PETE 411

Well Drilling

Lesson 4
Drilling Cost & Drilling Rate

1
 Contents

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

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 Assignments

Read: ADE, Ch. 1 (All)

Learn: Rig Components - Definitions

HW #2. ADE 1.12, 1.13, 1.14

Due Friday, Sept. 13, 2002

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Before getting approval to drill a well the
Drilling Engineer must prepare an AFE
- a detailed cost estimate for the well

DRY COMPLETED
HOLE
INTANGIBLE COSTS $ $
TANGIBLE COSTS $ $
TOTAL COST $ $

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 AUTHORIZATION FOR EXPENDITURE (AFE)
EXPENDITURE DRY HOLE COMPLETED
(24.5 DAYS) (32.5 DAYS)

INTANGIBLE COSTS
LOCATION PREPARATION 30,000 65,000
DRILLING RIG AND TOOLS 298,185 366,613
DRILLING FLUIDS 113,543 116,976
RENTAL EQUIPMENT 77,896 133,785
CEMENTING 49,535 54,369
SUPPORT SERVICES 152,285 275,648
TRANSPORTATION 70,200 83,400
SUPERVISION AND ADMIN. 23,282 30,791
SUB-TOTAL 814,928 1,126,581
TANGIBLE COSTS
TUBULAR EQUIPMENT 406,101 846,529
WELL HEAD EQUIPMENT 16,864 156,201
COMPLETION EQUIPMENT 0 15,717
SUB-TOTAL 422,965 1,018,447

SUB-TOTAL 1,237,893 2,145,028

+ CONTINGENCY (15% ??) 1,423,577 2,466,782
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 Drilling Cost vs. Time

DEPTH
ft

TD

DAYS or DOLLARS
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 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:

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 The Drilling Engineer

Examples of routine rig operations

 drilling fluid treatment

 pump operation

 bit selection

 handling problems during the

drilling process
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 The Drilling Cost Equation:

Cb  Cr( tb  tc  tt ) $
Cf  Eq. 1.16
D ft

Cf = drilling cost, $/ft 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
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 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 $400/hr, the trip time
is 7 hours, and connection time is 1 minute per
connection.
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 Example 1.5 cont’d
Assume that each of the bits was operated at
near the minimum cost per foot attainable for
that bit.
Mean
Bit Rotating Connection Penetration
Cost Time Time Rate
Bit ($) (hours) (hours) (ft/hr)
A 800 14.8 0.1 13.8
B 4,900 57.7 0.4 12.6
C 4,500 95.8 0.5 10.2

Which bit would you select?

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 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)
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 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)

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 Solution, cont’d

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)
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 Solution, cont’d

Bit A: $46.81 /ft

Bit B: $42.56 /ft
Bit C: $46.89 /ft

The lowest drilling cost was obtained

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

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 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)

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 Drilling Costs, cont’d 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.
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 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
WHY?
where K and a2 are constants.
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 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 D
K dt   e 2.303 a 2D
dD
0 0
Integrating and solving for td yields

1
td  (e2.303 a2D  1)......... .....( 1.19)
2.303a2K
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 Drilling Time cont’d

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).

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 EXAMPLE - Cost per ft
t R D Total Cost Cf
hr fph ft $ $/ft

5 90 475 36,950 77.80

10 80 900 47,800 53.10
20 60 1,600 69,200 43.30
25 50 1,875 79,750 42.50
30 40 2,100 90,200 43.00
35 30 2,275 100,550 44.20
40 20 2,400 110,800 46.20

These cost data are plotted below.

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Cost per ft for one entire bit run
80

70

60
Minimum Cost

50

40
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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.
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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.
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 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.

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 An increase in
TORQUE may
indicate that a bit
should be pulled.

Experience often
dictates when to
pull bit (footage or
hours).

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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
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 Bit Selection is based on

 Past bit records

 Geologic predictions of lithology

 Drilling costs in $/bit...

 Drilling cost in $/ft

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 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

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 40,000 lbf
Consider 10” hole

(don’t overdo!!)

Bit Weight x 1,000 lb/in 31

Don’t overdo!
Casing wear,
bit life ...

Rotary Speed, RPM 32

EFFECT OF BACK PRESSURE
Keep P_bit = const.= 550 psi

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 EFFECT OF BACK PRESSURE
0 - 5,000 psi

Hydrostatic Pressure, 1,000’s of psi 34

 EFFECT OF DRILLING FLUID
mud vs. gas

Drilled with mud

Drilled with gas

Drilling Time, days 35

 EFFECT OF DRILLING FLUID
water vs. air

Rotating Time, hours 36

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Old style water course bits
EFFECT OF SOLIDS IN THE MUD

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 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
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 Hydrostatic Pressure
with 14 lb/gal mud: p = GM * Depth

 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)
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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
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