1、 JOINT ASSOCIATION SURVEY ON 2013 DRILLING COSTS Sponsored by AMERICAN PETROLEUM INSTITUTE INDEPENDENT PETROLEUM ASSOCIATION OF AMERICA MID-CONTINENT OIL please feel free to contact Franziska Economy in APIs Statistics Department at EconomyFapi.org or 202-682-8039. Washington, D.C. March 2015 Copyri
2、ght 2015 The American Petroleum Institute ix UNDERSTANDING THE JAS DATA 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 reasona
3、ble and reliable data and is, to our knowledge, the most comprehensive 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
4、Survey on Drilling Costs (JAS).This report is the leader in delivering 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. durin
5、g the survey year. This is due to the often significant time lag from months 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 pu
6、blished. In order to capture this fraction of as-of-yet unreported wells 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 2014
7、, the estimated number of wells drilled in 2013 is 45,039. The reported number of wells contained in the 2013 JAS is 42,200, a difference of 2,839 wells. Thus, to provide data users with the most accurate measure of 2013s complete drilling activity, the 2,839 estimated wells, along with their footag
8、e 9.8 million feet and expenditures $9.3 billion are incorporated into the Executive Summary and its two corresponding tables. The rest of the JAS publication refers solely to the 39,707 Total US Wells, omitting sidetrack wells and Quarterly Well Completion Report estimates. This use of both data se
9、ts provides a full description of the industrys drilling operations 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 Chri
10、stmas tree stage in the current survey year. This prevents a well drilled over more than one year from appearing in multiple JAS reports. Copyright 2015 The American Petroleum Institute xi EXECUTIVE SUMMARYDrilling expenditures decreased slightly as the oil and gas industry spent less annually drill
11、ing and equipping wells in the U.S. in 2013 than it did in 2012. According to the 2013 Joint Association Survey on Drilling Costs (JAS), the industry spent 0.76 percent less in 2013 to drill and equip wells in the U.S. than it did in 2012. Total drilling expenditures were estimated to be $147.7 bill
12、ion in 2013, compared to $148.9 billion during the previous year. In addition, the number of wells decreased by 3.24 percent and total footage increased slightly by 0.6 percent. Exploratory well expenditures in 2013 amounted to approximately $7.94 billion, a slight increase of 0.61 percent from the
13、previous years $7.88 billion. Exploratory oil spending decreased 37.4 percent from $4.9 billion in 2012 to an estimated $3.1 billion in 2013, while exploratory gas expenditures were estimated at $2.1 billion in 2013, up 113.8 percent from 2012s $1.0 billion. Development well expenditures were estima
14、ted to be $139.6 billion in 2013 compared with 2012s $140.5 billion, a 0.65 percent decrease. Spending increased 6.8 percent to $93.0 billion in 2013 for development oil wells, compared to $87.0 billion in 2012. Development gas spending at $40.8 billion was down 13.4 percent compared to last years $
15、47.2 billion. In 2013, the industry spent more drilling for oil than for natural gas. In 2013, oil expenditures accounted for 65.1 percent of the total drilling expenditures up from last years 62.0 percent; gas expenditures accounted for 29.1 percent down from 2012s 32.4 percent; and dry hole expend
16、itures reached 5.8 percent of total drilling expenditures up slightly from the past years 5.6 percent. Total Wells, Footage Drilled in 2012, 14,404 shale wells were drilled, totaling an estimated 188.8 million feet and $84.3 billion in expenditures. The decrease in number of wells from 2012 to 2013
17、is mainly due to a decrease in shale-gas wells. 2009-2013 Trend of Estimated Shale-Oil & Shale-Gas Well Costs Table 1 (Footage in feet. Costs in thousand dollars.) Year Number of Wells Total Footage Total Cost Average Depth/Well Average Cost/Well 2009 7,727 77,834,046 $53,124,400 10,073 $6,875 2010
18、10,204 115,047,714 $38,751,979 11,275 $3,798 2011 14,403 176,977,851 $70,949,778 12,288 $4,926 2012 14,404 188,844,670 $84,322,420 13,111 $5,854 2013 13,506 190,853,778 $73,685,784 14,131 $5,456 Total 60,244 749,558,059 $320,834,361 12,442 $5,326 * Does not include sidetrack wells or QWCR estimates.
