This is the first time I have seen this on a Revenue Statement in 30 years. The new company is Diversified Productions, who are unreachable. Can someone shed some light on what it is Mary Gilliam
Think of skimming the fat off of the top of your pot of chicken stock!
Many operators include it in their statements. It is often done at the gathering plant and not at the wellsite.
Google AI: In the context of oil and gas operations, “skim oil” refers to oil that is produced along with wastewater during drilling or other activities, and that is not separated at the well site, but rather at a disposal site in gravity tanks, which can then be sold.
Here’s a more detailed breakdown:
- What it is:
Skim oil is a term used in the oil and gas industry to describe oil that is produced along with wastewater and is not separated at the well site.
- Where it comes from:
This oil is typically produced during drilling or other oil and gas operations, and it remains mixed with the wastewater until it reaches a disposal site.
- How it’s separated:
At the disposal site, the oil is separated from the wastewater, often using gravity tanks.
- What happens to it:
The separated oil, referred to as “skim oil,” can be sold and is a significant source of income for operators and landowners under saltwater disposal agreements.
- Other Hydrocarbon Liquids:
Other hydrocarbon liquids are sometimes recovered and may be called skim hydrocarbons or skim condensate
- Why it’s important:
Separating and recovering skim oil can be a valuable source of revenue for operators and landowners, and it can also help to reduce the environmental impact of oil and gas operations by preventing oil from being discharged into the environment.
- Oil Skimming in General:
Oil skimming is the process of removing floating oil from the surface of water using various devices and technologies, such as rotating drums, discs, belts, ropes, or floating tubes.
- Benefits of Oil Skimming:
Oil skimming is an effective and environmentally friendly option, and is cost-effective and efficient at removing oily waste from water
Most probably, the situation with “skim” as to your well is tied to the operator taking any oil / condensate that is in the water tanks on location (which will rise to the top of the water column) and is reporting that as production and selling that volume.
Basically “skimming” off this thin oil layer from the top of the water tank.
On site separation does a great job of separating water from the oil - but it is common for some small amounts of oil to remain in the water as it goes into the tanks on location.
Better that they are skimming and selling it and reporting to the mineral owners. When I was a roustabout, I heard stories of skim being stolen.
Many thanks for the replies. I have never had it with other companies. I have oil that does come out of these gas wells but always noted as oil and in greater amount.