Use break-even analysis to optimize bit runs

Applying a technique known as break-even analysis during the bit selection process enables the operator to more definitively estimate drilling costs. The break-even chart can be used in a variety of ways to evaluate bit and operating parameter alternatives. Frequent application of this technique significantly improves the user's understanding of drilling economics and their ability to plan more effective drilling programs. This paper reports on several examples of drilling cost estimates obtained through application of the break-even analysis, which determines the bit performance required to match established drilling cost records in similar applications. It is especially helpful when new bit features are being considered for the first time. Two common examples with today's rolling cutter bits are changes from steel teeth to tungsten carbide inserts (TCI) and O-ring to metal bearing seals