NSWA Executive Director
There’s been a lot of talk lately about how the prices of oil are affecting production in the massive U.S. shale plays. While a lot of analysts disagree on how low oil prices must go before shale oil production becomes unprofitable, not too many people are talking about the mom-and-pop producers.
Stripper well producers are resilient. Many “long-timers” I know have watched fluctuations in oil prices many times, and adapted, by becoming experts in keeping costs low. You know, as well as I do, that prices will have to drop significantly and stay depressed for a prolonged period before stripper well producers cut back on production or shut-in wells. Of course, as wells go down for mechanical reasons, they might not be put back on as quickly. [more]