Stripper Oil Wells in Nebraska
The Interstate Oil and Gas Compact Commission (IOGCC) defines stripper wells as those wells producing 10 barrels of oil or less per day. Stripper oil wells produce marginal oil which is oil produced from wells that operate on the lower edge of profitability. Nebraska had 1,487 stripper oil wells in 2006 (0.4 percent of the nation's 422,255 stripper wells). Shown in the table below, these 1,487 stripper wells produced 1,579,404 barrels of oil or 68 percent of Nebraska's oil production. Using 2006's average wellhead oil price in Nebraska of $57.77 per barrel, without the stripper oil wells' production, an additional $91 million would have been spent on crude oil imports. While each individual well in Nebraska contributed only a small amount of oil (2.91 barrels a day, on average), combined with the rest of the nation, stripper well production was more than 335 million barrels of oil (or 17.8 percent of the total 1.9 billion barrels of oil produced in the United States) saving $20 billion on additional imports to the nation. (The nation's average wellhead oil price in 2006 was $59.69 per barrel.)
Stripper Oil Wells in Nebraska, 1970-2006
Percent of Total
Sources: "Marginal Oil and Gas: Fuel for Economic Growth." Interstate Oil and Gas Compact Commission, Oklahoma City, OK. Nebraska Energy Office, Lincoln, NE.
Notes: The number of wells is estimated for 1997. NA = no data available.
This table was updated on May 29, 2008. Typically, there is one year between updates.