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managerial economics

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Some of the fields have large enough quantities of both oil and natural gas that coordination must achieved for the production of both rather than oil alone as in our examples. Will fields with both oil and gas have greater difficulties in unitization than fields with oil or gas alone?

  • managerial economics - ,

    Yes, of course. State laws being different affects this also. Consider a tract that has one production oil well. Will that tract share in the gas revenue as a unit? What if the gas well is horizontal to the field, is producing. But vertically, it is not in the oil field. Is is an "equitable" production unit for the oil pool?

    Things like this keep lawyers and lobbyists busy.

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