Commercial Well

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DEFINITION of 'Commercial Well'

Any oil or gas drilling site that produces enough oil or gas so as to be commercially viable. All wells that investors are willing to put money into are considered to be commercial wells. Sites with non-producing wells fall outside this category, as do sites with only one or two wells (unless their production is extremely high on a consistent basis).

BREAKING DOWN 'Commercial Well'

Limited partnerships typically will syndicate a share of a commercial well. As well, owners of working interests and those who receive royalties also invest in commercial wells. Investment interest in viable commercial wells is often high, due to their inherent profitability.

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    The oil sands of Canada are some of the most expensive crude oil assets in the world to produce. Each asset type, such as ... Read Full Answer >>
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    The quoted, or spot, price of West Texas Intermediate, or WTI, crude oil is just one of several benchmark oil prices. The ... Read Full Answer >>
  5. How do the average costs compare for the different types of oil drilling rigs?

    Average costs vary widely between different types of oil rigs, starting at around $20 million and ranging as high as close ... Read Full Answer >>
  6. How long does it take an oil and gas producer to go from drilling to production?

    Depending on the depth of drilling required and the type of drilling method used, a standard oil well can commonly advance ... Read Full Answer >>

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