The U.S. Shale energy boom is probably this decade’s greatest investment option for qualified investors, which is all poised to get even greater in times to come. The main reason for the boom goes to the advent of two advanced technologies. Horizontal drilling and hydraulic fracturing have positioned America among the leading oil producers of the world. Continuing the discussion further, in this post we look at how these technologies are changing the landscape of oil and gas direct investments.
Horizontal drilling is a process in which the drill path is turned horizontally at the target depth. The technology is used to extract oil from a specific layer of a shale rock. The procedure is superior to vertical drilling which limits the contact to rock and drastically reduces the potential oil recovery. Horizontal drilling accomplishes more formation contact and accomplishes greater oil recovery from the same drill hole, this can travel underground, usually, for a mile or more. Instead of a single vertical well, you are contacting and fracking 5,200+ feet of a single formation.
Hydraulic fracturing, a well stimulation technique, is performed to fracture the rock by a pressurized liquid. Fracking fluid containing water, sand and other proppants are injected with high pressure into a wellbore, which creates cracks in deep-rock formation releasing the oil from the rock formation. The process results in optimal extraction of oil and natural gas reserves. That explains the reason why hydraulic fracturing is used in 9 out of 10 natural gas wells in the U.S.
Combining Both the Technologies
The combination of horizontal drilling and hydraulic fracturing has made it commercially viable for oil producers to recover more oil and natural gas from shale formations. The technology has made it possible to increase productivity in any given oil rich shale for greater recovery of oil and natural gas trapped in the rock.
Horizontal drilling has lesser impact on the environment compared to vertical drilling. Instead of drilling a dozen or more vertical wells, companies are now able to drill a single horizontal well to extract similar volumes of oil and gas. This also means lesser air pollution, water consumption and disposal needs. The technological progress in oil and gas drilling is enabling operators to maximize their returns from each well, and provide higher returns to investors.
The US has more than 4 million wells, out of which more than 2 million wells have been hydraulically fractured, and approximately 95 percent of all the new wells are drilled using the technology. FIG Tree Capital Ventures also partners with many successful, publicly traded operators who leverage horizontal drilling and hydraulic fracturing for oil production. We believe that these technologies are here to stay and will get even better with advancements in the technology used to target oil rich formations underground. If you are looking for direct investment opportunities in oil and gas, look no further than FIGTree Capital Ventures. To learn more, you can call us at (866) 300-2170 or fill out our contact form.