Expert: David Traugott - 11/10/2009

Question
Hi Dr. David Traugott
My question is:

In which geologic, reservoir conditions it is recommended to use horizontal drilling? and how it is economically beneficial?
And there are also some failures with implementing horizontal drilling, would you tell, in which cases?

Thank you

Answer
Typically it is beneficial to utilize horizontal drilling when the reservoir is tight (i.e. has low porosity and/or permeability) OR if you are extending the development of a mature field (or both).  By drilling a horizontal well the operating company is able to maximize the total surface area inside the wellbore that is in direct contact with the reservoir (thereby maximizing production rates).  

The economics can be tricky because there are so many factors and variables involved (such as the price of natural gas!), but most of the time, the additional production obtained by drilling horizontal outweighs the additional costs/risks involved.

Both successful and failing projects are encountered everyday in the petroleum industry, some with higher risks than others.  Once again, there are simply too many variables involved to make a generalized statement about what to expect; however, I will say this...if you do decide to get involved with a horizontal drilling project...know who you are dealing with and make sure they know what they are doing!