JERRY L. WOOD
ENERGY REGULATIONS
PROF. GARY AHRENS
AND PROSPECTS
ASSOCIATED WITH THE DEVELOPMENT AND PRODUCTION
PROBL~1S
OF DEEP GAS \fELLS
The development of deep gas wells is rapidly becoming a major
factor in the United States new energy frontier.
In order to se-
cure and insure future energy independence, further development
of these deep, high-cost, natural gas wells is essential.
The
untapped reserves of natural gas located in these deep pockets
are estimated to
co~tain
enough gas to hike
by thirty-three (J~J,~rcent.
u.s.
proven reserves
Their development could insure
that natural gas would continue to provide a quarter {25,%) of
u.s.
energy and would carry the load until the arrival in the middle
to late 1980's of gas from Alaska and, possibly, gas from coa1. 1
The problem is the physical difficulty of bringing the gas from
these remote areas to the principal consuming markets.
Until very
recently it was not economically practical to produce natural gas
from wells at a depth of 10,000 feet or more.
The cost of pro-
ducing these wells is tremendous and the price of natural gas,
produced at any depth, was regulated by the Federal Energy Regu~atorJ
Commission (FERC).
The price ceilings imposed by FERC pre-
vented producers from obtaining a sufficient return on their investment, which is substantially greater when compared with the
costs of drilling shallow wells.
Significant changes have occurred
in the regulatory area of deep gas wells and this paper will examine the problems and prospects associated with producing natural
~s
from the great depths of the earth.
~
The statutory definition of deep gas wells can be found in the
Natural Gas Policy Act of 1978 (NGPA) 2 which became law on November 9, 19?8.
Section 10?-{c) of the NGPA uses purely physical
criteria to provide a definition of high-cost natural gas.
The statutory definition is as follows:
10?-(c) DEFINITION OF HIGH-COST NATURAL GAS-For the purposes of this section, the term "high-cost natural
gas" means natural gas determined ••• to be(1) produced from any well the surface drilling
of which began on or after February 19, 19??, if such
production is from a completion location which is located at a depth of more than 15,000 feet;
(2) produced from geopressurized brine;
§
(J) occluded natural gas produced from coal seams;
(4) produced from Devonian shale; and
(5) produced under such conditions as the Commission
determines to present extraordinary risks or costs. J
The NGPA. definition of high-cost gas was
formulated
so as to
·< ..
-·
provide incentives in the form of higher price ceilings to producers who extract natural gas from remote and difficult physical
areas thereby incurring extraordinarily high risks and/or costs.
Obviously the NGPA provided these incentives to encourage the
further development and exploration of deep gas.
The depth of 15,000
feet became the statutory minimum in order for a well to be classified as "deep".
There is a presumption that ga.s produced from
wells at depths less than 15,000 feet
is not high-cost gas unless
it falls within one of the other subsections of section 10? of the
NGPA.
Subsections (2), (J), and (4) of section 10? are self ex-
planatory, however subsection (5) is vague and within the exclusive discretion of the Commission.
The problem is to define what
is meant by "such other conditions as the Commission determines to
present extraordinary risks of costs".
2
0{)) .,.·.0('",_,
I
~
I
The following have been
considered as examples of high-cost gas produced under conditions
which present extraordinary
rlsks or
~osts a
gas from wells appro-
ching the 15,000 foot level, .i.e. gas produced from a well at a
depth of 14,950 feet; gas produced from acre~ submerged under more
than 500 feet of water; gas produced from marginal gas wells producing more than a de minimis amount of crude oil; and gas produced from sediments of low permeability. 4
Ultradeep natural gas wells are defined by the gas industry
as those which have been drilled to depths of 20,000 feet or deeper.
There were 81 such wells completed in 1980.5 The deepest hole
ever drilled was to a depth of 31,441 feet in 1974, while the deepest
producing gas well was completed at a depth of 26,566 feet in 1977. 6
In order to understand how deep these wells are, one must put them
in the proper perspective.
Thirty thousand feet is approximately
five and two-thirds miles, and that is about 1,000 feet deeper than
Mount Everest is high.
Downhole operating temperatures of wells
in excess of 15,000 feet are over 400 degrees Fahrenheit. 7 It is
difficult to imagine producing natural gas at these depths, however as long as there is available technology and a national and
world-wide demand, gas will continue to
~
produced at record depths
because of the seemingly unlimited supply.
Deep drilling has only just begun in the United States.
the oil and natural gas the
u.s.
All
has produced since 1859. in the
122 years of the oil age, have come from only two (~) percent of
the available sediments. 8 Ninety-eight (9a%) percent of the prospective sediments are as yet untouched by drilling.
Areas of that
two (2.%) percent from which shallow wells have been producing for
122 years, previously given up as depleted, are now locations of
new production from greater depths. 9 These older basins have produced shallow wells and wait only for deeper drilling
tjt,'/1)
to~as much
oil and gas as has been produced in the U.S. since 1859. 10neep gas
wells tend to be superwells, many able to produce as much as 5 to
6 billion cubic feet of gas a year or the equivalent of one million
barrels of oi1. 11 Three such areas which have produced and are
still producing tremendous amounts of natural gas from shallow
wells are now the hottest spots in the nation for deep gas wells.
These older basins are known as:
the Tuscaloosa Trend in Louisiana
extending from just north of New Orleans 200 miles across Louisiana
all the way to Texas; the Deep Anadarko Basin of Oklahoma and parts
of the Texas panhandle; and the west Texas Permian Basin.
All three
of these areas have been extensively explored, drilled, and developed for their oil and gas reserves, however their deeper zones
are only now being actively produced.
The conservative Potential
'
Gas Committee at the Colorado School of Mines has estimated that
as much as 65 trillion cubic feet of gas may lie in just these three
zones. 12
The Tuscaloosa Trend is thirty-five miles wide and encompasses
southern Louisiana and part of Texas.
