Commercial Well

AAA

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).

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Farmout

    The assignment of part or all of an oil, natural gas or mineral ...
  2. Primary Recovery

    The first stage of oil and gas production, in which natural reservoir ...
  3. BP Oil Spill

    A 2010 oil spill that occurred in the Gulf of Mexico as a result ...
  4. 3P

    The total amount of reserves that a company estimates having ...
  5. Oil Field

    A tract of land used for extracting petroleum, or crude oil, ...
  6. Sweet Crude

    A type of oil that meets certain content requirements, including ...
Related Articles
  1. Active Trading

    Oil And Gas Industry Primer

    Before jumping into this hot sector, learn how these companies make their money.
  2. VelocityShares 3x Long Crude Oil ETN has the potential for huge returns, but there are several reasons why you might want to steer clear for now.
    Mutual Funds & ETFs

    A Leveraged Oil ETN For The Future (Just Not Now)

    VelocityShares 3x Long Crude Oil ETN has the potential for huge returns, but there are several reasons why you might want to steer clear for now.
  3. If you need to ship titanic volumes of sundry products across sweeping distances, nothing's better than rail, where Union Pacific is a titan.
    Stock Analysis

    How Union Pacific Makes Its Money

    If you need to ship titanic volumes of sundry products across sweeping distances, nothing's better than rail, where Union Pacific is a titan.
  4. Chart Advisor

    Commodities Set Up For A Continued Move Lower

    Commodities have been suffering since late summer, and unfortunately for the bulls it doesn’t appear that the situation is about to change anytime soon.
  5. Stock Analysis

    ConocoPhillips's Well-Oiled Profit Machine

    By focusing on upstream production and farming out subsequent links in the chain, ConocoPhillips maximizes profits in a very capital-intensive industry.
  6. Chart Advisor

    OPEC's Decision Sends Oil Stocks Lower

    OPEC’s decision to keep oil production on cruise control has led to declining prices. Here's a look at 3 oil stocks that have followed suit.
  7. A commodity is a basic good used in commerce.
    Markets

    What are Commodities?

    A commodity is a basic good used in commerce that is interchangeable with other commodities of the same type. Commonly traded commodities include gold, beef, oil, lumber and natural gas. Additional ...
  8. Chart Advisor

    Traders Fight To Push Corn Prices Higher

    With corn down some 60% since its 2012 high, a recent bounce higher was welcome. But several key resistance levels are suggesting a continued downtrend.
  9. Gasoline prices have been dropping lately after holding fairly steady for a year or so, following world oil prices.
    Personal Finance

    How Long Will Lower Energy Prices Last?

    Gasoline prices have been dropping lately after holding fairly steady for a year or so, following world oil prices.
  10. U.S. economy continues to improve, pushing U.S. stocks to another record close and suggesting that the Fed should start normalizing U.S. monetary policy.
    Economics

    Are Oil Prices Helping Or Affecting Global Economy?

    U.S. economy continues to improve, pushing U.S. stocks to another record close and suggesting that the Fed should start normalizing U.S. monetary policy.

You May Also Like

Hot Definitions
  1. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  2. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  3. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  4. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
  5. Annual Percentage Rate - APR

    The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents ...
  6. Free Carrier - FCA

    A trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. ...
Trading Center