Drilling costs averaged 25.3% lower in and off the U.S. in 1992 despite an increase in average depth from 1991, according to the 1992 joint Association Survey on Drilling Costs.
"The decline in drilling and equipping costs parallels the sharp dropoff in the number of wells drilled-the nation's lowest level in almost 50 years," concluded the survey, sponsored by the American Petroleum Institute, Independent Petroleum Association of America, and Mid-Continent Oil & Gas Association.
Total expenditures were estimated at $8.566 billion in 1992, down 25.3% from 1991 spending. The table on the next page lists key data on selected areas.
Costs in the U.S. in 1992 averaged $70.27/ft for all wells, including dry holes, offshore and on land. Average depth for all wells was 5,445 ft, 6.817, deeper than in 1991. The average well cost $382,607. The full survey is available from API on paper or magnetic tape.
API also tracked the effect of price change alone on the JAS drilling expenditures by numerically holding constant the differences in depth, type, and general location of wells drilled, with 1984 as the base year.
Adjusted costs for 1992 wells, compared with 1991 adjusted costs, were 8.7% lower than 1991 for all wells and 14.6% lower per foot, 8.9% lower for all onshore wells and 22% lower per foot, and 13.3% lower for all offshore wells and 20.3% lower per foot.
The survey lists, by depth range, the cost of drilling and equipping wells through the wellhead, tank battery, or plugging.
Copyright 1994 Oil & Gas Journal. All Rights Reserved.
