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Vertical Oil Wells in Oklahoma Still a Mainstay of Production

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"04.jpg", images[5] = "05.jpg", images[6] = "06.jpg", images[7] = "07.jpg", images[8] = "08.jpg", document.getElementById("rotatortwo").style.backgroundImage = "url(" + dir + images[randomCount] + ")"; </script> <div class="container content"> <div class="row"> <div class="col-lg-9 col-md-9 padright"> <p style="font-size:11px;margin-top:30px;">Thursday, July 15th, 2021 and is filed under <a href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/category/oil-and-gas-current-events/" rel="category tag">Oil and Gas Current Events</a>, <a href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/category/oil-and-gas-interesting-facts/" rel="category tag">Oil and Gas Fun Facts</a></p> <p><a href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/wp-content/uploads/oklahoma-oil-89934430.jpg" data-rel="lightbox-image-0" data-rl_title="" data-rl_caption="" title=""><img loading="lazy" class="alignleft wp-image-17964" src="https://web.archive.org/web/20211027151230im_/https://www.arescotx.com/wp-content/uploads/oklahoma-oil-89934430.jpg" alt="Oil Wells in Oklahoma" width="400" height="233" srcset="https://web.archive.org/web/20211027151230im_/https://www.arescotx.com/wp-content/uploads/oklahoma-oil-89934430.jpg 906w, https://web.archive.org/web/20211027151230im_/https://www.arescotx.com/wp-content/uploads/oklahoma-oil-89934430-300x175.jpg 300w, https://web.archive.org/web/20211027151230im_/https://www.arescotx.com/wp-content/uploads/oklahoma-oil-89934430-768x448.jpg 768w" sizes="(max-width: 400px) 100vw, 400px"/></a>Despite the meteoric rise in the number of horizontal wells and the use of hydraulic fracturing, vertical oil wells in Oklahoma are still a mainstay of oil production in conventional fields throughout the state. With plenty of oil available in shallow formations that can be accessed at significant less cost, producers won’t be retiring this tool from their production tool belt anytime soon.</p> <h3>Why Vertical Wells Persist</h3> <p>As recently as 2016, nearly <a href="https://web.archive.org/web/20211027151230/http://www.tulsaworld.com/business/vertical-wells-are-still-getting-drilled-latest-state-data-shows/article_ef915b8f-b5dd-52a3-9fec-f53efc2f0b20.html" target="_blank" rel="noopener noreferrer">200 of the approximately 1000</a> completed wells in Oklahoma were vertical wells. Despite declining use, many producers still reap substantial benefits from drilling vertical wells, not the least of which is cost savings. Even though technological advances have reduced the costs of drilling horizontal wells, vertical wells still cost substantially less to drill due to simplicity of drilling, lack of need to frac, and shorter length of wellbore.</p> <p><a href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/tag/saudi-arabia/">Saudi Arabia</a> is the King of Vertical Wells with their conventional fields producing oil at a cost of only around $10 per barrel. Other areas in the Middle East and North Africa produce crude from conventional fields for around $20 per barrel. Worldwide, conventional oil production typically costs between $30 to $40 a barrel, which is on par for U.S. producers drilling similar vertical projects. For horizontal drilling (and the requisite <a href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/tag/hydraulic-fracturing/">hydraulic fracking</a> needed for getting oil out of unconventional shale fields in the United States), breakeven ranges from as low as $40 per barrel to as much as $90 per barrel depending on location.</p> <p><a href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/contact-us/"><img loading="lazy" class="aligncenter size-full wp-image-17967" src="https://web.archive.org/web/20211027151230im_/https://www.arescotx.com/wp-content/uploads/vertical-well-investing.jpg" alt="Interested in Vertical Well investing?" width="728" height="40" srcset="https://web.archive.org/web/20211027151230im_/https://www.arescotx.com/wp-content/uploads/vertical-well-investing.jpg 728w, https://web.archive.org/web/20211027151230im_/https://www.arescotx.com/wp-content/uploads/vertical-well-investing-300x16.jpg 300w" sizes="(max-width: 728px) 100vw, 728px"/></a></p> <p>When looking at these breakeven numbers, it becomes apparent why producers may turn to conventional fields when prices are low. With vertical drilling, the process is more simple and straightforward than the process of drilling <a href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/tag/horizontal-drilling/">horizontal wells</a>. Drilling a short, straight wellbore can happen quickly and efficiently with far less margin for error. One caveat to this is dry hole risk. With <a href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/tag/unconventional-drilling/">unconventional shale</a>, wells are drilled horizontally into a blanket formation, which exposes the wellbore to sometimes up to two miles of production potential and almost guarantees oil will flow. With <a href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/tag/vertical-wells/">vertical drilling</a>, operators rely on technology such as 3-D seismic to detect geological anomalies to help guide their drilling operations to find pockets of oil.