WASHINGTON, July 7, 2016 - Stripper wells are still strong
in number, but produced only about 10 percent of U.S. oil output last year, compared
to 19 percent in 2008, according to the Energy
Information Administration (EIA).
This decrease in share reflects the large increase of
production volume from very prolific wells drilled in shale and tight oil
formations with enhanced completion techniques, EIA says. These wells, as well
as non-shale onshore and offshore wells in Alaska, the Gulf of Mexico and other
areas, produce at a much higher rate than stripper wells, and account for a
much larger percentage of total U.S. oil production.
By the end of 2015, EIA estimates there were about 380,000
stripper oil wells operating across the U.S., compared to about 90,000
nonstripper oil wells. The wells are known as “strippers” because they are
stripping the remaining oil out of the ground, and characterized as producing
no more than 15 barrels of oil equivalent per day (boe/d) over a 12-month
period.
Although each stripper well has small individual production,
their large number ensures a significant contribution to total oil production. Plus,
these wells usually have low ongoing maintenance costs, says EIA, and
relatively low transportation costs to move their products to distribution
systems. As long as these wells are economically feasible, they are kept active
and may continue to produce for many years.
The well counts in EIA’s analysis include oil wells that may
also produce some natural gas. Wells producing less than 6,000 cubic feet of
natural gas per barrel of oil are considered oil wells, while wells producing
6,000 cubic feet or more of natural gas per barrel of oil are considered gas
wells. The EIA notes that stripper gas wells produce no more than 90,000 cubic
feet per day of natural gas over 12 months.
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