Oklahoma Marginal Well

Commission

Presented by Executive Director

James M. Revard

What is the Marginal Well

Commission?

• In 1992, the Oklahoma Legislature created the Commission on Marginally Producing Oil and Gas Wells. Senate Bill 684, now Title 52 O.S. Section 700.

• Marginal oil or gas is produced from low-volume “stripper” wells – defined by the IOGCC as producing less than 10 barrels of oil or 60,000 cubic feet of gas per day.

• The Marginal Well Commission is the only organization of its kind in the nation.

• Funded by a voluntary fee of $.0035 on each barrel of crude oil produced in the state and $.00015 of every 10,000 cubic feet of natural gas produced. Requests for refunds can be made during the first 3 months of the calendar year. Last year, less than 1% of the budget was refunded.

What is the Marginal Well

Commission? (Cont.)

• Mission Statement:

The mission of the Commission on Marginally Producing

Oil and Gas Wells is to serve the Governor, Legislators,

oil and gas industry and public by defining, identifying,

and evaluating the economic and operational factors that

affect marginally producing oil and gas wells, and to

assure that appropriate efforts are made to extend the

life of these wells so energy can be economically

provided to all citizens of the State of Oklahoma

What does the Marginal Well

Commission do to help?

• Research and collect information on the number,

location and operational conditions of marginally

producing oil and gas wells in the state

• Propose legislation, regulatory and operational remedies

that will extend the life of the marginally producing well

What does the Marginal Well

Commission do to help? (Cont.)

• Provides information: • Workshops – held throughout the state to provide

operators with information on new technology and

other issues that affect them

• Trade Expo – brings the operator and service

sectors face to face

Website

www.marginalwells.com

History Workbooks & Videos

Purpose Surveys & Reports

Quick Facts Feedback

Opportunities & Involvement Library

Commissioners Contractor’s Page

Contact Staff Lease Sales

Events Pumper’s Manual

Regulations & Environment Equipment Sales

Speaker’s Bureau Stolen Equipment

Newsletters Links

Online Store Orphaned Wells List

Studies

FY1994 Survey of Marginal Oil Wells State of Oklahoma

FY1996 Survey of Oklahoma Oil & Gas Leases

FY1996 Well Cost Analysis

FY1996 Impact of Oil & Gas Production & Drilling on the Oklahoma Economy

FY1996 Localized Impacts of Oil & Gas Production & Drilling Activity in Oklahoma

FY1999 The Osage Environmental Audit

FY2000 Electricity Usage among Oklahoma Oil and Gas Producers

FY2002 The Local Impact of Oil & Gas Production and Drilling in Oklahoma

FY2002 The Economic Impact of Oil & Gas Production & Drilling on the Oklahoma Economy

FY2005 Impact of Refineries on Crude Oil Production & Pricing in Oklahoma

FY2007 The Local Impact of Oil & Gas Production and Drilling in Oklahoma

FY2007 The Economic Impact of Oil & Gas Production & Drilling on the Oklahoma Economy

FY2007 A Demographic and Economic Profile of Oklahoma’s

Marginal Oil and Gas Well Operators

FY2009 Breakeven Analysis

Why are marginal wells important?

• Marginal or “stripper” wells produce 17% of the U.S. domestic oil and 65% of the production in Oklahoma

• Marginal gas wells produce 9% of the U.S. domestic gas and 10% of the production in Oklahoma

• Oklahoma’s 80,000 active oil wells produce nearly 61 million barrels of oil that the United States would otherwise have to import each year.

Why is the industry important to

Oklahoma?

• Gross Production Tax Revenues

• $ Over 1 billion in fiscal year 2010 for oil

and natural gas

Why is the industry important to

Oklahoma? (Cont.)

• Jobs • 100,000+ direct jobs

• 300,000+ impacted or supported

• Economic Impact • $6.20 Billion in labor income

Pumper’s Friend®

• Bringing State-of-the-Art Technology to

your Oil Field

Smartphone Solutions for Small

Producers

• While major oil producers can deploy expensive automated well monitoring systems, small producers largely work from paper forms and worksheets filled out by well tenders on a daily basis. The Pumper’s Friend® iPhone app was designed to create a cost-effective, user-friendly software system to support field operations.

Smartphone Benefits to You

• Accurate Data

• Data Communication

• Data History

• Efficiency

• Safety

Pumper’s Friend® Software

Organization

• Headquarters

• Wells

• Tanks

• Send Data

• Help

Headquarters

• Contact Information at your Fingertips

Wells

• Well List & Gauges Data

Well Gauges

• Gauge List for each Well

• Data & Plot Option

Data Plot

• Historical Data Plot

• Zoom & Pan

Tanks

• Tank List & Level Data

• Data & Plot Modes

Tanks

• Data History/Plot

Send Data

• Communicate Data to Office

Data Received

• Plot Data from

Spreadsheet