How to Evaluate Daywork and Footage Drilling Solutions for Horizontal Wells in the Permian Basin

Choosing the right daywork and footage drilling solutions is critical for horizontal wells in the Permian Basin. This guide explains what each option means, why it matters in the Permian, and how to compare performance, cost, and risk in simple, clear terms.

What Are Daywork and Footage Drilling Solutions?

Daywork and footage drilling solutions are contract models for paying a drilling contractor. Your choice affects cost control, performance incentives, and risk.

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What Is Daywork Drilling?

Daywork drilling means you pay a daily rate for the rig and crew. You control the program and decisions. The contractor supplies equipment and people. You carry more operational risk, but you keep flexibility to change the plan fast.

What Is Footage Drilling?

Footage drilling means you pay per foot drilled. The contractor is incentivized to drill quickly and efficiently. You shift some performance risk to the contractor. You pay for results measured in feet, not time.

Want to understand drilling contract economics better? Dive into our complete guide on drilling economics to make smarter decisions on daywork and footage models.

Why Evaluate Drilling Solutions for Horizontal Wells in the Permian Basin?

The Permian Basin has unique geology, logistics, and market cycles. Evaluating daywork and footage drilling solutions helps you align cost, speed, and risk with your goals. Small decisions can drive big savings across multi-well pads.

Choosing the right rig matters. Learn about different types of oil drilling rigs and how to match rig capabilities to your horizontal well requirements.

What Makes the Permian Basin Unique for Horizontal Drilling?

• Formation variability: Bone Spring, Wolfcamp, and other benches vary across acreage. That affects ROP, torque, and bit life.
• Long laterals: 7,500–12,500+ ft laterals require consistent performance and low NPT.
• Intense activity: High rig utilization and labor constraints can impact rates and availability.
• Infrastructure: Access to pads, roads, and midstream varies by county and operator.
  These factors change how daywork and footage drilling solutions perform in practice.

Safety drives performance. Review our 7 essential oil drilling safety tips to reduce NPT and protect your team on every well.

How to Assess Daywork Drilling for Horizontal Wells

To evaluate daywork and footage drilling solutions, start with daywork by setting clear KPIs and tight operational controls.

What Key Performance Metrics Should You Use?

• Spud-to-TD days and lateral days per 1,000 ft.
• ROP by section (surface, intermediate, curve, lateral).
• NPT hours and categories (mechanical, weather, logistics, HSE).
• Trip time and connection time.
• Bit runs per section and BHA reliability.
• Slide-to-rotate ratio and curve quality (dogleg severity, tortuosity).
• Flat time: rig-up/rig-down, pad moves, casing, cementing.
• HSE leading indicators (JSA quality, stop work, near-miss reporting).

Track these daily. Use a morning call rhythm and a simple dashboard. On daywork, discipline is the difference between average and top-quartile performance.

Technology is changing the game. Discover how digitalization and automation improve ROP, reduce flat time, and enhance KPI tracking.

How Do Costs Compare in the Permian Context?

• Day rate: Hybrid and AC rigs with 22,500 ft+ capability carry higher day rates but may deliver lower total well cost through faster cycles.
• Fuel/power: Consider power management and genset efficiency.
• Bits and tools: Negotiate bit/BHA packages tied to performance targets.
• Logistics: Plan cement, casing, and pad moves to cut flat time.
• Total cost per foot: Normalize by section to compare wells across benches and counties.
  Daywork can be cost-effective when your team drives performance and controls NPT.

How to Evaluate Footage Drilling for Horizontal Wells

Footage models shine when the scope is well-defined and the contractor can optimize ROP and flat time end-to-end.

Compliance can’t be overlooked. Stay current with drilling contractor regulations that impact contract structure and operational risk in the Permian.

What Factors Affect Rate of Penetration (ROP)?

• Bit selection and wear: Match bit type to bench and abrasivity.
• WOB and RPM windows: Keep drilling parameters in the sweet spot.
• Mud program: Density, rheology, and solids control affect hole cleaning and ROP.
• Motor and rotary steerable choice: Consider curve aggressiveness and lateral hold.
• Vibration mitigation: Stick-slip and whirl control improve tool life and footage rates.
• Geologic surprises: Faults, pressures, and interbedded zones slow ROP—price that risk.

Top drive technology matters for horizontal wells. Read our beginner’s guide to top drive rigs to understand how equipment choices affect curve quality and lateral efficiency.

How to Measure Efficiency and Foot-age Rates?

