Gas Prices

[Finfeatherfur]

Originally Posted by Ray

A barrel of oil from one well can produce more gasoline than a barrel from another well.
It depends on the gravity of the oil. There is no set number of gallons per barrel of oil. Low gravity oil produces less products than high gravity crude. Some crudes procude nothing more than asphalt and diesel.
The refineries can produce more or gas per barrel depending on what the demand is for gasoline.
In Europe, they produce more diesel per barrel than gas per barrel. Becuase they consume more diesel over there. Same in South and Central Americal.

Where I work, we produce around 100K bbls. of oil and a little over 100 million cubic ft. of gas per day, lift cost is around $1 per barrel. The more barrels you produce, the lower the lift cost is.
Production cost is different for different wells depending on a lot of different factors. You can get an average per company or average per world production, but not every well is the same.
Smaller companies can have lower cost cause they have less overhead. However, most small companies buy old, lower producing wells because they can produce at a higher profit cause they have lower overhead than big companies.
Big companies have to support office staff all over the world. Smaller companies have to support just one office in one town in one state. Plus the big company already paid for the exploration, drilling and production facilities.

You are exactly right Ray - but I was trying to keep it simple!!! Now, we will have to explain "Downstream" - "Midstream" - "Upstream" to the peanut gallery!!!!!!! LOL!!!!