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How Bit Technology Led to the U.S. Shale Revolution Adapted from Information by the U.S. Department of Energy T h e E n e r g y R e s e a r c h a n d Development Administration, which ulti- mately became the Department of Energy (DOE), partnered with General Electric in the 1970s to create a dia- mond-studded drill bit which could cut through shale rock more efficiently. The polycrystalline diamond compact (PDC) drill bit uses thin diamond layers bond- ed to tungsten carbide-cobalt studs or blades. In the 1980s, DOE’s Geothermal Energy Program was working with the geo t he rma l i ndus t r y and Sand i a National Laboratories to test the poten- tial of PDC bits for extremely hot, hard rock environments. Working with GE and bit manufacturers, they began to design and test bits. After several modifications, as well as laboratory and field-testing, they realized PDC bits could drill harder rock better than ever. They cut faster and last- ed longer than traditional bits. It wasn’t long before companies jumped at the chance to serve the rapidly growing demand for the new technology. The research and development conducted by the DOE spurred the American Shale Revolution beginning with the Barnett Shale in Texas in the 1980s. The DOE invested roughly $137 million between 1978 and 1992 to develop the horizontal and directional drilling and stimulation technologies which would put the PDC to good use. This ultimately led to increased gas and oil production which changed the country’s energy environment and led to the U.S. becoming a global leader in natural gas production. This also led to lower energy costs and reduced the country’s carbon dioxide emissions. Natural gas now produces more electricity in the country than any other source. The petrochemical industry was also helped by this revolution. Petrochemical products use gas and oil to make plastics, fertilizers, and adhesives. In the early 2000s, the market was in a slump and the industry was making huge cuts. The Shale Revolution led to a dramatic decrease in the cost of the raw materials needed to create petrochemical prod- ucts and the resulting boost was just enough to turn things around. The DOE continues to fund research to make shale development as economical and environmentally safe as possible. The growth of the shale gas industry has had a huge impact on the country’s economy, manufacturing, and our domestic energy security. Today, PDC bits are used around the world and have been used for more than a third of the total footage drilled worldwide. Generally, a single PDC bit can save more than $100,000 compared to drilling with roller core bits over the lifetime of the bit. DOE and Sandia are also active in synthetic diamond drill bit research and development, attempting to extend the technology into even harder and more abrasive formations. Currently, there are seven companies working with the lab on five projects, ranging from new PDC cutter and bit designs, to thermally stable polycrystalline diamond and impregnated- diamond bit development. 28 MARCH 2019 WorldWide Drilling Resource ® Dealmakers SIMCO ® thanks Foster Septic & Well Service of Adams, Wisconsin. The crew took delivery of this SIMCO 2800 PTO-powered wet rotary model drill rig mounted on a RAM 5500 4x4 truck with 200 feet of SIMCO PDQ drill rod. They had it on display at the 2019 Wisconsin Groundwater Conference. Pictured are three generations of the Foster family - Zack Foster, Ray Foster, Steve Desimone, Jim Ecke, David Foster, with Dan Defenbaugh of SIMCO ® Drilling Equipment, Inc. in Osceola, Iowa. SIMCO ® Drilling Equipment, Inc. Send your deals to: michele@ worldwidedrillingresource.com DIR