Oil Well financial Analysis

$$$$ on a 1/4 bbl per day well.

[JakeToolson]

I have no idea why youtube recommended this video to me, nor do I understand why I actually clicked on it. Here I am, grateful to have learned so damn much on a subject I never cared about but now I'm intrigued. Thanks for the video and I'm stoked to have happened upon it.

[MarioGoatse]

The internet is so cool. I'm sitting here in Sydney Australia at 7am with a coffee, watching you educate me on your oil lease. I love it. Cheers mate! Appreciate it

[mikehamilton]

The oil business and the cattle business are both full of big money legends. Not true for the little independent operator. My dad said " all a man needs is 100 barrels of oil a day all his and he will do fine". Zach is the real deal. Nobody is getting rich. Just making a living at what he loves to so. Thanks you Zach.

[RRaucina]

Really interesting to finally see how small oil operates in the USA. Such a obscure and closed industry outside of the oil fields and families involved. Important stuff here!

[flyboy]

You are refreshing to listen to, my young friend. I have been a petroleum engineer specializing in reservoir dynamics ( go Aggies) for 38 years, and I couldn't have explained it any better than you did.

[Fundamntl_Force]

Absolutely fascinating. I'm an engineer in Canada that specializes in abandoning wells, I couldn't do yours for less then $20, 000 (to our standards). A service rig is nearly $1000 an hour now. Our standards would be to use a service rig to pull rods and tubing, set a bridge plug on tubing within 15 meters (49 feet) of the perforations, pressure test, circulate to fresh water, and cap the bridge plug with 8 meters (26 feet) of oil well cement. Then cut and cap 1 meter (3 feet) below ground level. To do multiple cement plugs like you described, that's way more here. I am absolutely fascinated by how much more favorable your economics are.

[brucewilliams]

Thanks for sharing this. Really appreciate going over the cost of plugging the wells too. The fact that you have "skin in the game" and are not willing to scrap pieces of equipment or "write off" material is what makes small business great; they are far less wasteful of capital.

[garrison]

Super Kind of you, Zach, to run through all these operating details ... the independents like you keep a lot of wheels turning! ... Thank You ...

[alexanderbordeau]

I worked for Halliburton in Kern county from 1978-86 as a cementer, sand control & in fracking. your video was very enlightening. Thank you.

[lakeguy]

reading between the lines, you're in a business with large fixed expenses and moderate variable expenses related to maintaining "things". The key to your profitability is your ability to do so many things yourself and not have to pay someone else. Of course, that's completely ignoring your costs to acquire leases.

[nitrometh]

Worked in the oilfield for a time as a pumper and salt water hauler. Great explanation. I never understood how "stripper wells" were economical but after seeing your spreadsheet and explanation makes sense. Of course, the producer is doing the math to make an economical decision. What baffled me about a well that I used to pump was a well that averaged 1/4bbl every week if I remember correctly and still was being reworked every 2 years. Great content. Keep posting.

[peterhodgkins]

Great explanations!!

Having spent a good deal of my 30s/40s in various oil patches, drilling rigs and on gas pipelines as an OEM turbomachinery vendor, I well understand the costs associated with operation/maintenance/repair of this sort of equipment. I understood the business of leases a lot less than the equipment, so between this video and other ones you've done a while back, I've gained a bunch of totally useless, but otherwise fascinating knowledge about stuff I'll never again be involved with! ;) Beats hell out of the boob tube though!! (I blew up my TV in 1968!)

Love the videos Zach. You're as real as it gets and I hope you can go on producing videos for a long time to come! Thank you as always for the time you spend on these videos!

[akefayamenay]

Thank you again for being willing to open the somewhat personal details to the public. I really appreciate that you included all the "safety margin" numbers of maintenance and taxes because those are important and so many people seem to ignore them (and then they wonder where all their money went). Sounds like you run your business in a fiscally responsibly way, which means you’ll better be able to weather the lean times.

[MericanMint]

I appreciate these pumpjack videos you are one of the only ones that make it about pumpjacks and not drilling rigs and thing like that, you go into detail I appreciate that

[lakeguy]

How much money you make is none of my business. The economics of owning individual wells is interesting to me.

[skydouglas]

Very impressive analytics of running a small oil lease. Don’t know how this video popped up for me, but now I’m a subscriber.

[MohamedEmad-hpxu]

God bless you zach.
Showing us the unsexy reality of running your own oil wells.

I 100% appreciate what you do and wish you a prosperous life and good fortune.

Cheers.

[jamesbarber]

I took a well that once that made a lot of water and a small cut of oil. 97% water saturation.
I ran a 1/2" bottom hole choke below a AD-1 tension packer, a perforated sub above the packer then a seat nipple or tubing pump above the sub.

It holds back the water. Same as perforating 1 hole in the top of the zone. I went from a skim of oil to 10 barrels per day. You may have to run a 3/8 or 1/4 inch choke in the positive choke nipple to hold fluid back.
The perforated sub gives you a annualess on the casing.

[MrRcbeltz]

Great video. It’s unfortunate that people who have never run a small business fail to grasp the dynamics of “how much do you make with that?”
There is a huge disparity in financial understanding between those folks who work for a paycheck vs. those who operate a business. It’s not how much you make, it’s how much you keep. I’m recently retired from 30 years with our small business and your explanation was a refreshing reminder of the difference between employees and entrepreneurs. Thanks for sharing. Randy

[FC-czzd]

Very fascinating. Just drove cross country from FL to CA. Saw a lot of these wells along the way. Thanks for a behind the scenes of how they operate and the gory financial details. You're a very good communicator.