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Strippers Suffering From Low Oil Prices
Submitted by Michael McDonald via OilPrice.com,
With Prices Below $50, what is a stripper to do?
With OPEC breaking down and any kind of coordination among its members on price cuts looking increasingly unlikely, it now appears that oil prices could remain below $50 a barrel for a year or more. As producers confront this unpleasant reality, some will finally start to significantly curtail or even shut down operations. And that is going to severely hurt an all but invisible group; strippers in the United States.
A stripper is a small operator of very old oil wells that frequently produce less than five barrels per day of oil. These wells may not seem consequential, but there are roughly 410,000 of them in the U.S. Since 2002, according to the industry association for strippers, these marginal wells have generated more than 2.9 billion barrels of oil and 18.8 Mcf of natural gas. These wells account for roughly 11.3 percent of the U.S. oil output, so they are a non-trivial source of U.S. production. Stripper-operated wells account for all of the oil production in the state of Illinois for instance.
These stripper wells are ones that are mostly likely to start shutting down over the next few months as hope for a fast rebound in oil prices finally goes out of the markets.
Stripper wells cost very little to drill, often as little as $300,000 versus millions for a conventional well. Stripper wells also don’t cost a lot to operate – perhaps $2,000 a month by some estimates, mostly for electricity and water disposal. Of course those costs will vary widely from state to state depending on local electricity and water costs. Stripper wells don’t produce enough oil to have an efficient transportation delivery system so the strippers often earn $5-$10 less than the NYMEX price after deducting transportation costs. With U.S. crude at $38 a barrel right now, the average stripper might be earning around $30 per barrel.
With average monthly costs of around $2,000, that means that a stripper has to pump at least 2.33 barrels per well per day just to break even. And that does not include the cost of capital or the cost of employees (these are more than 150,000 jobs in the stripper business across the US according to the industry association). At current prices, essentially all U.S. stripper wells are at best break-even and the majority are probably losing money.
The supply of oil may already be more constrained than many market participants realize as a result of stripper shutdowns. Once a stripper well is closed, it is often a permanent decision as reopening wells makes little economic sense given their miniscule production. At the same time, because there are over 400,000 wells across the U.S. and they are often operated by very tiny firms, there is no good way to track production from this market segment.
Stripper well shutdowns could increase significantly as 2016 gears up. The last time there was an oil price crash this severe was in the mid-1980s. In 1986, half of the country’s stripper well production was shut down as a result.
It’s unclear if the same magnitude of shutdowns will happen this time around given low interest rates and the years of high oil prices may have helped build stripper’s cash reserves (interest rates in the 1980s were significantly higher). Yet it is definitely worth keeping an eye out for signs of strippers shutting down. If they do so en masse, it could cut half-a-million barrels of production from U.S. output and help drive an oil recovery faster than many expect.
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I like oil on my strippers.
Yum
RIPS
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I have found nowhere that comes close to the stripper experience in Miami!
Tough times for those hoes in the fucking desert.
They'll have to strip down those rags... niqab or what the hell is called.
http://goo.gl/EeUp0h
Downturn of oil price is hidden benefit because Boris is hire stripper for removal of polymer contanimant from high grade multi-guage copper ore.
Watch California and Texas for this collapse. More than half of California's oil production is from strippers, similar size from Texas. Horrible days are here again!
Fuck, I thought this was another article about Greek hookers and cheese samiches.
If it's North Dakota, better not pay more than $5 for a lap dance and $5.75 for a handy.
This article turned out to be a lot harder to fap to than I expected.
Got there in the end, though.
Great Alaskan Bush Co
Ha! First place that came to mind. Worth the trip to Anchorage.
Why so many down votes for Cheech's epic pitch from one of the best cult movies ever?
"I like oil on my strippers."
That's crude.
CC for the win today
Well, what can say? Last comment was rigged.
are those patent pumps? (ducks for cover)
Stripper oil with glitter
Don't let Wilma hear you talking like that. She'll slam shut the Gates of Paradise on you.
