At the cutting edge of EOR?

This data-file summarises 120 patents into Enhanced Oil Recovery, filed by the leading Oil Majors in 2018. Based on the data, we identify the “top five companies” and what they are doing at the cutting edge of EOR.

We find clear leaders for water-flooding both carbonate and sandstone reservoirs. At mature fields, we think these operators may be able to derive >10pp higher recovery factors; and by extension, lower decline rates, higher cash flows and higher margins.

As more of the world’s oilfields age, having an “edge” in EOR technology will make particular Oil Majors more desirable operators and partners, to avoid the higher costs and CO2 intensities of developing new fields to replace them.

 

Oil Major Cash Flow and Operating Leverage

This data-file tabulates the approximate cash flow, capex and ‘pre-tax costs’ of Oil Majors, in order to illustrate the operational leverage within the group. Every $1 of free cash flow comes after $3 of cost. Hence small reductions in the cost base, through technology, deliver 3x larger uplifts to free cash flow. This is why we are screening Oil companies’ technology-capabilities.

Copyright: Thunder Said Energy, 2022.