It has a repository of natur-
al gas located at the 16,000 to 20,000 foot level or perhaps deeper. 13
Local geologi~ts speculate that the Tuscaloosa contains as much as
27 trillion cu~c feet of gas as probable reserves. 14 More important is the geological structure of the sub-surface land.
OI~'P.~
\J -. ·,,.'. '
The normal
train of thought in the oil and gas industry is that porosity and
permeability of the sub-surface structure decreases with greater
depth, however the Tuscaloosa appears to be an exception to the
rule.
15
~
This is because4the Tuscaloosa sands ranging in depth
from 1?,000 to
22,000~feet.
These sands are comparable to the
East Texas Woodbine sands in terms of porosity and permeability. 16
The Tuscaloosa sands average twenty-eight
(2~)
porosity and around
200-mud permeability. 17These are extremely good reservoir characteristics at depths in excess of 1?,000 feet. 18 There were 304
deep wells drilled in Louisiana's Tuscaloosa Trend in 1980. 19 Of
20
these, 6J were drilled offshore.
The total number of deep wells
drilled in the Tuscaloosa accounted for approximately thirty-five
(35%)
u.s.
percent of the entire number of deep gas wells drilled in the
last year.
21
Another area of recently explored deep gas is in the Deep Anadarko Basin of Oklahoma..
Only seven deep wells from this basin
Can produce the energy equivalent of
2~,000 barrels of oil per day,
the output of an average nuclear power plant,
22
Geologists concur
that the Deep Anadarko is relatively unexplored but holds the potential for an abundance of natural gas. 23
Up to three (J) trillion
cu~c
feet have already been discovered and many explorationists
24
feel that the final total might be 100 times that amount,
The
Potential Gas Committee of the Colorado School of Mines estimates
...
the Deep Anadarko to hold nine (9) trillion cubic feet as probable,
and another 40 trillion cubic feet as possible. 2 5 In 1980 there
were 145 deep gas wells drilled in the Anadarko, 26
The Permian Basin of west Texas was one of the forerunners in
As
the development of deep gas wells.
early as 19?9 there existed
some 200 deep wells in the basin. 27Texas, the second leading deep
well state,,drilled 186 deep holes in 1980 and of these 10 were
drilled offshore. 28
u.s.
All totaled the number of deep wells drilled in the
during
1980 was 859. 29The number of deep wells drilled since 1978 is 2080
and of these 1619 were drilled in the states of Louisiana, Texas,
and Oklahoma.
The success ratio for deep wells drilled in 1980
was over fifty
(50%)
percent and deep well footage was up
seven (J7%) percent. JO
t~irty­
In spi te.:~dSf the expansion in this field deep
drilling accounted for only 1.)% percent of the total number of
all u.s. wells drilled,3 1 Obviously then the total number of wells
drilled below 15,000 feet is relatively small.
So why with all these
·potential reserves and available technology are producers just beginning to develop these fields.
The answer is very simple.
THEY
:
COST TOO DAMN MUCH t ! f
Deep drilling is much more costly than shallow wells in terms
of drilling time and capital investment.
dramatically with greater depths, in
~act
Drilling costs escalate
costs double with every
2,800 feet drilled.J2 This is a geometrical increase.
in east Texas
~
For example,
hole drilled 2,800 feet might cost approximately
forty-two thQtlsand ( $/f2·, 000.00) dollars.
However a hole six times
as deep, or 16,800 feet, would not cost a mere six times as much,
but rather 6) times as much.
A difference between $252,000.00 dol-
lars and $2,500,000.00 dollars.JJ
., .
()e -· .. . I . ;:. ~ .
)
_
Deep drilling gas producers certainly paid the price in 1980
.
to complete their wells. The- total cost
of u.s. deep drilling
was just under four (4) billion dollars for 1980.34 Previously it
had taken the oil and gas industry some 40 years to reach the one
billion dollar level of spending for deep gas.35 Spending increased seventy-five (7S%) percent from 1979, and although the number of wells increased by some thirty-eight (38.%) percent, the
cost per well also rose by twenty-six (26%) percent.3 6In 1980,
deep wells cost an avera@e of four and one/half million ($4,56o,OOO.OO) apiece to drill and complete.37 Deep wells being drilled
to depths of 16,000 to 20,000 feet are sometimes costing as much
~
38
as five (5) to eight (8) million dollars.
In 1979 deep wells
drilled in the Tuscaloosa Trend cost an average of five and one/
half million and deep wells in the Anadarko Basin were being completed for three to four million dollars apice.39 Average costs
per shallow well run anywhere from 200 to 500 thousand dollars depending on where it is drilled,
Shallow wells can be completed in
as little as two months and in some instances in less time than
that.
Deep wells on the other hand require at least six months to
drill and a tremendous amount of equipment and manpower.
It is
no wonder thatalthough deep wells account for less than two
(2%)
percent of the wells drilled, they account for five (5%) percent
40
of the total amount of gas well footage.
Most deep wells use more than
ten times as
~uch
material as used in shallow wells.
this material is casing, cement,mud,etc.
expenses multiply.
Included in
Its easy to see how the
As stated earlier the incentive has not been great enough to
make many of these deeper weiis a good risk.
However the Natural
Gas Policy Act of 1978 turned a poor risk into a calculated one.
Pre NGPA producers were sometimes forced to sell their gas at
17 to 20 cents per thousand cubic feet, regardless-of whether
the gas has come from shallow or deep wells.
41 .,,':
Because of the price
ceilings imposed 0y FERC most producers would exhaust their deep
well reserves before being able to recoup their several million
dollar investment.
Therefore it really didn't matter how much
gas was found at these lower depths because producers were not going
to develop them if they couldlnot at least break even.
The NGPA
first provided incentives in the form of higher ceiling prices for
natural gas produced from high-cost wells.
