Monday, June 10, 2019

Wow, Wow, Wow -- EOR Using Natural Gas; Seeing A 30% To 70% Improvement In Production In Older Wells -- June 10, 2019

From Bloomberg via Rigzone:
At least five producers, led by EOG Resources Inc., are experimenting with shooting highly-pressurized natural gas into past-their-prime wells that have seen their output slip. The wells are then capped to build up pressure inside with the aim of dislodging any oil still hiding in the rock.
Note: there are three others posts regarding EOR using natural gas.

Other notes from the linked story:
The methodology’s been used in conventional wells elsewhere with both natural gas and carbon dioxide for years, but it’s just now emerging in America’s fracked shale fields.
The win-win goal: The trapped gas is put to work, and there’s a 30%-to-70% gain in oil output from older wells, according to EOG.
In late 2018, Permian flaring -- the burning off of associated gas -- more than doubled from a year earlier to 500 million cubic feet a day, and that’s likely to rise.
Generally, the use of injected gas is known as enhanced oil recovery, or EOR. Initially, EOG was the main company using natural gas to boost shale oil output, Krishnamoorti said by telephone. "But the fact is that now we have seen four other producers do it," he said. “And with remarkable results.”
EOG has been experimenting with EOR for at least three years in the Eagle Ford basin. Gas injection can potentially extend crude production volumes in older wells by 18 to 24 months, Krishnamoorti said. What’s still to be determined is how well EOR works in different types of rock formations.
For the most part, producers have disclosed little specific information about how well the new method performs, even in the Eagle Ford, where it is increasingly being adopted. 
Much, much more at the link.


  1. See this presentation from minutes 58 to 1: 17 for an external perspective on the EOG EOR experiments.

    We don't know exactly what EOG is doing as they don't really share statistics (and have even had past hopes fizzle out, like in the Bakken). That said, I am hopeful. If we keep doing science, we learn to do things better. But I don't see this as an easy, sudden improvement. If it were, it would have been implemented industry-wide, two years ago, when EOG first mentioned it.

    1. Agree completely. Thank you. That "YouTube" presentation blows me away. I'm listening to in the background while doing other "stuff." Thank you so much for sending this my way.

  2. No worries, colonel.

    I am a big fan of Artem Abramov. Very smart (real insights, not just blabla quotes) and also able to explain things. He was on top of the big explosion in production in late 2017 and 2018, well before anyone else. Very contrarian but correct in the end.

    See the below presentation as well. Artem is on from 53:30 to 1:13:xx You get some insights into how he thinks and analyzes things. The whole workshop is interesting also, even Harold Hamm's part--he dramatically misunderestimated shale, but I still love him, and he is interesting to listen to.

    1. I'm blown away by how good this presentation is. It makes me wonder if Wall Street analysts every paid attention to this presentation. And when one says Harold Hamm "dramatically misunderestimated shale" you know how big a deal this really is.

      For investors, my hunch is that HAl and SLB will eventually get this right. If that makes sense.

  3. 1. Looks like I forgot to link second (earlier) presentation:

    2. I think Wall Street (in terms of actual money flows) is aware of this stuff. Lots of reporters and sell side analysts are unaware but then they are fluffy thinkers.

    1. Thank you. I thought a second link was missing but wasn't sure. I placed both presentations at this post to make them easier to access:

      Much appreciated. Thank you for taking time to write.