[OKIEDOC]

There are lots of costs involved with keeping a small pumping unit like that working.

In many cases the cost of lifting the oil out of the formation is more than the oil is worth.

The paperwork involved is enough to drive a drunk to AA meetings.

Only three barrels a day is a risky investment.

I wonder what his allowable is from the government?

Did he own the mineral rights?

If not he's probably going to have to pay the owner at least 12.5% of the oil taken.

Makes for a good story but if he spills any oil or salt water on the property it's Katy bar the door for the environmental hazard people and law suits from neighbors.

If all goes well he might be able to pay off the debt plus interest in a few years, that is if the formation doesn’t give out.

[norraad]

All very interesting points, if only the government helped the small producer (as the farm subs. help the farmer?).

Someone told me it's stack against the small producer right now due to years of influence by the big oil lobby ( big surprise ).

This is likely one of the many big stupid reasons we're in such a bind.

[SES1066]

Makes for a good story but if he spills any oil or salt water on the property it's Katy bar the door for the environmental hazard people and law suits from neighbors.

You got that right, follow this link to Greka Petroleum in Santa Barbera, CA, that is having problems. It is a pleasant dream to have an oil well in your back yard, but unless handled well, it is ugly and stinky as well (Boy 3 words all spelled well!)