Though criticised for
its complexity, the NGPA was really simple; the newer the gas supply, or the greater the difficulty or risk getting it, the higher
the price of the gas the Act allowed. 42
Secondly, on November 9,
1979, exactly one year after the NGPA became law, deep gas was
completely deregulated. 4J
'
The immediate effect of deregulation was increased drilling
and and production of deep wells throughout the United States.
Operators scrambled to the three fields previously mentioned and
have steadily increased production from deep wells since deregulaThe number of deep wells increased by forty (4Wfu) percent
.
44-· ,.
in 1980.
Likewise the number of deep well operators in 1980
tion.
increased by 31 to a total of 159 in 1980 as compared with 128 in
1979.
45
With the advent of deregulation there soon began contract
prices for deep natural gas -in exces~ of three ($3.00) dollars
46 Because of the new prices for the gas,
per thousand cubic feet.
the expenses incurred in producing this gas is now worth the risk
so as to justify the gamble.
Immediately prior to decontrol, po-
tential buyers of deep gas were· signing contracts calling for a
purchase price in excess of four
($~.00)
dollars per thousand cubic
feet. 47
Competition for deep gas was particularly stiff in the
48
Tuscaloosa Trend.
In early 1980 the first contracts were signed
for prices of deep gas exceeding six ($6.00) dollars per thousand
cubic feet. 49 Since deregulation producers have shown their ability to tap unproven reserves provided there is an opportunity to
recoup the investment and of course, make a profit.
It is also interesting to note that deep well producers are
·offsetting or attempting to offset their costs by producing any
gas they might find above the 15,000 foot level.
.
regulated but can still be sold in that market.
This gas is still
It requires the
operator to plug back and complete the shallow well before continuing with the deep hole.5° Here the producer is actually drilling
through regulated gas to get to unregulated gas.
The shallow well
is completed with the hope that the gas produced from it will
cover the costs of the deep hole. 51 The development of the shallow
well is merely "gravy" for the producer in as much as he will be
able to recoup his investment through deregulation anyway.
In conclusion it should be noted that the future of the gas
industry in the United States lies in -the potential development
of deep gas wells.
The United States is not a nation exhausted
of its energy resources however the development of these resources
are tied to the free enterprise system.
Energy producers will
not tap available reserves unless there is the opportunity to
make a dollar.
The area of deep gas wells has shown that where
government steps out of the
industry,short~s
can be done away
with when the industry is allowed to compete in an open market.
10
FOOTNOTES
1. Flanigan, James, "The Deep-Gas Explosion", Forbes, 30 April
1~9. p. 66.
2.
Pub. L. No. 95-621, 92 ·stat. 3350.
3. _!!!.
4.
Note, Regulatory Opportunity and Statutory Ambiguity in the Search
for High-Cost Natural Gas, 57 Tex. L. Rev. 641, 649 (1979).
5. McNally, R. and Ellis, M. J. , .. Deep Wells, Costs at Record Levels
in 1980", Petroleum Engineer International (PEI), March 1981,
p.
21.
6. M!· at 22.
7.
Pankonien, Laura J., "The Tuscaloosa--Operators scramble to tap deep
gas in South Louisiana.", World Oil, September 1979, p. 55.
8.
ADDRESS BY L. FRANK PITTS, President of Pitts Energy Group, TO THE
AMERICAN GAS ASSOCIATION,
9.
18
1981. p. 4.
June
-Id.
10. g. at 6.
11.
~upra.
12.
-Id.
n. 1.
1J. g.
14. Supra. n. ?, at 58.
15. g. at 92.
16. -Id. at 56.
17.
-Id.
18.
Id.
..
')
19. Supra. n. 5,
20.
21.
-Id.
Id.
-
OO'R"
11-··'fv
I
4.
,,
j
22.
Supra. n. 8, at ?.
2).
Crow, Patrick, "Higher Gas Prl.ces Seen as Deep Anadarko Spark",
Oil and Gas Journal. 23 April 1979, p. 21.
24. .!§_.
25. g.
26. Supra. n. 5.
2?.
Sup~.
n. 1.
28. Supra. n. 5.
29.
Id.
)0.
Id.
)1.
Id.
)2.
Supra. n. 8, at ?.
JJ.
-Id.
)4. Supra. n. 5.
J5.
Id.
)6.
-Id.
J?.
-Id.
)8. Supra. n. 8, at ?.
)9. Supra.. n. 1, at 6?.
40. Supra. n. 5.
41. Supra. n. 1, at 6?.
42.
-Id.
4J. Jg. at 66.
44.
Supra. n. 5. •.
45.
Id. at 22.
12
00:\!r'\.;
'
-·
~'"
.
46. Supra. n. ?. at 62.
4?. Clock, Greg, "Pacts take form as deep-gas decontrol nears", Oil
and Gas Journal, 29 October 19?9, p. 88.
48.
M·
49.
Note, 11 Ffee Market Gas Prices in U.S.", Oil and Gas Journal, 7 April
1980.
so.
Supra, n.
2J.
51. Id.
13
oo--~~~~.
tiJ
..
u.
ca
0
GAS. PRICE
FORECAST
80
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forecast
1
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:h
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--------
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84
-
83
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82
85
103 o:Vel~&eni-----:;97971980ft;;:ast
---------
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"\ o 2.
·. .
~~ ::~·~·~=~-·-J··~~----1----===~t-------~~~~~~
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'
~/.·
.
9.0.--
7 .0
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c
o-I.!J• 6 .0
.
40
3.0
-··>,
2.0
79
~--·-HIGH ------LOW
'
ii
'"'
Deep Wells
.......,
., IIIII of
Yur
1931
1144
1145
1146
1147
1141
1149
1150
1951
1152
1153
1154
1155
1956
1957
1958
1959
1960
1961
1162
1163
1964
1965
1966
1967
1968
1869
1970
1971
1972
1973
197.C
1975
1976
19n
1978
1979
1110
. .,IIUOI
1
1
3
1
I
7
11
I
12
25
25
.
