Wednesday, May 21, 2008

What's In Your Backyard?...

Fox News reports that "It's just a drop in the global oil bucket, but an eastern Indiana man is operating an oil well in his backyard in an effort to capitalize on soaring crude prices.
Greg Losh's rig produces three barrels of crude oil a day, though he told FOX News that he hasn't started selling it yet. For now, he and his partners are keeping it in storage containers.
He declined to say how much oil they've collected in the two weeks they've been pumping.
But as oil is going for about $127 a barrel on the international market, three daily would yield just under $400 a day for Losh on the global spot market — or 1/100,000 of the daily production increase the Saudis agreed to earlier this month.
Still, in spite of those returns and the $100,000 it costs to drill a well, it's worth it to Losh considering the current price of oil...
He expects to drill four more wells soon on his property in the town of Selma about 55 miles northeast of Indianapolis.
"It's a money maker. It is paying off," Losh told FOX.
The oil is stored in a tank and transported to Ohio for sale, he said. His oil well also produces natural gas to heat his home and several others."


Debo Hobo said...

I wish I had something like that in my backyard. That will be the only way to get by on gas is to drill for it ourselves. Just like we all will need to go back to the old days and plant our own crops, eat in and make our own clothes. That's how I grew up.

tyoung said...

I am a partner on this well.