• Feet per day by section and per BHA run.
• Cost per foot including tool rental, bits, mud, and logistics.
• Footage incentives and thresholds (tiered pricing above baseline ROP).
• Curve quality and lateral in-zone percentage (surveys, gamma correlation).
• Tool failure rate and lost-in-hole incidence.
• Pad-level cycle time: spud-to-spud and rig release cadence.

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Comparing Daywork vs. Footage Drilling Solutions

Both daywork and footage drilling solutions can work well in the Permian Basin. Match the model to your risk appetite and data quality.

What Are the Pros and Cons for Permian Operations?

• Daywork pros: Maximum control, flexible plan changes, transparent costs, good for variable geology.
• Daywork cons: You carry more NPT risk; requires strong supervision to contain flat time.
• Footage pros: Strong performance incentives, simple cost per foot, potential for faster cycle time.
• Footage cons: Requires tight scope and clean execution; risk premiums may appear in price; change orders can add cost.

Tip: Many operators blend daywork and footage drilling solutions—daywork for surface/intermediate or uncertain benches; footage for curve/lateral with defined targets.

Innovation drives results. See how the future of drilling technology is shaping daywork and footage performance in horizontal programs.

What Economic and Risk Factors Influence Your Choice?

Consider price volatility, supply chain, and tool reliability when choosing daywork and footage drilling solutions.

How Do Market Conditions in the Permian Basin Impact Evaluation?

• High activity: Day rates rise; footage bids may include scarcity premiums.
• Low activity: More flexible terms; test hybrid structures or performance adders.
• Tool availability: RSS/motors and premium bits can bottleneck ROP.
• HSE and compliance: Strong safety records reduce downtime and nonproductive events.
• Weather and access: Rain and county road rules add flat time—plan for it in any model.
  
  

  Understand operational risks before you drill. Learn about safety risks in oil drilling rig operations and how to mitigate them in your contract model.

  
  

What Best Practices Ensure Effective Implementation?

• Define KPIs upfront and share daily with the contractor.
• Use pre-job meetings and after-action reviews for each section.
• Standardize BHAs for each bench; tweak based on offset learning.
• Lock logistics: casing, cement, mud, and rentals on a pad-level schedule.
• Incentivize what you want: uptime, in-zone %, and quality of the curve, not just speed.
• Benchmark continuously: normalize to cost per foot by section and lateral length.

Are There Case Studies from Permian Horizontal Wells?

While specific public case studies vary, operators commonly report that:

• Daywork excels in variable geology with strong in-house supervision.
• Footage delivers value on repeatable pads with consistent rock and stable logistics.
• Hybrid structures (daywork + performance bonuses, or footage with quality metrics) often balance speed, cost, and wellbore quality.

Where Norton Energy Drilling Fits

Norton Energy Drilling brings regional Permian expertise, hybrid and AC rigs capable of up to 22,500 ft, and customized solutions. If you’re weighing daywork and footage drilling solutions, Norton Energy can tailor a rig and KPI framework for your benches, target lateral length, and risk profile, with transparent spec sheets and consultative guidance to support execution.

Vertical drilling still has a place. If you’re comparing well types, check out our guide to vertical rigs and vertical drilling for context on when each approach works best.

Quick Checklist to Compare Daywork and Footage Drilling Solutions

• Objectives: Speed, cost per foot, or wellbore quality—rank them.
• Geology: How variable are your benches and pressures?
• Data: Do you have reliable offset data to set fair footage thresholds?
• Logistics: Can you guarantee casing, cement, and mud on time?
• Team: Do you have supervisors to drive daywork performance daily?
• Contract: Are incentives aligned to your KPIs (uptime, in-zone %, tortuosity)?
• Benchmark: Normalize to cost/ft by section and track trend lines per pad.

FAQ

Q: When are daywork and footage drilling solutions best for the Permian?
A: Use daywork for flexibility in variable geology and when you have strong supervision. Use footage when you have repeatable geology, reliable logistics, and want alignment on speed and cost per foot.

Q: How do I protect wellbore quality under footage?
A: Tie incentives to curve quality, in-zone %, tortuosity, and tool failure limits, not only ROP.

Q: What KPIs matter most on daywork?
A: Spud-to-TD days, NPT by category, ROP by section, connection time, bit runs, and flat time.

Q: Should I mix models?
A: Yes, many operators use daywork for uncertain sections and footage for curve/lateral once conditions are defined.

Q: How does Norton Energy help?
A: With regional expertise, capable rigs, and tailored KPI frameworks, Norton Energy designs daywork and footage drilling solutions that fit your cost, speed, and quality targets.

Norton Energy keeps reaching new heights. Read about our latest new oil rig capabilities and how we’re expanding to serve Permian operators better.