1

PETE 411
Well Drilling
Lesson 4
Drilling Cost & Drilling Rate
2
Contents
The AFE
Drilling Cost and Bit Change
Factors Affecting Drilling Rate
Bit Weight, Rotary Speed
Bottom-hole Cleaning
Mud Properties, Solids Content
Hydrostatics
3
HW #2. ADE 1.12, 1.13, 1.14
Due Friday, Sept. 13, 2002
Read: ADE, Ch. 1 (All)

Learn: Rig Components - Definitions
Assignments
4
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 $ $
5
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
6
Drilling Cost vs. Time
DEPTH
ft
DAYS or DOLLARS
TD
7

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:
8
The Drilling Engineer
Examples of routine rig operations

drilling fluid treatment

pump operation

bit selection

handling problems during the
drilling process
9
The Drilling Cost Equation:
C
f
= drilling cost, $/ft
C
b
= cost of bit, $/bit
C
r
= fixed operating cost of rig, $/hr
t
b
= total rotating time, hrs
t
c
= total non-rotating time, hrs
t
t
= total trip time (round trip), hrs
D A
ft
$
D
) t t t ( C C
C
t c b r b
f
A
=
+ + +
Eq. 1.16
= footage drilled
with bit, ft/bit
10
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 $400/hr, the trip time
is 7 hours, and connection time is 1 minute per
connection.
11
Assume that each of the bits was operated at
near the minimum cost per foot attainable for
that bit.
Mean
Bit Rotating Connection Penetration
Cost Time Time Rate
Bit ($) (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
Example 1.5 contd
Which bit would you select?
12
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





/ft. 81 . 46 $
) 8 . 14 ( 8 . 13
) 7 1 . 0 8 . 14 ( 400 800
Cf =
+ + +
=
ft
$
D
) t t t ( C C
C
t c b r b
f
A
=
+ + +
13
Solution:
Similarly, for Bit B,
/ft. 56 . 42 $
) 7 . 57 ( 6 . 12
) 7 4 . 0 7 . 57 ( 400 900 , 4
Cf =
+ + +
=
ft
$
D
) t t t ( C C
C
t c b r b
f
A
=
+ + +
14
Solution, contd
Finally, for Bit C,





/ft. 89 . 46 $
) 8 . 95 ( 2 . 10
) 7 5 . 0 8 . 95 ( 400 500 , 4
Cf =
+ + +
=
ft
$
D
) t t t ( C C
C
t c b r b
f
A
=
+ + +
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Solution, contd
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...

16
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 = ae
bD
..(1.17)
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Drilling Costs, contd

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 10
5
dollars
b = 2 X 10
-4
ft
-1
.
C = ae
bD
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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.
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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


where K and a
2
are constants.
) 18 . 1 ,........( Ke
dt
dD
D a 303 . 2
2

=
WHY?
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Drilling Time
The drilling time, t
d
, required to drill to a
given depth can be obtained by separating
variables and integrating. Separating
variables gives



dD e dt K
D a 303 . 2
D
0
t
0
2
d
} = }
Integrating and solving for t
d
yields
) 19 . 1 .....( )......... 1 e (
K a 303 . 2
1
t
D a 303 . 2
2
d
2
=
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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).
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EXAMPLE - Cost per ft
t R D Total Cost C
f

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

Minimum Cost
80
70
60
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
Type of Drill bit
Bit weight
Rotary speed
Bottom-hole cleaning
Mud properties


Rock hardness
Formation pore pressure
Variables:
Fixed Factors:
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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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Consider 10 hole

(dont overdo!!)
Bit Weight x 1,000 lb/in
40,000 lbf
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Rotary Speed, RPM
Dont overdo!
Casing wear,
bit life ...
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EFFECT OF BACK PRESSURE
Keep AP_bit = const.= 550 psi
34 Hydrostatic Pressure, 1,000s of psi
EFFECT OF BACK PRESSURE
0 - 5,000 psi
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Drilling Time, days
Drilled with gas
Drilled with mud
EFFECT OF DRILLING FLUID
mud vs. gas
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Rotating Time, hours
EFFECT OF DRILLING FLUID
water vs. air
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Old style water course bits
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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 = G
w
* 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 = G
M
* Depth
Depth * psi/ft 433 . 0 *
8.33
Mud
|
.
|

\
|

=

Depth * Weight Mud * 0.052 Pressure =
= 0.052 *14.0 *12,000
= 8,736 psig
(5,196 psi with water)
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Hydrostatic Pressure Required
Depth * 0.052
Pressure
Weight Mud Required =
What mud weight is required to
balance a pore pressure of 10,000 psig
at a vertical depth of 12,000 ft?
12,000 * 0.052
10,000
Weight Mud Required =
MW = 16.03 lb/gal