ABSTRACT
In Petroleum Engineering, drilling involves creating a hole from the surface to reach the desired depth and extract hydrocarbons like petroleum. It's all about finding and accessing those valuable resources underground.
The analysis of the drilling data helps simplify the complex information and allows us to compare the Cost per Foot (CPF) of each bit brand. By using engineering and cost factors, we can establish a linear function to determine the CPF for each brand. It's a valuable tool for evaluating and optimizing drilling operations.
When analyzing a bit, we consider parameters like bit cost, bit lifetime, rate of penetration, and operational cost. These parameters are divided into two zones with a linear constraint. The goal of this model is to analyze and evaluate the efficiency of the bit. This evaluation helps us optimize the selection and specification of the bit brand, ultimately improving the cost-effectiveness of the drilling process.
The primary reason for using a bit is to achieve cost savings on a cost-per-foot basis. A PDC bit needs to justify its higher cost by either drilling at a faster rate or having a longer lifespan. Since drilling costs are ultimately measured in dollars and cents, bit performance is evaluated based on the cost of drilling each foot of the hole.
The breakeven analysis of a bit plays a crucial role in the economic evaluation. It helps determine whether the additional cost of the bit can be justified for a specific application. By analyzing the breakeven point, we can assess if the benefits and savings from using the bit outweigh the added cost. The breakeven point for a bit is determined by the footage and hours required to match the cost-per-foot that would be achieved if the bit wasn't used in a specific well
Recommendation based on my findings in the project, it's clear that analyzing the bit using the Cost Per Foot equation with breakeven analysis is the way to go. It has consistently shown the best bit performance. By considering both the cost and efficiency factors, we can optimize the selection and maximize the benefits of using the bit.
