Whether you are an individual or company seeking to drill an oil well, the procedure is not simple. Of course you will need professional assistance, and you might need an excavator drill attachment or other specialized equipment for the job. If you are not sure whether to drill or not, here are some helpful tips to give you a good idea of what to expect.
Check out the Site
Have you done extensive testing for oil? Just because there are other wells in the area, it doesn’t mean you have found a good source. Most people opt for an oil/gas survey of the land. These surveys check for evidence of oil and this is a cost effective strategy. You also may want to hire a seismologist. He or she can use ultrasound technology to check for pockets of fossil fuels.
Consider the Complications
It’s best to think about what can possibly go wrong before you start drilling. This will help you develop a plan for risk management. Consider issues like these:
* What is the total budget for the project?
* How long do you expect production to last?
* What ROI are you expecting? In other words, what is the least amount of ROI you can get by with?
* What kind of equipment will you need? Can you save money by investing in an excavator drill attachment or is this not feasible?
* When do you expect to hit oil?
* What are you going to do when production ceases? Will you drill deeper or simply abandon the project?
* Check out the current oil market to see if you are making the right decision at this time.
Who Are You Going to Hire?
How many employees will you need? Are you going to hire independent contractors? Remember, an independent contractor may at first seem more expensive but when you eliminate employee benefits and issues like workman’s compensation, independent contractors may be the most cost effective option.
Do You Need to Develop Access to the Site?
In some areas, you may have to create a special road. This will greatly increase your initial costs. A remote drilling site can be very expensive and you may need to save money with limited access machinery like drilling wagons or excavator drill attachment equipment.
You should consider hiring a geologist, to better understand rock formations. Also, an ecologist can save you some major headaches on environmental issues which can arise from oil drilling.
