Shale EOR Works, But Will It Make a Difference?

Abstract

When EOG Resources disclosed that it had found a way to get from 30 to 70% more oil from Eagle Ford shale wells, it set off a race among competitors looking for a low-cost way to add reserves by injecting natural gas. It has been little noticed because few companies have said anything publicly about it. But university researchers and service companies are seeing widespread interest from companies that are trying to figure out how EOG uses gas injection to increase production and whether those gains can be sustained long enough to add reserves. Research interest in gas injection enhanced oil recovery (EOR) persuaded David Schechter, a petroleum engineering professor at Texas A&M University, to equip his lab that has been used to test carbon dioxide (CO2) for EOR to safely observe how natural gas affects reservoir rock. “Basically everyone with a substantial acreage position is working on unconventional oil EOR now,” said Schechter. “This is the name of the game. Everybody is talking about EOR and pumping money into trials of EOR,” said Deepak Devegowda, an associate engineering professor at the University of Oklahoma. The question facing EOG and its competitors is, can they take a method that improves results from some of its best wells, and use it on a far larger scale to increase overall recoveries in unconventional formations where more than 90% of the resource is left behind. Companies would like to understand and simulate it and, most importantly, they are looking for clues on how EOG did it. “A whole bunch of folks are watching what other people are doing,” Devegowda said. Companies and researchers are using statistical analysis to determine patterns in production data filed with the Texas Railroad Commission to try to figure out how EOG is using natural gas injection. Among those looking is Todd Hoffman, an associate professor from Montana State, who was initially skeptical of EOG’s claims. After studying the data, Hoffman said that EOG clearly is “seeing huge increases in added oil production.” He is now working on a paper based on the disclosures. As for how he figured out which of EOG’s more than 7,000 Eagle Ford wells to study, he said, “I really had to dig around to find it. I talked to a number of companies planning pilots, doing pilots, in the planning stage, trying to do the same thing,” he said.