Home |
Search |
Today's Posts |
#1
posted to rec.boats
|
|||
|
|||
More economics of oil, hence fuel for our boats
In th past, it was common for 60% of oil in a reservoir to be
unrecoverable although today that figure has fallen to slightly less than 50% with horizontal drilling. However, the figure remains 60% for older wells. 20% of US oil comes from so-called "Stripper wells", wells producing less than 10 barells/day. Current regs say that if a well isnt producing for a certain length of time that it must be plugged and abandoned. If this happens, the remaining oil is lost forever because it will never be economically feasible to re-drill the well. Generally, it isnt feasible o take an older well and do horizontal drilling to produce more because the reservoir is so depleted that you would not recover your money. This means that the only way to get the oil out is to continue to pump at ever reduced rates. Often, the cost of producing the oil is so high that the operator, ussually and independent person is forced to plug and abandon rather than simply shut the well down and wait till prices go up. Clearly, what is needed is new regs that allow an operator to wait for a long time until prices rise enough to make pumping economically feasible, perhaps years. A classic case of regulation causing a loss of oil for INDEPENDENT operators ((majors rarely operate stripper wells). |
Reply |
Thread Tools | Search this Thread |
Display Modes | |
|
|
Similar Threads | ||||
Thread | Forum | |||
Master of economics | ASA | |||
Simple economics and the cost to fuel a boat.... | General | |||
Republican voodoo economics | General |