By OGJ editors
HOUSTON, Aug. 18 -- A significant portion of the increase in US onshore natural gas production in 2002 came from stripper wells, the Interstate Oil and Gas Compact Commission (IOGCC) reported.
IOGCC previewed its annual survey of marginal oil and natural gas wells at the National Governors Association meeting in Indianapolis Monday.
"At a time when demand for natural gas is rising, it is clear that we need look no further than our own backyard for the increase in supply our nation needs," said New Mexico Gov. Bill Richardson, IOGCC chairman-elect.
Marginal wells, which produce 60 mcfd or less, represent 10% of the gas produced onshore in the Lower 48. But these wells accounted for 43% of the overall rise in natural gas production last year, the IOGCC survey showed.
Marginal natural gas production increased in 2002 by 64.76 bcf to 1.4 tcf. Overall domestic onshore natural gas production increased by 149.2 bcf to 14.2 tcf, the IOGCC report said.
Marginal oil wells, each of which produces 10 b/d or less, also produced more last year. Marginal oil production increased by 7.7 million bbl to 323.8 million bbl. Overall US onshore oil production declined by 28.9 million bbl to 1 billion bbl for 2002.
"Research is the key to the survival of marginal wells. However, these small, independent producers do not have the means to conduct their own research," Richardson said. He called upon Congress to commit to increased funding levels.
The complete survey of marginal oil and natural gas wells will be released in the 2003 edition of "Marginal Oil and Gas: Fuel for Economic Growth," to be released in late August.
The IOGCC represents the governors of 30 oil and gas producing states. Seven states are associate members, and the IOGCC international program has seven affiliates.