Appendix 10 



Cost Indices of Petroleum Exploration Drilling, Development 

 Drilling, Production Facilities, and Pipelines* 



Note. — Tlie cost data presented in this appendix are rough ap- 

 proximations basied on the limited amount of published data avail- 

 able at the time of writing this report. While isolated values may 

 prove to be in error as more data becomes available, it is felt that 

 the overall conclusions of this analysis as presented in the main text 

 of the report will remain valid. 



A. EXPLOKATION DRILLING 



Figu7-e 1 illustrates the variation of total daily drilling cost with water depth 

 for the Gulf of Mexico. Mobile rigs are generally used for exploration purposes 

 when dry hole risk is at a maximum. As shown in Figure 1, the daily drilling 

 cost from mobile rigs in 600 feet (183 meters) of water is 80 percent greater 

 than in 100 feet (30 meters) of water, and twice as great in 1,000 feet (305 

 metens) of water as in 100 feet of water. It is assumed that tlie cost of explora- 

 tion drilling is directly proportional to these daily drilling costs. 



* From : Petroleum Resources under the Ocean Floor, March 1969. Washington ; Na- 

 tional Petroleum Council, 1969. 



Figure 1. Total Daily Offshore Drilling Cost-Gulf of Mexico 



C 12,000 _ 



5 10,000 _ 



FACTORS INCREASING COST BEYOND 1,000 FEET: 



- Conventional Anchoring System = 1,000 Ft. 



- Diver Capability= 1,500 Ft. 



- Marine Conductor = ? 



WATER DEPTH (In Feet) 



(128) 



