Pump Your Own

With the cost of oil (and gas) skyrocketing, an Indiana man has put a new twist on “pump your own” gas:

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.

Losh said 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.

That’s what you call good old fashioned American enterprise.

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9 Responses to Pump Your Own

  1. He’s trying to run stripper wells. At $100,000 per hole, the producing formation is obviously not very deep. Probably didn’t flow very heavily even when it was first tapped, and is definitely not under any pressure at all now.

    Even if the $100,000 covers both sinking the hole, and finishing it with that rocker arm pump he’s 300 days of production to break even (without transportation and storage costs). If that’s just for the hole, the economics get even worse.

    Are oil incentives that favorable? Is he just a publicity hound, or hoping to fleece someone gullible? In any event it’s not a bet that anyone makes intelligently given the very real possibility of a Democrat in The White House causing some kind of a crash in oil markets.

    (By the way, a professional producer would leave the natural gas in the hole to provide drive pressure right up until the very end.)

  2. T Young says:

    I am a partner on this well. Greg is the landowner. We the investors drilled the well, it was the large well we were looking for but it was enough to produce it. The gas is coming from another formation and has no effect on the oil production. It was a gas well that the operator drilled a few years ago, and after drilling a deeper oil well on the lease next to this one we decided to drill this gas well one the extra 300ft to check the for the oil. We have permitted the well next door to go horizontal with a coil tubing rig. It is set to move in on the lease in mid June and are permitted to go 800ft out. The well depths are 1280′ +/- I have a video on you tube of the down hole video showing the oil coming in before we shot this well. You can find links to these video’s on my web site http://www.youngoilcompany.com by the way we were called by a local TV station out of Indy for the interview and somehow AP picked it up and it all went from there. Today CBS and Inside Edition are showing up for interviews.

  3. T Young says:

    sorry was to say it was NOT as large as we were looking for

  4. Darrell Prows says:

    Maybe the gas production provides the economic justification then. With the rig already in place, going for the extra 300 feet would only add a small extra cost.

  5. T Young

    Thanks for chiming in here about your story. I hope you guys strike it big, as they say. Keep us posted.

  6. T Young says:

    Here is the down hole video from the Losh oil well. This was taken before we shot the well to increase the oil flow. I think it is a very interesting video. http://www.youtube.com/watch?v=rKBbd1Se6C0

  7. Pamela: “Shot the well” means to use small expolsive charges to penetrate the “casing” (the steel lining of the hole used to maintain physical integrity) to create more holes for the oil to seep into the space that is susceptible to being pumped.

  8. T Young

    Thanks for the video.

    And Darrell – thanks for the explantion. I know nothing about oil wells.

  9. Pamela: It’s like sticking a big needle down below the surface of the planet and popping a bubble that’s filled with oil, or natural gas, or both. The hard parts are finding the bubbles, and controlling what happens afterward.