Oil Boom In Midland? (West: apartments, home, transfer)

[SVTRay]

Originally Posted by Cowboybootnut

PS, they are not "uncapping" wells, they are drilling NEW wells. I wish people would quit using that term!

Define capping and uncapping?

Generally capping is done to old non producing wells but good producing wells was capped back when oil dropped down to 9.00 a barrel.

[Cowboybootnut]

Originally Posted by SVTRay

Define capping and uncapping?

Generally capping is done to old non producing wells but good producing wells was capped back when oil dropped down to 9.00 a barrel.

Say What?

Wells are plugged, the casing is pulled and cement is pumped in the old well-bore. Once they are plugged it is very hard to re-enter the well, place casing in the open hole, and start production.

Now, wells can be shut-in. But the operator still has to pay the mineral owners shut-in payments. And, if they are not making any income from the well, that is a losing proposition. And if they are not producing from the lease, the operator loses his rights to produce, and the rights go back to the mineral owner(s). Plus the RRC can get on the operator.

When they shut-in a well, after some time, the casing can corrode and you have a good chance of having a junky well bore. I have been in the oil field since 1978, and I have never seen/heard wells being "capped/uncapped" for any substantial time, except from the general public.

[SVTRay]

Originally Posted by Cowboybootnut

Say What?

Wells are plugged, the casing is pulled and cement is pumped in the old well-bore. Once they are plugged it is very hard to re-enter the well, place casing in the open hole, and start production.

Now, wells can be shut-in. But the operator still has to pay the mineral owners shut-in payments. And, if they are not making any income from the well, that is a losing proposition. And if they are not producing from the lease, the operator loses his rights to produce, and the rights go back to the mineral owner(s). Plus the RRC can get on the operator.

When they shut-in a well, after some time, the casing can corrode and you have a good chance of having a junky well bore. I have been in the oil field since 1978, and I have never seen/heard wells being "capped/uncapped" for any substantial time, except from the general public.

So we're possibly confusing terms with Shut in. I gnerally deal with Fracing or perforating existing wells. Anyhow, I'm talking about wells temporarily placed out of service which does happen. Now what is the time limit on these wells in terms of corrosion and ruined casing?

[internationalman]

Originally Posted by Trainwreck20

There was a good story in Tx Monthly some while back on the latest upswing:
That

I think you need to be a member to read it online, though....

Very interesting read. Again, thanks for the info.

[Cowboybootnut]

Originally Posted by SVTRay

So we're possibly confusing terms with Shut in. I gnerally deal with Fracing or perforating existing wells. Anyhow, I'm talking about wells temporarily placed out of service which does happen. Now what is the time limit on these wells in terms of corrosion and ruined casing?

It can vary from well to well. Probably the main factors are the age of the well, how much water is produce, and how salty or corrosive the water is. CO2 can be produced from some petroleum gases, and have a very corrosive affect on the casing.

I just would like the general public not to think that oil operators turn-off a well when the price of oil or gas is very low, and turn it on when the prices go up. Usually when there is a price drop, they quit drilling new wells, and live off of the income of the older producing wells, as long as they are profitable.

There are bad oil men, and good oil men. Not everyone is J R Ewing. Midland is filled with some of the best operators I've ever known. But yes, there are a couple lemons.

[internationalman]

Originally Posted by Trainwreck20

There was a good story in Tx Monthly some while back on the latest upswing:
That

I think you need to be a member to read it online, though....

Let me correct what I said. Fascinating article. Yup, there appears to be a genuine oil boom once again in Midland.

[internationalman]

Originally Posted by SVTRay

Anyhow, Both Midland and Williston are oil boom towns but the booms generally start in the Permian Basin and resonate outwards. The first oil/gas found In Williston for example was in the 1950's. The first oil well drilled in West Texas just up the road from Midland was in 1923. As for the new Sadi Arabia, that just may very well be North Dakota.

Good stuff. Thanks for the info.

[internationalman]

Originally Posted by Cowboybootnut

Yes, there is an oil boom in Midland. I am in the business and I was there last week. It is hard to get a hotel, it is hard to rent an apartment, it is hard to buy a home, it is easy to sell a home, it is hard to get employees to work at restaurants, quick-lubes, etc because they can get paid more in the oilfield.

<snip>

South Texas is hopping too, with the Eagle Ford Shale play.

PS, they are not "uncapping" wells, they are drilling NEW wells. I wish people would quit using that term!

Haha! Will do. And thank you also for the info.

Question, are workers with no experience capable of getting jobs there similar to what is happening in North Dakota?

[SVTRay]

Originally Posted by internationalman

Haha! Will do. And thank you also for the info.

Question, are workers with no experience capable of getting jobs there similar to what is happening in North Dakota?

Yes,

The hardest part of getting an oilfield job in Midland is locating a place to stay. As mentioned above, we got people living in hotels and RVs. Apartment buildings fill up as soon as a room is available or a unit is built.

[internationalman]

I think though it might be easier to be "housing challenged" in Midland than in the brutal cold of Western North Dakota.