A Practical Method for Evaluating
Rig Performance
Bahram A. Sheikholeslami, SPE, Amoco Production Co.
James D. Miller, SPE, Amoco Production CO.
R.E. Strong, SPE, Amoco Production Co.
Summary
This paper introduces a practical method of calculating
rig efficiency incorporating both mechanical perfor-
mance and the performance of the contractor's person-
nel. By developing a concept called "contractor-
controlled time" (CCT), the effect of the rig crew on
various drilling operations can be included in the effi-
ciency calculation. Several example calculations of rig
efficiency involving actual field data are presented. This
paper also addresses the effective cost of a rig to the
operator based on efficiency and the normal fixed costs
of the drilling operation. This new approach to rig effi-
ciency can be applied to development drilling areas, with
some limited application elsewhere. The results of this
study have provided a means of comparing rigs and
determining which is the most efficient and cost effec-
tive. The results also can pinpoint those operations
where a particular rig is inefficient. This information
provides a method of evaluating rigs on a uniform and
consistent basis.
Introduction
The concept of drilling rig efficiency has historically
been associated with a rig's mechanical capability.
Generally a rig's size, mechanical condition, horsepower
rating, and maximum load have been considered by
many as determining efficiency. This concept of effi-
ciency has ignored the rig crew and their ability to per-
form routine drilling operations.
This paper describes a new method of evaluating drill-
ing rig efficiency incorporating performance of the con-
tractor's personnel and mechanical capability of the rig.
Efficiency is calculated on the basis of the time it takes a
rig to perform various drilling operations. An inefficient
rig costs the operator or contractor both time and money.
This paper also presents a method to calculate daily rig
cost based on efficiency. Equations for rig efficiency and
adjusted daily rig cost are included with a comparison of
rig efficiencies.
The concepts and equations discussed in this paper
provide a practical method for both operator and contrac-
tor to evaluate and compare drilling rigs.
Theory
A complete evaluation of drilling rig efficiency should
include the effect of contractor personnel on the overall
drilling operation. To account for rig crew influence, the
0149-2136/84/0031-1364$00.25
Copyright 1984 Society of Petroleum Engineers of AIME
MARCH 1984
time required to perform the component drilling opera-
tions directly controlled by the rig and crew is used as a
basis for evaluating overall rig performance. Rig effi-
ciency is then a function of both the rig and rig crew's
mechanical and operational ability _ The theory implies
that any rig should be able to equal the optimal or fastest
time-if a particular rig is as efficient-both mechanical-
ly and operationally_
Drilling a well involves many individual operations in-
fluenced by the contractor, the operator, and outside
sources. This paper identifies the operations directly
controlled by only the rig and rig crew. The time re-
quired to perform these operations is defined as "total
contractor-controlled time" (TCCT) (see Relationship 1,
Appendix A). Appendix B lists the contractor-controlled
categories used in this study and defines them as they
relate to CCT. Routine operations such as rigging up and
down, nippling up and down, cutting drilling line, and
lubricating and repairing the rig are controlled directly
by the rig's design and condition, and the crew's ex-
perience and ability. Drilling, trip, and connection time
have also been considered in this study as CCT.
As a basis for comparison, rigs were selected from
various drilling areas (Fig. 1), with total depth and
geology essentially the same for each well. This
equalizes drilling, trip, and connection time between
wells. Additionally, these drilling areas were standard-
ized such that the drilling program was the same for each
well. Drilling parameters such as hole configuration, bit
type, weight on bit, and rotary speed are therefore essen-
tially identical. This normalizes operator and outside in-
fluence on the drilling, trip, and connection time.
Following these basic assumptions, drilling, trip, and
connection time becomes a function of the rig and rig
crew's ability to carry out the drilling program.
It is important to note that any CCT associated with
trouble or nonroutine drilling operations is not included
in the TCCT relationship. It is recognized that TCCT is
not limited to the categories listed in Appendix B.
However, for the sake of uniformity and to provide a fair
comparison, nonroutine operations have been ignored in
our analysis.
After the concept of CCT had been developed, an op-
timal or 100% level of rig performance had to be defined
to allow calculation of rig efficiency. The "optimal
contractor-controlled time" (OCCT), Relationship 2, is
defined as the sum of the fastest time achieved by any rig
for each contractor-controlled category. Therefore, each
drilling area has its own OCCT. When greater efficiency
489
 Soutbern
Fa'r.a,

Fig. 1-Location of fields.

