Risk Analysis Significantly Reduces Drilling Project Costs: Vital in the New Oil Price Era

This paper portrays how drilling project costs can be reduced significantly, through the use of Risk Impact Amalysis, which is vital in the current era of unprecedently low oil prices which puts pressure on the whole chain of oil and gas services. New ways of thinking and inventiveness are required if we are to keep drilling as opposed to stacking rigs which is happening at an alarming rate particularly on land in the U.S.A. If the cost of drilling cannot be reduced further, rigs will be stacked, several "cold" and the lucky ones "warm’. This paper desrbibes how, through focused risk anaylsis, a 10,000 rated rig was allowed by the authoriesto drill as opposed to the more normally required 15,000 psi requirement.