The challenge for the oilindustry in the 1990s is to iden& strategies for maximizing the upstream potential value of the discovered reserves and for optimizing future investments to rescue risk in both exploration and exploitation activities. Hence, increasingly the operators, the petroleum engineer, and the geologist must evaluate together the options for exploration drilling to ensure that the discovery has the potential of being economically developmen.
Driliing and completing new wells are costly. Those costs accounted for between 30% to 70% of initial capital cost for oiland gas field developments? Clearly, if oil and gas development is to continue in mature area, capital and operating cost must be reduced. In particular, when it is considered the currently spends on drilling, completing, and working over wells the United States, even a small percentage reduction in these expenditures will yield an immediate benefit. Fortunately, the successful development of slimhole drilling technology has created opportunities for the oilindustry to cut the drilling and completion costs. Cost saving of a slimhole would accrue through the use of smaller surface casingand the substitution of liners for intermediate casing strings. The smaller upper hole sections could be drilled with improved penetration rates, reductions in cement and mud costs and in environmental impact would be achieved, and rig size could alsobe reduced with increasing confidence.
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