API JAS-2017 JOINT ASSOCIATION SURVEY ON 2016 DRILLING COSTS (64th Edition).pdf

1、 JOINT ASSOCIATION SURVEY ON 2015 DRILLING COSTS Sponsored by AMERICAN PETROLEUM INSTITUTE INDEPENDENT PETROLEUM ASSOCIATION OF AMERICA MID-CONTINENT OIL please feel free to contact Alexa Carlson in APIs Statistics Department at CarlsonAapi.org. Washington, D.C. March 2017 UNDERSTANDING THE JAS DATA

2、 On a regular basis, the API receives well drilling and completion data from the IHS Energy Group, which is added to the well drilling database, the Dynamic Well Data System (DWDS). The DWDS, insofar as possible, contains reasonable and reliable data and is, to our knowledge, the most comprehensive

3、and detailed source for domestic oil and gas drilling activity available. This database is a crucial tool that has been used by the API Statistics Department for over sixty years to produce the publication, the Joint Association Survey on Drilling Costs (JAS).This report is the leader in delivering

4、drilling and completion expenditures data to the oil and gas markets. To improve reader comprehension of the JAS data, it is important to point out that the JAS contains most, but not all, of the wells completed in the U.S. during the survey year. This is due to the often significant time lag from m

5、onths to years between when a well is completed and when it is reported to API and added to the DWDS. Because of this delay, a fraction of the wells completed during a survey year are inevitably reported to us after the JAS is published. In order to capture this fraction of as-of-yet unreported well

6、s completed in the survey year, API publishes estimates of wells completed and corresponding footage drilled four times a year in the Quarterly Well Completion Report (QWCR). According to the most recent QWCR, Fourth Quarter 2016, the estimated number of wells drilled in 2015 is 28,809. The reported

7、 number of wells contained in the 2015 JAS is 27,026, a difference of 1,783 wells. Thus, to provide data users with the most accurate measure of 2015s complete drilling activity, the 1,783 estimated wells, along with their footage 7.97 million feet and expenditures $7.6 billion are incorporated into

8、 the Executive Summary and its two corresponding tables. The rest of the JAS publication refers solely to the 25,279 Total U.S. Wells, omitting sidetrack wells and Quarterly Well Completion Report estimates. This use of both data sets provides a full description of the industrys drilling operations

9、in a given year. Additionally, it is important to note that while the costs reported to API reflect the drilling and completion costs for each well, the wells included in the report are only ones that have been completed to the Christmas tree stage in the current survey year. This classification ens

10、ures that each well is only included in one JAS report, even if the well is drilled over a period spanning multiple years. EXECUTIVE SUMMARY Drilling expenditures decreased significantly as the oil and gas industry spent less annually drilling and equipping wells in the U.S. in 2015 than it did in 2

11、014. According to the 2015 Joint Association Survey on Drilling Costs (JAS), the industry spent 27.2 percent less in 2015 to drill and equip wells in the U.S. than it did in 2014. Total drilling expenditures were estimated to be $122.8 billion in 2015, compared to $168.7 billion during the previous

12、year. In addition, the number of wells decreased considerably by 37.6 percent, while total footage decreased by 29.5 percent. Despite the decline in the number of wells and total footage, average depth per well increased 11.3 percent from 9,199 feet in 2014 to 10,235 feet in 2015. Expenditures decre

13、ased for all well types in 2015 relative to 2014 levels. Exploratory well expenditures in 2015 amounted to approximately $5.64 billion, a decrease of 6.6 percent from the previous years $6.04 billion. This includes a decrease in exploratory oil spending of 46.8 percent from $3.08 billion in 2014 to

14、an estimated $1.64 billion in 2015, while exploratory gas expenditures were estimated at $858 million in 2015, down 34.0 percent from $1.3 billion. Over the same period, development well expenditures were estimated to be $109.6 billion compared to 2014s $148.7 billion, which is a 26.3 percent decrea

15、se. Spending decreased 29.2 percent to $73.7 billion in 2015 for development oil wells, compared to $104.1 billion in 2014. Additionally, development gas spending was an estimated $27.7 billion in 2015, down 24.1 percent compared to $36.5 billion in 2014. The industry continued to spend more drillin

