Why Horizontal Drilling Results in a Lucrative Texas Oil Investment

FinanceTrading / Investing

  • Author Trey Christian
  • Published March 28, 2010
  • Word count 506

"Can investing in a more costly form of drilling mean better returns? Yes, if drilling for oil is performed utilizing horizontal drilling. Oil drilling technology has advanced a tremendous amount over the last quarter of a century. And while some people talk of the long-lost "good ole’ days" of oil drilling in Texas, Texas oil investment is still a possibility with horizontal drilling.

Enhanced Oil Recovery Paves Way to Future Extraction Methods

With rising prices for each barrel of oil, oil and gas investing is becoming more and more appealing. Especially with the newer enhanced oil recovery (EOR) systems in place that were not available even a decade ago.

EOR is an improved oil recovery system that uses techniques aimed at extracting more oil from a reservoir that cannot be achieved by direct drilling. One of those techniques is horizontal drilling, which can extract up to 60% or more of an oil reservoir, compare to only 20%-40% using traditional vertical drilling.

Now your Texas oil investment can reap big rewards with a company that practices horizontal drilling. Horizontal drilling uses coil tubing rather than 30-foot sections of steel pipe used on traditional wells. The coil tubing allows the drilling angle to be much more flexible, even drilling at angles of 90 degrees to 95 degrees. And rather than spinning the steel tubing to turn the drill, coil tubing techniques send high-pressure drilling mud through the tube which in turn triggers a pressure-sensitive hydraulic motor that rotates the drill bit.

It's Not Just Where you Drill - The Angle Can be Critical

Controlling the angle at which the drill bores into oil reserves is the key. Direct vertical drilling greatly reduces the exposure to the oil reservoir. Crude oil tends to accumulate within pockets of layered rock, usually sandstone. And because crude oil moves extremely slowly a direct tap from a vertical drill tends to produce low tap.

However, since horizontal drilling allows can access a crude oil reserve from the side, the total exposure to the entire reservoir is greatly increased, resulting in much more and faster oil recovery. In addition, horizontal drilling can access more than one pocket of crude oil. That means instead of drilling multiple vertical wells, only two or three horizontal wells may be needed to tap an entire oil field.

In addition, natural gas can now be collected from crude oil drilling using a process that converts the gas into a liquid state. Where once natural gas was burned off from crude oil production wells, it can now be harnessed and turned into a usable product.

Texas oil investing is at a new milestone. It is now possible to tap into wells that were once unreachable, and extract more crude oil than ever possible. If you are interested in oil and gas investing, now is the time to look into what could be a very profitable venture. Be sure you analyze the risks and benefits of oil and gas investing, and find a reputable oil company to invest in that meets your investing objectives."

Take advantage of the current investing environment and learn more about how you can make oil and gas investments work for your portfolio. Visit CBOenergy.com to view profit reports and interactive presentations on oil investing.

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