That's OK, Betty's cuter anyway.
This should not be a problem for strippers, given that so many of them are already in the OIL CHANGING business.
"Need your oil changed, big boy? Full service?"
p.s. For those who like do price shopping and benchmarking, not that a comparable service in Athens -- where you probably get a 'Room With A View', that's nicer than in Philly, the Bronx or Detroit -- costs 4 EUR/hr (according to a recent ZH article on Greek prostitution), and they are 'Licenced to Thrill'.
I thought...nevermind.
Stripper wells, huh?
Yeah, me too, thinking was going to read how can now get two for the price of one or the like
Let me tell you..
The strippers in Illinois can’t hold a candle to the ones in Montreal.
Oh wait, I might have gotten something mixed up.
I had a religous experience in a club called "Jasons" in Windsor Canada in 1986, which imported their talent from Montreal. It was so perfect I could not find it erotic. Video of these ladies should be hung next to classical nudes in the west wing of the National Gallery of Art. Oh, if I could have had children with any of them! Maybe you die when your regrets exceed your possibilities.
You do not speak of Montreal.
Now, Chez Dianes outside of Montreal, Holy shit. Reminded me of Porky's.
pods
nothing like the old Flashdance on 52 and Broadway, no cover before 8 and $5 dances, oh and the free whores d'ouvres
click bait
For some reason, I keep missing to the left of your green arrow. repeatedly.
this article gets a 1 star rating....
You were expecting sad faced strippers who work the oil boom towns too...
C'mon, it deserves at least a 2 star rating... one for each pasty.
Or is that patsy for clicking on this link?
Standard Disclaimer: I'm so confused.
410,000 stripper wells producing 5 barrels a day is over 2 million barrels a day total. So if half of them shut down, that reduces US oil production by 1 million barrels a day. So the US will be importing 8.5 million barrels a day instead of the current 7.5 million barrels a day
Is that going to be on the quiz?
Ashley Madison probably has too-many-to-count applications.
But if you follow the deluded media, they'll tell you that the US is just a stone's throw away from being 'energy independant', and an 'exporter' of oil. Lol.
Peak Oil's subtle effect of EROEI.
Energy Returned On Energy Invested.
If it costs more than a barrel to pump a barrel, you won't pump the barrel. The price is irrevelvant.
It costs them more than a barrel of oil to produce the barrel.
Now talk about how much is in reserves. IT DON'T MATTER.
+1. Good description. This has made our entire economic system dysfunctional, too. The price of paper oil, gold, silver and everything else has nothing to do with supply and demand of the actual stuff. So there's really no knowing how much anything should cost.
Thanks.
It's really a simple concept.
What compounds it is the 'Export Land Model' (google it)
The export countries are consuming more internally(along with depletion).
For example After the north sea peaked, those countries not only weren't exporting anylonger, they were now competing for what barrels are exported by someone...
so below $35 is even worse I assume...things are getting rough in the oil patch...and about to get rougher...
muh derrick.
so the strippers wives will have to become ... strippers?
The economy is even getting so bad that strippers need to wear magnetic underwear to collect their tips...
You'd be surprised how many coins they can hold without their hands.
I once was at at stripclub where a stripper could take off the caps of our beers!
Now that was impressive!!!
Mmm, suuction!
OT: when they want ur land, they'll set fire to it. Livestock, house & all.
https://www.youtube.com/watch?v=D_iT7EPBeNk
But, the others are suffering also, of course.
http://seattlestripper.blogspot.com/2015_10_01_archive.html
Interesting woman, judging from her blog.
Her writing sounds like the rantings of a drunk hobo. You want to stick your dick in her mouth just to make her stop talking.
Partly right. She does go on. Still, interesting part of the world of people and she had a couple of good thoughts, I thought.
This is the woman I thought I had found, the one I remembered She is interesting, I think.
