices result in increased production (pump jacks going up and down - new drilling, etc, supply/demand thingy) Lower oil prices can result in lower production wells not being pumped, or pumped as often. That does necessarily mean the wells are capped. Farmers also store corn and soybeans in large, galvanized bins when the prices go down.

Posted by Besoeker 2014-10-25 09:40|| 2014-10-25 09:40|| Front Page Top

#2 Don't understand the 5-10,000 bopd stripper well thing either, Besoeker. 0.5 - 10 bopd is more like it. With a million of them out there, it does add up.
We indeed can shut them in if prices get lower than the actual direct lifting costs, and often re-open them later. But not much later - lease terms require sustained production to retain the lease, and regulations require inactive wells be permanently abandoned. 90 - 180 days are common (though not universal) limits on the former and 1-3 years on the latter.

Posted by Glenmore 2014-10-25 10:59|| 2014-10-25 10:59|| Front Page Top

#3 Yes Glen, someone wants to give me a 10 bpd lease, I'll sit in the dog house reading Zane Greys and pump it myself.

Posted by Besoeker 2014-10-25 11:08|| 2014-10-25 11:08|| Front Page Top

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