About Long Laterals
Long laterals have helped change the course of U.S. energy production and consumption.Enormous Value to Producers and Mineral Rights Owners.
Long laterals have helped change the course of U.S. energy production and consumption. Long laterals start from vertical drilling pads which bore to enormous depths, then kick off horizontally or laterally and follow it for thousands of feet, increasing the yield dramatically. More producers are taking advantage of laterals to offset low oil and natural gas prices. Wells today can start at 3,000 or 4,000 feet and go from there. With long laterals, drilling has gone as deep as 15,000 feet. A good example of laterals today is in the Permian which consists of multiple layers of oil and gas trapped shale that span hundreds of miles, pulling more crude or gas out of fewer wells. The technique also means owning drilling rights across 1,000 acres in the Permian may be just as valuable as holding rights for 5,000 because you are having to drill fewer wells. This ability to bore longer laterals adds enormous value to both producers and mineral owners.
Verticals and Long Laterals
A Cost Benefit Analysis
Drilling a long lateral can cost three to six times more than a conventional vertical well. However, Industry officials say one horizontal well can replace as many as six vertical wells. Pore Spaces in tight shale formations prevents valuable amounts of oil and gas from flowing freely into a conventional wellbore. Vertical wells only expose the portion of the shale formation that is directly below the drilling bit. So, without the long laterals of horizontal wells, there would not be enough exposed pay zone to frack. As many as six horizontal wells can be drilled, each sent in a different direction from the same surface site, replacing more than 30 vertical wells.
Pooling and Unitization
Texas does not support forced pooling and forced unitization. Forced pooling in Texas is allowed only under limited circumstances and requires an application, notice to affected parties, and a hearing. Texas has never given its regulatory body broad authority for force-pool tracts into drilling units.
Fewer Wells
Today, operators can drill as few as six to eight wells on a single site to access the same amount of natural gas that once required 16 or more wells drilled from separate locations. Some modern rigs have the capability to drill more than 20 wells from a single drilling site.
Reduced Air Emissions
Greater equipment and engine efficiency and improved technologies mean less energy consumption-thus lower air emissions- per unit of energy produced.
Economic Development
Recent economic impact studies have shown that drilling long laterals lead to many secondary growth including building pipelines, processing plants, meter stations, compressors and manufacturing equipment.