RELATION OF DRILLING CAPACITY TO MARKET AND PROFIT

• Main Author: Mladen Zelenika
• Format: Article
• Language: English
• Published: Faculty of Mining, Geology and Petroleum Engineering 1994-12-01
• Series: Rudarsko-geološko-naftni Zbornik
• Subjects: mathematical model; objective function; operational research; operations' management; constraints; Drilling Company (DC); drilling rig; geological conditions; market conditions
• Online Access: http://hrcak.srce.hr/index.php?show=clanak&id_clanak_jezik=21049&lang=en

Owner of drilling rigs should employ highly professional officers, who are capable to manage profit-orientated operations at all stages and make accurate analyses of the next three questions: how to deploy drilling crews to achieve the highest financial result; which kinds of equipment are compatible and employable in profitable operations, and how to compute the requirement of each type of equipment, and the number of drilling crews for a defined period and region to have profitable service. This paper introduce an original mathematical model convenient to compute exact values needed for an answer on these three questions. Application of this model is obvious for research of the relationship among: (i) performance and cost of available drilling rigs, (ii) condition on the market, and (iii) estimated profit. Utilization of this model is possible only if records of market conditions' data, and data relating to progress and cost of operations in different conditions are established. These records will facilitate accurate estimation of input parameters' values and computation of output parameters' values using the Mathematical Model. Results of these computation should give basic data Tor precise plan of operation, rentabili-ty, and figures to decide the strategy of Drilling Company's capacity development.