Joint Association Survey on Drilling Costs for 2004

Total drilling expenditures for the U.S. oil and natural gas industry in 2004 were an estimated $56.2 billion - the most ever spent - compared to $36.9 billion spent during the previous year, according to results from the 2004 Joint Association Survey on Drilling Costs (JAS) released today.

The industry spent Total drilling expenditures for the U.S. oil and natural gas industry in 2004 were an estimated $56.2 billion - the most ever spent - compared to $36.9 billion spent during the previous year, according to results from the 2004 Joint Association Survey on Drilling Costs (JAS) released today.

The industry spent 52.3 percent more to drill and equip wells in 2004 than in 2003 according to the survey results.

The 2004 survey also shows the industry spent more drilling for natural gas than oil for the seventeenth consecutive year. In 2004, gas expenditures accounted for 65 percent of the total drilling expenditures, compared with 22 percent for oil and 13 percent for dry holes.

Operators spent $11.4 billion offshore in 2004 where exploration remains confined almost entirely to the Gulf region. For the fifth consecutive year, drilling and completion activities there accounted for 99 percent of all offshore expenditures.

Onshore in 2004, total expenditures were $44.8 billion. Spending, especially for natural gas, rose sharply in northern Louisiana, Oklahoma, the Rocky Mountain States and the Central and Eastern regions - as well as the Texas Panhandle.t 52.3 percent more to drill and equip wells in 2004 than in 2003 according to the survey results.

The 2004 survey also shows the industry spent more drilling for natural gas than oil for the seventeenth consecutive year. In 2004, gas expenditures accounted for 65 percent of the total drilling expenditures, compared with 22 percent for oil and 13 percent for dry holes.

Operators spent $11.4 billion offshore in 2004 where exploration remains confined almost entirely to the Gulf region. For the fifth consecutive year, drilling and completion activities there accounted for 99 percent of all offshore expenditures.

Onshore in 2004, total expenditures were $44.8 billion. Spending, especially for natural gas, rose sharply in northern Louisiana, Oklahoma, the Rocky Mountain States and the Central and Eastern regions - as well as the Texas Panhandle.

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