16、g for oil than for natural gas. In 2015, oil expenditures accounted for 65.4 percent of the total drilling expenditures down from last years 69.3 percent; gas expenditures accounted for 24.8 percent up from 2014s 24.4 percent; and dry hole expenditures reached 9.9 percent of total drilling expenditu

17、res up from the past years 6.3 percent. Total Wells, Footage Drilled in 2014, 10,625 shale wells were drilled, totaling an estimated 158.6 million feet and $70.1 billion in expenditures. The overall decrease in number of wells from 2014 to 2015 includes a decrease in shale-oil wells as well as a sli

18、ght increase in shale-gas wells. Table 1: 2011-2015 Trend of Estimated Shale-Oil & Shale-Gas Well Costs (Footage in feet. Costs in thousand dollars) Year Number of Wells Total Footage Total Cost Average Depth/ Well Average Cost/ Well 2011 14,403 176,977,851 $74,770,571 12,288 $5,191,319 2012 14,404

19、188,844,670 $87,322,180 13,111 $6,062,356 2013 13,249 186,543,787 $73,780,115 14,080 $5,568,731 2014 10,625 158,618,009 $70,170,882 14,929 $6,604,318 2015 9,795 151,157,843 $58,539,136 15,432 $5,976,430 Total 72,680 977,189,874 $406,404,425 13,445 $5,591,695 * Does not include sidetrack wells or QWC

20、R estimates Copyright 2017 The American Petroleum Institute 4 Figure 5: 2011-2015 Shale & Non-Shale Well Expenditures Figure 6: 2011-2015 Shale-Oil & Shale-Gas Expenditures $0$20$40$60$80$100$120$140$160$1802011 2012 2013 2014 2015(inBillions)Non-ShaleShale$0$10$20$30$40$50$60$70$80$90$1002011 2012

21、2013 2014 2015(inBillions)Shale-OilShale-GasCopyright 2017 The American Petroleum Institute 5 Table 2: 2015 Estimated Shale-Oil & Shale-Gas Well Costs, by State (Footage in feet. Costs in thousand dollars) State Number of Wells Total Footage Total Cost Average Depth/ Well Average Cost/ Well Arkansas

22、 W W W 10,056 3,181 Colorado 627 8,020,593 $2,221 12,792 $3,542 Gulf of Mexico W W W 16,510 137,007 Kentucky W W W 7,741 $1,358 Louisiana W W W 17,418 $8,585 Mississippi W W W 19,119 $6,160 Montana W W W 17,441 $3,939 New Mexico 518 7,158,749 $3,620 13,820 $6,988 New York W W W W W North Dakota 1,36

23、0 26,687,970 $5,250 19,624 $3,861 Ohio W W W 16,274 $7,802 Oklahoma 551 8,622,294 $3,729 15,648 $6,768 Pennsylvania 863 11,407,167 $5,499 13,218 $6,372 South Dakota W W W W W Texas 4,765 73,826,754 $31,447 15,494 $6,600 Utah W W W 10,649 $3,554 Virginia W W W 7,822 $3,623 West Virginia W W W 13,379

24、$6,252 Wyoming W W W 16,516 $10,418 Total 9,795 151,157,843 $58,539 15,432 $5,976 W-Data is withheld to avoid disclosure of individual company data. * Does not include sidetrack wells or QWCR estimates. Table 3: 2015 Estimated Shale-Oil & Shale-Gas Well Costs, by Basin (Footage in feet. Costs in tho

25、usand dollars) Basin Number of Wells Total Footage Total Cost Average Depth/ Well Average Cost/ Well Anadarko Basin 400 6,087,536 $2,516 15,219 $6,290 Appalachian Basin 1,415 19,658,885 $9,352 13,893 $6,609 Arkla Basin W W W 17,464 $8,480 Arkoma Basin W W W 10,456 $3,424 Bend Arch W W W W W Central

26、Montana Uplf W W W W W Chautauqua Platform W W W 10,329 $4,071 Cincinnati Arch W W W W W Denver Basin 613 7,841,183 $2,111 12,791 $3,443 East Texas Basin W W W 18,016 $5,907 Fort Worth Syncline W W W 12,396 $4,844 Green River Basin W W W W W Gulf Coast Basin 2,520 40,514,168 $16,418 16,077 $6,515 Il

