Oil Well With Parted Rods

[theporksicle]

Can I ask whether you generally sell the oil on a spot price basis or whether most small scale oil producers have a long term supply contract?

[derekdz]

@theporksicle

It's really a mixed bag. I do spot price on a contract.

[theporksicle]

@derekdz

So does that mean you get the average monthly or the average daily WTI price irrespective of what that price may be? Is the buyer forced to take the crude off you at that price? How about stuff like the sulfur content of the actual oil a particular well produces?

Sorry for the all the questions, I just find the whole oil business interesting.

[derekdz]

@theporksicle

It's based off the monthly average for the price of crude adjusted to the specific field and gravity of oil. The sweeter the crude, the higher priced. The sour crude goes for less. The oil marketers posts the prices for crude daily on their websites.

The crude purchasers set the price on what they will buy it for, but they are all typically within $0.50 of each other.

[theporksicle]

@derekdz

Cheers, could you tell me the names of some such marketers?

[derekdz]

@theporksicle

Sunoco and Plains Marketing

[theporksicle]

@derekdz

Thanks.

[crudeoilsystems]

Nice to see how 20 bbls /day is done

[JEMCO2008]

as a kd in the 60s oil was 2.50 per bbr. if the well did not make 4bbr we shut it in.

I would love to have 3bbr per day to day

[LeadfootPTM]

Yup parted shallow, real shallow. Thats a pretty long stroke moving some water?

[derekdz]

@LeadfootPTM

Not moving to much. Around 100 bbls of total fluid a day from around 7,000'.

[geobkdon]

@derekdz what's the lowest price of an oil well i plan on getting one in future so i would like to know the price.

[derekdz]

@geobkdon

It's negotiable. You could get one for free, but theres a reason for that.

[rigbuilder7]

need to catch it with brake on a down stroke so when I rig up up on it I can set that horsehead & bridle off with my sandline before I pull rods & fish that part so we can hang it back on

[theporksicle]

How many barrels a day does it do?

[derekdz]

@theporksicle

Around 20 bbls/day.

[theporksicle]

@derekdz

Cheers for the answer. So, at current market prices its a $2,000 a day well? Can I ask what production costs are?

[derekdz]

@theporksicle

Some people can buy leases on a three to four year pay out ratio and some buy based on how much the lease makes per day. Really depends on the geographical area and how the companies like to do it. You are at the mercy of the seller and depends on how interested he is in selling it. It's worse than buying a thirty year old used car.

[ShortHose73]

sounded like a shallow part to me.

[userx100]

@ShortHose73 the polish rod doesnt even appear to be there.

[zaphodb777]

My turn for a stupid question or 4...

When this happens, can the sucker be spliced? And if so how? Explosive swedging?

Or must the whole of the sucker rod be replaced?

[derekdz]

You fish out the parted sucker rod and just replace the one joint. If other joints look bad, you can replace them too.

[DeathNote2349813]

Its old...And rusty

[bilpayne]

its not very old for a pumping unit they will last 60 years or more if not to overworked

[derekdz]

This unit was built in 1982.

[JEMCO2008]

lets go fishing

[JEMCO2008]

Thanks for the wite up.

I know that it takes an oil person to understand.

Do you still work in the oil fields?

take care, from Earl.

[albusmackinficker]

Let me be the king of dumb questions and ask, What exactly does "parted rods" mean? The sucker rods have separated from the unit inside the well? And with the weight of them "gone," that's why the counterweights are pulling back on the pumping unit? Did I get that right??

[derekdz]

Parted rods means that somewhere downhole, the rods have parted. Either that they broke in the "body" or at the rod box. The rod box is what connects two rods together. So yes, you are correct. The rods have seperated downhole.  That creates less weight on the rod side of the pumping unit resulting in the counterweights being heavier than what they need to be.

Good job! Just hope for no parted tubing because that is harder to fish out.

[albusmackinficker]

Thanks for the explanation.

[californiacrude]

must be right under the polished rod

[derekdz]

The part ended up being around 1,200 ft. down.

[BrunsAce]

I was gonna say it musta been quite shallow to be that counterweight heavy...