Methods and Countermeasures of Controlling Drilling Cost under New Normal

Abstract

The oil price drops in the international crude oil market and the benefit of upstream operations reduces which has been the new normal of oil companies so far. The upstream operations production and management of oil companies face numerous problems and challenges. One of the most significant aspects is to control and optimize investment. Drilling investment is an important component of development investment in drilling oil and gas wells. This paper proposes ways and countermeasures of controlling drilling cost from 3 aspects which are technology innovation, management innovation and system innovation on basis of studying drilling cost structure and influence factors analysis. The results have some guidance and exemplary significance to show how to improve production and management effect respectively on upstream operations of oil companies under new normal.