TABLE 1-TIME DISTRIBUTION (hours)

Condition
Rig Up! and Cut
Tear Circulating Lubricating Repair Drilling Deviation
Down Drilling Reaming Coring Mud Trip Rig Rig Line Survey Logs
-------
East Texas-Field A
Contractor A, Rig 1 41.00 595.00 4.50 0 18.00 81.50 2.75 8.50 3.00 6.75 29.00
Contractor B, Rig 1 3JLOP' !i7Q&Q 3.50 0 19.00 100.75 8.75 7.0Q 2.00 7.75 19.00
Contractor C, Rig 1 50.00 697.50 20.75 0 29.25 152.00 2.50 16.00 5.00 8.75 8.00
Contractor D, Rig 1 47.00 652.00 4.50 0 37.50 100.00 14.25 27.50 4.00 5.25 33.50
OCCT 38.00 570.00 81.50 2.50 7.00 2.00
Optimal operating
time for field 38.00 570.00 3.50 0 18.00 81.50 2.50 7.00 2.00 5.25 8.00
East Texas-Field B
Contractor D, Rig 2 2~JlP :,3.6.!iQ 2.50 0 10.50 57.00 6.75 9.75 1.00 4.75 16.25
Contractor E, Rig 1 39.00 474.00 3.50 0 16.00 78.50 11.25 13.00 2.75 6.25 17.00
Contractor F, Rig 1 32.50 369.00 2.50 0 19.75 99.25 5.25 7.25 2.25 5.25 28.00
OCCT 29.00 366.50 57.00 5.25 7.25 1.00
Optimal operating
time for field 29.00 366.50 2.50 0 10.50 57.00 5.25 7.25 1.00 4.75 16.25
East Texas-Field C
Contractor A, Rig 1 33.00 429.00 3.50 0 16.00 Q.1? 1.50 3.00 7.00 8.25 21.00
Contractor B, Rig 1 3JJlO 39~QQ 2.50 0 15.00 92.75 5.00 4.50 1.75 6.75 14.50
Contractor E, Rig 1 41.00 497.75 5.50 0 38.50 106.00 11.75 33.00 3.00 8.75 17.00
OCCT 31.00 399.00 68.75 1.50 3.00 1.75
Optimal operating
time for field 31.00 399.00 2.50 0 15.00 68.75 1.50 3.00 1.75 6.75 14.50
North Michigan
Contractor G, Rig 1 2~.JlP 162~5 0 0 5.00 34.50 3.25 6.75 8.75 29.25
Contractor G, Rig 2 39.00 204.25 1.00 0 9.00 49.00 6.00 30.25 2.00 12.50 18.00
Contractor H, Rig 1 50.00 223.75 1.50 0 7.00 114.00 5.00 23.00 9.50 12.00
Contractor H, Rig 2 43.50 200.50 0 0 8.25 104.00 7.50 10.50 3.50 8.50 8.75
OCCT 24.00 162.25 34.50 3.25 6.75 2.00
Optimal operating
time for field 24.00 162.75 0 0 5.00 34.50 3.25 6.75 7.00 8.50 8.75
South Michigan
Contractor H, Rig 3 33.00 186.50 0.50 0 7.50 60.00 3.50 9.50 2.00 19.00 16.00
Contractor H, Rig 4 l2&0 t;<~Q 0 0 5.00 ~.OO 5.50 4.50 2.00 21.50 15.00
OCCT 19.00 125.50 35.00 3.50 4.50 2.00
Optimal operating
time for field 19.00 125.50 0 0 5.00 35.00 3.50 4.50 2.00 19.00 15.00
Underlined numbers indicate optimal time

