Stripper well
- Also known as
- marginal well, low-volume well
A stripper well, or marginal well, is an oil or gas well producing at very low rates near the end of its economic life. In the United States the term commonly means an oil well producing 15 barrels of oil equivalent per day or less, or a gas well producing 90 thousand cubic feet per day or less.
What is a stripper well?
Most oil and gas wells decline over time as reservoir pressure falls. Many continue producing for decades at low rates. Once a well’s output falls to a small daily volume, it is classed as a stripper well, or marginal well. U.S. agencies and industry groups commonly use thresholds of 15 barrels of oil equivalent per day for oil wells and 90 thousand cubic feet (Mcf) per day for gas wells.
Why stripper wells matter
- Numbers. Stripper wells make up a large share of producing U.S. wells, although each produces little.
- Collective output. Together they contribute a meaningful volume of domestic oil and gas.
- Economics. Because revenue per well is small, stripper wells are sensitive to prices and lease operating expenses. When prices fall, many are shut in or plugged.
- Resource conservation. Once a well is plugged and abandoned, the remaining oil it could have produced is often not recovered.
Common challenges
Stripper wells are typically old wells in mature conventional reservoirs, and they commonly face:
- High water production, reflected in high water cut and water-oil ratio.
- Paraffin, scale and corrosion, which raise maintenance costs.
- Aging equipment and frequent workovers.
Treatments that lower operating costs or restore some production can extend a stripper well’s economic life.
Frequently asked questions
The name refers to wells that are “stripping” the last oil from a reservoir late in its life.
Many are, particularly when operating costs are low and prices are favorable, but their margins are thin.
Sources
- Stripper wells and marginal well production, U.S. Energy Information Administration (EIA)
- Marginal Wells: Fuel for Economic Growth, Interstate Oil and Gas Compact Commission (IOGCC)