5I
155
115
197
228
242
243
254
271
308
330
38ea
402
406
389
381
417
506
506
~6
410
439
476
604
821
••
...... ......... ...... ...... ...,.,. ...,...
Welle completed 15,000 n end
....,
!Qior·
TillI
f'ld•nn
1
1
3
1
I
I
I
2
5
17
14
30
13
77
114
138
142
134
14
74
96
141
117
130
142
150
116
168
149
230
213
220
191
186
233
306
248
=tdln
a3
All rage
NalwtH
1
D
D
1
1
2
I
3
I
•
20
31
43
78
n
100
111
138
153
130
128
150
158
149
192
194 .
208
189
210
290
272
258
190
255
233
. 288
279
-
belo~
by yoe,.. of comphttlon
Will
.mm
Mnlll
--
Z22
111
303
111
111
116
138
159
117
17
II
19
79
71
II
I 2.C.OOO
21.000
14.000
13.000
54,000
61.000
75,000
12.000
116,000
122,000
121,000
107,000
13,000
11.000
13
13
52
51
51
71
81.8
65
53.8
53.7
10.3
43.6
37.7
3&.9
37
32.8
30.4
29.2
29.7
11.1
81,000
12,000
17,246
15,507
10,160
14,007
90,375
100.305
101,529
117,674
146,049
103,507
122,067
168,426
197,279
214,275
221,490
253.082
414,000
~tla,eu
I 570,000 I 35.87
551,000
34.34
534,000
32.52
557,000
31.72
527.000
33.56
549,000
34.n
729,000
44.71
151,000
40.17
40.09
149.000
42.11
113.000
743,000
41.25
43.18
192.000
150,000
40.48
875,000
42.50
114,000
31.07
654,000
31.00
42 .85
196.000
39.33
653.256
810,784
31.50
727,996
42.20
45 .29
762.676
52.13
119.991
166,349
50.19
57.87
199.~3
149,959
54.81
919,484
54.21
1,107,059
83.58
1,.C56,522
84.08
1,901,017 109.60
2,112,509 121 .ga
2.205,954 127.58
2.5n.21& 150.60
3,599.000 208.68
a.,UD,OIO 1211.47
In reconla
Till I
flllltt
1/well
15,00..
15,278
13,410
15,452
127,121
112,329
110,631
71.565
111.864
318.850
402,838
112.021
1,517,001
2,510,050
2.117,841
3,171.762
3.660.857
3,158.&22
3,818,324
4,414,300
4,401,363
5,115,938
5,522.541
1,693,785
1.769.371
1.831.232
8,619,216
1,579,670
7,227.444
8,513.278
1,810,918
7,726 ,058
7,098,330
7,603 .041
8,230.040
10,299.285
10.709.S..4
14,715,410
15,170
15,111
11.0.7
11,421
15,713
15,122
15.174
11.1n
15,929
11,031
15,981
18,064
18,019
18,056
15,945
11,124
17,000
18,241
11,610
18,735
17,252
18,139
17,072
17,016
17,270
17,332
16.963
17,413
17,323
17,313
17,319
17,290
17,140
17,246
17,171
Will
15,004
15.27i
11.655
17.123
DIIJtat
,.dacar
13,175
20,521
13.9CM
14.255
15.530
21.412
16.012
17,895
22.559
-
20,745
25.340
21,410
21.713
22.098
22.483
22,790
25.600
30.050
22.548
31,441.
26.56&··
11,"1
.....
"Tllia it 1t1t all·timt rtCOnl cJ~ttlllotl .
OklaJIOiftl'l A:~adarb lain in May t17411y lone Star Proctueino Co.
·
• "C'-'tron USA ast.Uhslltd 1M rKDnS doll procluCZIOfl mart in tan witfl ~ion or Ho. 1 LIIC!tll111r In WMtllr Coufttr, Teas. - - 2.500.000 c:td frotll tM ~ at 2l.427 ·21.5tl ft.
'0 ".
00 1
...
~
.
......
·~
Deep Wells
Location of 1110 wella 11,000 ft and dee r
Anrage
Anraaa Attl'lge mud
.....
21
Mlllwlll
11.7
i
•.•
..555,600
1,003,400
11.5
1,105,000
468.333
14.0
1.100.000
380.000
15.0
1,127,000
206.250
13.1
13.8
1,244.101
2.738.345
1.854.000
126.680
253 .318
I
1
4
104
111
1
41.0
•
40.0
15
145
21.5
. 21.3
17.1
10.1
11
•
r
.
.... ..,._
__ ....
,_
~9.000
592.750
17,143".000
2.112,733
4,049,386
4,172,569
5,174.090
1,183,000
21.5
118
L:. --.. ....... ..
-.tllnll
ClltiWIII
I 2.365.384 I 1S. .615
308,733
363,186
476.268
613,727
6CM,263
...... .
TABLE 2. Alabama deep drilling
Wells drilled to 15,000 ft or deeper
1171
1110
(II walla)
17,475 ft
(20 nils)
18,429 ft
11,789
12.355
12.273
(1135.36/ft) . (1127.66/ft) ($97 .06/ft)
rlgt mud eos11Well
1185
16.7%
(12 wells)
etopment aucceu ratio 42.9%
!
·
• (14 U'ells)
Complltton
Total
Total footaoe
I 5,0«
161,500
156,836
4S. ,359
445,201
,
- , ..
.
I 3,661
123,692
149,550
I 6,895
~
not reported
sas.n2
368.580
.
'
.
16.7%
(6 wells}
67.1'.4
(14 wells)
(9 wells)
62.5%
(16 wells)
I 4,800
150.106
110,533
. . _ _ : . . . _ . _ . , . - , ... . . . ...._.... .......... . . . . . . . . . , . . _ · ..... . .
(943 ftlbit)
45'1.
(168 ftlbit)
44%
11.1%
SO.B%
onmnu
1
(69 .93/ft)
19.5
(111.33/tt)
11.4
11.7
(;33 ftlbtt)
I C011s: ltud
1183
1202
(S10.561ft)
•....:.
