article · All Days · 2002
Core Competency, Core Business and Drilling Performance
Cited by 3Abstract and details only
Abstract
Abstract Objective, transparent examination of actual drilling performance data and trends is curiously lacking. This paper defines two categories of drilling actors, risk-management contractors and best-efforts operators. It also defines the terms "core competency", "core business", and "drilling performance". A cardinal grading system for wells, based on grade point averages used in schools is presented. The system is objective, simple, and universally applicable. The total well grade is based on planned objectives versus actual accomplishments, planned versus actual time, and planned versus actual expenditures. Two sets of 50 wells each were graded. One set was drilled on a risk-management basis, the other on a best-efforts basis. On average, the risk-managed wells graded 2.66/4.00 and the best-efforts wells graded 1.60/4.00. The composite risk-managed well was 1.81% over planned days and 2.03% over planned dollars. The composite best-efforts well was 26.57% over planned days and 2.37% over planned dollars. The performance difference is analyzed. Personnel, technology, process issues, and economic theory are considered as root causes. It is concluded that wells drilled by organizations whose core competence is a core business grade higher than those drilled by organizations whose core competence is not a core business. The evidence also supports the conclusion that risk-management contractors plan and drill wells more efficiently than best-efforts operators. Finally, economic risk and reward principles explain most of the performance differential.
Cite this paper
Proehl, T. S. (2002). Core Competency, Core Business and Drilling Performance. All Days. https://doi.org/10.2118/74478-ms
Proehl, Thomas Strenger. “Core Competency, Core Business and Drilling Performance.” All Days, 2002, https://doi.org/10.2118/74478-ms.
Proehl, Thomas Strenger. 2002. “Core Competency, Core Business and Drilling Performance.” All Days. https://doi.org/10.2118/74478-ms.
Proehl, T.S. (2002) ‘Core Competency, Core Business and Drilling Performance’, All Days. Available at: https://doi.org/10.2118/74478-ms.
@article{proehl2002core,
title = {{Core Competency, Core Business and Drilling Performance}},
author = {Proehl, Thomas Strenger},
journal = {All Days},
year = {2002},
doi = {10.2118/74478-ms}
}Made from the index record. Check names, capitalisation and page numbers against the paper. Need another style? AI for Research has over 10,000.