IADC/SPE panel probes drilling contracts, business trends

Journal Article · Mon Sep 12 04:00:00 EDT 1983 · Oil Gas J.; (United States)

OSTI ID:6987317

From 1981 to early 1983, more than half the rigs in the U.S. switched from daywork contracts to footage or turnkey drilling. This switch resulted from sudden reversal of the supply/demand picture. It created broad changes in the way operators and drilling contractors do business with each other. It transferred much of the liability and risk to the contractor. It lowered drilling costs. And it caused stunning improvements in rig efficiency. Both operators and contractors are still sorting out the best ways to work under the new order. Their actions on today's challenges will define the future of this marketplace. The form of the contract has been instrumental in changing the nature of drilling. The agreements are changing too. New contracts are more than just a file document mostly for lawyers. They offer a means of communication, a tool for motivation, and a business framework with implications covering business philosophy, profitability, cooperation, and overall results. Four spokesmen from each vantage examined contract trends at the last IADC/SPE Drilling Technology Conference. They hammered out the problems of transition, discussed the long-term future of contracts, and brought forth new proposals beneficial to both parties. Here are the key points from the meeting moderated by Ted Warren, FWA Drilling, and Glen Trimble, Mobil.

• OSTI ID: 6987317
• Journal Information: Oil Gas J.; (United States), Journal Name: Oil Gas J.; (United States) Vol. 81:37; ISSN OIGJA
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020300* -- Petroleum-- Drilling & Production
020700 -- Petroleum-- Economics
Industrial
& Business Aspects
03 NATURAL GAS
030300 -- Natural Gas-- Drilling
Production
& Processing
030600 -- Natural Gas-- Economic
Industrial
& Business Aspects
CONTRACT MANAGEMENT
CONTRACTORS
CONTRACTS
COST
DRILLING
DRILLING RIGS
ECONOMIC IMPACT
EFFICIENCY
FINANCIAL INCENTIVES
IMPLEMENTATION
INDUSTRY
INSTITUTIONAL FACTORS
LABOR RELATIONS
LIABILITIES
MANAGEMENT
NATURAL GAS INDUSTRY
NATURAL GAS WELLS
NORTH AMERICA
OIL WELLS
PETROLEUM INDUSTRY
PROGRAM MANAGEMENT
SOCIO-ECONOMIC FACTORS
SUPPLY AND DEMAND
USA
WELL DRILLING
WELLS