Horizontal drilling costs in the U.S. fell 12.6% in 1992 from 1991 as horizontal drilling activity leveled off, says the joint Association Survey on Drilling Costs.
The average cost per foot for horizontal wells was $87.57/ft, versus $68.62/ft for wells not drilled horizontally in 1992.
The JAS also showed that drilling costs for coalbed methane wells completed as producing gas wells averaged $91.69/ft.
About 98% of the coalbed methane wells were drilled to 200 5,000 ft. They averaged $89.68/ft, compared with the $49.95/ft for all other gas wells drilled at the same depth range.
The JAS, compiled by the American Petroleum Institute, Independent Petroleum Association of America, and Mid Continent Oil & Gas Association, is available from API on paper and magnetic tape. Data on horizontal drilling and coalbed methane are available starting in 1990.
HORIZONTAL DRILLING
The average distance drilled for all horizontal wells in 1992 10,476 ft-was twice as far as the average for wells not drilled horizontally 5,215 ft.
The average cost per foot for horizontal oil wells was $87.77/ft, and the average footage drilled was 11,151 ft.
API noted that about 34% of all wells completed in 1992 were gas, but only about 4% of the the horizontal wells were gas wells. The average footage drilled for the 41 horizontal gas wells was 12,444 ft; the average cost per foot was $112.11.
Horizontal dry holes had an average footage drilled of 8,147 ft and an average cost per foot of $80.32, which was 20% higher than the $66.94/ft for dry holes not drilled horizontally. The average footage drilled for dry holes not drilled horizontally was 5,158 ft.
Cretaceous Austin chalk fields in Texas accounted for nearly 80% of U.S. horizontal wells drilled in 1992. Texas District 3, containing Giddings oil field, was the site of more than twice as many horizontal wells that year as Texas District 1, containing Pearsall oil field.
COALBED METHANE
The JAS showed that coalbed methane drilling activity fell 55.4% from 1991 to 1992's 740 wells 602 of which were completed costing an estimated $175.3 million.
Alabama had 34.4% of the U.S. coalbed methane wells drilled during 1992. Coalbed gas drilling in West New Mexico fell 55.1% from 1991 but still represented 58% of the gas completions.
Colorado had 97 coalbed methane completions in 1992, Virginia 65, and Wyoming 33.
The survey did not cite reasons for the higher cost of coalbed methane wells, but these can variously be attributed to higher drilling, completion, and water handling costs.
Copyright 1994 Oil & Gas Journal. All Rights Reserved.
