The horizontal section of a directionally drilled well, extending sideways through the target formation. Laterals can stretch several kilometres, requiring extended crew mobilisations and staged service scopes. Subcontractors should clarify lateral length upfront, as it directly affects equipment needs and job duration.
Industry Glossary Term
Lateral (well)
Related Terms
Throughput
IndustryThe volume of work or units a crew completes within a set timeframe. Higher throughput means more billable output per shift, directly affecting your contract profitability. Subcontractors often track throughput to justify crew sizes and equipment needs.
Oil Sands
IndustryDeposits of bitumen mixed with sand, clay, and water, primarily found in Alberta. Extraction and upgrading operations require large volumes of subcontracted trades, maintenance crews, and specialised equipment. Project cycles are long, but remote site conditions and extreme cold demand strong mobilisation planning.
Well Testing
IndustryA series of controlled flow and pressure measurements performed on a newly drilled or existing well to evaluate its production potential and reservoir characteristics; for subcontractors, this work often involves deploying and operating specialised equipment such as separators, flowback units, and data acquisition systems under tightly scheduled, high-priority conditions.
Physical Oil Price
IndustryThe actual market price paid for real barrels of oil delivered at a specific location, as opposed to futures contract prices. For subcontractors, client budgets and contract award activity closely track physical oil prices. When physical prices drop, project deferrals and rate pressure often follow quickly.
Ultra-Deepwater
IndustryOffshore drilling operations conducted in water depths exceeding 1,500 metres. Subcontractors working these projects require specialised certifications, equipment ratings, and offshore survival training. Mobilisation costs and logistics complexity are significantly higher than shallow-water scopes.
CAPEX (Capital Expenditure)
IndustryFunds an operator spends on major assets like wells, pipelines, or facilities. High CAPEX cycles mean more subcontract opportunities for field crews and equipment providers. Low CAPEX periods often signal slower work volumes and tighter bid competition.
Latest Industry News
Industry
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