490 JOURNAL OF PETROLEUM TECHNOLOGY

 is achieved for any contractor-controlled category, the
OCCT is changed to reflect the new optimal perfor-
mance level.
Rig efficiency is calculated by use of Relationship 3 as
the OCCT divided by the TCCT for each rig. The OCCT
may seem unattainable by a particular rig, but if one rig
has achieved the optimal time, then rigs of equal effi-
ciency should be able to duplicate this time.
In the eatly development of our theory it became ap-
parent it was impossible to attain 100% efficiency in all
fields. However, a comparison could be made between
rigs regardless of the efficiency obtained in a particular
field. This method of calculating rig efficiency provides
a relative measure of rig performance. Poor performance
in any category can be identified and hopefully improved
through discussion with the rig personnel while the well
is being drilled.
Rig Efficiency. Table 1 presents the time distribution for
each rig used in this study. The time distribution was ob-
tained directly from the daily IntI. Assn. of Drilling Con-
tractors reports for a single well in each field. The table
includes contractor-controlled operations and additional
routine drilling operations experienced while drilling.
The "Other" column includes time spent on
miscellaneous operations like working stuck pipe, pump-
ing soft line, rigging up surface equipment, laying down
drillpipe and collars, waiting on service companies,
cleaning mud tanks, blowout preventer (BOP) drills, and
changing bottomhole assemblies. Table 1 also presents
the TCCT for each rig. The OCCT for each drilling area
is shown in Table 1 as the sum of the underlined values
in each contractor-controlled category. Rig efficiency for
each rig studied is calculated in Table 2. Although none
of the rigs studied operated at 100% efficiency, several
were operating very close to the optimum. The efficien-
cies calculated in Table 2 are based on past performance
and can be used to predict future performance in each
drilling area.
Effective Daily Rig Cost. Table 2 shows that at least
one rig is operating inefficiently in each drilling area
studied. This inefficient rig is costing the operator and
contractor more to operate on a daily basis. The real dai-
ly cost of a rig to the operator or contractor can be
calculated by use of Relationship 4. This "effective dai-
ly rig cost" is simply the rig's actual daywork price
divided by its efficiency for the particular drilling area.
When rigs are compared, the effective daily rig cost can
reveal substantial cost differences and can be a useful
tool in rig selection.

TABLE 1-TIME DISTRIBUTION (hours) CONTINUED

Nipple-
Up
and
Casing Waiting Nipple- Total
and on Down Testing Drillstem Squeeze Directional Operating
Cementing Cement BOP BOP Test Plugback Cement Fish Work Connection Other TCCT Time
----- ----- ----- - - - -----
24.00 8.00 11.75 8.50 0 0 0 0 0 32.75 25.25 776.25 900.25
22.00 8.50 10.00 7.00 0 0 0 0 0 27.75 31.00 764.25 882.00
25.00 12.00 11.50 9.00 0 0 0 0 0 28.25 84.25 962.75 1,161.75
26.00 12.50 18.00 9.75 0 0 0 50.50 0 29.25 62.50 892.00 1,134.00
10.00 27.75 738.75

22.00 8.00 1000 7.00 0 0 0 0 0 27.75 25.25 835.75

18.50 9.50 13.00 7.50 0 0 0 0 25.75 67.00 508.75 645.25

19.50 10.50 23.50 6.50 0 0 0 0 0 32.50 9.00 674.50 762.75
22.00 12.00 24.25 8.50 0 0 0 0 0 27.25 40.50 567.00 705.50

13.00 25.75 504.75

18.50 9.50 13.00 6.50 0 0 0 0 0 25.75 9.00 582.25

20.50 8.50 17.50 8.50 0 0 0 0 0 31.25 13.00 591.00 690.25

22.25 9.50 17.00 5.50 0 0 0 0 0 29.50 73.75 580.50 730.25
6.50 14.00 5.50 0 0 0 0 0 30.00 16.00 736.50 834.25

14.00 29.50 548.50

20.50 6.50 14.00 5.50 0 0 0 0 0 29.50 13.00 632.75

8.00 9.50 19.50 6.50 0 0 0 0 0 10.00 22.00 260.25 349.25

12.00 14.50 24.00 6.00 0 0 0 0 16.75 26.00 371.25 470.25
19.50 16.00 37.50 7.00 0 0 0 0 0 16.75 31.00 470.00 573.50
9.50 18.00 16.25 5.00 0 0 0 0 0 10.50 25.75 396.25 480.00