19、 Copyright 2015 The American Petroleum Institute 6 2009-2013 Shale & NonShale Well Expenditures Figure 5 2009-2013 Shale-Oil & Shale-Gas Expenditures Figure 6 $20 $40 $60 $80 $100 $120 $140 $160 2009 2010 2011 2012 2013 (inBillions)Non-Shale Shale $10 $20 $30 $40 $50 $60 $70 $80 $90 2009 2010 2011 2
20、012 2013 (inBillions)Shale-Oil Shale-Gas Copyright 2015 The American Petroleum Institute 7 2013 Estimated Shale-Oil & Shale-Gas Well Costs, by State Table 2 (Footage in feet. Costs in thousand dollars.) State Number of Wells Total Footage Total Cost Average Depth/Well Average Cost/Well Arkansas W W
21、W 9,156 $2,570 Colorado W W W 11,134 $4,417 Illinois W W W 2,769 $155 Kansas W W W 4,074 $1,126 Kentucky W W W 4,886 $1,813 Louisiana W W W 16,987 $7,850 Michigan W W W W W Mississippi W W W 18,687 $3,115 Montana W W W 16,842 $5,395 New Mexico 514 6,414,543 $2,568,950 12,480 $4,998 North Dakota 1,99
22、8 37,917,818 $12,768,987 18,978 $6,391 Ohio W W W 13,746 $6,246 Oklahoma 622 9,017,888 $3,104,328 14,498 $4,991 Pennsylvania 1,340 15,836,586 $8,497,855 11,818 $6,342 South Dakota W W W 13,887 $4,368 Texas 6,517 92,362,059 $35,042,103 14,172 $5,377 Utah 130 1,235,378 $302,360 9,503 $2,326 Virginia W
23、 W W 8,648 $4,078 West Virginia 380 4,714,081 $2,442,464 12,405 $6,428 Wyoming W W W 11,848 $7,041 Total 13,506 190,853,778 $73,685,784 14,131 $5,456 W-Data is withheld to avoid disclosure of individual company data. * Does not include sidetrack wells or QWCR estimates. 2013 Estimated Shale-Oil & Sh
24、ale-Gas Well Costs, by Basin Table 3 (Footage in feet. Costs in thousand dollars.) Basin Number of Wells Total Footage Total Cost Average Depth/Well Average Cost/Well Anadarko Basin 546 7,928,952 $2,950,811 14,522 $5,404 Appalachian Basin 2,012 24,257,346 $12,615,033 12,056 $6,270 Arkla Basin W W W
25、16,946 $7,488 Arkoma Basin W W W 9,413 $2,723 Bend Arch W W W W W Central Kansas Uplf W W W 3,742 $308 Central Montana Uplf W W W W W Chautauqua Platform W W W 9,601 $2,877 Cherokee Basin W W W W W Denver Basin W W W 11,234 $4,484 East Texas Basin W W W 16,558 $6,477 Fort Worth Syncline W W W 12,069
26、 $2,954 Green River Basin W W W 6,846 $1,808 Gulf Coast Basin 3,547 55,245,844 $23,738,644 15,575 $6,693 Illinois Basin W W W 2,564 $167 Las Animas Arch W W W W W Michigan Basin W W W W W Mid-Gulf Coast Basin W W W 18,687 $3,115 North Park Basin W W W W W Ouachita Folded Belt W W W W W Paradox Basin
27、 W W W 11,124 $5,166 Permian Basin 2,320 29,410,829 $9,798,675 12,677 $4,224 Piceance Basin W W W 10,087 $4,552 Powder River Basin W W W 15,677 $10,107 San Juan Basin W W W 8,242 $3,332 Sedgwick Basin W W W W W South Okla Fold Belt W W W 16,594 $4,764 Strawn Basin W W W 12,104 $2,983 Uinta Basin 124
28、 1,168,637 $271,363 9,424 $2,188 Williston Basin 2,157 40,565,801 $13,616,416 18,807 $6,313 Wind River Basin W W W 2,314 $307 Total 13,506 190,853,778 $73,685,784 14,131 $5,456 W-Data is withheld to avoid disclosure of individual company data. * Does not include sidetrack wells or QWCR estimates. Co
