More emphasis is being placed on the potential of unconventional resources, like oil shale and oil sands, as part of the overall energy mix to help meet the world’s growing energy needs. The Wells Manufacturing System is a key component of successful unconventional oil projects since innovative approaches, such as major changes in equipment, staffing and contracting strategy, are required to make these projects economically attractive.
This presentation explains the Wells Manufacturing Objectives and introduces the Technical Well Cost Model used for assembling complex cost scenarios. Discussion includes the effect of input parameters such as engineering knowledge, economic assumptions, and operational practices on well cost. Such modeling is essential to the exploration of innovative approaches for driving well costs to significantly lower levels and making unconventional oil and gas projects successful.