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Oil/Gas/Onshore and offshore project costs


Thanks for taking my question.

I am trying to understand an average cost of offshore and onshore project in oil and gas industry.
I am also looking for the capex break-down for these projects for example how much will be towards drilling, steel, subsurface work, pipeline and FPSO etc.

Thanks again,

The question is nearly impossible to answer by the little information provided.  

Cost very depending on several factors like:
Where is the well to be drilled located? Is it in the USA or another country and if so what documents are need and how much do they cost for they type of exploration or development.
What is the projected target depth? The depth dictates steel, concrete, and drilling mud costs just to name a few.
Is it on land or water? (Different size rigs cost different prices)
What types of gology are you going through?
Is it gas or oil? This could have a cost difference on your equipment need for extraction.
How much does the land cost or lease and is that factored in?
Is there fresh water near by that can be used for drilling or does water need to be hulled in?
Does there need to be extensive excavation of subsurface to occur so equipment and personal can access the location? Or is this something that has to be done by boats and aircraft.
How far away are you from a pipeline or does the final product need to be hulled off by boat/truck and at what cost.

This is just some examples of things that can very the price of a oil and gas development.


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Chris Termeer


I can answer a broad variety of questions about oil and gas in the upstream, midstream, and downstream sectors of the industry. Topics of knowledge include but are not limited to: * History of the industry * Basic questions about formation of hydrocarbons (hydrocarbon window, geologic processes that create oil and gas formations) * Types of formation structures, source rocks, and traps * Surrounding production analysis (how to, importance of etc) * Basic questions about magnetic surveys, geometric surveys, seismic surveys (2D and 3D) and radiometric surveys. (Including relative strengths and weaknesses and how performed.) * Basic questions of cable tool drilling * Complex questions about rotary drilling, its components, operations, how to set up a rig. Drilling operations including fluid/mud, cuttings analysis, downhole testing, directional drilling, making and tripping pipe, cementing casing (importance of and how performed etc), common drilling mistakes and problems. * Complex questions about post- (though sometimes occurs during) drilling activities such as well logging, sidewall and whole core sampling, drill stem testing, reserves analysis and projections. * Basic questions about well completions including installation of surface wellhead and subsurface safety valve, well perforations, lateral and horizontal completions, hydraulic fracturing, (I prefer the spelling form "fracking" for the active verb and "frac" for the noun form) and wellbore swabbing. * Basic questions about so-called "flush production" (others call primary recovery) such as natural gas drive, water drive, compaction drive and gravity/dip drive. * Complex questions about artifical hydrocarbon lift technologies such as the sucker rod pumpjack, plunger lift pumps, gas lift pumps and electric subsersible pumps. * Basic questions about secondary and tertiary recovery techniques including water flooding, gas injection (be it CO2 or N), anaerobic recovery and so forth.


I have worked in this industry for many years and have at least some experience in all aspects of it. My specialty in recent years has been in upstream exploration and production. I have worked as a Consultant and general partner for a variety of projects in Texas, Illinois, Louisiana, Colorado. My experience is also built on my extensive writing in the oil and gas industry on a series of blogs and websites and my recently published book, Fundamentals of Investing in Oil and Gas.

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Self-published author of Fundamentals of Investing in Oil and Gas, (ISBN: 978-0-9890434-1-0 and Library of Congress Control Number: 2013906080) Contributing author on

Bachelor's of Science from Michigan State University with a variety of other coursework at other Universities including the University of South Florida and University of Wollongong.

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