27、linois Basin W W W W W Mid-Gulf Coast Basin W W W W W North Park Basin W W W W W Ouachita Folded Belt W W W W W Paradox Basin W W W W W Permian Basin 2,295 34,624,087 $16,572 15,087 $7,221 Piceance Basin W W W 17,685 $11,367 Powder River Basin W W W 16,536 $10,871 San Juan Basin W W W 10,088 $4,950

28、South Okla Fold Belt W W W 19,654 $9,407 Strawn Basin 102 1,186,993 $401 11,637 $3,935 Uinta Basin W W W 10,709 $3,549 Williston Basin 1,399 27,375,257 $5,407 19,568 $3,865 Total 9,795 151,157,843 $58,539 15,432 $5,976 W-Data is withheld to avoid disclosure of individual company data. * Does not inc

29、lude sidetrack wells or QWCR estimates. Copyright 2017 The American Petroleum Institute 6 Table 4: 2015 Estimated Shale-Oil Well Costs, by State (Footage in feet. Costs in thousand dollars) State Number of Wells Total Footage Total Cost Average Depth/ Well Average Cost/ Well Arkansas W W W W W Color

30、ado 618 7,882,465 $2,133,063 12,755 $3,452 Gulf of Mexico W W W W W Louisiana W W W 14,885 $10,589 Mississippi W W W 19,119 $6,160 Montana W W W 17,441 $3,939 New Mexico W W W 14,507 $7,359 North Dakota 1,360 26,687,970 $5,250,298 19,624 $3,861 Oklahoma 332 5,266,753 $2,243,111 15,864 $6,756 Pennsyl

31、vania W W W W W South Dakota W W W W W Texas 4,507 70,414,500 $30,246,010 15,623 $6,711 Utah W W W 10,709 $3,549 West Virginia W W W W W Wyoming W W W 16,516 $10,418 Total 7,401 118,744,474 $44,045,009 16,044 $5,951 W-Data is withheld to avoid disclosure of individual company data. * Does not includ

32、e sidetrack wells or QWCR estimates. Table 5: 2015 Estimated Shale-Oil Well Costs, by Basin (Footage in feet. Costs in thousand dollars) Basin Number of Wells Total Footage Total Cost Average Depth/ Well Average Cost/ Well Anadarko Basin 309 4,413,831 $1,746,772 14,284 $5,653 Appalachian Basin W W W

33、 3,035 $852 Arkla Basin W W W W W Central Montana Uplf W W W W W Chautauqua Platform W W W 10,721 $4,280 Denver Basin 612 7,830,393 $2,107,776 12,795 $3,444 Green River Basin W W W 7,684 $3,355 Gulf Coast Basin 2,520 40,514,168 $16,418,370 16,077 $6,515 Mid-Gulf Coast Basin W W W 19,119 $6,160 North

34、 Park Basin W W W W W Ouachita Folded Belt W W W W W Permian Basin 2,295 34,624,087 $16,572,300 15,087 $7,221 Piceance Basin W W W 16,610 $7,969 Powder River Basin W W W 16,536 $10,871 South Okla Fold Belt W W W 20,083 $9,503 Uinta Basin W W W 10,709 $3,549 Williston Basin 1,399 27,375,257 $5,406,61

35、1 19,568 $3,865 Total 7,401 118,744,474 $44,045,009 16,044 $5,951 W-Data is withheld to avoid disclosure of individual company data. * Does not include sidetrack wells or QWCR estimates. Copyright 2017 The American Petroleum Institute 7 Table 6: 2015 Estimated Shale-Gas Well Costs, by State (Footage

36、 in feet. Costs in thousand dollars) State Number of Wells Total Footage Total Cost Average Depth/ Well Average Cost/ Well Arkansas W W W 10,054 $3,173 Colorado W W W 15,348 $9,730 Kentucky W W W 7,741 $1,358 Louisiana W W W 17,518 $8,506 New Mexico W W W 10,116 $4,985 New York W W W W W Ohio W W W

37、16,274 $7,802 Oklahoma 219 3,355,541 $1,486,107 15,322 $6,786 Pennsylvania 862 11,405,213 $5,498,155 13,231 $6,378 Texas 258 3,412,254 $1,201,296 13,226 $4,656 Utah W W W W W Virginia W W W 7,822 $3,623 West Virginia 187 2,511,070 $1,174,742 13,428 $6,282 Total 2,394 32,413,369 $14,494,127 13,539 $6