16.25 10.00 259.00

8.00 9.50 16.25 5.00 0 0 0 0 0 10.00 22.00 331.25

10.25 12.00 14.25 5.00 0 0 0 0 0 19.50 25.50 328.25 424.00

9.50 9.00 14.50 3.00 0 0 0 0 0 24.75 24.00 230.75 317.75

14.30 19.50 223.25

9.50 9.00 14.25 3.00 0 0 0 0 0 19.50 24.00 307.75

MARCH 1984 491

 TABLE 2-RIG EFFICIENCY

Rig
OCCT CCT Efficiency
(hours) (hours) (%)
East Texas-Field A RIG EFFICIENCY (%)
Contractor A, Rig 1 738.75 776.25 95
Contractor S, Rig 1 738".75 764.25 96
Contractor C, Rig 1 738.75 962.75 77
WEll No.1
Contractor D, Rig 1 738.75 892.00 83
East Texas-Field S
WELL No.2
Contractor D, Rig 2 504.75 508.75 99
Contractor E, Rig 1 504.75 674.50 75
Contractor F, Rig 1 504.75 567.00 89 0 50 65 83 00
18% ICREASED EFflCIENCY
East Texas-Field C EFFECTIVE DAILY RIG COST ($ 1000/DAY)
Contractor A, Rig 1 548.50 591.00 93
Contractor S, Rig 1 548.50 580.50 94
8307
Contractor E, Rig 1 548.50 736.50 74 t WEll No.1
North Michigan I
I
Contractor G, Rig 1 259.00 260.25 99 650~
: WELL No.2
I
Contractor G, Rig 2 259.00 371.25 70 I I
I I
Contractor H, Rig 1 259.00 470.00 55 I I
Contractor H, Rig 2 259.00 396.25 65 7
$1800/DAY REDUCTION
South Michigan
Contractor H, Rig 3 223.25 328.25 68
Contractor H, Rig 4 223.25 230.75 97 Fig. 2-Field results-Contractor H, Rig 2.

Effective Daily Fixed Cost. Other daily costs besides
rig costs are associated with drilling wells. These other
costs are called a rig's "daily fixed cost" and include
such items as fuel, water, mud, rental equipment, labor,
mud logging, and any other daily drilling expense. This
fixed cost is incurred every operating day and is
therefore a function of the operating time for each well.
A rig's daily fixed cost can be calculated with Relation-
ship 5. The total operating time for each rig studied is
summarized in Table 1 and is the sum of the time spent
in every category listed in the table. Total operating days
can then be calculated for each rig by Relationship 6. If
the concept previously used in calculating rig efficiency
is applied, optimal operating time for a particular field
can be calculated from Relationships 7 and 8 by using
the minimum times shown in Table 1. The ratio of total
operating days to optimal operating days indicates
overall efficiency of the entire drilling operation, in-
cluding both contractor-controlled and operator-
influenced operations. The "effective daily fixed cost"
(Relationship 9) therefore represents the real fixed cost
associated with the rig's overall drilling efficiency.
Effective Daily Drilling Cost. The bottom line in
evaluating drilling performance is the overall cost to the
operator or contractor. Relationship 10 combines the ef-
fective daily rig cost and the effective daily fixed cost to
provide a daily measure of overall drilling cost. This ef-