. . r . • •·
~
: ~ _..~ , . . .
I
,. _ _
., ,· .
·,
..
..
..
TABLE 3. Alaska deep drilling
All wells drilled to 15,000 ft or deeper
1m
1110
aell
Willi
20.102 tt
131.000
16,700 ft
121,556
(11,590t1t)
11,003
rage well depttl
rage~ll
BIJI mud c=t/WIII
.,..,....
(S1,890nt)
11,700
(SI4.571ft)
111.0
(111 MH)
($60. 081ft)
D.4
(117 ftlblt)
0%
~
..,.
....
n.
(5 wtlll)
lopment IUCCIIII1lti6 0%
(0 aons)
Dtll costs: Uud
I 5,017
ortmna
Completion
Total
Total footaoe
0'1.
0%
(2 wtUI)
(Owetts)
(0 alii$)
.,.
113,400
s
I 1,412
l132.na
D3,501
(133.49/ft)
102.0
(154 ftlbtt)
fi
(1wall)
• 1,700
1121,0~8
1171
2 nlla
15.709 n
117,700
(S1.12&nt)
1526
0
131.000
20,102
s 1,C52
121,000
not reporttd
S35,,00
31,418
~~~~Hi'IIIIICIPC .............)
~. -·
.
•
. _ , .. . . . . , - · · · · - -
.
--
~ . . . . . . . . . . . . . ~ ......• • • • •
. ------'
••
--
•
•
.;Jt . . . . .- . ,· -
• •
Deep Wells
..
.,
~
. '
·r . •
·.·~ : -~ ~ TABLE 7. Lculalana land deep ctrnllni
. · .. . ·,: All wells drtl1ed 10 15,000 It or deeper
..
-·
AverageWIII.._.. • ·: 11.515ft · 15,G311.. ~.. 11.411a t
A¥11111 ~ ·· · .:._ . a.1os . • ., .a .. ; ·aa -...
~~ . ~:-:. (1181.01111) (a.lt!l) ·.:· i.471R)
.. &488 :·. 1238 .. ••.
..... •. . .~. (121.311ft2 ·. (115.27;.) ~.·
, . . .•
......,. mud ..,...
Avtrlll bftllwll .
... 11
~
s
~· .
eo.o · · ·. . .a ·: ·.···.
·
. . :. .. :(' ·. _· (Ht w,
130~ Milt) ~ . C2ll
a.1ali'
. : ·. 01. ::. ..,_=:-.. .... a : -~.~- . ,.., '& .<···i"'
"· : Olt :. ~ -~·: . · ft. ·.·:· .:·:· · ··: ·a
.. ,. .,~: \
. .·. · . · :~ ..·ce..is)_·,-, ·.~''..., .,:. ~ ..a Willi.)·_/·
Dlvtlopment IUCCell IIIIo . "
: ~:: ·:-.-··..... ' : ~-~:·· ~·,_..-,.... . ,.:--·~:-;.
lacc••l'lllo - .
Wildclt IUCCIIIIIIIo
· ·.., .· -- ~- : rWII!s) .. to . ., ·, r ....,~
Total coati: Mud ... '·.· .. 7.. 2 110 -~ · . · 8 230 :~-_-:-.: ·. 2 tB6- .-.::·
DrUUng .• -:·. 111.285 . • : 11.500 ·.•_: . . Jt4.GG2 ··.
,__...letlon ·.· I 151 : · ·. . : 8
I ., •· \... -'. Ill__.......
""''"'
•
• •
1'-tll"' ....
Total
· . .:-· · 118.6"30 ;·.: 11.500 . .•..• 110.S07 . ~· _
•
Total f
..,
e · 11,091
..
..
•
•
•
·- ~.-: :15.051 · :c_ : ...
•
•
#'
13,377 -.::•. .
J!S#- .iF4#. i ID7 P<UO · i i ..
;: ~
.*'" _
.
· _~_.:_··:~:: · · ~:l-' TABLE-D. Hlulaalppl deep drDIIng . · · ·: ·:·
~- :-! . M nita drilled to 15,000 It cw doeper
.: :
·~:.. -·
,. · · ·' · · · ·· · ·· 1•
1m
~- =- = ~· .
r· · . :_
-·
_4
_
,. ,
·· · · '
~ · .-:·· . ..:_, ~ :: ..:;:·: ~: -.:: · ~-
=·'
•.
11 nns
ftllt
Average well depth ·· _ -~ .- 11.043 R ;: ·· 15,182 R, _; .11.121 fl -, .,·
Average cosu.ll
· . 13.127 · · . : 12.871
11.6&8 .·
mud~
~:'·~ r,:·~~
1
..
m)·..
. (112.1MQ. . (110.0MI) . (ll.sain) ': .
Awlragt bltSIWII
., . ';··11.0 .. : ::.. 111 :·. ·-;, t2. ,,..._:
.:: ·~ ...· _(1,070~-- (1:1··~ - (1:· .~
Suc:oss r1itiO
;' . .-•. 1001Jt '· . . _h.ft '..· :.- ' ... .·..· .. .
Wildcat tucetsl ratiO
. K · -·. ·; ·.-.. ft · :-:,·. -.~ ·. ft :;·.: ~
Average
,.. .....;.\ ·, .
Dovllopmonl IUCCISI ~ 1Cina .: ~--;~~;n.4t. · :. " .JK. ·. · -':'~-.
: . . (41111tsl: ... . (7 Will) -~.. (I well) .. ~
Total costs: Mud
· . ' - & 125 ·...· : I 1,117·.· ·, :;: . &1~2. ·. ·
. .
. .. .
