How much does a new drilling rig cost?

The drilling equipment package is the largest equipment expenditure, and typically costs $20 to $70 million for jackups and $100 to $200 million for floaters (or on the order of 10 to 30% of total costs).

How much does it cost to build an offshore platform?

The platform costs represent tremendous investments, usually from one-fourth to ten million dollars. For a given geographical region, the platform costs depend critically on the water depth and on the number of wells to be drilled from the platform.

How much money do oil rig owners make?

Crude Oil Owner Operator Salary

How much does it cost to maintain an oil rig?

A good number to start with for a new $800,000.00 rig is about $75,000 a year to own and maintain it. The best advice I can give to a new rig owner is to save $25 an hour for every hour of rig operation to replace that rig.

Is drilling for oil expensive?

A modern drilling project can encompass the use of 30-40 different individual companies to fully complete the process. Cost depend on the depth and complexity of the well. Modern horizontal well drilling costs can easily exceed $4,000,000 just in the drilling phase.

How much does it cost to start an oil company?

If you’re going to start an oilfield, be prepared for at least $6 million in starting costs, and possibly more. In an industry where earning a profit can take years, having the assistance of a team like TCI Business Capital can make all the difference.

How long does it take to build an oil rig?

Dozens of new rigs were commissioned, and worldwide orders tripled between 2010 and 2011. But oil rigs take two or three years to build, and by the time these were ready for use, the price of oil had declined sharply, and with it the industry’s hunger to prospect – thus the oversupply.

How much does an oil driller cost?

Cost depend on the depth and complexity of the well. Modern horizontal well drilling costs can easily exceed $4,000,000 just in the drilling phase. Without drilling complications these wells generally take about 3 weeks for the drilling phase.

How much money can you make from an oil well?

In the event oil and gas were found and the wells produce, then the royalties kick in. So if the oil well produce 100 barrels a day, and the price of oil is $80 per barrel that month, then the cash flow is 100x$80 = $8,000/day The royalty owner, who agreed to 15% royalty, would receive $8,000 x 0.15 = $1,200/day.

How much does oil drilling cost?

The study found that drilling costs range from $100 to $200 per foot of total depth for onshore wells. Some modern wells in the Midland Basin of the Permian targeting the prolific Wolfcamp can have a total depth of 8,000 vertical feet (ca. 3Q16), which would work out to around $1.6m for drilling alone.

How much does it cost to run an oil rig?

The cost of an oil rig varies by type, depth, the location, and it’s size. So you’re going to get the range from a 30–50k for inshore, older wells to 1.5–1.9 million per day for “super sized” floating platforms hundreds of miles from shore.

How much does an offshore oil rig cost?

The least expensive offshore rig typically costs about $200 million. It also depends on the drilling depth. The deeper the holes are, the higher cost will be. Factors that affect the Oil Rig Construction Cost: The price of oil rigs in the US starts from $18 million to $20 million and can go higher to $25 million with the increase in the market rate.

What is the highest paying job on an oil rig?

The top-paying job in petrochemicals is that of the Process Engineer, which pays on average for a six-year veteran $123,400 per year. Quality Assurance Manager comes in at #2, which pays $122,190 per year.

What does it cost to build an offshore oil rig?

But for the months it takes a crew to size up a location, a mobile drilling platform provides everything a team needs with minimal investment. Jack-ups, the most common rigs, typically cost between $180 million and $190 million to build [source: Offshore Magazine]. There are five varieties of mobile drilling platforms.