Cost Per Foot Equation

The cost per foot equation is used for the comparison of alternative equipment, chemicals, and procedures for the drilling of a formation or an interval. The comparisons are often called break-even calculations and are usually between drill bit types or manufacturers; however, any of the variables may be compared.

Bit + Tools + Mud + [ Drill Time + Trip + Lost ] [ Rig + Support + Tool Rental] C "" Drill Rate * Drill Time

C = Cost per foot for the interval of concern; $/ft

Bit = Cost of delivered bit at the drill site; $

Tools = Cost of tools or repairs to tools; $

Mud = Cost of mud to drill the interval; $

Drill Time = Time required to drill the interval or bit life; hr

Trip = Time to pull and rim a bit; hr

Lost = Time chargeable to non-drilling task; hr

Rig = Contract rental rate of a rig; $/hr

Support = Third party contractors rates; $/hr

Tool Rental = Rental of tools; $/hr

Drill Rate = Average drilling rate over the interval; ft/hr

In a comparison of drill bits, the drilling rate and life of the proposed bit will always be in question. The usual procedure is to compute the cost per foot with the data from a standard bit with the proposed bit; and, then construct a chart of required drilling rate and bit life for the proposed bit. The following example illustrates the method.

A study of bit data from a data base predicts that the expected values from a bit run with a tooth bit are as follows.

Tool = Stabilizer $250

Drill Time = Bit life; 33 hr

Lost = Surveying after every trip; 0.3 hr

Support = Contractor and Supervisors; $250/hr

Tool Rental = Large drill collars; 9 $/hr additional

Drill rate = 13 Mir

13*33

C = 84.72 $/ft Cost per foot for the data base tooth bit. Cost of PDC bit

The costs for a proposed PDC bit which is to be run on a bottom hole motor are the following.

Bit

= $9,283

Tool

= (1) Bottom hole motor repair charge; $1,894

(2) Two stabilizers; 2 * $250 = $500

Mud

= $2,500 ($500 additional required by the BHM)

Drill Time

= Bit life; Unknown; hr

Trip

= 7.5 hr (.5 additional horn:)

Lost

= Surveying after every trip; 0.3 hr

Rig

= 550 $/hr

Support

= Contractor and Supervisors; $250/hr

Tool Rental

= Bottom hole motor; 200 $/hr

Drill rate

= Unknown; ft/hr

_ 9283 + (1894 + 500) + 2500 + [Drill Time + 7.5 + .3][550 + 250 + 200] 84-72 ~ Drill Rate * Drill Time

Reduction of the equation yields,

A break-even chart of required drill rates versus required drill time (bit life) may be prepared with the equation.

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Responses

  • KINFE
    What would it cost drill and complete a 13,000 foot oil well in choctaw county, alabama?
    1 year ago
  • hagos
    What is the averge cost per foot to drill an oil or gas well in the United States?
    11 months ago
  • ulrich
    What is meant by Net Footage of an oil well?
    10 months ago
  • grazia
    What parameter in the cost per footage relationship in drilling is not related to bit performance?
    10 months ago
  • Tesmi Muhammed
    How expensive is OCTG casing per foot?
    5 months ago
  • ariam tesfay
    What is the cost for Concho Oil and Gas to drill an oil well?
    1 month ago
  • Flora
    How much is casing per foot in the oilfield?
    1 month ago

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