Pumping Oil In MO
The logical answers would be the Middle East, Texas, and possibly Alaska.
It takes a lot of effort to get it out of the ground, but there is oil in Missouri.
Jim Stegeman, or Uncle Jed as he's commonly known, found oil in the Missouri Ozarks, but it doesn't come out like a bubbling crude. It is black gold and it certainly is worth something.
"It's not Dallas, it's not the hillbillies... it's somewhere in between," explained Stegeman, of Colt Energy. "You have to manage your money. It's like a bank."
Jim Stegeman is Director of Geology for Colt Energy and manages an oil field pumping about 35 barrels of Missouri oil per day.
But this oil is an unexpected place. Nestled in between Kansas City's southern suburbs, you'll find Colt energy's oil field. It may look like the middle of nowhere but it's the Walton pool in Jackson County, Missouri.
A group of 40 Missouri geologists are taking a field trip to hear what Stegeman has to say.
Missouri ranks 30th out of the 31 states that produce oil. We're at the bottom of the barrel.
Jeff Jaquess is one of the geologists on the field trip, who is in charge of oil exploration in Missouri, by himself.
"There's no set law against it. We have some people who have their own gas well," said Jaquess. "We even have one guy who has his own oil well. It takes a while to fill up the tanks, but it can be done."
Jaquess says with oil reaching $90 a barrel he's seeing a lot more interest in pumping oil out of Missouri.
"It's strictly by the skin of your teeth," he said. "If you get it, great. If you don't, you've lost some money."
Jaquess and Stegeman agree, even if you find oil in Missouri, it is profitably directly tied to the price per barrel.
This field is turning a profit now.
Missouri oil is pretty thick, meaning it costs more to refine it than oil from the Middle East.
The break-even point is about $55 per barrel.
Meaning if the price is $65, $75, $85, or $95, than you can turn a profit getting oil out of Missouri.