The objective of every boring contractor is to complete projects quickly, efficiently and profitably. Achieving this goal requires one – planning, two – skill and three – experience, and of course the successful application of labor, machinery, electronics with al the drilling tools. Horizontal directional drilling enhances all of these efforts.

The benefits of horizontal directional drilling have been clearly shown in the rebuilding of North America’s underground infrastructure. Cost experts agree that horizontal directional drilling is now the preferred method of resource recovery. HD drilling, whether intended for mining, oil extraction or infrastructure projects, offers new efficiencies that can result in previously unattainable profits. Overall end numbers for these HDD projects are much higher than those of the older vertical-well technology.

Vertical drilling is positioned to capture product through an initial entry point. With horizontal directional drilling equipment, however, it is no longer necessary to drill at a ninety-degree angle; instead, flexible and variable extraction points are made possible. The new HDD systems improve drilling efficiency and productivity by increasing the area of contact with productive layers. Enhanced recovery results in high product yield and increased profit.

Horizontal directional drilling is more versatile than conventional drilling methods, which are limited in many situations and impossible to apply in others. Drilling involves complex factors, including the unseen hazards common to directional drilling. Various boring-tool malfunctions, along with certain procedures, ultimately result in tool failure. horizontal directional drilling helps avoid such malfunctions, updates procedures, and prevents age-old drawdown-related problems such as water and gas coning. By avoiding such obstacles, wells can be extended via multiple drain holes, as well as by capturing previously unattainable thin oil-rim reservoirs.

The potential for tax advantages are significant for domestic oil and gas projects

Another important factor making domestic horizontal directional drilling attractive is the potential tax benefit within the first year. This is what’s referred to as the Intangible Drilling and Completion Costs (“IDCs”). They can produce significant deductions within the first year of operation and participation. These IDC costs make up a large part of expenses connected with the development of the well, like site preparation and rig costs, which are expensive. Other costly expenditures include the high-pressure fracturing of rock formations in the process of drilling that are inevitable. It is not unheard of for domestic ventures to accrue over 50% or more in these types of expenses which may be deductable under the IDC section of the tax code according to industry experts.

Initial costs are offset by long-term profits

A project’s financial success is determined by three general principles:  cost, efficiency and volume. Old-school drilling equipment – paid for or not – no longer ensures profits.

The principal argument against horizontal drilling concerns initial cost factors. Although the older vertical equipment is two or three times lower in cost, horizontal drills make up for their price by increasing production 15 times or more, depending on location, terrain and drilling set-up. Government statistics show efficiencies as high as 1% or more in expanding the yield from reserves.

In both return on investment and improved efficiency, Horizontal Directional Drilling is clearly one of the most valuable improvements in mining to date.