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Drilling Technology and Costs

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Drilling Technology and Costs ( drilling-technology-and-costs )

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Chapter 6 Drilling Technology and Costs clearance deeper into the hole. The pump cavity can be developed to the necessary depth. The estimates are for an injection well that has a production casing from the top of the injection zone to the surface. 6­20 EGS well depths beyond 4,000 m (13,100 ft) may require casing weights and grades that are not widely available to provide the required collapse and tensile ratings. The larger diameters needed for high­volume injection and production are also not standard in the oil and gas industry – this will cause further cost increases. Both threaded and welded connections between casing lengths will be used for EGS applications and, depending on water chemistry, special corrosion­resistant materials may be needed. An appropriately sized drilling rig is selected for each depth using the mast capacity and rig horsepower as a measure of the needed size. A rig rental rate, as estimated in the third quarter of 2004, is used in determining the daily operating expense. It is assumed that all well­control equipment is rented for use in the appropriate interval. Freight charges are charged against mobilization and demobilization of the blowout­preventer equipment. The rates of penetration (ROP) selected in the base case are those of medium­hardness sedimentary formations to the production casing setting depth. An expected reduction in ROP is used through the production interval. For other lithology columns, it is only necessary to select and insert the price and performance expectations to derive the well cost. These bit­performance values are slightly conservative. The 1,500 m (4,900 ft), 2,500 m (8,200 ft), and 3,000 m (9,800 ft) well­cost estimates from the model compare favorably with actual geothermal drilling costs for those depths. The deeper wells at depths of 4,000 m (13,100 ft), 5,000 m (16,400 ft), and 6,000 m (19,700 ft) have been compared to costs from the JAS oil and gas well database. The length of open hole for the 7,500 m­ and 10,000 m­deep wells was assumed limited to between 2,100 m (6,900 ft) and 2,600km (8,500 ft). All wells should have at least one interval with significant directional activity to permit access to varied targets downhole. This directional interval would be either in the production casing interval or the interval just above. The amount and type of directional well design can be accommodated in the model. The well­cost estimates are initially based on drilling hardness, similar to those used in the Basin and Range geothermal region. It is assumed that the EGS production zone is crystalline. The well should penetrate into the desired temperature far enough so that any upward fracturing does not enter into a lower temperature formation. Also, each well is assumed to penetrate some specific depth into the granitic formation. In the deeper wells, a production interval of 1,000 m (3,300 ft) is assumed. It is reduced for the shallower wells and is noted in the Wellcost Lite output record Well costs were estimated for depths ranging from 1,500 m to 10,000 m. The resulting curves indicate drilling costs that grow nonlinearly with depth. The estimated costs for each of these wells are given in Table 6.1.

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