Many factors influence the drilling of a given well, and by simulating the drilling process, offset wells can be drilling considerably quicker and more economically effective. The application has positive implications for both service companies and operators in times of oil price volatility.

Introduction

During states of economic downturn in the Oil and Gas Industry, resulting from lower than desirable oil prices, cost reductions associated with the drilling procedure becomes increasingly important for the
economic outlook of petroleum projects worldwide.There are a multitude of factors present in the drilling process which ultimately effect the economic viability of oil and gas developmental projects, directly impacting the operational perspective. This paper will focus on the primary factors in the drilling process which can be manipulated from a technical standpoint and examined for analysis. By varying these parameters, an optimal drilling plan will be
developed and an economic study will be conducted with a resulting cost optimization analysis and discussion.