Drilling
Compltllon
Total
Totalfoota
·• 1ft
p
wall}......; .. .....li.,;,, :.:.:·
·4
•
\V ___, • \ ... •.1"'W ......,., ,
.. • 1.171 .· • 111,141.. ; ·~ 117• • :·. ::
I 2.131 ; . I 1 84 ·.~- lot ,._.....__n
. 112.501_ . :·111:743· · "·;111,n7 ·
· 14,173 ·' · 111,038 ··.···:·111,141 ·~
........... ...,. .~....__._.....;.;-;)t
. . Mlrllllflaoll\ · ·e•• w«
V:
.
'
' I
......,.._,
.......
• , . , ........ ••
:,... .._
o.. ·.;.. •
-~-
Deep Welts
TABL! 10. Ne¥8da deep drilling
An wella drilled to 15,000 ft or deeper
'
TABLE 13. OklahoiM dMp drftllng
Allwelle drtlled to 15,000 ft or deeper
.
Avt:age weU depth
Average COlt/Will
11.5121l
17.143 ft
14.041
11.101
=.14m)
11.154
=·10m) ~-13110
(1350.37/ft)
&441
(122.151ft)
11.0
0
0 .
. . (477 ftlblt)
Succeu rlllo
. .
Wildcat IUCCIU flllo
~
Total costs: Mud
Drilling
.
(COli illlloullftd llol1lll
n.
, . · .~ · ~
.t
.
.
18,582
~~~
,.. ,, ~- • ..
...
...
•
~
.
..
-.~
(514 ftiM)
-~· ;a
. w ..- .... .-
....._._. _
use
17,028tt
17,210tt
117,843
113,044
(11,047.87/ft) (S757 .961ft)
1593
· U04
(134.81nt) (135.11/ft)
40.0
55.4
(426 IVolt) (310 ftlbtt)
verage mud costiWtll .
25%
25%
Success ratio
Wildcat IUCCIII ratiO
(4 wells)
Dtvtlopment success ratio 0%
•
(0 wells)
I 2,371
0ta1 costs: Mud
Drtlling
188.372
I 5.000
171.3n
11.111
Completion
Total
Total footage
.
.. . . .
.
17.~tt
A¥11'101 Will depth
·- . 18,138 ft .
12.113
(1169. 05/ft)
Awnge mud COit/WIU
1301
(111.511ft)
Avnge bttiiWIII
21.5 .
(775 Milt)
Succesl rdo
WUdcat SUCCISI ndlo
11.7%
eo.K
(11..U.)
Development auccasl'ltlo 75%
(4 wells)
Total costs: Mud
Drilling
.
Completion
Totll
Totll toota
I 4,131
134.130
• 1.391
142,111
241,572
. _
(345 ftlbtt)
(1141.53/ftl
(114 ftlblt)
(&40 Mit)
(177 Mit)
12.5~
11.$~
(O~It)
orttuna
'115,800
I 33,253
1580.170
Completion
1108,402
· TGIII
1812,172
Total footaQ! 3,059,312
(CM ................. . . , . , . .
not~ ·
.
11,150
. -.
.. ... ..
-a-,.
-
-
- · ·
.. .
•
•
•
•• •
-
·. - - - . • • •
(13 .....,
•. ft.
(81 wells)
I 11,383
11a.s94
(41 Wills)
(73 wolls)
I 71,787
Total COlli: Uud
I 3.780
173,100
1244.701
I 50,013
1211,553
1,n2.111
1
. .. . .
••
• •
...
•
~~.~ . . . . . . .
TABLE 15. 1\txao otfahore deep drftllns
All wells drilled to 15,000 ft or deeper
11,589 ft
a.393
17.220 ft
112.185
(1568.11/ft) (1731.31m)
&112
11.053
11,191 ft
12.105
11.654
•
(11~.96/tt) (1111.22/ft) ~-:
1225
"1140
(113.12/ft) (11.11/ft)
25.0
31.3
(~ ttlblt)
71.4-..
(502 ftlblt)
75~
75~
•.n.
II.~
1CG~
(4WIIII)
(3 Willa)
I 1,571
110,155
• 3,811
114.731
113.301
(3M4~)
(1 \7111)
(151.21/ft)
f7.4
i
··1i
:~
I)Mtopmtnt IUCCIU ratio &3. 7'.. .
.
. . (3 wttll)
lobi costs: Mud . · . . . · I 1.011
.
.
..
I 559
15.560
(350 nibil)
.
.•
$QII
Succeu ratto
Wildcat IUCQJSI rllllo
not rtpOr\tld .
.
17.414
12,711
.
.
.
DrtfHng
Compldon
Totll
14.3%
-
(7 wdtl)'
.
(111.11~
o.s
.
~
ti'Mt Mlt).
··. 0
D.ft
0
G
ft .
D
cs wdl)
(111111)
I 4,211
. 187.737
140.577
11.111
110.1&3
193,921
150,740
... . . .
Total foota
185.681
18,111
(CIIIIn~ODMII'I--~-• . --- :. ' .~ . .
. . ,..,..,.,,.~· ~ • ..~--e. .... w.-.,... ~ :~., •. . .. ··- ..
.·
oo- ~·~('···
.
,;·
I
not rtpOitld ~
1223.161
2,125,952 .
~
·_.
.
150%
13.7Yt
17.:W.
·.
(103 ....., (52 Willi)
QMiopment IVCCIIII'Itto 75.3fl.
17.K
'"
-~
(8222.91/ft) (1111.31/ft)
14.K
Succaardo
··
Wildcat IUCCIU rltio ·
TABLE 12. New Mexico deep drilling
All wells drilled 10 15,000 ft or deeper
Avenge cost/Will
12.445
12.151
8448
1m
1251
~.751ft) ~~=·711ft) ~1.~.81/ft)
- . , . mud COitiWel1
Awr~g~ bHIIRII
17,278 ft
17,5541l
. 13,176
10.0
1)
(II Willi)
(52 wetls)
I 41,431
I 23,407
1331.121
1182,482
I 15,735
_. f8CIOf1ld
1401,4al
1255.361
1.1n.211 1.87,500
.
