2114Re: Petroleum Question
- Jul 30, 2003I don't think the chart you referenced is a good support point for
your argument. That chart takes into account the hundreds of very
small, very shallow wells in north central Texas which do not cost $2
million to develop. I'm a big fan of renewable energy. But, if it's
so financially sound, as you propose, why the heck isn't there giant
funding checks heading their way. Even the big oil tycoons aren't in
that business because they love oil. They are in it for the
profits. Explain to me how, with your simple calculation, you can
recognize this incredible profit opportunity and the top financial
analyst miss it?
--- In firstname.lastname@example.org, "Roxanne Boyer" <rox1@a...> wrote:
> I've been looking up information about oil and gas wells and I
think I found some information, but I don't know the reliability of
the sources. I would appreciate it if anyone knowledgable in the
subject could confirm or update what I have found.
> 1) Developing a new gas or oil well in the US costs about $2million
to $10million. Costs include geo analysis, drilling and setting well
head. Off shore on more expensive end. (This seems high to me).
General trend is offshore and deeper, thus more expensive with time.
> 2) The average US oil well produces about 20 barrels per day (range
from 2 to 1000).
> 3) The average US gas well produces about 150 thousand CF per day
(26 oil equivalent barrels per day).
> 4) The average US oil or gas well produces for about 5 years (?).
> 5) There are about 7,000 new wells drilled per year with only 30%
dry (years 2000 to 2002).
> Something seems wrong with those facts because the pay back would
be $2million/(20bl/day*$25/bl*365day/yr) = 10 years. Hardly a
> Where I am going with this is that 20 bl/day is 1,400 kW. A wind
turbine producing the same energy as the average oil well has an
investment cost of about $1 million, 100% success, and will last 20
years. People would get a better return on their investment if they
would stop investing in oil wells and start investing in wind
turbines. Before I make this arguement, I want to make sure I have
my facts straight. Any insight would be appreciated.
> Chris Boyer
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