What is horizontal drilling? It is a new technology meant to increase the oil recovery rate for hard to reach zones. The major reason they have been employed is that they offer greater contact with the source. They do not need reach a perfect 90 degrees either, they just need to extract from the side entry point of the productive layer in the ground.
It is definitely a more expensive way to get the crude oil from the ground but the ratio is worth the money because the production outweighs the cost. With the price of oil barrels at a high, energy companies do not want to hear that the wells are not bringing in enough supply to distribute to consumers. Horizontal wells have the added benefit of staying out of the way. The wells can reach under buildings, roads, and other major structures that used to block access to the supplies heat exchanger mass production underneath. And, this is just the start of their benefits. Horizontal wells can be used for the installation of gas collection systems by landfills and waste dumps, as well as the installation of groundwater collection galleries. Horizontal drilling also opens plenty of options for shale gas technology to also amp production efforts.
The horizontal drilling provides the opportunity for domestic production where the vertical wells appeared to have gone “dry.” There may still be reserves in these locations that cannot be reached through the vertical wells. A lessening dependence on imports will also lower the overall costs.
All of this is good news, but what does it mean for you? Your local energy service company wants to know if there is enough supply for the demand and use of its customers. When oil production goes up, the prices go down, and the market becomes more competitive. This is good business because there are more options from which to get the crude oil. More options at the early stages of the chain lead to better options once it reaches the domestic market. You, therefore, can get your energy supplied at stable rates. It also means that you can choose the best energy supply company to fit your budget.
Companies will always be searching for new methods to tackle natural resources and their reserves. The technologies start expensive but as they become commonplace their prices too will decrease. Then, we can look forward to paying far less per monthly bill. The trickledown effect is sometimes a glorious thing.