How Horizontal Drilling Reshaped Modern Oil & Gas Production

Twenty years ago, most oil and gas wells were drilled straight down. Today, that's the exception rather than the rule. According to the U.S. Energy Information Administration, nearly all new crude oil and natural gas wells in the United States are now drilled horizontally or directionally, a shift that has reshaped how much oil the country produces and where that production happens.

From Vertical to Horizontal

A vertical well passes through a rock formation once, exposing only a narrow slice of reservoir to the wellbore. A horizontal well is drilled down to the target depth and then turned to travel sideways through the productive rock layer, sometimes for two miles or more. That extra length means far more contact with the reservoir, and far more oil and gas available to flow into a single wellbore.

Why It Took Off

Horizontal drilling isn't new technology on its own, but pairing it with modern hydraulic fracturing made it possible to economically produce oil and gas from tight rock formations, shale and similarly low-permeability reservoirs that vertical wells could barely access. The combination unlocked reserves that had been identified for decades but were previously considered uneconomical to produce.

The Production Impact

The result has been a substantial increase in U.S. oil output. The EIA reported that U.S. crude oil production set a new record in 2025, driven in large part by continued horizontal development in established plays. A single horizontal well can now produce what might have taken several vertical wells to achieve, which also reduces the surface footprint needed to develop a given resource, since operators can drill multiple horizontal wells from a single pad.

What It Means for Decline Rates

Horizontal wells, particularly in unconventional formations, tend to produce at a high initial rate that declines faster than a typical vertical well. That means operators need to keep drilling new wells to sustain overall production, even in a mature field, a dynamic the EIA has highlighted as a factor shaping future drilling activity. It's one reason exploration and development are ongoing processes rather than one-time events in a producing area.

A More Efficient Footprint

Beyond the production numbers, horizontal drilling has changed the physical footprint of oil and gas development. Multiple wells drilled from a single pad mean less surface disturbance, fewer access roads, and reduced truck traffic compared to the same number of vertical wells spread across a field. For landowners and communities near producing areas, that efficiency matters as much as the production gains.

Looking Ahead

As formations mature and operators refine drilling and completion techniques, horizontal drilling continues to evolve, with longer laterals and more precise placement within the target zone. It remains the technology behind most of the oil and gas produced in the United States today.

To learn more about how SBR Energy applies modern drilling techniques across our operating areas, visit sbrenergy.net.