PETE 411

Well Drilling
Lesson 4
Drilling Cost & Drilling Rate

Contents

The AFE
Drilling Cost and Bit Change
Factors Affecting Drilling Rate
Bit Weight, Rotary Speed
Bottom-hole Cleaning
Mud Properties, Solids Content
Hydrostatics
2

Assignments

Read:

ADE, Ch. 1 (All)

Learn: Rig Components - Definitions

HW #2.

ADE 1.12, 1.13, 1.14

Due Friday, Sept. 13, 2002

Before getting approval to drill a well the

Drilling Engineer must prepare an AFE
- a detailed cost estimate for the well
DRY
HOLE

COMPLETED

INTANGIBLE COSTS

TANGIBLE COSTS

TOTAL COST

$
4

AUTHORIZATION FOR EXPENDITURE (AFE)

EXPENDITURE

DRY HOLE

COMPLETED

(24.5 DAYS)

(32.5 DAYS)

INTANGIBLE COSTS
LOCATION PREPARATION
DRILLING RIG AND TOOLS
DRILLING FLUIDS
RENTAL EQUIPMENT
CEMENTING
SUPPORT SERVICES
TRANSPORTATION
SUPERVISION AND ADMIN.
SUB-TOTAL

30,000
298,185
113,543
77,896
49,535
152,285
70,200
23,282
814,928

65,000
366,613
116,976
133,785
54,369
275,648
83,400
30,791
1,126,581

TANGIBLE COSTS
TUBULAR EQUIPMENT
WELL HEAD EQUIPMENT
COMPLETION EQUIPMENT
SUB-TOTAL

406,101
16,864
0
422,965

846,529
156,201
15,717
1,018,447

1,237,893
1,423,577

2,145,028
2,466,782

SUB-TOTAL
+ CONTINGENCY (15% ??)

Drilling Cost vs. Time

DEPTH
ft

TD
DAYS or DOLLARS
6

Drilling Cost Analysis

The Drilling Engineer:
Recommends drilling procedures that
will safely drill and complete the well
at the lowest cost possible
Makes recommendations concerning
routine rig operations:
7

The Drilling Engineer

Examples of routine rig operations
drilling fluid treatment
pump operation
bit selection
handling problems during the
drilling process
8

The Drilling Cost Equation:

Cb Cr( tb tc tt )
Cf
D
Cf = drilling cost, $/ft

$
ft

Eq. 1.16

D = footage drilled

Cb= cost of bit, $/bit

with bit, ft/bit

Cr = fixed operating cost of rig, $/hr

tb = total rotating time, hrs
tc = total non-rotating time, hrs
tt = total trip time (round trip), hrs

Example 1.5
A recommended bit program is being prepared for
a new well using bit performance records from
nearby wells.
Drilling performance records for three bits are
shown for a thick limestone formation at 9,000 ft.
Determine which bit gives the lowest drilling cost if
the operating cost of the rig is $400/hr, the trip time
is 7 hours, and connection time is 1 minute per
connection.
10

Example 1.5 contd

Assume that each of the bits was operated at
near the minimum cost per foot attainable for
that bit.

Bit

Bit
Cost
($)

Rotating
Time
(hours)

A
B
C

800
4,900
4,500

14.8
57.7
95.8

Connection
Time
(hours)
0.1
0.4
0.5

Mean
Penetration
Rate
(ft/hr)
13.8
12.6
10.2

Which bit would you select?

11

Solution:
The cost per foot drilled for each bit type
can be computed using Eq. 1.16. For Bit
A, the cost per foot is

Cb Cr( tb tc tt )
Cf
D

$
ft

800 400(14.8 0.1 7)

Cf
$46.81/ft.
13.8(14.8)
12

Solution:
Similarly, for Bit B,

Cb Cr( tb tc tt )
Cf
D

$
ft

4,900 400(57.7 0.4 7)

Cf
$42.56 /ft.
12.6(57.7)
13

Solution, contd
Finally, for Bit C,

Cb Cr( tb tc tt )
Cf
D

$
ft

4,500 400(95.8 0.5 7)

Cf
$46.89 /ft.
10.2(95.8)
14

Solution, contd
Bit A:
Bit B:
Bit C:

$46.81 /ft
$42.56 /ft
$46.89 /ft

The lowest drilling cost was obtained

using Bit B. - Highest bit cost but intermediate bit life and ROP...
15

Drilling Costs
Tend to increase exponentially with
depth. Thus, when curve-fitting drilling
cost data, it is often convenient to
assume a relationship between total
well cost, C, and depth, D, given by

C = aebD

..(1.17)
16

Drilling Costs, contd

C = aebD

Constants a and b depend primarily on the

well location.
Shown on the next page is a least-squares
curve fit of the south Louisiana completed
well data given in Table 1.7.
Depth range of 7,500 ft to 21,000 ft.
For these data,
a = 1 X 105 dollars
b = 2 X 10-4 ft -1.
17

Fig. 1-65. Least-square curve fit of 1978 completed well

costs for wells below 7,500 ft in the south Louisiana area.
18

Penetration Rate
When major variations are not present in
the subsurface lithology, the penetration
rate usually decreases exponentially with
depth. Under these conditions, the
penetration rate can be related to depth,
D, by

dD
2.303a 2 D
Ke
,........(1.18)
dt

where K and a2 are constants.