.. ,• ..._ ._.,
·. . 17,312 ft
(143.6Sift)
(I ..US)
I 4,230
173,294
111.015
191.309
120,467
.~
1752
(7 wells)
(31
M.ft
..
(1995.9Mt) ..
M
20%
(0 Willi)
~
117.180 .
21.6%
21.6%
n.
•.a..
(43 well)
TABLE 14. ltua land deep drilling
AI wells drtl'-d to 15,000 II or deeper
.·
.
Average cost/Will
~Mit)
.. ~
14.2'- .
(41 Wlfll)
11.5~
IC.ft
•.7Yt
1-..
.· . .
Average well depth
'12.4~
___...._ ....... .,_..._.._ ... _ _ ... .. ~~~t..--..a:
;pa'* ·'!"'~'.jPll:*'
TABLE 11. New Jeruy offshore dHp drifting
All wells drilled to 15,000 tt or deeper
21.5
(517 Mdl)
.........................
··
(113. 711ft)
a.2
77.K
(102 Willi)
.....
· I 52,612
. DrU1Ing
'1480,533
· Comp~~t~an
1121.871
. T,.......
.,...
. 1517,111
Tot~~ toota
2,487.022
.-·· · . · ·. ·
........... c4 ..... ... . ,;• .
. . - 21.1
WUck:lt '"CCIIII rltlo
- .
DMiopment IUCCIII rdo
TOtll COlts: .......
. .
1
.,
·
•-
..
·
.• •
•.154
I . ·~ .
•
. .
(121.S!Ift)
(121.0MI)
Awrlot bltllwtll
Succeu ......
,•...,
0
0 · · ·
~t ~
~
I
• I
(OWIII)
a,854
·0
Complltlon
Total
Total footage
.
. 0
0
0'4
ft.
OMtopmtnt s~ccesa r1t1o
.
11,875 ft
12.512
Deep Wells
.
. .
. TABLE 11. Utah dMp c1r11iing .·: . . ·.
AR wells drilled to 15,000 ft or deeper
·'
·: ..
•n ·:.:·
Avtr111 mud~ . : -~ &614 . ·• ·.. ~
&211 · . :
. . - ~·: . •· .- · (135.11JIQ : (S41.1011Q (113.75111) .
nraae bltllwtl .· ::.. t: {,· .11.1 ..... ... · ••3 . .• ·. u.o .. ::
. . -~- ,. . . . :.. (300 filM)
(212 ftlbl)_ . (273 ftlblt) ..
Succnamtio . . ···_, · . ·· . 31.4~ · : ,_ · ft. ·_. .-.~- - - M ·, · .:
ldcll auccess ........
. ·: ,22 .£,.,_
-:. - ~ · · lllliL
. • : ~ : ·:
.
_.. •
,...,
lll
Vlll
.
'
• IS'A.
.....
. .. .• ·:: I(I welts)
. .· (lwetla) . ·-: ,....., }'
ft · ..-: ·;: 01. ... ·..
(0 Willi) -~ : (0 ....., . .
Development success ratio 100.. · . ;:,
. _
:·.. .
. -· (2 well&) •.
il'otal costs: Mud ··. · · .:': 8 1.751 .
Dnntno . · · >:. seo.473 .•
Completion ~- : I 3.721 ·
Total .
Total footage
(Coil m~
4ollarl.._
•-
O
.
L
. . . .
,
..
•
• •
•
r :"·. .-:... __._.-_.• TABLE 17. Wyoming deep drilling
· • --- --~·. .. . All wells drilled to 15,000 It or deeper ·
·-. ' ..
<·.. , .
1fJI
1 alii
"""
• ..na
Averagewettdepth . ·.: : ,"'! 17,137ft . 10,135ft . 15,272.t .
Average COI1IWIII · ~ ·~ .: .. 15.174 ·
15,137 .- 12.250 . .
. • .. ..- . -. {$341.10/ft) (1213.21/ft) (1147 .&11f0,
..............,.......___
.
r~'t' ·' : ? ea .. ·' -
i 2.817 ·. · 1 140 --·: :
111,404 · · u.112 .· :~...:
I 300 · · 101 Mnl'~•
·. 185,715. . 115,412 .
>
188,511
54,405
..000
. 11.061 . •..
doUarl oer IDol) .
· rr· .-.:.:._~~.
. .. . •
. . · ..• · ·
.-A.l);.:; ~;.: #tj· ;;· 1 4 ' ' zt SH-- ·. ·: ~~
='..·421ft) ... ...
- AvtriQI ... dllrGI :· .. . 17.t1 3 II . : 17,114 ft
AvtfiQI CGIIIDII. -.,.:~...·;:~
:· . , . . · · •~- .. ~·.
, ~
·... --.- ..... ;- -. -.·.·.~ ·:~.i~ ~
(1271.1311)
~~~ - ··- ··
:::: 1551 . .
•.. ;-. .
. . ~.;,. !·-- ,.·.··. ...... . 4135 52Jit) (130 I3IIQ
Avtrage.bltiiWIIi': ::-':-·· _::_~: ID.t ..· · . -G 1.. ·
·.
.
•. •.
·.. ' · .•:_~ ·:'
. . . .... . ...
:.· :·/• .•,
.. ~ """'
17,212 ft
.... 303
(1111 .03Jft)
1215 ·.. ·:..
C$11 !Gift) .
. .. I.
,.,·7...
.17.R
.: 12.n. , . :··
· ~A ft . . ....
. , ......,...,... ...
'"""'
..H.-~· ·
'tillliJIIIIIil ,., ....,
Succaa '* ·.-· ~~~---. : .'] ·. 11.~ · ~=- ~.\
·~,
Wlldtllsuc:ceu rlllo · : .::. M
:: . ·. . art. · . ::- 47 .8'1.
;
~- ·. . . ~ -- '- · ··-:·•. '.. .. ~~ -~. -· (11 Willi}_. (2$ ....) :· (21 welb)
DMfopment IUCCIII riiiO ....... · <· ln.
