Paper: Routes to Lower Well Cost

Inexorable economic pressures demand that ways be found to reduce the cost of approximately $2.5 billion annually is too great a financial burden. Neither a reversal of economic tides nor dramatic new drilling techniques can be anticipated to bring sudden needed relief. Therefore, the solution must be sought through refinement and improvement of known basic practices, policies and concepts. Despite these limitations, some surprisingly large reductions probably can be achieved in the over-all cost of new wells. There needs to be a wider recognition that the drilling of wells is a joint Contractor-Operator-Service team effort. One of the most promising avenues in which to seek lower well costs is the scheduling of periodical division or regional conferences between these groups to critically examine problems, practices and policies. When conducted on a "frank talk" basis, such conferences will foster mutual cooperation and understanding, eliminate some costly practices and policies, create closer working relations, clarify responsibilities, and assure use of the most advanced hole-making skills and well programs. The overall result will be more economical operations for Contractors, Operators and Service companies. Some practices and policies in vogue today are examined for effect on over-all well costs.