Chevron offers its chemical technology to rival drillers in order to boost shale-oil output
Chevron said it would allow rival oil companies to purchase a chemical technology that was developed by the company to increase production from shale oil wells. This is part of a larger push to increase U.S.?oil?output.
The move comes at a time when the U.S. Shale industry, which transformed the global energy market nearly 20 years ago with the fracking explosion, is grappling with declining well productivity. Experts say that this is forcing companies to either drill more wells, or adopt new technologies to maintain output.
Chevron announced that it would license its chemical surfactants technologies to ZL Chemicals. ZL Chemicals will then oversee the sale process to other oil firms.
Chevron reported that the chemicals licensed to ZL have improved production in newly drilled wells up to 20 percent during the first 12 months, and reduced production declines between 5 and 8 percent for existing wells.
Ryder Booth, Chevron’s Chief Technology and Engineering Officer, said in an exclusive interview that "energy is a scarce resource in today's world. Oil and gas companies are being urged to increase their energy production." "This is one way we can help boost production."
U.S. president Donald Trump urged oil companies including?Chevron? and ExxonMobil? to increase their oil production and lower gasoline prices in the U.S. and Israel's war against Iran.
Improve Oil Recovery
Chemical surfactants, which act like soaps, can reduce the damage caused by the fracturing of shale. They remove particles from cracks and stop oil flowing. These chemicals help to separate the oil from underground rock, allowing it to reach the surface more easily.
Researchers showed a glass vial containing crude oil, which clung to its sides when shaken.
The oil in another bottle that contained crude oil and surfactants separated easily from the surfactants. This shows how this process can be used to help oil separate from shale rock.
According to industry experts, the oil recovery rate from shale rocks is only 10%. The remaining 90% of oil in tight, compacted rocks are left in the ground, because the technology is not advanced enough yet to extract the remaining oil.
It is important to improve the recovery rate because the best drilling sites have been exhausted over time.
Bob Fryklund is the chief upstream strategist for S&P Global Energy. He said that the oil industry has consistently exceeded forecasts due to technological advancements.
Chevron holds a royalty interest in certain wells that are operated by others in the Permian basin. The company can benefit from increased oil production in the U.S. top oilfield by licensing the previously proprietary "chemical technology".
Booth stated that "this helps unlock production on a larger scale than just Chevron's operated areas."
He added that the company would begin testing a version of a new chemicals technology during the third quarter. Sheila Dang reported from Houston, and Nathan Crooks edited the story.
(source: Reuters)
