What you should know about stripper wells and pricing

Journal Article · Wed Dec 01 04:00:00 EST 1976 · World Oil; (United States)

OSTI ID:7331051

Although stripper wells are increasing in number and contribution to the economy, the industry has been plagued by rapid changes in pricing regulations. Stripper wells, those producing an average of 10 barrels or less per day, represented 72 percent of producing oil wells and 13.7 percent of U.S.-produced crude and lease condensate in 1975. Following a mandatory wage-price freeze in 1971, a two-tier pricing system was adopted in 1973 by the Federal Energy Administration that separated ''new'' oil from ''old'' (that obtained from properties discovered or on production by 1972) and defined stripper oil. A rider to the Trans-Alaska Pipeline Authorization Act of 1973 extended the 10 barrel per day standard from a calendar month to a calendar year basis and deregulated prices. Prices were regulated when the Energy Policy and Conservation Act of 1975 set price ceilings, then deregulated in 1976 when the Energy Conservation and Production Act redefined stripper well leases and removed them from Federal control. Four examples of price computations indicate that the price will not elevate excessively and will be competitive with foreign oil. The examples cover situations in which (1) injector wells are used, (2) casinghead gas is transmitted by a separate system, (3) two properties, one primarily gas and the other oil, are involved, and (4) separate but adjacent reservoirs are on the same property. (DCK)

• OSTI ID: 7331051
• Journal Information: World Oil; (United States), Journal Name: World Oil; (United States) Vol. 183:7; ISSN WOOIA
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700 -- Petroleum-- Economics
Industrial
& Business Aspects
021000 -- Petroleum-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
293000 -- Energy Planning & Policy-- Policy
Legislation
& Regulation
294002* -- Energy Planning & Policy-- Petroleum
CHARGES
ECONOMICS
ENERGY SOURCES
FOSSIL FUELS
FUELS
GEOLOGIC DEPOSITS
GOVERNMENT POLICIES
INDUSTRY
INJECTION WELLS
LEASES
LEGISLATION
OIL FIELDS
OIL WELLS
PETROLEUM
PETROLEUM DEPOSITS
PETROLEUM INDUSTRY
REGULATIONS
RESOURCES
WELLS