WHY?
19

Drilling Time
The drilling time, td , required to drill to a
given depth can be obtained by separating
variables and integrating. Separating
variables gives

td

dt

2.303 a 2D

dD

Integrating and solving for td yields

1
2.303 a 2D
td
(e
1)..............(1.19)
2.303a 2K
20

Drilling Time contd

Plotting depth vs. drilling time from past
drilling operations:
A. Allows more accurate prediction of time and
cost for drilling a new well
B. Is used in evaluating new drilling
procedures (designed to reduce drilling
time to a given depth).

21

EXAMPLE - Cost per ft

t
hr

R
fph

D
ft

Total Cost
$

Cf
$/ft

5
10
20
25
30
35
40

90
80
60
50
40
30
20

475
900
1,600
1,875
2,100
2,275
2,400

36,950
47,800
69,200
79,750
90,200
100,550
110,800

77.80
53.10
43.30
42.50
43.00
44.20
46.20

These cost data are plotted below.

22

Cost per ft for one entire bit run

80
70

60
Minimum Cost
50

40
23

Economic Procedure in above Table

Can pull bit after about 25 hr. ($42.50/ft)
- the precise pulling time is not critical
Note that the cost in dollars per foot
was $43.00 after 30 hr.
Primarily applicable to tooth-type bits
where wear rate is predictable.
24

Economic Procedure in above Table

Also used with tungsten carbide insert
bits when inserts are broken or
pulled out of the matrix.
Unfortunately, wear rate with insert
bits is unpredictable.
Economically, the insert bit should be
pulled when the cost in $/ft begins to
increase.
25

Economic Procedure in Table

Bits pulled for economic reasons make
it hard to obtain wear information.
Operator might pull bit after 120 hr of
use but part of bit might get left in
hole. Recovery is very difficult. Avoid!
75% of rock bits are pulled green or
before the bit is worn out.
26

An increase in
TORQUE may
indicate that a bit
should be pulled.
Experience often
dictates when to
pull bit (footage or
hours).

27

Factors that affect Penetration Rate

Variables:

Type of Drill bit

Bit weight
Rotary speed
Bottom-hole cleaning
Mud properties

Fixed Factors:
Rock hardness
Formation pore pressure
28

Bit Selection is based on

Past bit records
Geologic predictions of lithology
Drilling costs in $/bit...
Drilling cost in $/ft

29

Bit Weight and Rotary Speed

Increasing bit weight and rotary speed
boosts drilling rate
These increases accelerate bit wear
Field tests show that drilling rate
increases more or less in direct
proportion to bit weight
30

40,000 lbf
Consider 10 hole

Drilling Rate, ft/hr

(dont overdo!!)

Bit Weight x 1,000 lb/in

31

Drilling Rate, ft/hr

Dont overdo!
Casing wear,
bit life ...

Rotary Speed, RPM

32

Drilling Rate, ft/hr

EFFECT OF BACK PRESSURE

Keep P_bit = const.= 550 psi

33

Drilling Rate, ft/hr

EFFECT OF BACK PRESSURE

0 - 5,000 psi

Hydrostatic Pressure, 1,000s of psi

34

Depth, ft

EFFECT OF DRILLING FLUID

mud vs. gas

Drilled with mud

Drilled with gas

Drilling Time, days

35

Depth, ft

EFFECT OF DRILLING FLUID

water vs. air

Rotating Time, hours

36

Relative Drilling Rate, %

Old style water course bits

37

EFFECT OF SOLIDS IN THE MUD

38

Hydrostatic Pressure Gradient

Fresh Water Pressure Gradient = 0.433
psi/ft
Density of Fresh Water
= 8.33 lb/gal
Hydrostatic Pressure (at 12,000 ft depth):
with water:

p = Gw * Depth (vertical depth)

= 0.433 psi/ft * 12,000 ft
= 5,196 psi

39

Hydrostatic Pressure
with 14 lb/gal mud:
Depth

p = GM *

Mud

* 0.433 psi/ft * Depth

8.33

Pressure 0.052 * Mud Weight * Depth

= 0.052 *14.0 *12,000
= 8,736 psig
(5,196 psi with water)
40

Hydrostatic Pressure Required

What mud weight is required to
balance a pore pressure of 10,000
psig at a vertical depth of 12,000 ft?

Pressure
Required Mud Weight
0.052 * Depth
10,000
Required Mud Weight
0.052 * 12,000

MW = 16.03 lb/gal
41