. .. • .7-A. · .•
-·rz:.=
~~-~~·,:·--~·>t.::·_. f22".:-J :
~ ~1 ·:.= .
· .-.·:- ~ ··.· .·. - DriDinO ·. ~·,· ::-- 1203,513 >'·1174,311 . ·I II,RO •
·: ~ - ·..... '... Comn~~t~on
: · . I 29 ' 258 · ... I 44 ' 750 . . not ..
r
,.,
<·.: Total _. . . 1234,954 . 1211,113 1115,114
.
• .l....
• · · . :· · Total footage
(CIIt. QousiiW doAII1..,C
......._
.
~
&48.502
.. 109.301 .. 105,220 .
dG6III,....
.
.
..·. .
~ ~:
~
.
_The followln1 contracton (reporta b1 the opt!ratlnr eorapnlea) drillN the wel11 analyzed In PEI'1 1180 Deep Well Sa~.
Eagle Produrtion & Drilling
A & P Drilling Co. Inc.
Amoy Drilling & Well
Service Corp.
Apollo Drilling &:
Exploration In~.
Ard Drilling Co.
Arden Drilling Co.
ATCO Drilling Inc.
Pemie Bailey Drilling Co.
Baker & Taylor Drilling Co.
Bay Drilling Corp.
Big Chief Drilling Co.
Big-0-Drilling Inc.
Blocker Drilling Co.
Bomac Drilling
Bonny Energy Corp.
Brinkerhof!-Signallnc.
L. D. Bums Drilling Co.
Butler Drilling Co.
Butler.Johnaon Inc.
Buzzini Drilling Co.
Cactu:~ Drillina Co.
Chaae Drilling Co.
Cirde Bar Drillinr: Co.
Cleveland Drilling Co.
Cliffs Drilling Co.
Core Drilling Co.
Culver Drilling Co.
•
Cyclopa Drilling Co.
Deec:.B Drilling Co.
Delta Drilling Co.
Delta ).Iarine Drillin1 Co.
Diamond M Drilling Co.
Dixilyn-Field Drillinc Co.
Dolphin Intemationallnc.
Dual Drilling Co.
Services Inc:.
Eijay Drilling Corp.
Exeter Drilling Co.
Explorer Drilling Co.
Field Drilling Co.
Fluor Drilling Services Inc.
Fonter Drilling Co. Inc:.
Fortune Exploration Co.
Forweat Inc·.
F W A Drilling Co. Inc:.
Gluacock Drilling
Global Marine Inc.
Globe Drillinr Co. lne.
Goldrua Drilling Co.
Grey Wolf Drilling Co.
Griner Drilling Service Inc.
Edward Hall
Harkins A Co.
Harper-Thrner Drilling
II. R. Harvey
Helmeric:h It Payne Inc.
Maxwell Herring Drilling Co.
W. B. Hinton Drilling Co. Inc.
Houaton otfahore
International Inc.
Intrepid Drilling Corp.
Jemipn Drilling Co.
L. E. Jonea Drilling Co.
Juatiaa Mean Oil Co. Inc.
Keydril Co.
Lama Drillina Co.
Larco Drilling Co. Inc.
Dan Lester Drilling Co. Inc.
Lof!l&nd Brothen Co.
Lont Drilling Co. Inc.
lieVay Drilling Co.
JlaJlard Well Service Inc.
Robinaon Brothen Drilling Co.
Marine Drilling Co.
J. B. Roden Drilling Co.
Marion Drilling ' ~rvic:ea
Rosamond Drilling Co. Inc.
Co. Inc.
Rowan Drilling-U.S.
Marlin Drilling Co. Inc.
Salen Offlhore Drilling Co.
Mathieu Drilling Inc.
Sanden Drilling Co. Inc.
Mercury Drilling Co.
Sanda DrillinJ Co.
Merit Drilling Co.
Santa Fe Drilling Co.
MGF Drilling Co.
Sea Drilling Co. Inc.
Montgomery Drilling Co.
Sedeo Inc.
Moran Bros. Inc.
Dean Shanka
E. W. Moran Drilling Co. Inc.
Sharp Drillillg Co. lne.
.llon.nco
Southland Drilling Co. Inc.
llurto Drilling Corp.
Star Drilling Co. Inc.
Nabon Alaska Drilling Inc.
New & Hughea Drilling Co. Inc. ~ Drillinr Co.
~ledyne Movible Offabore Inc.
NickJoa Drilling Co.
~Drilling Co.
Nicor Drilling Co.
~ueolnc.
Noble Drilling Corp.
A. W. Thompuon Int.
Nova Drillin1 Corp.
'Iller Drilling Co.
Oeean Drilling cl
'llme Drilling Co.
· Explontion Co.
O'Conner 6 Young Drilling Co. 'n-anlworld Drilling Co.
TRG Drilling Corp.
()eden Oil Co. Inc.
'Ina Drilling Co.
O'Neal Drilling Co.
~ Drilling Co.
Parker Drilling Co.
'l'ro R Drilling Co. Inc.
Parker Well Service Inc.
Unit Drillin1 I Exploration Co.
Penrod Drilling Co.
United Drillins Co. of 'tYler
Portal Drilling Co.
Vienen l& Coehnm DrillinJ Co.
Power Rig Drillinl Co. Inc.
WeU'I'eeb
lne.
Progreu Drilling &: Marine Inc .
Weatbume
Drilling Inc.
Chesley Pruet Drillina Co.
Weatem Oeeanic Inc.
Quarles Drilling Corp.
Wheleu Drilling Co.
Rapad Drilling Co.
R. E. Williams Drilling Co.
Reading I Batea Corp.
WUlia
Drilling Co. Inc.
Reeourcea Drilling Inc.
Fred Wilaon Drilling Co. Inc.
Restock Drilling Co.
Zapsta Off-Shore Co.
Richards Drilline Co.
Z-R Co.
Rio Grande Drilling Co.