</p> <h3>Vertical Oil Wells in Oklahoma Still Viable for Investors</h3> <p>Targeting conventional reservoirs via vertical wells remains a viable option in places like Oklahoma and other areas outside the major shale plays. Even with the trade-off of significantly lower initial production numbers, vertical wells enjoy much lower breakeven points, which can help producers maintain profitability in lower price environments thus delivering returns to their capital partners.</p> <p><a href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/contact-us/"><img loading="lazy" class="aligncenter size-full wp-image-5412" src="https://web.archive.org/web/20211027151230im_/https://www.arescotx.com/wp-content/uploads/why-now-is-the-time-to-invest-in-oil.png" alt="Why now is the time to invest in oil..." width="600" height="40" srcset="https://web.archive.org/web/20211027151230im_/https://www.arescotx.com/wp-content/uploads/why-now-is-the-time-to-invest-in-oil.png 600w, https://web.archive.org/web/20211027151230im_/https://www.arescotx.com/wp-content/uploads/why-now-is-the-time-to-invest-in-oil-300x20.png 300w" sizes="(max-width: 600px) 100vw, 600px"/></a></p> <div class="nextpages"></div> <div style="padding-top:30px;"> <ul class="pager"> <!-- for previous --> <li class="nav-previous"><a href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/texas-tops-oil-and-gas-investments/" rel="next">Previous</a></li> <!-- for current --> <li class="nav-bloghome"><a href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/latest-news/"><span class="icon"></span>All Posts</a></li> <!-- for next --> <li class="nav-next"><a href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/top-five-reasons-investors-avoid-private-oil-and-gas-deals/" rel="prev">Next</a></li> </ul> </div> <ul class="pager"> <li></li> <li></li> </ul> </div><!-- end col --> <div class="col-lg-3 col-md-3 sidebar"> <p class="titles">Recent Posts</p> <ul> <li> <a href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/eight-tax-advantages-available-for-direct-oil-gas-investments/">7 Tax Deductions and Advantages Available for Direct Oil and Gas Investments</a> </li> <li> <a href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/eagle-ford-shale-production-shattering-records-in-texas/">Eagle Ford Shale Production Numbers Luring Investors to the Region</a> </li> <li> <a href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/why-invest-in-north-american-energy-and-why-now/">Why invest in North American energy, and why now?</a> </li> <li> <a href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/texas-tops-oil-and-gas-investments/">Texas Tops Oil and Gas Investments</a> </li> <li> <a href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/vertical-wells-still-a-mainstay-of-oil-production-in-oklahoma/" aria-current="page">Vertical Wells Still a Mainstay of Oil Production in Oklahoma</a> </li> </ul> <p class="titles">Categories</p> <ul> <li class="cat-item cat-item-14"><a href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/category/new-mexico-oil-and-gas-investing/" title="New Mexico oil and gas investing news, blogs, and videos by Aresco LP. See why now is the time to invest in the oil and gas industry in New Mexico. ">New Mexico Oil and Gas Investing</a> </li> <li class="cat-item cat-item-6"><a href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/category/oil-and-gas-current-events/" title="Aresco LP publishes oil and gas current events, technology news, and industry related news from around the world. Aresco is a privately held company. ">Oil and Gas Current Events</a> </li> <li class="cat-item cat-item-25"><a href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/category/oil-and-gas-interesting-facts/" title="Oil and gas fun facts and interesting information. Each of these articles contain information sure to test your knowledge of the oil and gas industry. ">Oil and Gas Fun Facts</a> </li> <li class="cat-item cat-item-53"><a href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/category/permian-basin-oil-news/" title="Get Permian Basin Oil News, articles, blogs, photos, and videos at Aresco LP! Aresco is a privately held oil and gas exploration and development company with working interests in Texas, New Mexico, Oklahoma, and the gulf coast region. ">Permian Basin Oil News</a> </li> <li class="cat-item cat-item-9"><a href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/category/texas-oil-and-gas-investing/" title="Texas oil and gas investing news, blogs, and videos by Aresco LP. See why now is the time to invest in the oil and gas industry in the state of Texas. ">Texas Oil and Gas Investing</a> </li> <li class="cat-item cat-item-1"><a href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/category/uncategorized/" title="General blog category on Aresco LP's Oil and Gas Current Events blog.">Uncategorized</a> </li> </ul> <style scoped type="text/css">.utcw-b1fq2ep {word-wrap:break-word}.utcw-b1fq2ep span,.utcw-b1fq2ep a{border-width:0px}.utcw-b1fq2ep span:hover,.utcw-b1fq2ep a:hover{border-width:0px}</style><p class="titles">Tag Cloud</p><div class="utcw-b1fq2ep tagcloud"><a class="tag-link-43 utcw-tag utcw-tag-bakken-shale" href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/tag/bakken-shale/" style="font-size:10.512820512821px" title="9 topics">Bakken Shale</a> <a class="tag-link-95 utcw-tag utcw-tag-crude-oil" href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/tag/crude-oil/" style="font-size:30px" title="47 topics">Crude Oil</a> <a class="tag-link-70 utcw-tag