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Methods and Countermeasures of Controlling Drilling Cost under New Normal


Affiliations
1 School of Petroleum Engineering, Northeast Petroleum University, Daqing, China
2 Economic Evaluation Center for Exploration and Development of Liaohe Oilfield Company, Panjin, China
3 Special Oil Company of Liaohe Oilfield, Panjin, China
4 Research Institute of Petroleum Exploration and Development, Beijing, China
 

The oil price drops in the international crude oil market and the benefit of upstream operations reduces which has been the new normal of oil companies so far. The upstream operations production and management of oil companies face numerous problems and challenges. One of the most significant aspects is to control and optimize investment. Drilling investment is an important component of development investment in drilling oil and gas wells. This paper proposes ways and countermeasures of controlling drilling cost from 3 aspects which are technology innovation, management innovation and system innovation on basis of studying drilling cost structure and influence factors analysis. The results have some guidance and exemplary significance to show how to improve production and management effect respectively on upstream operations of oil companies under new normal.

Keywords

New Normal, Drilling Cost, Upstream Operations, Investment, Innovation.
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  • Methods and Countermeasures of Controlling Drilling Cost under New Normal

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Authors

Haixu Qu
School of Petroleum Engineering, Northeast Petroleum University, Daqing, China
He Huang
Economic Evaluation Center for Exploration and Development of Liaohe Oilfield Company, Panjin, China
Haiqing Cui
School of Petroleum Engineering, Northeast Petroleum University, Daqing, China
Jingjie Liu
Special Oil Company of Liaohe Oilfield, Panjin, China
Liang Zhao
Research Institute of Petroleum Exploration and Development, Beijing, China

Abstract


The oil price drops in the international crude oil market and the benefit of upstream operations reduces which has been the new normal of oil companies so far. The upstream operations production and management of oil companies face numerous problems and challenges. One of the most significant aspects is to control and optimize investment. Drilling investment is an important component of development investment in drilling oil and gas wells. This paper proposes ways and countermeasures of controlling drilling cost from 3 aspects which are technology innovation, management innovation and system innovation on basis of studying drilling cost structure and influence factors analysis. The results have some guidance and exemplary significance to show how to improve production and management effect respectively on upstream operations of oil companies under new normal.

Keywords


New Normal, Drilling Cost, Upstream Operations, Investment, Innovation.