WELL COST RISE RELAXED IN 1989, SURVEY SHOWS

The estimated cost per foot of drilling and equipping wells in the U.S. advanced in 1989 from the 1988 level. Costs of all U.S. drilling averaged $73.55/ft, up 4.7% from 1988, according to the Joint Association Survey on Drilling Costs. The 1988 average of $70.23/ft was up 19.6% from 1987. The 1989 sample included 26,693 wells drilled to an average depth of 4,925 ft for an average cost of $362,243/ well. That compared with the 1988 sample of 29,741 wells drilled to an average 5,051 ft for

Jan. 28, 1991

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The estimated cost per foot of drilling and equipping wells in the U.S. advanced in 1989 from the 1988 level.

Costs of all U.S. drilling averaged $73.55/ft, up 4.7% from 1988, according to the Joint Association Survey on Drilling Costs. The 1988 average of $70.23/ft was up 19.6% from 1987.

The 1989 sample included 26,693 wells drilled to an average depth of 4,925 ft for an average cost of $362,243/ well. That compared with the 1988 sample of 29,741 wells drilled to an average 5,051 ft for $354,713/well.

Examples show the year to year change in cost per foot by state or area, type well, number of wells sampled, depth category, average depth, average cost per well, and cost per foot (see table on opposite page).

The survey encompasses costs incurred for drilling and equipping wells through the Christmas tree. The survey is comprised of wells reported to the American Petroleum Institute by Petroleum Information Corp. and by operators through Sept. 7, 1990, as having been completed in calendar 1989.

Since the number of completions in any survey year is not known for several years due to the lag in reporting, API estimates the number of total completions based on historic reporting patterns.

Responses are voluntary, but a continuing effort is made to increase sample size.

The survey is sponsored by the API, Independent Petroleum Association of America, and Mid-Continent Oil & Gas Association. API makes the data available for purchase on magnetic tape or in the form of a computer listing.