Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Continental Resources, Inc. (CLR), Pioneer Natural Resources (PXD), EOG Resources Inc (EOG): Why Horizontal Drilling Is Such a Game-Changer for America

In one final example the company gave on its conference call, it noted that in 10 months one of its Jo Mill wells produced an average of about 50,000 to 60,000 barrels already. That’s truly staggering when considering that it was thought that a traditional vertical well in the Jo Mill would produce only 20,000 barrels in 40 years. It’s pretty clear: Horizontal drilling changed everything.

Further, while horizontal drilling is revitalizing legacy oil and gas basins such as the Permian where Pioneer Natural Resources (NYSE:PXD) is using it, it’s also putting new emerging basins such as the Bakken and Eagle Ford on the map. In fact, without horizontal drilling, the Bakken would not be economic to produce. However, with oil over $100 per barrel, a producer like Continental Resources, Inc. (NYSE:CLR) can earn a rate of return in excess of 60% even after spending more than $8 million to drill each well. Meanwhile, thanks to horizontal drilling, EOG Resources Inc (NYSE:EOG) is one company enjoying rates of returns north of 100% in the Eagle Ford. In fact, EOG Resources Inc (NYSE:EOG) credits horizontal drilling with its holding some of the best horizontal oil assets in North America, which have delivered an average of 40% production growth each year this decade.

For far too long, hydraulic fracturing has been the focus of America’s oil and gas boom. It’s time to give some credit where credit is due, and it’s pretty clear: Horizontal drilling is what’s leading America’s energy revolution.

The article Why Horizontal Drilling Is Such a Game-Changer for America originally appeared on Fool.com and is written by Matt DiLallo.

Fool contributor Matt DiLallo and The Motley Fool have no position in any of the stocks mentioned.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.