WorldWide Drilling Resource

28 OCTOBER 2015 WorldWide Drilling Resource ® Study Shows Increased Drilling Efficiency in the U.S. Adapted from Information by the American Petroleum Institute According to a recent API (American Petroleum Institute) survey, an estimated $147.7 billion was invested in drilling approximately 45,000 U.S. oil and natural gas wells in 2013. The Joint Association Survey on Drilling Costs also indicated the number of wells declined slightly from 2012 and costs remained flat. However, the average depth and total distance drilled increased, indicating a rise in efficiency. “Even before the recent decline in oil prices, developers focused on maximizing each well, reducing the costs and surface footprint of en- ergy production,” said Hazem Arafa, API sta- tistics director. “The well count didn’t rise, but the wells are getting deeper and more efficient. As a result, the U.S. is improving its ability to remain a competitive energy superpower, creating jobs and fueling economic growth.” Although the number of new wells declined from an estimated 46,548 to 45,039, expenditures remained somewhat con- stant going from an estimated $148.9 billion in 2012, to roughly $147.7 billion in 2013. The average well depth increased from approximately 7981 feet to 8491 feet, while the total well footage from both the horizontal and vertical distance drilled, grew from an estimated 365.9 million feet to 368.1 million feet. Total footage among shale wells, about 30% of wells surveyed, in- creased to an estimated 190.9 million feet from 188.8 million feet. “The cost per foot among shale wells has declined over 43% since 2009, and that drive toward efficiency is helping U.S. energy production to stay competitive in a difficult market,” said Arafa. “Strong domestic production means savings for con- sumers, greater energy security, and more economic opportunities for workers here in the U.S.” API is a national trade association representing all facets of the oil and natural gas industry, which supports 9.8 million U.S. jobs and 8% of the U.S. economy. WWDR photo. 2",/ # / 4%,/#03())$ ',+$ 5 ),4"$+1$/ ),,- -2*- *,#2)$0 /$ 3 () !)$ %,/ !,1' /$0(#$+1( ) +# ",**$/"( ) &/,2+# ),,- '$ 1(+& +# ",,)(+& 0601$*0 ,*- 1(!)$ 4(1' 1'$0$ -2*-0 ),4"$+1$/0 " + !$ ",+ %(&2/$# 4(1' ,/ -2*- 2+(10 1, * 1"' #(% %$/$+1 ), # /$.2(/$*$+10 /,#2"10 (+")2#$ ),4"$+1$/0 7 $,1'$/* ) ),0$# ,,- (11(+&0 7 $-) "$*$+1 2*-0 7 ,0$ (10 +# ""$00,/($0 7 /( !)$ -$$# 2*-0