X hits on this document

112 views

0 shares

0 downloads

0 comments

37 / 47

Marginal Wells: Fuel For Economic Growth

Conclusion

In 2006, total domestic production, including Alaska and the federal offshore areas was 1.88 billion barrels of oil and 19.38 trillion cubic feet of gas.

Marginal oil production accounted for 335 million barrels or 17.8 percent of total oil. Marginal gas production accounted for 1.71 TCF or 8.8 per- cent of total gas production. e use of RIMS II multipliers show that every dollar of marginal oil and gas production creates an additional $1.01775 of economic activity throughout the economy, and that 9.4 jobs are dependent on every $1 million of marginal oil and gas produced.

A very large portion of the current drilling in the

U.S. involves tight gas reservoirs in the Rocky Mountain region and shale gas reservoirs in the mid-continent region. We have seen an increase in marginal gas wells and should expect to see more such increases in the foreseeable future. Higher prices, while detrimental to consumers, does have the advantage of making our domestic marginal oil and gas industry more stable.

  • e cumulative impact of marginal production

over the 15 years this economic report has been prepared is summarized in Table 7 – 7.69 bil- lion barrels of oil equivalent production has been achieved from these marginal producers. e lost output of the wells abandoned during this time would have represented $11.4 billion of economic activity and almost 58,000 jobs.

1992

453,277

368.132

16,211

2.2

15.659

$416.935

$55.372

2,385

$10.443

1993

452,248

355.961

16,914

2.2

15.210

357.783

47.614

2,026

10.101

1994

442,500

339.930

17,896

2.1

16.153

359.506

48.065

2,019

10.577

1995

433,048

332.288

16,389

2.1

15.322

374.833

50.019

2,133

10.310

1996

428,842

323.468

16,674

2.1

16.452

497.243

66.086

2,829

13.688

1997

420,674

322.090

15,172

2.1

14.049

387.536

51.427

2,220

9.912

1998

406,380

316.870

13,912

2.1

11.984

216.490

28.874

1,231

5.992

1999

410,680

315.514

11,227

2.1

9.616

247.871

33.059

1,483

6.140

2000

411,629

325.947

10,718

2.2

10.122

429.997

57.505

2,333

10.618

2001

403,459

316.099

12,234

2.1

11.295

397.960

53.149

2,268

8.348

2002

402,072

323.777

13,635

2.2

13.157

468.723

62.571

2,621

10.113

2003

393,463

313.748

14,300

2.2

13.844

792.388

164.696

3,783

12.534

2004

397,362

310.922

11,977

2.1

11.305

865.535

179.932

4,028

15.879

2005

401,072

321.762

13,265

2.2

12.656

1,305.654

271.524

6,321

20.533

2006

422,255

335.312

11,738

2.2

11.142

1,359.872

283.951

6,240

22.950

TOTAL

4,921.820

212,262

197.967

$8,478.326

$1,453.844 43,919

$178.139

Avg. Daily

Lost Annual

Lost

Lost

Lost

Lost

Production

Production

Output

Earnings

Employ-

Severance

Per Well

(Million

(Million $)

(Million $)

ment

Taxes

(BOPD)

Bbls)

(Million $)

Year

No. of

Marginal

Abandon-

Marginal

Well

ments

Table 7: Marginal Wells Cumulative Imact on U.S. Economy

7.1 Oil

Wells

Production (Million Bbls)

Document info
Document views112
Page views112
Page last viewedSun Dec 04 10:28:43 UTC 2016
Pages47
Paragraphs4695
Words12318

Comments