38、,054 W-Data is withheld to avoid disclosure of individual company data. * Does not include sidetrack wells or QWCR estimates. Table 7: 2015 Estimated Shale-Gas Well Costs, by Basin (Footage in feet. Costs in thousand dollars) Basin Number of Wells Total Footage Total Cost Average Depth/ Well Average

39、 Cost/ Well Anadarko Basin W W W 18,392 $8,451 Appalachian Basin 1,413 19,652,816 $9,350,062 13,909 $6,617 Arkla Basin W W W 17,518 $8,506 Arkoma Basin W W W 10,456 $3,424 Bend Arch W W W 4,795 $1,261 Chautauqua Platform W W W 9,896 $3,840 Cincinnati Arch W W W W W Denver Basin W W W W W East Texas

40、Basin W W W 18,016 $5,907 Fort Worth Syncline W W W 12,396 $4,844 Green River Basin W W W W W Illinois Basin W W W 1,950 $495 Ouachita Folded Belt W W W 9,513 $3,438 Paradox Basin W W W W W Piceance Basin W W W 18,223 $13,067 San Juan Basin W W W 10,088 $4,950 South Okla Fold Belt W W W 18,420 $9,13

41、1 Strawn Basin W W W 11,637 $3,935 Total 2,394 32,413,369 $14,494,127 13,539 $6,054 W-Data is withheld to avoid disclosure of individual company data. * Does not include sidetrack wells or QWCR estimates. Copyright 2017 The American Petroleum Institute 8 Offshore & Onshore Drilling in 2015 In 2015,

42、U.S. drilling and completion expenditures, excluding QWCR estimates and sidetrack wells, totaled $103.2. Of that figure, operators spent $7.19 billion offshore, decreasing from 2014s figure by 24.2 percent. Offshore exploratory expenditures in 2015 decreased an estimated 67.6 percent and offshore de

43、velopment expenditures decreased by 3.9 percent from 2014 figures. Onshore, total expenditures in 2015 were $96.0 billion, down approximately 35.6 percent relative to year ago levels. Compared to 2014 levels, exploratory onshore and development onshore expenditures decreased by 31.2 percent and 35.8

44、 percent, respectively. Figure 7: 2011-2015 Offshore Well Expenditures Figure 8: 2011-2015 Onshore Well Expenditures 6.26 8.75 10.24 9.48 7.19 $0$2$4$6$8$10$122011 2012 2013 2014 2015(inBillions) 108 133 124 150 96 $0$20$40$60$80$100$120$140$1602011 2012 2013 2014 2015(inBillions) Copyright 2017 The

45、 American Petroleum Institute 9 Coalbed-Methane Gas Drilling in 2015 Coalbed-methane is an energy resource with dwindling importance. The technology of drilling, completing, and stimulating coalbed-methane reservoirs has been underutilized in recent years. Typically coal gas reservoirs are shallow a

46、nd difficult to produce because they are often interbedded with numerous sand lenses and shales, and they require initial dewatering to reduce pressure before achieving production. This inefficiency has led to the decline in coalbed-methane gas well drilling and expenditures from 2011 to 2015. In 20

47、15, omitting QWCR estimates and sidetrack wells, 167 coalbed-methane gas wells were drilled compared to 352 in 2014, representing a 52.6 percent decrease. The level of spending to drill coalbed-methane gas wells in 2015 was estimated to be $70.2 million. The average estimated cost for each coalbed-m

48、ethane gas well in 2015 was $420,442 and the average estimated cost per foot was $199. The estimated average distance drilled was 2,112 feet. Figure 9: 2011-2015 Coalbed-Methane Gas Well Expenditures 390 155 130 96 70 $0$50$100$150$200$250$300$350$400$4502011 2012 2013 2014 2015(inMillions) Copyrigh

49、t 2017 The American Petroleum Institute 10 Sidetrack Drilling in 2015 A sidetrack well is a new section of well, drilled from an existing well bore to a new objective hole location, and its cost is usually higher than non-sidetrack wells. This difference is due to differing cost structures that apply to sidetrack and non-sidetrack wells and is the basis for why sidetrack wells are excluded for a majority of this reports analysis. In 2015, operators spent $12.0 billion in the U.S. to drill and equip sidetrack wells. This was a 41.2 percent