What are intangible drilling costs (IDCs)?
IDC costs include expenditures for wages, fuel, repairs, hauling, supplies and other items that have no salvage value and are necessary for the drilling of wells (i.e. hiring the drilling contractor) and the preparation of wells for the production of oil and gas. Intangible costs generally represent a majority of the total cost of drilling, testing, and completing an oil and / or gas well.
