Projects to Enhance Low-Cost Stripper Gas Production

James Engineering, Holditch-Reservoir Technologies to Study Ways to Prolong Life of Gas "Stripper Wells"

More than half of the onshore natural gas wells in the lower-48 states -- some 176,000 wells -- are low-volume wells called "stripper" wells. Many face plugging and abandonment. And their numbers are increasing.

Now, the Department of Energy has selected two research projects that could give new life to these wells. Both projects will develop and demonstrate low-cost software programs that could reveal ways to prolong - or perhaps increase - production from stripper gas wells.

The projects will be conducted by:

• James Engineering Inc., Marietta, Ohio. The company will develop a software guide, applicable to all geographic areas, that economically identifies production problems and suggests corrective measures, focusing on cutting labor time and costs. The product would be available on the Internet. James Engineering has partnered with Arloma Corp., Santa Barbara, California, and has access to nearly 500 wells in New Mexico, Montana, Ohio and West Virginia. Project duration: 15 months. Proposed DOE award: $103,504.

• Holditch-Reservoir Technologies Consulting Services, Pittsburgh, Pennsylvania. This firm will develop a software product that identifies possible stripper wells for revitalization based on well production and location of the problem. The software will recommend how to enhance operations and be applicable to all geographic areas. Industrial partners are Belden & Blake Corporation, North Canton, Ohio, and Range Resources Corp., Hartville, Ohio. Project duration: 24 months. Proposed DOE award: $187,000.

Stripper gas wells -- defined as those that produce 60,000 cubic feet or less of natural gas per day -- account for about 8% of natural gas produced domestically, excluding Alaska and offshore sites. Since 1993, the number of wells falling into this category has increased from 160,000 to the current number of more than 176,000.

Because of rising maintenance and production costs coupled with decreasing wellhead prices for natural gas, the number of gas wells being plugged and abandoned -- in many cases, prematurely -- is also increasing. At the same time, the United States is projected to increase its demand for natural gas by more than one-third during the next 10 years. Although gas stripper wells account for a relatively small portion of gas supply, preserving their production can be a key factor in meeting future domestic gas demands.

The department's Federal Energy Technology Center will manage these projects. The Center is the major research arm of the department's Office of Fossil Energy.

-End of TechLine-

For more information, contact:
Otis Mills, Jr., DOE Federal Energy Technology Center, 412/386-5890, e-mail: mills@fetc.doe.gov

Technical contact:
Gary Covatch, DOE Federal Energy Technology Center, 304/285-4589, e-mail gcovat@fetc.doe.gov