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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (189679)	3/15/2015 10:54:38 PM
From: Bearcatbob	Read Replies (2) \| Respond to of 206135

What percent of a rigs daily cost is labor?

To: robert b furman who wrote (189679)	3/15/2015 10:59:08 PM
From: JimisJim	Read Replies (1) \| Respond to of 206135

Depends on the rig... some of the old conventional rigs can't quite make a 90° bend even into an existing hole unless the crew is top notch, the geology just right and a good measure of luck as well... prior to top drive drilling systems, rotary steerable tools and such, the only way to deviate from essentially straight down involved such things as whip stocks and other voodoo -- it can be done, but it requires a lot of skill, and more importantly a lot of time... now some rigs can make use of the up-to-date downhole tools and BHAs required for the high-spec wells, but some can't... remember that the majority of the low cost, low spec rigs are/were owned and/or operated by very small outfits... another issue is torque -- a mile-long drill string/tubular string downhole can get stuck quite easily if the torque isn't up to the task and "jarring" out of a stuck situation is dangerous to both equipment and people. Remember that the "frac'ing revolution" required the idea to combine drilling rigs with sufficient torque and flexibility with rotary steerable tools to make the holes and also to allow the multi-stage frac'ing that actually unlocks the hydrocarbons so they can flow into the well bore. Obviously it is easier to send something back down a well made hole that's been cased and completed than it was to make it, but it still isn't a simple task that any old rig or crew can accomplish without some issues along the way. It's all about time (which is very much equal to money) to complete the tasks at hand that can make the difference between profit and loss... or at least how long it takes to pay for sunk costs.