Stripper Wells and other high cost production

[dan_s]

I just got a report from Morgan Stanley energy research team. They estimate that world-wide there is over 5 million barrels per day of current production that is sub-economic to operate at $30/bbl and could be lost if oil were to stay below that price for an extended period. I've seen estimates of 500,000 to 1,000,000 BOPD that will be lost on stripper wells just in the U.S. if oil stays under $40. - Dan

"With oil prices at ~$30/bbl, some oil production starts to become
cash loss making. We estimate this affects circa 1-3 million b/d of
current output. Still, this does not provide an immediate floor, as in
the short term shutting-in production can be even more expensive
than continuing to produce."