Roy Long, a technology manager at the U.S. Department of Energy’s (DOE) Strategic Center for Natural Gas and Oil (SCNGO), emphasizes the role of microhole technology in lowering drilling costs and reducing exploration risks.
Government funding plays a crucial role in advancing new drilling technologies, but industry adoption is necessary to bring them into widespread use. The SCNGO, part of the National Energy Technology Laboratory (NETL), supports research to improve engineering solutions, assist small operators, and sustain the U.S. oil and gas sector, which significantly contributes to job creation.
Despite the importance of innovation, petroleum companies have shifted focus away from research and exploration due to shareholder priorities. Instead, they prefer low-risk technologies or joint industry initiatives to mitigate development risks. However, Long believes that with the right tools and sufficient subsurface data, engineering solutions can overcome these challenges.
Microhole technology (MHT) is a key focus, receiving about $3 million annually from the DOE. This approach involves miniaturized drilling systems that target shallow reservoirs (under 5,000 feet), which are typically uneconomical using conventional methods. By reducing borehole sizes to 3½–4¾ inches and utilizing portable, coiled tubing rigs, drilling becomes more cost-effective and environmentally friendly.
MHT also reduces waste through zero-discharge mud systems and leaves a smaller environmental footprint, much like how directional drilling transformed land drilling decades ago. The DOE funds several projects to advance microhole technology, including coiled-tubing rigs, bottomhole assemblies, and artificial lift systems.
In early 2005, the DOE awarded funding for 10 projects focused on demonstrating and refining microhole technology. Within three years, Long expects to determine the commercial viability of these innovations. The initiative also includes advanced seismic imaging techniques, enabling real-time reservoir monitoring with microholes dedicated to vertical seismic profiling (VSP).
Microhole technology has multiple potential applications, such as drilling shallow wells in smaller spaces, collecting seismic data without disrupting production, re-entering wells for additional resource extraction, and extending wellbores for deeper exploration. The industry is already exploring lightweight drilling solutions, particularly for shallow gas and coalbed methane projects.
Additionally, research is underway at Sandia National Laboratory to develop miniaturized downhole instruments using microelectromechanical systems (MEMS). Other initiatives include high-speed data transmission through wired drill pipe, which could enhance real-time monitoring and managed pressure drilling.