Drilling Better Wells – What Are They and How Can We Create, Measure and Reward Them

Fundamentally, better wells are wells that deliver more net positive returns (value) through their lifetime (NPV) which could be in the order of 20 - 40 years for the long run or as short as 5 years when seeking to divest. The value is defined by rate of production, reserves accessed, capex and opex costs and the delivery schedule. Drilling often denies the relationship between the drilling process and the productivity of the well, while not fully correlatable there is direct linkage that must be measured / rewarded. This leads to the challenge to define the outputs of the drilled / completed well that impact production in a manner that drilling can positively impact the leading indicators in a measurable manner and be rewarded. This presentation addresses these issues then formulates a methodology to correlate and reward drilling parameters impacted by drilling departments, contractors, and service companies for increased well value.