Who will pay the highest drilling rig rates in Western Canada this summer?

Drillers of horizontal wells in northern British Columbia face, by some distance, the highest average day rates for rigs in Western Canada this summer, according to new data.

PSAC’s new Well Cost Study for summer 2017 reveals that rig day rates in northern B.C. can average up to 55 per cent more expensive for horizontal or directional drilling than the equivalent costs in other Western Canadian PSAC regions.

Rig day rates are among more than 100 drilling and completion cost components for around 50 type wells across Canada included in the PSAC study.

Combined, they deliver a comprehensive insight into drilling and completion costs faced by operators today.

Each of the four type horizontal wells in northern B.C. face daily rig costs that are typically 55 per cent higher than the three cheapest regions in the PSAC study—East Central Alberta, Manitoba and Central Saskatchewan—where costs are more in line with a vertical well.

The four typical wells in northern B.C. also face among the highest overall rig costs, i.e. the day rate multiplied by the number of days for which the rig is required.

They are among wells with the greatest overall measured depth, which means they take longer on average to drill, and therefore require a rig for more days. The total measured depth is the combined length of both the vertical and horizontal portions of the wellbore.

The actual rig costs involved, as well as the total measured depth and the number of days the rig is required are all provided in the PSAC Well Cost Study. The PSAC Well Cost Study is available for purchase now. Click here to learn more and access sample data.

Image source: photosbyjim

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