IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v35y2010i8p3399-3416.html
   My bibliography  Save this article

Economic limit of field production in Louisiana

Author

Listed:
  • Kaiser, Mark J.

Abstract

When the operating cost of a well is equal to its income from production, the well is no longer considered an asset and is said to have reached its economic limit. The purpose of this paper is to quantify the economic limit of hydrocarbon field production in Louisiana. We classify 690 fields that terminated production between 1977 and 2007 by product type, location, and year of termination and compute production and adjusted gross revenue near the end of their life cycle. During the last year of production, average oil field revenues varied from $35,000 in North Louisiana to $101,000 in South Louisiana to $227,000 in state waters; gas field revenue thresholds ranged from $57,000 (North Louisiana) to $402,000 (South Louisiana) to $936,000 (offshore). Economic limit statistics are summarized and correlations with price and field size are reviewed. The limitations of the analysis and constraints on interpretation are discussed.

Suggested Citation

  • Kaiser, Mark J., 2010. "Economic limit of field production in Louisiana," Energy, Elsevier, vol. 35(8), pages 3399-3416.
    • Handle: RePEc:eee:energy:v:35:y:2010:i:8:p:3399-3416
    DOI: 10.1016/j.energy.2010.04.032
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544210002392
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2010.04.032?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kaiser, Mark J., 2006. "Hydrocarbon production cost functions in the Gulf of Mexico," Energy, Elsevier, vol. 31(12), pages 1726-1747.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Keqiang Guo & Baosheng Zhang & Kjell Aleklett & Mikael Höök, 2016. "Production Patterns of Eagle Ford Shale Gas: Decline Curve Analysis Using 1084 Wells," Sustainability, MDPI, vol. 8(10), pages 1-13, September.
    2. Pastor, Daniel J. & Ewing, Bradley T., 2022. "Exploding DUCs? Identifying periods of mild explosivity in the time series behavior of drilled but uncompleted wells," Energy, Elsevier, vol. 254(PB).
    3. Ewing, Bradley T. & Malik, Farooq, 2017. "Modelling asymmetric volatility in oil prices under structural breaks," Energy Economics, Elsevier, vol. 63(C), pages 227-233.
    4. Kaiser, Mark J., 2012. "Profitability assessment of Haynesville shale gas wells," Energy, Elsevier, vol. 38(1), pages 315-330.
    5. Kaiser, Mark J., 2012. "Modeling the horizontal well severance tax exemption in Louisiana," Energy, Elsevier, vol. 40(1), pages 410-427.
    6. Kaiser, Mark J., 2011. "Economic limit of Outer Continental Shelf Gulf of Mexico structure production," Applied Energy, Elsevier, vol. 88(7), pages 2490-2508, July.
    7. Ewing, Bradley T. & Thompson, Mark A., 2016. "The role of reserves and production in the market capitalization of oil and gas companies," Energy Policy, Elsevier, vol. 98(C), pages 576-581.
    8. Apergis, Nicholas & Ewing, Bradley T. & Payne, James E., 2016. "A time series analysis of oil production, rig count and crude oil price: Evidence from six U.S. oil producing regions," Energy, Elsevier, vol. 97(C), pages 339-349.
    9. Apergis, Nicholas & Ewing, Bradley T. & Payne, James E., 2021. "The asymmetric relationship of oil prices and production on drilling rig trajectory," Resources Policy, Elsevier, vol. 71(C).
    10. Zhao, Xu & Luo, Dongkun & Xia, Liangyu, 2012. "Modelling optimal production rate with contract effects for international oil development projects," Energy, Elsevier, vol. 45(1), pages 662-668.
    11. Yuan, Jiehui & Luo, Dongkun & Feng, Lianyong, 2015. "A review of the technical and economic evaluation techniques for shale gas development," Applied Energy, Elsevier, vol. 148(C), pages 49-65.
    12. Kaiser, Mark J. & Yu, Yunke, 2010. "Economic limit of field production in Texas," Applied Energy, Elsevier, vol. 87(10), pages 3235-3254, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhao, Xu & Luo, Dongkun & Xia, Liangyu, 2012. "Modelling optimal production rate with contract effects for international oil development projects," Energy, Elsevier, vol. 45(1), pages 662-668.
    2. Luo, Dongkun & Zhao, Xu, 2012. "Modeling the operating costs for petroleum exploration and development projects," Energy, Elsevier, vol. 40(1), pages 189-195.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:35:y:2010:i:8:p:3399-3416. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.