TABLE 3-EFFECTIVE DRILLING COST

Effective Effective Effective

Daily Daily Daily Daily Daily
Rig Rig Rig Fixed Total Optimal Fixed Drilling
Cost Efficiency Cost Cost Operating Operating Cost Cost
($) (%) ($) ($) Days Days ($) ($)
East Texas-Field A
Contractor A, Rig 1 6,250 95 6,578 3,500 37.50 34.8 3,771 10,349
Contractor S, Rig 1 6,500 96 6,771 3,500 36.75 34.8 3,696 10,467
Contractor C, Rig 1 6,400 77 8,311 3,500 48.41 34.8 4,869 13,180
Contractor D, Rig 1 6,700 83 8,072 3,500 47.25 34.8 4,752 12,824
East Texas-Field S
Contractor D, Rig 2 7,158 99 7,230 3,500 26.89 24.3 3,873 11,103
Contractor E, Rig 1 7,330 75 9,773 3,500 31.78 24.3 4,577 14,350
Contractor F, Rig 1 5,600 89 6,292 3,500 29.40 24.3 4,235 10,527
East Texas-Field C
Contractor A, Rig 1 6,250 93 6,720 3,500 28.76 26.4 3,812 10,533
Contractor S, Rig 1 6,500 94 6,915 3,500 30.43 26.4 4,034 10,949
Contractor E, Rig 1 7,330 74 9,905 3,500 34.76 26.4 4,608 14,513
North Michigan
Contractor G, Rig 1 5,800 99 5,859 3,500 14.55 13.8 3,690 9,549
Contractor G, Rig 2 5,800 70 8,286 3,500 19.59 13.8 4,968 13,254
Contractor H, Rig 1 5,400 55 9,818 3,500 23.90 13.8 6,062 15,880
Contractor H, Rig 2 5,400 65 8,308 3,500 20.00 13.8 5,072 13,380
South Michigan
Contractor H, Rig 3 5,400 68 7,941 3,500 17.67 12.8 4,832 12,773
Contractor H, Rig 4 5,400 97 5,567 3,500 13.24 12.8 3,620 9,187

