Why are so many pump jacks in Texas sitting still, if we have such a "gas shortage"?

Question

There are hundreds of oil pump jacks in Texas and Southern Arkansas that are still sitting sleeping since the late eighties despite the "gas shortage". To me, this doesn't make too much sense.

Answer 1

Using mechanical means to produce oil from a formation means that the reservoir pressure is such that it has declined. In order to produce the reservoir, wells were drilled everywhere and reservoirs were produced until they played out.

When that happens, the reservoir can be "shut in" and allowed to recharge. Wells are damaged as "goop" accumulates and slows production.

Enhanced oil recovery techniques have to be enacted in order to stimulate the well. This costs a great deal of money and independent producers have to solicit investors to pay up at a risk of a loss.

When the independent producer goes in and "stimulates" the well, it may come in and allow it to reproduce product. Sometimes, based on the price of oil/barrel, the payout may take a few years, and then the process will have to be repeated.

So. reservoirs that have been produced since the 80's that have mechanical assistance have probably played out and are essentially abandoned in place. If the well only produces about a barrel a day ($64 revenue) and costs more to get it to a refinery, it is a bad economic decision to produce the oil.


In the event the reservoir produces enough pressure to not require mechanical assistance, then the units will not be running.

Answer 2

The pump jacks that you see standing still are usually down for maintance or switching between cycles, or shut off becuase there is working being down on th epipeline it connects to somewhere.

Just becuase you dont see them not working, doesnt mean they are still all the time. I used to work in the oil field, repairing the pump jacks, clearing the grass around them, maintenance work etc.

Plus we dont have any shortage of oil, there is a huge reserve by florida and one by california in the gulf and ocean respectedly and they wont allow them to be drilled becuase they dont want to see the oil platforms off their beaches.
So even if we do have a shortage,you can blame those states along with others that wotn allow drilling becuase they dont want to look at the rigs. -mumbles about some people now days-

Answer 3

The well is not producing what it once was so the pump may need to run 1 to 2 hr. per day. Many are scheduled to come on at night because the electricity is cheaper.

Answer 4

no new refinerys built in twenty years because of lib and environmentalist regulations and propoganda.
alaskan pipeline only operates at 40% capacity because they can't get it refined.