The U.S. oil and gas industry has long thrived on innovation, but the next leap forward is being driven by automation and the shift toward long lateral wells. These trends are transforming how operators maximize efficiency, reduce costs, and increase well productivity. Nabors Industries, a key player in drilling technology, is capitalizing on these advancements to enhance margins, streamline operations, and meet the growing demand for high-performance rigs. In this post, we’ll explore how automation and long laterals are revolutionizing the industry and what lies ahead for operators.

What Are Long Lateral Wells?

A lateral well refers to the horizontal section of a wellbore, extending from the main vertical shaft. These horizontal extensions enable operators to tap into larger portions of oil and gas reservoirs. A long lateral well typically exceeds 2 miles (10,000 feet) in length, with recent advancements now pushing some wells past 4 miles.

This increase in lateral length allows companies to extract more hydrocarbons from each well while reducing the need for additional surface infrastructure. The economic appeal is clear: more production from fewer wells translates to higher returns per rig and a lower environmental footprint.

The Economic and Operational Advantages of Long Laterals

Higher Production Efficiency:
Longer laterals increase the amount of reservoir exposed to the wellbore, resulting in greater hydrocarbon recovery per well. This leads to better well economics without significantly increasing operational costs.
Lower Capital Investment:
By drilling fewer wells with longer laterals, companies can reduce drilling and surface infrastructure expenses, such as roads, pads, and pipelines.
Sustainability Benefits:
Long laterals reduce the number of drilling sites, minimizing environmental impact and simplifying logistics. Fewer wells also mean fewer emissions associated with drilling and transportation.
Operational Complexity:
However, drilling longer laterals introduces new challenges, such as increased torque, drag, and friction, requiring more advanced drilling technologies to ensure precision and efficiency.

Automation: The Key to Unlocking Long Lateral Potential

To successfully drill long laterals, operators are turning to automation technologies that enhance well performance and mitigate operational risks. Automation tools optimize drilling processes, reduce flat time (non-drilling time), and ensure consistency across complex operations.

Nabors Industries’ Automation Tools

Nabors has been at the forefront of drilling innovation, offering a suite of performance software and automation technologies that improve both efficiency and margins:

SmartSLIDE: Automates directional control, making it easier to maintain well path accuracy, even in long laterals.
SmartNAV: Provides real-time guidance for geosteering, allowing operators to optimize lateral placement and maximize exposure to hydrocarbons.
SmartDRILL: Automates the drilling process, reducing human error and minimizing downtime.
ROCKit: A drill pipe oscillation system that reduces friction and enables smooth drilling through extended lateral sections.
SmartROS: Nabors’ rig operating system, used on both company-owned and third-party rigs, enhancing rig performance through automation.

How Automation Improves Efficiency in Long Lateral Wells

Precision and Consistency:
Drilling long lateral wells requires precise directional control to ensure the well stays within the desired formation. Automated systems like SmartSLIDE and SmartNAV ensure real-time accuracy, minimizing the risk of costly corrections.
Faster Drilling Times:
Automation tools reduce well cycle times by streamlining processes and minimizing flat time. Nabors reported that some operators have cut one-third off their well cycle times using their automation technologies. This speed translates into significant savings.
Reduced Risk and Downtime:
Automation mitigates human error, one of the primary risks in complex drilling operations. Tools like SmartDRILL ensure that the entire drilling process is consistent and efficient, minimizing downtime.
Improved Well Economics:
With automation, operators can achieve higher margins per day. For example, Nabors’ high-performance rigs in the U.S. generate $18,700 per day in combined rig and solutions margins. These higher margins are made possible by automated solutions that drive operational efficiency.

Case Study: The Impact of Automation on Long Laterals

Nabors shared examples of operators achieving record-breaking well performance using their automation technologies. In the Uintah Basin, an operator drilled a 3-mile lateral using a third-party rig equipped with Nabors’ SmartDRILL and REVit systems. Similarly, in the Powder River Basin, operators using Nabors’ automation suite drilled the three fastest wells in the region, demonstrating the value of automated solutions.

These success stories highlight how automation enables faster, more precise drilling, improving well productivity and supporting the shift toward longer laterals.

Looking Ahead: The Future of Automation and Long Laterals

The U.S. Lower 48 market is stabilizing, with operators focused more on efficiency gains than expanding rig counts. As the trend toward longer lateral wells continues, automation will play a critical role in helping operators maintain high margins while reducing costs.

Nabors expects increasing automation adoption across both its own and third-party rigs, with performance software driving further efficiency improvements. The integration of Quail Tools, following the acquisition of Parker Wellbore, will also provide additional support for longer lateral operations, expanding Nabors’ market footprint.

With more operators focusing on flat time reductions and automation-driven performance improvements, the well construction process will become more streamlined, enhancing completion quality and production.

Conclusion: A Winning Combination

The combination of automation and long lateral wells is redefining the U.S. drilling landscape. Automation technologies are unlocking new levels of efficiency, allowing operators to drill faster and with greater precision. At the same time, long laterals are maximizing hydrocarbon recovery, making each well more productive and profitable. Together, these trends are positioning companies like Nabors Industries to thrive in a market focused on efficiency and sustainability.

As drilling activity stabilizes and market conditions evolve, the ability to do more with less will be critical. Companies that leverage automation and extend lateral lengths will lead the way, delivering superior returns and positioning themselves for long-term success.

Are you ready to take advantage of automation technologies and long lateral wells? Contact us to learn how automation can help you achieve your drilling goals faster and more efficiently.