Drilling and Completion Services Cost Index
The Drilling and Completion Services (DCS) Cost Index tracks and forecasts
price changes for products and services used in drilling and completing new
wells in the US. It is a tool for producer procurement departments, oilfield
service firms, and financial institutions interested in benchmarking and
forecasting well costs.
Each issue incorporates both the findings of our most recent cost survey and a forecast of drilling and completion costs (both overall and for nine subsectors – rigs, pipe, etc.) by quarter for the coming year.
Spears and Associates conducts a quarterly survey of independent engineering firms to collect “spot market” price information for 12 types of wells commonly drilled in the US. The information in the “well profile” survey is collected in the form of detailed (AFE level) cost estimates based on current “spot market” unit prices and usage rates in each location at the end of each quarter.
The survey is geared to identifying changes in “spot market” prices, which we think are indicative of where contract prices are headed over time. Our cost forecast is built up through an analysis of demand trends and capacity utilization in each subsector.
The DCS Cost Index is available as an annual subscription.