Marginal Well Commission
- The Commission on Marginally Producing Oil and Gas Wells was created in 1992 by the Oklahoma State Legislature.
- Marginal Well funds come from $.0035 per barrel of crude oil and $.00015 per MCF (thousand cubic feet) of natural gas produced in Oklahoma.
- The Governor appoints nine Commissioners. They are selected from the oil, natural gas and royalty owner associations, Osage County and the four districts of the Corporation Commission. The Commissioners have established standing committees and an advisory council to gain the maximum diversity in information and experience.
- The mission of the Marginal Well Commission is to define, identify, and evaluate the economic and operational factors of marginally producing oil and natural gas wells, and to ensure that appropriate efforts are made to extend the life of these wells for the betterment of the State of Oklahoma.
The Oil and Gas Industry in Oklahoma
- The state received over $1.07 billion in gross production tax dollars from crude oil and natural gas during fiscal year 2006.
- The industry directly employs 60,000 people and roughly another 246,000 jobs are impacted or supported by the industry.
- Of the 60,000 people who work directly within the industry, 53% of them are self-employed.
- The total economic impact of the oil and gas industry is 23.8 billion dollars a year.
- Oil and gas, petroleum products and pipelines combine to contribute to 7% of the gross state product (GSP) compared to 5% of the GSP coming from agriculture, farming and agriculture services.
Marginal Wells in Oklahoma
- Marginal oil or gas is produced from low-volume "stripper" wells - defined by the Interstate Oil and Gas Compact Commission as producing less than 10 barrels of oil per day or 60 MCF of gas per day or less. Oklahoma wells produce an average of 2.3 barrels of oil per day.
- Marginal or "stripper" wells produce 17.8% of the U.S. domestic oil and 78% of the production in Oklahoma. Marginal gas wells produce 9% of the U.S. domestic gas and 12% of the production in the state.
- There are 65,504 marginally producing oil and gas wells in the state out of a total of 119,255 wells that are being tracked by the Corporation Commission.