EOG began drilling test wells, and in 2005, Papa got some results from one in North Dakota that made him realize oil could flow fast enough to pay off.
“It was kind of like holy cow,” he says. “My first thought was we need to replicate this, make sure it’s not a freak result.”
It wasn’t. EOG snapped up land in a similar formation in South Texas known as the Eagle Ford Shale for $400 an acre when his competition thought it would never produce much oil. That land now goes for $30,000 per acre.
Papa thought the Eagle Ford might hold 500,000 barrels of oil. The Department of Energy now predicts it holds 3.4 billion. Some even expect 10 billion, which would make it the biggest oil field in U.S. history.
SMART DRILLS, RIGS THAT CAN WALK
But even after drillers figured out how to find oil and gas deep offshore and in onshore source rock, they still needed to develop technology that would make it economical.
At the tip of every oil or gas drill is a rotating mouth of sharp teeth that chews through rock. In the past, these drill bits could only dig straight down. Now they are agile enough to find and follow narrow horizontal seams of rock.
The drilling-services company Baker Hughes has designed a bit that can change directions underground, without having to be drawn back up to the surface, reducing drilling time by as much as 40 percent.
Behind the drill bit, attached to a long line of steel known as the “drill string,” is an array of sensors. The sensors bombard rock with subatomic particles and measure the gamma radiation that bounces back. They assess how easily electricity flows through the rock and underground fluids. They analyze the magnetism of the rock and how it vibrates – both up and down and side to side – while drilling.<< previous 1 2 3 4 5 6 7 8 9 10 11 next >>