utcw-tag-crude-oil-export-ban" href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/tag/crude-oil-export-ban/" style="font-size:10px" title="8 topics">Crude Oil Export Ban</a> <a class="tag-link-105 utcw-tag utcw-tag-crude-oil-exports" href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/tag/crude-oil-exports/" style="font-size:10.512820512821px" title="9 topics">Crude Oil Exports</a> <a class="tag-link-7 utcw-tag utcw-tag-crude-oil-prices" href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/tag/crude-oil-prices/" style="font-size:14.615384615385px" title="17 topics">Crude Oil Prices</a> <a class="tag-link-39 utcw-tag utcw-tag-domestic-oil-production" href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/tag/domestic-oil-production/" style="font-size:15.641025641026px" title="19 topics">Domestic Oil Production</a> <a class="tag-link-101 utcw-tag utcw-tag-donald-j-trump" href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/tag/donald-j-trump/" style="font-size:10px" title="8 topics">Donald J Trump</a> <a class="tag-link-5 utcw-tag utcw-tag-drilling-technology" href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/tag/drilling-technology/" style="font-size:13.589743589744px" title="15 topics">Drilling Technology</a> <a class="tag-link-10 utcw-tag utcw-tag-eagle-ford-shale" href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/tag/eagle-ford-shale/" style="font-size:20.769230769231px" title="29 topics">Eagle Ford Shale</a> <a class="tag-link-33 utcw-tag utcw-tag-eagle-ford-shale-production" href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/tag/eagle-ford-shale-production/" style="font-size:10.512820512821px" title="9 topics">Eagle Ford Shale Production</a> <a class="tag-link-100 utcw-tag utcw-tag-energy-independence" href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/tag/energy-independence/" style="font-size:10.512820512821px" title="9 topics">Energy Independence</a> <a class="tag-link-16 utcw-tag utcw-tag-energy-information-administration-eia" href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/tag/energy-information-administration-eia/" style="font-size:14.102564102564px" title="16 topics">Energy Information Administration (EIA)</a> <a class="tag-link-42 utcw-tag utcw-tag-fracking" href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/tag/fracking/" style="font-size:11.538461538462px" title="11 topics">Fracking</a> <a class="tag-link-34 utcw-tag utcw-tag-horizontal-drilling" href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/tag/horizontal-drilling/" style="font-size:12.051282051282px" title="12 topics">Horizontal Drilling</a> <a class="tag-link-8 utcw-tag utcw-tag-hydraulic-fracturing" href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/tag/hydraulic-fracturing/" style="font-size:17.692307692308px" title="23 topics">Hydraulic Fracturing</a> <a class="tag-link-29 utcw-tag utcw-tag-investing-in-texas-oil" href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/tag/investing-in-texas-oil/" style="font-size:11.025641025641px" title="10 topics">Investing in Texas Oil</a> <a class="tag-link-13 utcw-tag utcw-tag-oil-and-gas-investing" href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/tag/oil-and-gas-investing/" style="font-size:14.615384615385px" title="17 topics">Oil and Gas Investing</a> <a class="tag-link-19 utcw-tag utcw-tag-oil-exploration" href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/tag/oil-exploration/" style="font-size:10px" title="8 topics">Oil Exploration</a> <a class="tag-link-84 utcw-tag utcw-tag-oil-market" href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/tag/oil-market/" style="font-size:11.025641025641px" title="10 topics">Oil Market</a> <a class="tag-link-17 utcw-tag utcw-tag-oil-production" href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/tag/oil-production/" style="font-size:18.205128205128px" title="24 topics">Oil Production</a> <a class="tag-link-32 utcw-tag utcw-tag-opec" href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/tag/opec/" style="font-size:15.641025641026px" title="19 topics">OPEC</a> <a class="tag-link-11 utcw-tag utcw-tag-permian-basin" href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/tag/permian-basin/" style="font-size:28.461538461538px" title="44 topics">Permian Basin</a> <a class="tag-link-57 utcw-tag utcw-tag-shale-oil" href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/tag/shale-oil/" style="font-size:10px" title="8 topics">Shale Oil</a> <a class="tag-link-15 utcw-tag utcw-tag-texas-oil-production" href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/tag/texas-oil-production/" style="font-size:19.74358974359px" title="27 topics">Texas Oil Production</a> <a class="tag-link-37 utcw-tag utcw-tag-u-s-oil-production" href="https://web.archive.org/web/20211027151230/https://www.arescotx.com/tag/u-s-oil-production/" style="font-size:11.538461538462px" title="11 topics">U.S. Oil Production</a></div><p class="titles">Archives</p> <label class="screen-reader-text" for="archives-dropdown-3">Archives</label> <select id="archives-dropdown-3" name="archive-dropdown"> <option value="">Select Month</option> <option value="https://www.arescotx.com/2021/09/"> September 2021 </option> <option value="https://www.arescotx.com/2021/08/"> August 2021 </option> <option value="https://www.arescotx.com/2021/07/"> July 2021 </option> <option value="https://www.arescotx.com/2021/06/"> June 2021 </option> <option 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