Three components are measured at any given point in a wellbore in order to determine its position: the depth of the point along the course of the borehole (measured depth), the inclination at the point, and the magnetic azimuth at the point. Sperry did this under contract to Sun Oil (which was involved in a lawsuit as described above), and a spin-off company " Sperry Sun" was formed, which brand continues to this day, absorbed into Halliburton. The next advance was in the modification of small gyroscopic compasses by the Sperry Corporation, which was making similar compasses for aeronautical navigation. In certain circumstances, magnetic fields could be used, but would be influenced by metalwork used inside wellbores, as well as the metalwork used in drilling equipment. Measuring the azimuth (direction with respect to the geographic grid in which the wellbore was running from the vertical), however, was more difficult. Measuring the inclination of a wellbore (its deviation from the vertical) is comparatively simple, requiring only a pendulum. Horizontal directional drill rigs are developing towards large-scale, micro-miniaturization, mechanical automation, hard stratum working, exceeding length and depth oriented monitored drilling. Initially, proxy evidence such as production changes in other wells was accepted, but such cases fueled the development of small diameter tools capable of surveying wells during drilling. This realization was quite slow, and did not really grasp the attention of the oil industry until the late 1920s when there were several lawsuits alleging that wells drilled from a rig on one property had crossed the boundary and were penetrating a reservoir on an adjacent property. Probably, the first requirement was the realization that oil wells, or water wells, do not necessarily need to be vertical.
Many prerequisites enabled this suite of technologies to become productive.
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