U. S. industry scores further efficiency gains

This paper reports that cost control remains the central tenet of exploration and development in the U.S. Price declines for crude oil and natural gas since 1985 have slashed the amount of funds available for upstream investment and forced the industry to accomplish more with fewer wells, rigs, and...

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Bibliographic Details
Published in:The Oil & gas journal 1992-06, Vol.90:25
Main Author: Beck, R.J.
Format: Magazinearticle
Language:English
Subjects:
02 PETROLEUM
020200 > Petroleum-- Reserves, Geology, & Exploration
020700 > Petroleum-- Economics, Industrial, & Business Aspects
294003 > Energy Planning & Policy-- Natural Gas
COST
DEVELOPED COUNTRIES
DRILLING EQUIPMENT
DRILLING RIGS
ECONOMIC ANALYSIS
ECONOMICS
ENERGY PLANNING, POLICY AND ECONOMY
EXPLORATION
GEOLOGIC DEPOSITS
GEOPHYSICAL SURVEYS
INVESTMENT
MINERAL RESOURCES
MINIMIZATION
NORTH AMERICA
OIL FIELDS
OIL WELLS
PETROLEUM DEPOSITS
PLANNING
RESOURCE DEVELOPMENT
RESOURCES
SEISMIC SURVEYS
SURVEYS
THREE-DIMENSIONAL CALCULATIONS
USA
WELLS 294002 > Energy Planning & Policy-- Petroleum
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Summary:This paper reports that cost control remains the central tenet of exploration and development in the U.S. Price declines for crude oil and natural gas since 1985 have slashed the amount of funds available for upstream investment and forced the industry to accomplish more with fewer wells, rigs, and dollars. Producers now drill only the best prospects. They employ sophisticated exploration technologies such as remote sensing and 3D seismic surveys to reduce chances for drilling dry holes. They use equally sophisticated technologies to reduce drilling and production costs. Results of the efficiency push appear in several broad measurements used by Oil and Gas Journal. In short, during the last half of the 1980s U.S. production and reserves additions haven't declined by nearly as much as have drilling activity and upstream spending. That translates into diminishing costs per barrel for reserves acquisitions and production. OGJ examined the trend last year by applying industry per-well and per-foot drilling costs estimates to data for reserves additions, excluding revisions, for 1970-89.
ISSN:0030-1388