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When considering the cost of owning an oil well, it is important to note that there are significant differences between Nigeria and Canada/USA. In Nigeria, the cost of owning an oil well is approximately $25 million, while in Canada/USA, it is less than $2 million.
The disparity in cost can be attributed to several factors. One of the key reasons is the difference in well design.
While Canadians and Americans focus on efficient well design, Nigeria tends to rely on gold plating, which significantly increases the overall cost.
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Another factor is efficient supply chain management. In Canada/USA, there is a strong emphasis on optimizing the supply chain to reduce costs.
In Nigeria, however, the supply chain management is not as efficient, leading to higher expenses.
Furthermore, the concept of NPT (Non-Productive Time) is crucial in the oil industry.
Canadians and Americans are successful in minimizing NPT, which helps them keep costs low. Nigeria, on the other hand, tends to experience more NPT, leading to higher expenses.
Lastly, applying the science of drilling optimization is a key factor in cost reduction.
The use of advanced drilling techniques and technologies helps Canadians and Americans achieve efficiency in their operations, while Nigeria may lag behind in this aspect.
In conclusion, owning an oil well in Nigeria is significantly more expensive compared to Canada/USA. This is primarily due to factors such as inefficient well design, supply chain management, higher NPT, and the lack of drilling optimization.
It is important for Nigeria to learn from the success of Canada and the USA in order to reduce costs and maximize the potential of its oil industry.
