U.S. shale producers have long used surfactants, detergent-like chemicals used in fracking, to extract more oil from existing wells, Bloomberg reports.
However, producers have discovered new methods to mix the surfactants with other chemicals, producing combinations that can boost production by as much as 20% in some cases without requiring major increases in drilling costs.
The technology is gaining attention because as much as 90% of the oil in shale formations may remain underground after wells are drilled. Ovintiv, for example, says its chemical treatment has increased oil productivity by about 9% compared with untreated wells, while Chevron has reported gains of up to 20% during the first 10 months of a well’s life.
Surfactants are becoming an important part of the U.S. shale industry’s broader push to increase output while controlling costs, particularly as concerns grow that the country’s shale production could eventually peak. The U.S. currently accounts for nearly three-quarters of the estimated $1.7 billion global spending on oil field surfactants. Demand for the chemicals in U.S. oil fields is projected to grow 29% by 2030.
Major producers including Chevron, Diamondback Energy, Permian Resources, Devon Energy and Occidental Petroleum are testing or deploying the technology. Surfactants are being used both in new wells and to revive production from older wells, sometimes alongside carbon dioxide.
The trend is also creating opportunities for chemical and biotechnology companies. Select Water Solutions says surfactant use in fracking is growing rapidly, while Ohio-based Locus Fermentation Solutions expects its surfactant sales to drive significant revenue growth.
However, the technology remains relatively new, and analysts say producers still need to determine whether the early production gains will persist as deployment expands. Environmental groups have also raised concerns about limited transparency around the chemicals used in fracking.
