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Labor
Power: fuel or electricity
Drilling tools and supplies
Maintenance labor & parts
Supervision, administration
Cost of equipment ownership (lease, purchase, or rental payments)
With all things considered, drill operating costs can exceed US$300 (Rs.16,800
approx.) per operating hour.
Methods for the determination of Total Drilling Cost (TDC)
Method 1: Utilizes the following concept:
TDC = (Bit Price / Meters Drilled) + (Drill Operating Cost per Hour / ROP)
Example #1:
Example #2:
t
Penetration
Rate = 52 meters/hour
TDC:
TDC:
= ($5,000 / 6,500m) + ($200/52 m/hr.)
= $0.77/meter + $3.84/meter
=$4.61/meter
Example B:
$$ = 150 x .5
$$ = $150 x .33
Productivity costs less! If the ROP is high then cost of drilling per hole is low
With Total Drilling Cost calculated by any method, the productivity (ROP) and
drill cost are the drivers of the calculation.
Bit Price per Meter is a small part of the TDC.
Ex. 1, bit price/m, $.77 is 17% of $4.61/m.
Ex. 2, bit price/m, $.63 is 11% of $5.63/m.
Ex. A, bit price/m = 19%, FC + VC = 81%
Ex B, bit price/m = 14%, FC + VC = 86%
The cost of productivity is the largest part of TDC
45%
% Cost
75%
83%
50%
53%
89%
37%
25%
33%
17%
11%
19%
14%
Ex. 1
Ex. 2
Ex. A
Ex. B
0%
Bit Cost/M
Fixed Cost
Variable Cost