This report describes the status of BDM-Oklahoma's evaluation of models used in solving wellbore stability problem. The bulk of these problems involve shales, and shales makes up most of the formations drilled. These instabilities can be mechanical (shales are inherently weak), chemical (incompatibilities with drilling fluids), or most likely, a combination of the two. Most models of wellbore stability concentrate on the rock mechanics of shales. They attempt to calculate the mud weight needed to minimize spalling and other stability problems without exceeding the hydraulic fracture pressure. Chemical interactions are either not considered or dealt with very simplistically. Although much can be done in the laboratory, both from a rock mechanics and chemical interaction standpoint, it has been difficult to relate these to the wellbore, particularly while drilling (i.e., in real-time analysis).