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1 Overlooked Technology of Shale Oil's Success

By Tyler Crowe – Mar 1, 2014 at 12:20PM

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There are lots of reasons that shale oil development has taken off in America, but this important one is commonly overlooked.

When we think about the boom in shale oil here in the United States, many of us chalk up its success to the advances in hydraulic fracturing and horizontal drilling. Yes, these technologies were a very important part of the equation, but being able to access all of that oil requires something else as well: We need to know where it is.

This is an aspect of the shale boom many of us tend to forget. Unlike other traditional exploratory efforts, we have known where these shale oil deposits were for decades. This has allowed shale drilling specialists like Pioneer Natural Resources (PXD 1.72%) to have a 97% success rate on exploratory wells versus the 80% range for big oil players like Chevron (CVX 1.17%). Find out how this high probability of success impacts the investment decisions of shale drillers like Pioneer and Devon Energy (DVN 1.02%) by tuning into the video below.

Tyler Crowe has no position in any stocks mentioned. You can follow him at under the handle TMFDirtyBird, on Google+, or on Twitter, @TylerCroweFool.

The Motley Fool recommends Chevron. The Motley Fool owns shares of Devon Energy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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