RI 2270 Relation Of Drilling Campaign To Income From Oil Properties

An oil-field drilling campaign is used in this paper to signify the spacing of the wells to be drilled as well as the drilling program, which is interpreted as the number of wells drilled in a unit of time, This has an important bearing upon the time of receiving income, as well as upon the amount of revenue obtained In periods of low prices for oil, such as the present, the margin of profit is at the best very small, and the correct determination of the drilling campaign may be the deciding factor between incurring financial loss or gain during the depressed period. General policy of the operator. Drilling should be planned by the field engineer to conform with the general policy of the operator. This policy may be one of conservation daring the early life of the property, but as mentioned later, this may result in a smaller ultimate recovery it often occurs that the market price of oil does not warrant rapid development, or it may be desirable to hold in reserve a supply of oil for a refinery. The policy may be to recover all of the oil as quickly as possible, or it may be to maintain a constant and sustained production. In any case, the operator should, outline as far as possible a definite policy, and should understand the principles underlying the recovery of oil, the influence of rapidity of drilling and effects of spacing, in order that he may obtain the oil as required with the least expenditure.