Drilling Cost per Foot Calculator

Introduction

This Drilling Cost Per Foot is designed for professionals who need accurate and reliable calculations in their daily work. Whether you are planning finances, managing projects, or making critical business decisions, having the right numbers at your fingertips is essential. This tool provides instant results based on proven formulas, saving you time and reducing the risk of manual calculation errors. By using this calculator, you can focus on analysis and decision-making rather than spending time on complex computations. The interface is straightforward and designed for practical use, ensuring that you get the information you need quickly and efficiently.

What This Calculator Does

This drilling cost per foot calculator computes the total well cost divided by total vertical depth (TVD) to benchmark drilling efficiency, compare contractor bids, and evaluate well economics for oil and gas development projects. The calculation aggregates rig day rate costs, drill bit expenses, casing and tubing, cementing services, drilling mud and additives, completion costs (fracturing, perforating, flowback), and other services (logging, surveys, testing) to determine the Authorization for Expenditure (AFE) and per-foot cost. In 2026, Permian Basin horizontal wells cost $600 to $800 per foot total ($9M to $12M for 15,000 ft), offshore Gulf of Mexico wells cost $1,500 to $3,000 per foot ($30M to $60M for 20,000 ft), and conventional vertical wells cost $300 to $500 per foot ($3M to $5M for 10,000 ft). Per-foot cost analysis is critical for capital budgeting, reserve valuations, and acquisition underwriting.

Step-by-Step Example

Real-World Use Cases

Common Mistakes to Avoid

• Not separating drilling from completion costs. Completion costs (fracturing) can exceed drilling costs in horizontal wells. Reporting "drilling cost per foot" at $350/ft when completion adds $400/ft ($750/ft total) misleads investors and lenders.

• Using measured depth (MD) instead of true vertical depth (TVD) for horizontal wells. A 15,000 ft TVD well with 10,000 ft lateral has 25,000 ft MD. Cost per MD is $260/ft; cost per TVD is $433/ft. TVD is standard for industry benchmarking; use MD only for torque/drag analysis.

• Ignoring non-productive time (NPT). AFEs assume perfect execution. NPT from stuck pipe, lost circulation, equipment failure, or weather adds 10% to 30% to rig time costs. Build 15% to 20% contingency into AFEs to account for NPT.

• Forgetting facility and tie-in costs. The well AFE does not include flowlines, separators, tanks, compressors, or pipeline connections, which add $250K to $2M depending on infrastructure proximity. Include these in full-cycle economics.

• Not adjusting for inflation and commodity prices. Steel casing prices fluctuate with oil prices and steel tariffs. Frac sand, water hauling, and diesel costs vary regionally. Use current vendor quotes, not outdated historical AFEs, for 2026 projects.

Frequently Asked Questions