Would have been a more interesting blog with pictures. I'm thinking that's why most of us clicked on this bait headline.
Show us your tits, dammit!
less drilling all around
I had a meeting today with a oil & gas client, and they are hurting, but will ride this out...only because they are pretty huge. I don't see how the little guys and the companies that rely on credit will survive. It's really starting to fuck up our local economy.
Anecdotally, one of my rural neighbors stopped me as I was driving past the trailerhood the other night. I thought he might have needed help or something. Turns out he was just having a paranoid episode from meth use. Awesome.... Union electrician too. If there will be any short term growth prospects, it'll be in illegal drugs, and trailer skanks selling their ass.
Ass is one of the most recession-proof industries in history.
Prices may fluctuate, but demand never declines.
They'll have to go from dancing on poles to smoking them ... oh,,,,wait
Things are tough all over, but Tylers are confusing one dark hole for another in the headline
I seriously would not have read it, if I did not get confused #dirtyminded
ain't gonna shut it down but damn sure gonna slow it down.
haha Tyler(s)
BEST CLICKBAIT ARTICLE OF ALL TIME ON ZH
www.ViewLasVegasRealEstate.com
Click bait. Nice. There's a better class of perusers here than those reading theblaze.com.
I've always thought that Beck's Blaze was the Jerry Springer of online news hubs.
God, how I hate the "You'll never guess who said this..." paradigm...
whatever happened to Larry Drill Drill Drill Krudlow, getting drilled in a gay bar bathroom?
Several "slick" oil investors in Texas asked me to invest in a partnership that involved stripper wells. The break-even price of crude for the project cited to me at the time was above $70 per barrel (this was in the summer of 2014). I was asked to shell out an initial investment of $25,000. I politely told them to go piss up a rope. I haven't spoken with either of them in over a year. I wonder if they used a staple gun to end their misery...
Tell my wife I have to save the strippers...
That's pretty darned funny.
Single moms everywhere are breathing a collective sigh of relief, between all the suicides in the North Central, it's getting tough to finding paying customers with the crash in oil pricess
"Will strip for oil"
Learn something new about the Oil Industry every day.. now admit it.. it was legitimate news.. you just didn't get what you were expecting.
My thoughts exactly, Dragon...just a good play on words...hey, even bloggers need to have some fun, sometimes...
A+ for marketing
@ Surveyor4Pres
I have felt for a long time now that Beck is insane.
Nothing agin you, just saying.
Caught some of Beck's radio show on a long trip back from Fla. Hadn't listened to "Mr. Instant Depression" in years. Just glad my Walther 9mm was safe at home or else I might not have made it.
yeah, totally thought it would be about RICK, and their club exposure in the oil areas.
Whatever happened to the Backyard Oil tv series? Can anybody from Kentucky clue me in?
Here's a colorful blurb the Discovery Shows website:
Backyard Oil follows the fortunes of the most boot-strappin' oil men in all of Appalachia - magnate Jimmy Reliford, and his howling sidekick Mad Dog; greasy ol' polecat Coomer -- who's raking in a tidy $300K per month thanks to an oil strike in his own backyard; a bearded hillbilly named Rascal, who uses a set of brass rods to dowse for oil; and the Page Boys, a father-son team who can't help but bicker about everything...except finding that sweet, sweet crude!
Global warming / climate change fault
Aramco is turning up the dial to 11.. They will do to shale what they did in 1998 to rogue opec members.
Only Isis pulling up a chair at a hooka bar in Mecca will stop the slide . We are going to 20
already below $20 a bit NW of Mecca from what I'm hearing...not good. not good at all.
Yeah, well somebody is making money on oil.......I bought a quart of motor oil yesterday, and its still at 5 dollars a quart........
Go get a job reading the news on any local, network or cable "news" station. Hell, those news anchor chicks are looking more like strippers these days than the strippers themselves.
Oillah hoo a-kabar
(kabar == grave ; a-kabar == de-grave)
Oil demon come out of grave