Published May 19, 2008
SELMA, Ind. – It's just a drop in the global oil bucket, but an eastern Indiana man is operating an oil well in his backyard in an effort to capitalize on soaring crude prices.
Greg Losh's rig produces three barrels of crude oil a day, though he told FOX News that he hasn't started selling it yet. For now, he and his partners are keeping it in storage containers.
He declined to say how much oil they've collected in the two weeks they've been pumping.
But as oil is going for about $127 a barrel on the international market, three daily would yield just under $400 a day for Losh on the global spot market — or 1/100,000 of the daily production increase the Saudis agreed to earlier this month.
Still, in spite of those returns and the $100,000 it costs to drill a well, it's worth it to Losh considering the current price of oil, he told WISH-TV in Indianapolis.
The oil his well produces comes from the Trenton field that fueled the growth of east-central Indiana cities more than a century ago, he told the station.
He expects to drill four more wells soon on his property in the town of Selma about 55 miles northeast of Indianapolis.
"It's a money maker. It is paying off," Losh told FOX.
The oil is stored in a tank and transported to Ohio for sale, he said. His oil well also produces natural gas to heat his home and several others.
The Associated Press contributed to this report.