Unlike conventional resources, unconventional resources, such as shale gas and coal bed methane, are situated horizontally under geological formations. To exploit these resources, directional drilling and hydraulic fracturing technologies are required. In directional drilling, the dog leg severity (DLS), which indicates how much the angle changes while drilling 100 ft, is a major issue with respect to the cost and time of drilling. In this paper, we briey review different types of directional drilling methods and propose a new hybrid-type rotary steerable system (RSS). DLS calculations based on three-point geometry for these systems are suggested. This hybrid RSS combining two conventional types of RSSs: point-the-bit and push-the-bit systems, achieves better steerability. The hybrid mechanism is implemented using hybrid pads with hydraulic cylinders and a spherical joint. The advantages of the proposed system are demonstrated by performing small-scale prototype and cement block drilling tests.