Horizontal Drilling Makes for Vertical Profits

Filed in BP, Gold, GOld juniors, lead, o, Royal Dutch Shell, target by on January 12, 2011 0 Comments

Few would like to admit it, but the history of the modern world is written largely in oil. From the Allied victory in World War II to the never-ending struggles in the Middle East, the quest for crude oil can be found at the center of it all. You may not have read about it in your history textbooks, but trust me — oil has always been there lurking as the story behind the story. And if you read between the lines, you’ll find it everywhere you look. Dark and gooey, it is the single common thread that binds the world as we know it. American ingenuity Contrary to popular belief, the oil story didn’t begin anywhere near a Texas oilman… The oil industry’s roots are found in the Quaker State, otherwise known as Pennsylvania. It was there in 1859 that Edwin Drake first tried out a new invention, changing the world in the process. His brainstorm? To drive a pipe down the well to keep the hole from caving in. Pay dirt for Colonel Drake came 70 feet beneath the surface in Titusville, making him the first person to ever successfully drill for oil. With that single well, the Pennsylvania oil rush was born. Speculators from all over the place gobbled up land in the name of crude. One of them was a guy you might have heard of. His name was John D. Rockefeller, Sr. — the world’s first billionaire. Some 152 years later, a similar new technology called horizontal fracking is having the same exact effect in areas like the Marcellus Shale, the Barnett Shale, and the Bakken Formation, to name a few. This all began with another guy you’ve probably never heard of. His name is Richard L. Findley. A geologist and wildcatter by trade, Findley unlocked the oil and gas from the Bakken formation long after Royal Dutch Shell, Gulf Oil, and Texaco Co. had packed up their gear and abandoned the site. That left a mother lode of oil and gas that had yet to be pumped, leaving billions of dollars underground. They’d missed an underground river of high-quality crude that was, according to Findley’s estimation, 50 miles long and 12 miles wide. The bigger question, though, was how to actually get at it… Working with Lyco Energy Corp. and the drilling expertise of Halliburton, the Findley group finally managed to solve that puzzle, too. In May 2000, they cashed in using computer-controlled rigs…

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Horizontal Drilling Makes for Vertical Profits

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