PRODUCING OIL WELLS

Stripper well losses pace decline

Changes in state counting methods and delayed response to the big jump in crude oil prices contributed to 2000’s decline in U.S. oil wells. Time ran out in 2000 before enough wells came into production to counteract the downward spiral of recent years. Numbers from state agencies and World Oil estimates for unresponsive states indicate producing wells fell 2.3%, or 12,407 wells.

Texas was almost a clean sweep in declines, except for a 0.1 % increase in District 10. Texas’ overall 5.8% decline was "helped" by a large 16.6% decline (6,483 wells) in District 8. All other districts’ losses ranged from 0.7% to 4.7%.

The other major producing states were a mixed bag of ups and downs, mainly downs. Oklahoma’s 2000 decline reflected a loss of another 393 wells. Although California had a healthy increase of 6.2 % (2,494 wells), and Louisiana a miniscule increase of 1% (272 wells), states with large numbers of low-volume producers declined: Pennsylvania, down 5.9% (950 wells); Kansas, down 1.2% (528); Ohio, down 0.2% (54); Illinois, down 20% (4,990 wells, largely due to changes in counting methods).

The notable exception was Kentucky, with a significant increase of 26.6% (6,160 wells), due to agency procedural changes. But even major revisions like this were not enough to offset the declines.

If higher crude oil prices are sustained, operators will increase drilling and look at shut-in strippers to further slow oil-well number declines.