492 JOURNAL OF PETROLEUM TECHNOLOGY

fective daily drilling cost can be used by the operator or
contractor to evaluate rigs on a complete cost basis.
These costs are summarized in Table 3 for the rigs in-
cluded in this study.
Investigation of Results
From the data contained in Table 2 we have been able to
determine that rig efficiency varies greatly. We also have
seen that a rig's efficiency remains relatively constant
when it is operated in different fields. Table 3 shows the
combined effect of rig efficiency and the efficiency to
perform all other drilling operations as the effective daily
drilling cost, which is a practical measure of the overall
drilling performance.
Fig. 2 shows an example of results obtained with this
method of evaluating rig efficiency. Contractor H, Rig
No.2, achieved 65% efficiency and $8,307 effective
daily rig cost after drilling Well No. 1. A meeting was
held with the contractor to discuss the concept and the
performance of Rig No.2 in each contractor-controlled
category. After the meeting, Contractor H was con-
vinced that improvements could be made. Fig. 2 shows
that Rig No.2 efficiency improved 18% in a subsequent
well and that the effective daily rig cost decreased
$1,800. Thereafter the improved efficiency of Rig No.2
has been maintained.
Conclusions
The effect of the contractor's personnel on the drilling
operation should be included when rig efficiency is
evaluated. This method of calculating rig efficiency in-
cludes both rig and rig crew performance. This provides
a practical measure of drilling rig performance, which
can aid in rig contract negotiation and rig selection.
The concepts discussed are currently applicable in
development drilling areas, with limited use in wildcat
drilling areas. Work is under way to develop a
mathematical model of this type of rig evaluation for use
in rank wildcat drilling areas.
This method of calculating rig performance requires a
data base for accurate calculations. A larger data base
will improve accuracy of the results. However, we have
used this method effectively in areas where limited data
are available. A computer program would greatly aid in
evaluating rigs, especially in areas of high activity.
The concepts discussed in this paper are intended to
provide the groundwork for developing a more uniform
method of evaluating rig performance. This should result
in more efficient rig operations, thereby reducing overall
drilling cost throughout the industry.
Acknowledgments
We thank the management of Amoco Production Co. for
permission to publish this paper. We also appreciate the
support of the drilling staff in helping compile some of
the data needed for this paper.
APPENDIX A
Relationships Used in Analysis
1. CCT (hours) = total of rig time in:
(drill) + (trip) + (lubricate rig) + (repair rig) +
(connection) + (nipple-up BOP's) + (nipple-down
MARCH 1984
BOP's) + (cut drilling line) + (rig up) + (tear
down)
2. OCCT (hours) = total of minimum times in:
(drill) + (trip) + (lubricate rig) + (repair rig) +
(connection) + (nipple-up BOP's) + (nipple-down
BOP's) + (cut drilling line) + (rig up) + (tear
down)
3. Rig efficiency = OCCT/contractor-controlled time
= (Relationship 2/Relationship 1)
4. Effective daily rig cost ($/day) = daily rig rate/rig
efficiency) = (daily rig rate/Relationship 3)
5. Daily fixed cost ($/day) = (mud) + (supervisory
labor) + (contract labor) + (fuel) + (water) +
(mud logger) + (rental) + (miscellaneous)
6. Total operating days = total operating time
(hours)!24 hours
7. Optimal operating time (hours) = total of minimum
time in:
Relationship 2 + (summation of minimum time not
included in OCCT)
8. Optimal operating days = optimal operating time
(hours)/24 hours
9. Effective daily fixed cost ($/day) = (daily fixed cost
x total operating days/optimal operating days)
10. Effective daily drilling cost ($/day) = effective dai-
ly rig cost + effective daily fixed cost
APPENDIX B
Glossary of Contractor-Controlled Time
Drilling Time. Drilling time is the total rotating hours
required to drill a well, excluding reaming time. This
time is influenced by the operator's decisions.
Therefore, it should be excluded from the total rotating
hours. Drilling time is considered a contractor-controlled
item in a drilling area where the drilling program is
relatively uniform.
Trip Time. Trip time is the total hours required for nor-
mal drilling operations associated with changing the drill
bit. Trip time associated with a drillstem test should not
be included unless it is a normal part of the drilling pro-
gram or the trip coincides with a scheduled bit change.
Trip time resulting from washouts in the drillstring are to
be included because they reflect the condition of the rig
equipment and the contractor's operating practices. Note
that increasing trip speed may lead to unsafe drilling
practices such as excessive swab or surge pressures, and
is not recommended for improving efficiency. Trip time
is considered contractor-controlled because it is directly
associated with drilling time and is a function of the rig
and crew.
Lube Rig Time. Lubrication time is the time required to
grease the rig to maintain proper rig operation. Rig
lubrication is controlled and performed solely by con-
tractor's personnel.
Rig Repair Time. Rig repair includes the time to repair
any component of the drilling rig that directly effects
proper continuous operation of the rig. Rig repair time is
contractor-controlled because it reflects the condition
and operating practices of the rig and rig crew.
493
Cutting Drill Line Time. This category includes the
time it takes to slip and to cut the drill line. This practice
is contractor-controlled and should be included if it is a
normal practice on each well studied.
Connection Time. Connection time starts when the kel-
ly is picked up for making a connection and ends when
rotation begins for drilling new hole. Reaming and
washing to bottom should not be considered as connec-
tion time. Connection time is contractor-controlled
because it is a function of the rig crew and equipment.
Nipple-Up Time. This operation is defined as the time it
takes to assemble and to conn~ct the BOP system for
operationally safe drilling. Excessive testing time
because of leaks or faulty connections should be includ-
ed. However, excessive time because of failure of the
BOP test equipment should be excluded because this
function usually is performed by someone other than the
drilling contractor.
494
Nipple-Down Time. This category includes time to
disassemble and disconnect the BOP's to change
preventer size or rig-down. Nippling down the BOP's
usually is performed by the rig crew and is, therefore, a
contractor-controlled item.
Rig-Up Time. Rig-up time begins when the derrick and
substructure are on location and ends when the rig is
ready to begin drilling operations. Rigging up is usually
performed by contractor's personnel. However, if a
delay is caused by outside service personnel, this delay
should be omitted.
Tear-Down Time. Tear-down time starts when the rig is
released by operator and ends when the derrick is laid
down. Rigging down is also usually performed by the
contractor's personnel.
JPT
Original manuscript received in Society of Petroleum Engineers office Jan. 25, 1983.
Paper accepted for publication June 8, 1983. Revised manuscript received Nov. 14,
1983. Paper (SPE 11364) first presented at the 1983 IADCISPE Drilling Conference
held in New Orleans Feb. 20-23.
JOURNAL OF PETROLEUM TECHNOLOGY