This paper describes an investigation of bit passive gauge profiles for a latest generation point-the-bit Rotary Steerable System (RSS) shown in Figure 1. Using theoretical analyses, a methodology has been developed for exploiting lateral stability afforded by extended passive gauge, without limiting steerability or creating stick-slip or high torque. Results of laboratory testing and field studies are presented, showing a step-change improvement in drilling performance and efficiency. Figure 1: Schematic diagram of a point-the-bit rotary steerable systemFull scale laboratory testing and field studies explore the impact of extended passive gauge in maintaining lateral stability. Results show that typically much longer passive gauge length than is common can be applied without adversely affecting steerability or stick-slip. These practical results are fully explained by theoretical analyses that predict critical gauge lengths. The optimum gauge profile is shown to be dependent on hole size and formation type.