Simple equation estimates drilling costs: 1984 update

This article explains how a simple equation can be used to estimate 1984 well costs. The equation is derived from drilling cost vs. depth data published by the Department of Energy for 13 different geographic areas of the onshore continguous U.S. When the data are plotted on log graph paper, the information can be curve-fitted as a straight line quite closely. The equation parameters can be updated as new DOE data becomes available, or by applying an inflation (or deflation) factor.