OUTLOOK 2006: United States
Producing oil wells

High oil prices keep older wells pumping

The number of US producing oil wells continued its downward path. The count is off 0.7% at the end of 2005 to 506,057 wells from 2004’s 509,797 well count, as reported by state agencies and estimated by World Oil. The US dropped 3,740 net producing wells, led by California, which lost over 3,000 wells.

Seven states – Texas, Oklahoma, California, Kansas, Ohio, New Mexico, and Louisiana – have the largest number of producing wells. They hold 72% of the US producing well count.

Texas continues with the largest well count at 149,300, down 2,353 wells, a 1.6% reduction from last year’s 151,653 well count. District 1 felt the largest reduction, off 2,871 wells, while District 7B expanded its number of producing wells to 11,147. Districts 4, 5, 6 and 9 had net reductions, with District 5 taking the second largest drop at 316 wells. Districts 2, 3, 7C, 8, 8A and 10 were net gainers. District 8A had the second largest net increase of 225 producing wells.

Strong oil prices continue to keep low-output wells online. The second largest well count is found in Oklahoma, where its 82,533 wells are 1.5% lower than last year’s 83,750 figure.

Kansas’ well count was essentially flat at 40,446 wells. The slight 28 well drop compared to last year will be easily overcome by new drilling in the coming year. Ohio is in a similar situation. It was able to keep its producer up at 28,954, or 13 wells greater than 2004’s number.

New Mexico is one state where active drilling is pushing up the well count. In 2005, the state had 28,579 wells online, a 1,190 well increase or 4.3% over last year’s figure.

In the south-central US, Louisiana also showed an increase in producers to 21,962 wells, a 10% increase from 2004. Most of this increase was in North Louisiana, which enjoyed a 1,542-well increase.

Readers will note the lack of information on flowing and artificial lift. Because of the lack of specific information from many state agencies, World Oil was unable to make reasonable estimates of flowing wells and those on artificial lift. We will make an effort to update these items in coming months. 

Estimated US wells producing oil at the end of 2005 Click image for enlarged view