Abstract Recent developments in polycrystalline diamond (PCD) technology have led to breakthroughs in PCD bearing designs and PCD insert cutting structures. The authors suggest that the next major step in bit technology will be to combine these two innovations in a new generation roller cone bit, capable of sustained operation with a PDM or turbine. Other potential areas of innovation are now made possible with this new technology. One of the first areas will be an integrated high-speed downhole drilling system consisting of the next generation roller cone bit, turbine, and MWD. Another area for development will be a downhole mudhammer for percussion drilling of petroleum wells. A more distant potential development is called the Robotic Advanced Drilling System (RAD), which uses a flexible drillstem and a downhole thrusting mechanism to give WOB and real-time drilling control.