29、pyright 2015 The American Petroleum Institute 8 2013 Estimated Shale-Gas Well Costs, by State Table 4 (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 9,156 $2,570 Colorado W W W 6,926 $2,992 Illinois W W
30、 W W W Kentucky W W W 4,886 $1,813 Louisiana W W W 16,991 $7,427 Michigan W W W W W New Mexico W W W 8,242 $3,332 Ohio W W W 13,746 $6,246 Oklahoma W W W 16,496 $5,620 Pennsylvania W W W 11,862 $6,370 Texas 898 11,217,840 $2,992,473 12,492 $3,332 Utah W W W 10,008 $1,745 Virginia W W W 8,648 $4,078
31、West Virginia W W W 12,478 $6,477 Total 4,014 48,539,641 $20,023,055 12,093 $4,988 W-Data is withheld to avoid disclosure of individual company data. * Does not include sidetrack wells or QWCR estimates. 2013 Estimated Shale-Gas Well Costs, by Basin Table 5 (Footage in feet. Costs in thousand dollar
32、s.) Basin Number of Wells Total Footage Total Cost Average Depth/Well Average Cost/Well Anadarko Basin W W W 17,825 $6,486 Appalachian Basin W W W 12,099 $6,297 Arkla Basin W W W 16,970 $7,422 Arkoma Basin W W W 9,413 $2,723 Bend Arch W W W W W Chautauqua Platform W W W 8,442 $2,565 Denver Basin W W
33、 W W W East Texas Basin W W W 16,558 $6,477 Fort Worth Syncline W W W 12,070 $2,951 Gulf Coast Basin W W W 14,680 $6,924 Illinois Basin W W W W W Michigan Basin W W W W W Ouachita Folded Belt W W W W W Permian Basin W W W 10,415 $2,113 Piceance Basin W W W 9,309 $4,341 San Juan Basin W W W 8,242 $3,
34、332 South Okla Fold Belt W W W 16,349 $4,145 Strawn Basin W W W 12,104 $2,983 Uinta Basin W W W 10,008 $1,745 Total 4,014 48,539,641 $20,023,055 12,093 $4,988 W-Data is withheld to avoid disclosure of individual company data. * Does not include sidetrack wells or QWCR estimates. Copyright 2015 The A
35、merican Petroleum Institute 9 2013 Estimated Shale-Oil Well Costs, by State Table 6 (Footage in feet. Costs in thousand dollars.) State Number of Wells Total Footage Total Cost Average Depth/Well Average Cost/Well Colorado W W W 11,201 $4,439 Illinois W W W 2,920 $115 Kansas W W W 4,074 $1,126 Louis
36、iana W W W 16,926 $14,569 Mississippi W W W 18,687 $3,115 Montana W W W 16,842 $5,395 New Mexico W W W 13,516 $5,405 North Dakota 1,998 37,917,818 $12,768,987 18,978 $6,391 Oklahoma W W W 13,073 $4,542 Pennsylvania W W W 2,062 $115 South Dakota W W W 13,887 $4,368 Texas 5,619 81,144,219 $32,049,630
37、14,441 $5,704 Utah W W W 9,461 $2,374 West Virginia W W W W W Wyoming W W W 11,848 $7,041 Total 9,492 142,314,137 $53,662,729 14,993 $5,653 W-Data is withheld to avoid disclosure of individual company data. * Does not include sidetrack wells or QWCR estimates. 2013 Estimated Shale-Oil Well Costs, by
38、 Basin Table 7 (Footage in feet. Costs in thousand dollars.) Basin Number of Wells Total Footage Total Cost Average Depth/Well Average Cost/Well Anadarko Basin W W W 13,153 $4,956 Appalachian Basin W W W 2,475 $149 Arkla Basin W W W W W Central Kansas Uplf W W W 3,742 $308 Central Montana Uplf W W W
