The cost of oil extraction has gone down significantly in recent years singulair over the counter. Advances in drilling technologies have led to the extraction of oil from areas once deemed too unprofitable or unproductive to explore. Measurement-while-drilling (MWD) techniques provide real-time information to operators, allowing them to make rapid adjustments to drilling approaches on the fly. Additionally, the technologies used to extract petroleum from oil shale reserves have been fine-tuned and adjusted to ensure the most efficient production in these areas. MWD training programs are becoming more prevalent throughout the industry, allowing companies to make the most effective use of available resources to increase profitability and production from new and existing wells. Here are some key insights into the current costs of shale well drilling operations.
Cost Reductions Across the Board
A 2016 report from the U.S. Energy Information Administration indicates that the average cost of drilling an oil or gas well has fallen steadily since 2012. This decline in overhead expenses has affected both the drilling cost per lateral foot and drilling costs for the entire depth of an oil well. Hard figures put this decrease in costs into perspective:
- Permian Basin – Delaware Basin well costs fell by $1.4 million between 2014 and 2015.
- During the same time period, Permian Basin – Midland Basin costs fell by half a million dollars.
- The cost of Bakken wells fell by $1.2 million between 2014 and 2015.
This overall reduction in costs can be traced to a number of key factors that include the following:
- More efficient use of available resources to extract oil and gas
- Advances in drilling technologies, especially as they relate to hydraulic fracturing
- Increased use of MWD techniques to reduce wasted drilling time and provide in-depth information for drill operators to guide future extraction efforts
Companies that offer MWD technical support can help oil drilling operations achieve higher returns on their investments by making the drilling process more efficient. These highly advanced technological tools can provide on-the-spot feedback on drilling approaches to ensure the highest level of information for operators in the oil field.
What Is MWD?
Measurement-while-drilling equipment is designed to provide information to crews during the drilling process. These tools incorporate accelerometers, gyroscopes and magnetometers to record data on wellbore positioning and direction. This information is transmitted through electromagnetic telemetry to operators on the surface, allowing immediate adjustments to ensure the most effective extraction of available oil. MWD is especially important for shale oil drilling sites; precise positioning of equipment can make the difference between profitability and wasted effort in these operations.
Optimizing Profitability with MWD
Opting for MWD rental rather than making a large upfront investment in equipment can sometimes provide significant financial benefits for oil extraction firms:
- Renting rather than purchasing can allow companies with finite financial resources to access higher quality equipment for improved results in the field.
- As MWD technologies continue to evolve, oil drilling firms can upgrade to the latest and most advanced equipment without the inconvenience and expense of trading up. This can allow greater flexibility for companies interested in staying current with the latest developments in the MWD industry.
- MWD rentals also provide predictable monthly expenses, offering much-needed stability in the volatile field of energy production.
Providing up-to-date MWD equipment and offering expert training in the use of these tools can allow shale oil drilling operations to achieve maximum profitability with a relatively small initial investment.
Even as oil production costs continue to fall, making the most efficient use of available financial resources is critical to ensure ongoing profitability. Renting MWD equipment and investing in training for drill operators can ensure that petroleum extraction companies stay competitive and financially viable as conditions continue to evolve in the modern energy industry. instant payday loans online