Since the shale boom began, U.S. oil producers have been drilling both vertically and horizontally. As easy-to-reach oil runs out, they are now drilling horizontally over 3 miles, increasing risks but offering higher rewards. In the Permian Basin, 20% of new wells in 2024 will have these extended laterals, a huge jump from just a couple of years ago.
Key players like Pioneer Natural Resources and Diamondback Energy are turning to this approach to maintain output, although it is more complex and costly. Innovations in drill bit technology have been critical in this shift, enabling precise, long-reach drilling while minimizing equipment failures like buckling tubes or worn bits. These advancements allow for longer wells that can produce more oil, reduce per-foot costs, and access previously unreachable reserves, though they come with increased operational risks.
Read entire article by clicking here
