A major portion of the overall increase in U.S. onshore gas production in 2002 came from stripper wells, which produce 60,000 cubic feet of gas per day or less, according to the Interstate Oil and Gas Compact Commission (IOGCC). The IOGCC released a preview of its annual survey of these marginal oil and gas wells recently. While stripper wells collectively represent 10% of the gas produced onshore the Lower 48, they accounted for 43% of the overall increase in production during the last year, the IOGCC survey indicates. "At a time when demand for natural gas is rising, it is clear that we need look no further than our own backyard for the increase in supply our nation needs," says New Mexico Gov. Bill Richardson, IOGCC chairman-elect. Marginal gas production increased in 2002 by 64.8 billion cubic feet (Bcf) to 1.42 trillion cubic feet (Tcf). Overall domestic onshore gas production increased by 149.2 Bcf to 14.26 Tcf. Production from marginal oil wells increased in 2002 as well. A marginal oil well produces 10 barrels of oil per day or less. Marginal oil production increased by 7.7 million barrels in 2002 to 323.78 million barrels. Overall domestic onshore oil production declined, however, by 28.9 million barrels to 1.08 billion barrels. -Petroleum Finance Week
Recommended Reading
Imperial Expects TMX to Tighten Differentials, Raise Heavy Crude Prices
2024-02-06 - Imperial Oil expects the completion of the Trans Mountain Pipeline expansion to tighten WCS and WTI light and heavy oil differentials and boost its access to more lucrative markets in 2024.
US Oil Stockpiles Surge as Prices Dip, Production Remains Elevated
2024-02-14 - EIA reported crude oil stocks increased by 12.8 MMbbl as February began, far outstripping expectations.
US Leads Global Oil Production for Sixth Straight Year-EIA
2024-03-11 - The Energy Information Administration says it is unlikely that the record will be broken by another country in the near term.
Oil Dips as Demand Outlook Remains Uncertain
2024-02-20 - Oil prices fell on Feb. 20 with an uncertain outlook for global demand knocking value off crude futures contracts.
Majors Aim to Cycle-proof Oil by Chasing $30 Breakevens
2024-02-14 - Majors are shifting oilfields with favorable break-even points following deeper and more frequent boom cycles in the past decade and also reflects executives' belief that current high prices may not last.