Drilling costs jump by 24% in 1974

Journal Article · Thu Jul 01 04:00:00 EDT 1976 · Pet. Eng. Int.; (United States)

OSTI ID:6361530

The Joint Association Survey, sponsored by the American Petroleum Association, the Independent Petroleum Association of American, and the Mid-Continent Oil and Gas Association, finds that the cost of drilling and equipping oil and gas wells in the U.S. totaled $4.37 billion in 1974, a 42% jump over the previous year. The number of wells increased 20% to 31,481, total footage rose 10.5% to 150.9 million ft, and the average cost/foot increased by over 24% to $28.93. The highest drilling costs reported were for Alaska, where 24 wells--most of them between 10,000 and 12,500 ft--cost an average of $2,301,697; the lowest costs were in Indiana, with an average cost/well of $20,859. Total expenditures for the exploration, development, and production of oil and gas rose by more than 110% over 1970 to $19.1 billion in 1974: $8.9 billion for exploration, a 250% increase; $4.5 billion for development, up 60%; and $5.7 billion for production, a 56% rise.

• OSTI ID: 6361530
• Journal Information: Pet. Eng. Int.; (United States), Journal Name: Pet. Eng. Int.; (United States) Vol. 48
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020300* -- Petroleum-- Drilling & Production
03 NATURAL GAS
030300 -- Natural Gas-- Drilling
Production
& Processing
ALASKA
COST
DRILLING
GREAT LAKES REGION
INDIANA
NATURAL GAS WELLS
NORTH AMERICA
OIL WELLS
PACIFIC NORTHWEST REGION
USA
WELL DRILLING
WELLS