Regression modeling of Texas oil well drilling, equipment and operating costs was performed with the price of oil being the only independent variable. Cost functions were established for West Texas and South Texas for three different depth intervals. Cost comparisons were made possible on a regional and depth basis as well as on a process basis (primary vs. secondary recovery operations - the latter for West Texas only). Best results were achieved for mid-range and deeper West Texas oil drilling costs, West Texas secondary lease equipment costs and West Texas and South Texas operating costs.

You can access this article if you purchase or spend a download.