As drilling activity in conventional land-based plays continue to decline, technology focus is shifting to the unconventional shale gas prospects (Haynesville, Marcellus, Eagle Ford). Efficient and repeatable drilling practices, along with costeffective technologies, are paramount to economically exploit the known hydrocarbon reserves because of the large number of horizontal wells required to develop the vast acreage plays. The drilling challenges include high bottom hole temperatures, high mud weights and hole/bit cleaning issues. The key to reducing field development costs and improving project economics is increasing rate of penetration (ROP) in the lateral interval that typically extends 3000 to 6000ft after completing the build section.To solve the penetration rate and hole cleaning challenges, an engineering team analyzed the latest polycrystalline diamond compact (PDC) technologies and best drilling practices to achieve the operator's ROP optimization goals. An FEA-based engineering software system was utilized to predict the dynamic behavior of the bit and BHA components in lithologies comparable to the specific field application. To ensure proper utilization of the available hydraulic energy, engineers used computational fluids dynamics (CFD) to ensure appropriate nozzle placement and orientation to effectively clean the bit face and hole bottom. Conclusions from the dual analysis were instrumental in developing new steel body PDC bit designs specifically engineered for emerging North American shale plays.The new steel body PDC design and the associated bit technologies and updated operating practices have been run in the Bossier City, Louisiana and Tyler, Texas areas with outstanding results. The new PDC technology has increased lateral interval ROP by as much as 80%-100% compared to conventional matrix bodied PDC bits. The authors will present several case studies that document the significant cost savings.