Shallow gas, oil wells increase

Costs in 1984 for domestic oil and gas well drilling reversed 1983's downward trend. Oil well drilling costs increased by a low of 2.7% for 10,000-ft wells in south Louisiana to a high of 32.4% for 2,500-ft wells in the Mid-Continent area. Gas well drilling cost changes for 1984 ranges from a small decrease of 0.5% for 15,000- and 17,500-ft wells in the Southeastern area to an increase of 29.2% for 3,750-ft wells in the Mid-Continent area. This is the conclusion of two articles summarizing the recently published Energy Information Administration's (EIA) Indexes and Estimates of Domestic Well Drilling Costs, 1983 and 1984. Part 1 last week (OGJ, Dec. 24, p. 39) reviewed the premises and procedures of the study's projections and presented a composite of all domestic drilling costs. This article breaks out data for oil and gas well drilling costs for 13 regions. Data on dry well costs, a third focus of the study, may be found in the complete EIA report available at U.S. Government bookstores or from the National Energy Information Center (EIA, Forrestal Bldg., Rm 1F-048, Washington, DC 20585, cost $4.50). The EIA made its study compatible with the approach of the Joint Association Surveymore » (JAS) by breaking down drilling costs by depth classifications and areas. The information here covers the period and areas of the 1984 JAS to be completed in early 1986.« less