OPEC Threatens to 'Flood Market'

The Moscow Times ^ | 11/28/01 | Valeria Korchagina

[Dog Gone]

What is the economical/breakeven price of keeping the stripper wells flowing today? $12/14 bbl.

Naturally, it depends on the particular well, its location, operating costs, etc. At $12-$14 dollars, stripper wells (wells which have declined to the point where they are producing 10 barrels of crude per day or less) are very marginal.

Some states have enacted tax breaks for these wells when prices get this low, because the ad valorem and severance taxes that the operator would normally pay would make these wells immediate money-losers.

Even so, last time prices fell this low (1998), about 18,000 producing stripper wells were permanently plugged and abandoned in this country.

[biblewonk]

If OPEC claims to cut production by 1.5 M it will really only be cut by 0.5 M. I'm sure Russia is well aware of that and they don't like OPEC very much anyway. They used to ship 10 percent of the worlds oil and now it is only 7 percent. They are trying to make friends and increase their market share. OH BOY IS THIS GREAT!!!!

[WOSG]

AMEN ... some liberal dweebs want to outlaw the SUV ... let's drill Alaska instead and keep our big wagons ... when SUVs are outlawed, only outlaws will drive SUVs :-)