Well Maintenance Costs

 

Oil Well Maintenance Costs

 

2009 Annual Operating Costs for 10-well Oil Lease producing at a depth of 2,000 feet.*

 

Region Cost
California $218,700
Mid-Continent $185,600
South Louisiana $238,500
South Texas $231,200
West Texas $170,000
Rocky Mountains $255,700
   
Average $216,600

*Source: Energy Information Administration, Office of Oil and Gas

 

Methodology

The costs provided in this report are for representative lease operations with equipment and operating procedures designed by EIA staff engineers.  Costs are estimated for representative 10-well oil leases producing by artificial lift.  The design criteria took into account the predominant methods of operation in each region.  Individual items of equipment were priced by using price lists and by communicating with the manufacturers or suppliers of the items in each region.  The leading supply, service, and contracting companies (active in one or more of the regions) were contacted every year (1976 through 2009) for local June prices for their component of equipment or operating function.  The objective of this process is to acquire prices that are representative for each region.  The annual operating costs measure the change in direct costs incident to the production of oil and gas and exclude changes in indirect costs such as depreciation and ad valorem and severance taxes.

Costs were determined for new equipment. Tubing costs are included for the oil wells. 

 

Primary Oil Production

Leases for onshore oil wells consist of 10 wells producing by artificial lift into a centrally located tank battery.  The depths of all wells on the leases are 2,000 feet.

Costs were determined for new equipment capable of handling 200 barrels of fluid per day per well for onshore primary operations.  Tubing costs are included. The artificial lift method selected was dependent on the type of lift found to be dominant for each region.  The two types of prime movers considered were electric motors and natural gas engines.  Annual operating costs were estimated for daily production rates of 100 barrels of fluid per day per well for each depth in each region of operation with 10 percent water content.

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