A drilling technique where the wellbore is steered to run horizontally through the reservoir, greatly increasing the well’s contact with the productive rock formation compared to a vertical well.
Horizontal drilling is an advanced method used to significantly enhance access to oil and gas within a reservoir. The well is first drilled vertically to reach the target depth, then gradually curved until the drill bit is traveling horizontally through the reservoir layer. By drilling laterally (often for several thousand feet within the hydrocarbon-bearing rock), a single well can expose much more of the formation, thereby draining a larger area and boosting production. Horizontal wells are commonly paired with hydraulic fracturing to maximize flow. This technique has unlocked unconventional resources like shale plays, transforming previously marginal reserves into highly productive assets, albeit at higher drilling and completion costs.
Horizontal drilling has revolutionized oil and gas development by dramatically increasing production potential from a well. For investors, the use of horizontal drilling indicates a project is leveraging modern technology to improve yields, which can mean higher output and returns. However, it also involves greater initial capital and technical complexity, so investors look for experienced operators when horizontal drilling is a key part of a project.
