Operator and contractor benefit from incentive contracts

Journal Article · Mon Sep 16 04:00:00 EDT 1991 · Oil and Gas Journal; (United States)

OSTI ID:5570723

Brandon, B ^[1]

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1. Eastman Christensen, Houston, TX (US)

This book reports that with incentive contracts, drilling and service contractors assume greater responsibility for operations. That helps them to align their goals more closely with those of the operator. This achieves a more equitable division of the risks. Many operators and contractors believe this is a more appropriate approach to contracting drilling services. As they assume manageable responsibility, each party also has opportunities for greater reward. Innovations in cooperation can create a win-win situation. In a win-win contract all parties benefit from the new relationships between operator, contractor, and service company. The win-win situation can only be achieved by allowing the contracting parties to become much more closely involved in drilling operations. This is the primary motivation behind development of more productive contracting strategies.

• OSTI ID: 5570723
• Journal Information: Oil and Gas Journal; (United States), Journal Name: Oil and Gas Journal; (United States) Vol. 89:37; ISSN OIGJA; ISSN 0030-1388
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700* -- Petroleum-- Economics
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29 ENERGY PLANNING, POLICY, AND ECONOMY
290201 -- Energy Planning & Policy-- Economics-- (1992-)
294002 -- Energy Planning & Policy-- Petroleum
CONTRACTS
DRILLING
FINANCIAL INCENTIVES
OIL WELLS
PLANNING
WELL DRILLING
WELLS