An Interactive 5-Day Training Course
Drilling Economics & Cost Control
Cost and Value of Wells
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Duration
5 Days
Price
$ 3,000
Starting From
13 Mar 2027
Drilling Economics & Cost Control
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Drilling Economics & Cost Control - DC-DEC-PEA27
| Code | Date | Time | Duration | Location | Currency | Early Bird Fee Per Person |
|---|---|---|---|---|---|---|
| DC-DEC-PEA27 | 13 - 17 Mar 2027 | 10 AM CST | 4 Hours / Day |
Online |
USD |
3000 |
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Drilling Economics & Cost Control
This course covers drilling economics and cost management. Participants study well cost structure and drivers, estimation and budgeting, cost control during operations, value of time saved, economic evaluation of drilling decisions, technology and service selection on economic grounds, campaign economics, benchmarking cost performance and the commercial context of drilling.
Description
Drilling consumes the largest share of capital in most field developments, and the decisions that determine well cost are made by engineers, often without the economic framework to judge them. Whether to add a casing string, buy a premium service, spend a day on hole conditioning or accept a risk are all economic decisions as well as technical ones.
This course provides that framework. It starts with well cost structure and the real drivers of cost, then covers estimation, budgeting and authorisation for expenditure practice, and cost control during operations including tracking, forecasting and variance management. It covers the value of time in drilling and the calculations behind decisions that trade time for risk. It then covers the economic evaluation of drilling decisions, including casing and contingency choices, technology and service selection on economic grounds, campaign economics and learning curves, cost benchmarking and its pitfalls, and the commercial context of drilling within field development economics.
The value of a day is the number most decisions turn on. It is not just the rig day rate but the whole spread cost, and in some cases the deferred production the well would have delivered. Engineers who know that number make different and better decisions about conditioning trips, contingency equipment and premium services.
Risk decisions are economic decisions. Accepting a one in ten chance of a stuck pipe event that costs five days, rather than spending half a day avoiding it, is a calculation, and it is usually made intuitively. Making it explicitly, with the numbers, changes which option looks right more often than people expect.
Cost benchmarking misleads easily. Cost per metre and cost per well vary with depth, complexity, location and contracting market far more than with performance, and comparisons that ignore this produce targets nobody can meet. The useful benchmarks are internal, normalised and tracked over time.
By the end of this training, participants will be able to:
- Analyse well cost structure and identify the real cost drivers.
- Prepare well cost estimates and budgets.
- Apply authorisation for expenditure practice and approval requirements.
- Control cost during operations through tracking and forecasting.
- Calculate the value of time in drilling operations.
- Evaluate drilling decisions that trade time, cost and risk.
- Evaluate technology and service options on economic grounds.
- Analyse campaign economics and learning curve effects.
- Benchmark cost performance without misleading comparisons.
- Place drilling cost within field development economics.
The course is instructor-led. Economic frameworks are applied to real drilling decisions, with participants calculating the value of options, evaluating technology proposals and building campaign economics. Cases cover decisions that saved and cost money, with the reasoning behind each. Participants are encouraged to bring their own cost data for discussion.
Organisations sending participants to this training will:
- Make drilling decisions on a sound economic basis.
- Improve cost estimation, control and forecasting.
- Evaluate technology and service proposals credibly.
- Reduce campaign cost through structured learning.
- Connect drilling performance to field development value.
Participants will:
- Understand well cost structure and its drivers.
- Be able to estimate, budget and control well cost.
- Be able to evaluate drilling decisions economically.
- Be able to assess technology and service value.
- Understand drilling within the wider development economics.
- Drilling engineers and supervisors
- Drilling superintendents and managers
- Cost and planning engineers
- Commercial and finance staff supporting drilling
- Service company commercial personnel
- Field development engineers
Module 1: Well Cost Structure
- Cost categories and their proportions
- Day rate and spread cost
- Tangible and intangible costs
- What actually drives well cost
- Cost comparison across well types
Module 2: Estimation and Budgeting
- Estimation methods and accuracy
- Building the estimate from the time plan
- Contingency and allowances
- Authorisation for expenditure practice
- Approval and governance
Module 3: Cost Control in Operations
- Daily cost tracking
- Committed and incurred cost
- Forecasting final cost
- Variance identification and response
- Reporting to management
Module 4: The Value of Time
- Calculating the value of a day
- Spread cost versus day rate
- Deferred production value
- Applying it to operational decisions
- Common errors in time value reasoning
Module 5: Risk and Economic Decisions
- Expected value calculation
- Trading time against risk
- Contingency equipment decisions
- Insurance and risk transfer
- Decision trees for drilling choices
Module 6: Evaluating Technology and Services
- Assessing performance claims economically
- Premium service value calculation
- Trial and pilot economics
- Contract structures and incentives
- Decision criteria
Module 7: Campaign Economics
- Multi-well cost modelling
- Learning curve value
- Batch and pad economics
- Rig contracting strategy
- Campaign scheduling and cost
Module 8: Benchmarking
- Cost benchmarking methods
- Normalisation requirements
- External benchmark limitations
- Internal benchmarking and trends
- Setting credible cost targets
Module 9: Drilling in Development Economics
- Well cost within field economics
- Net present value and drilling decisions
- Phasing and capital allocation
- Economic limits on well design
- Communicating drilling value to management
Upon successful completion of this training course, delegates will be awarded an official Certificate of Completion issued by the Petroleum Engineers Association (PEA), an ISO 9001:2015 certified training organization. The certificate carries 10 Credits and formally records the total learning hours completed.
Each certificate is signed by the Course Facilitator and the CEO of the Petroleum Engineers Association, and serves as verifiable proof of professional training that delegates can present to employers and professional bodies worldwide.
Frequently Asked Questions
All course bookings made through PEA are strictly non-refundable. By registering for a course, you acknowledge and accept that all fees are payable in full and are not subject to refund under any circumstances, including changes in personal or professional commitments or partial attendance.
PEA reserves the right to make reasonable adjustments to course content, trainers, or schedules where necessary, without entitling delegates to a refund. Comprehensive details of each course — including objectives, target audience, and content — are clearly outlined before enrolment, and it is the responsibility of the delegate to ensure the course's suitability prior to booking.
For any inquiries related to cancellations or bookings, please contact our support team, who will be happy to assist you.