39、 W W Chautauqua Platform W W W 9,713 $2,908 Cherokee Basin W W W W W Denver Basin W W W 11,284 $4,507 Fort Worth Syncline W W W W W Green River Basin W W W 6,846 $1,808 Gulf Coast Basin W W W 15,578 $6,692 Illinois Basin W W W 2,920 $115 Las Animas Arch W W W W W Mid-Gulf Coast Basin W W W 18,687 $3
40、,115 North Park Basin W W W W W Ouachita Folded Belt W W W W W Paradox Basin W W W 11,124 $5,166 Permian Basin W W W 12,711 $4,255 Piceance Basin W W W W W Powder River Basin W W W 15,677 $10,107 Sedgwick Basin W W W W W South Okla Fold Belt W W W 16,838 $5,384 Uinta Basin W W W 9,373 $2,227 Willist
41、on Basin 2,157 40,565,801 $13,616,416 18,807 $6,313 Wind River Basin W W W 2,314 $307 Total 9,492 142,314,137 $53,662,729 14,993 $5,653 W-Data is withheld to avoid disclosure of individual company data. * Does not include sidetrack wells or QWCR estimates. Copyright 2015 The American Petroleum Insti
42、tute 10 Offshore & Onshore Drilling in 2013 In 2013, U.S. drilling and completion expenditures, excluding QWCR estimates and sidetrack wells, totaled $113.8 billion. Of that figure, operators spent $4.5 billion offshore, increasing from 2012s figure by 11.0 percent. Offshore exploratory expenditures
43、 in 2013 increased an estimated 47.8 percent and offshore development expenditures decreased by 2.13 percent from 2012 figures. Onshore, total expenditures in 2013 were $109.3 billion, down approximately 11.0 percent compared with year ago levels. Compared to 2012 levels, exploratory onshore and dev
44、elopment onshore expenditures decreased by 34.5 percent and 10.0 percent, respectively. 2009-2013 Offshore Well Expenditures Figure 7 2009-2013 Onshore Well Expenditures Figure 8 $2 $4 $6 $8 $10 $12 $14 $16 $18 2009 2010 2011 2012 2013 (inBillions)$20 $40 $60 $80 $100 $120 $140 2009 2010 2011 2012 2
45、013 (inBillions)Copyright 2015 The American Petroleum Institute 11 Coalbed-Methane Gas Drilling in 2013 Coalbed-methane is an energy resource with significant potential, and the technology of drilling, completing, and stimulating coalbed-methane reservoirs has evolved significantly since the first w
46、estern basin coal wells were drilled in the 1950s. Typically coal gas reservoirs are shallow and 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. In 2013, omitting QWCR es
47、timates and sidetrack wells, 362 coalbed-methane gas wells were drilled compared to 396 in 2012, representing an 8.6 percent decrease. The level of spending to drill coalbed-methane gas wells in 2013 was estimated to be $127.5 million. The average estimated cost for each coalbed-methane gas well in
48、2013 was $352,095 and the average estimated cost per foot was $174. The estimated average distance drilled was 2,025 feet. 2009-2013 Coalbed-Methane Gas Well Expenditures Figure 9 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 2009 2010 2011 2012 2013 (inBillions)Copyright 2015 The American Petroleum
49、Institute 12 Sidetrack Drilling in 2013 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 report
