Program cuts gas well drilling/completion costs

A 2-year cost-reduction program cut East Texas gas-well drilling and completion costs by 37%. Union Pacific Resources (UPR) has implemented the lessons learned during this program in UPR branches in operating areas beyond its East Texas unit, where the company's exploit marginal acreage team (E...

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Bibliographic Details
Published in:The Oil & gas journal 1996-07, Vol.94 (27), p.120-121
Main Authors: WALKER, R.N, MARTIN, C.D
Format: Magazinearticle
Language:English
Subjects:
Applied sciences
Cement
Composite materials
Corrosion
Cost control
Cost reduction
Crude oil, natural gas and petroleum products
Drilling
Drilling methods and equipments. Rocks mechanics. Directional and horizontal drilling
Drilling. Casing. Preparing wells for production
Efficiency
Employment
Energy
Exact sciences and technology
Exploration & development expenses
Fuels
Natural gas exploration
Prospecting and production of crude oil, natural gas, oil shales and tar sands
Strategic planning
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Summary:A 2-year cost-reduction program cut East Texas gas-well drilling and completion costs by 37%. Union Pacific Resources (UPR) has implemented the lessons learned during this program in UPR branches in operating areas beyond its East Texas unit, where the company's exploit marginal acreage team (EMAT) developed its cost-cutting practices. Impetus for organizing the EMAT was strong because well-development costs in the Cotton Valley formation in East Texas dictated that a gas well have a probability of producing more than 1.0 bcf gas during its lifetime. UPR held much acreage where wells potentially could only produce between 0.5 and 1.0 bcf; therefore, if UPR could drive costs down, these marginal areas would become economically exploitable. In 1994, UPR reduced drilling and completion costs by $23 million, and adopted practices proven successful by the EMAT in all of its East Texas areas, including those in areas of traditionally higher productivity.
ISSN:0030-1388
1944-9151