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Fundamentals Of The Oil Drilling Process

In 1983, Mukluk Island was the site of bankruptcy for many oil refining companies. They spent almost $2 billion to find oil stains in the Beaufort Sea north of Alaska. This shows that oil drilling is one of the most costly ventures. 

According to some Surveys, drilling costs can range from $400,000 to $1,000,000 depending on where the hole is located, how deep it is, and the size of the hole. Temporary holes can cost anywhere from $8,000 to $150,000 per hour. To hire a professional company for drilling, you can also look at this site.

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Let's find out why these ventures can be so costly and how much they will cost.

* Salaries of engineers, supervisors and geologists, mud loggers, scientists, contractors

* Payment of landowners' dues

* Payment of taxes

* Attorney fees

* Permit from the government to drill on the land

* Labor costs for drilling, logging, and cementing.

* Maintenance costs. Employees work 24 hours per day and their amenities must be paid for by the company. This increases the cost.

Drilling Process

By inserting steel pipes into the earth and drilling holes, deep bores can be dug. Next, different pressure zones are created. The holes are then filled with cement castings and pipes that divide the pressure zones. Steel insertions are used to deepen the hole. 

These castings can be filled depending on the geological conditions of the land. The hole is then filled with a rotator table. To extend the digging, the drill rotates by a top drive mechanism.