3 out of 7 oil rigs have been idled in Texas since August.

[Major Hogwash]

The mainstream news media didn't make a big deal about the price of a gallon of gasoline dropping at the pump since the end of the summer.
So, I thought I would do a little investigating into the subject on my own.
I thought now would be a good time to tell you that I talked to a guy that works for an oil company on an oil drilling rig located in Montana.
He was here for Christmas, while he was home for the holidays to visit his family.

He told me that the oil company that he works for wasn't fracking for oil in Montana, but was actually drilling for oil.
He used to work in Alaska for the past several years, but the company transferred him to Montana about 2 years ago.

However, the biggest surprise I got from talking to him was when he told me that many of the Texas oil rigs had been idled since August, before the end of the summer.
He said that on the 4th of July there were 700 oil drilling rigs in Texas that were busy pumping oil out of the ground daily, but that only 400 of them were still active by Christmas.
He said that when the price for a barrel of crude oil started dropping from around $110 dollars per barrel in July was when they started taking the oil rigs in Texas offline.

[Wellstone ruled]

1. Yes and no,

Yes,some rigs will be pulled and others will keep pumping. It's all based on the demand in a given region as well as what are the contracts and royalties to be paid on those wells. Texas oil heads to the Gulf refineries and in saying that,It's all about Cushing,Oklahoma and how much storage is available. BTW,two new Pipelines from Chicago are open or ready to open. Oil is Fungible like money and most of the Refining Capacity is either owned or controlled by Standard Oil and the Rockefellers. Still a rigged game.

[TexasProgresive]

2. Driling rigs drill they don't pump oil.

So are the drilling rigs being idled so they aren't doing new exploration or are they throttling back wells that are producing crude?

[Wellstone ruled]

4. Rig operations are tied to the supply demand.

One rig platform now days is used to drill several wells. While drilling a second or third or what ever well the previous wells are in pump operation. Not is all cases it's dependent on the underlying financing. And the number of rigs used is generally booked in advance as to the projected deposits. These rigs are not going to set up and drill dry holes and saying that,just a cut in the number of Wild Catter's.

[TexasProgresive]

5. I know that

I've lived in the oil patch most of my life. I have not worked in the petroleum industry but my life has certainly been affected by it.

My question is still are they reducing production of active wells or are they just cutting down on drilling operations?

[GitRDun]

7. I'm in the oil and gas business

I know of no wells that are "throttled back" due to pricing.

New wells may be kept choked back, but choking off / lowering production can damage reservoir. No one I know does it.

What people do is delay drilling or not drill at all. Depends on the individual situation.

What's happening now is the big expensive horizontal wells in the Bakken, Eagleford shales, Permian Basin, etc. are not getting drilled. Cost prohibitive.

So rigs get laid down because there is not as much to economically drill.

What works now is large volume, long life reserves using conventional drilling.

These big shale plays cost way too much, and their initial production depletes to as low as 10% of initial production within 18 months, e.g., you have a window to get your investment out. If you cannot get your cash out in 18 months at these prices, makes no sense to drill.

[TexasProgresive]

8. Thanks, that's what I thought

but the piece in the OP made reference to drilling rigs pumping oil. I just wish that people would know what they are talking about. A drilling rig is not a well.

[mmonk]

3. As it has always been.

[Jim Beard]

6. There seems to be confusion on terms

There are drilling rigs for drilling and exploration and the there are there are the pump jacks that actually pum the oil.

So, which is idle, drilling rigs to produce more wells or pumping jacks to bring the oil to the top of the ground or BOTH?

[Major Hogwash]

9. They are not pumping the oil out of wells that have already been drilled into.

Hope that clears up any confusion that using those terms caused.