Shale EOR: Container Class

Will Shale-EOR add another leg of unconventional upside? The topic jumped into the ‘Top 10’ most researched shale themes last year, hence we have reviewed the opportunity in depth. Stranded in-basin gas will improve the economics to c20% IRRs (at $50 oil). Production per well can rise by 1.5-2x. The theme could add 2.5Mbpd to 2025 output.

Pages 3-5 review the theory of shale EOR. Its recovery factors could in principle surpass conventional EOR.

Pages 6-7 review lab results and field trials. They have been promising, suggesting >1.5-2x production uplifts should be attainable.

Pages 8-10 review the economics in detail. Our full model is informed by technical papers, and can be downloaded here.

Page 11 tabulates key statistics for using CO2 as a huff-n-puff injectant, the economic opportunities for carbon capture, but also the challenges.

Pages 12-13 attempt to quantify the production upside from shale EOR, by adapting our basin models.

Pages 14-15 cover the remaining challenges, including E&P patent-filing insights.

Page 16 lists a handful of companiesat the forefront of shale-EOR, including some earlier-stage start-ups.

EOG’s Completions: Plugged-In?

EOG has patented a system to deploy pressure and temperature sensors in its frac plugs, which are then retrieved at the surface, providing low cost data on each frac stage. The data can be used to improve subsequent frac stages. We model the economic uplifts at +$1M NPV and +5% IRR per well (at $50 oil).

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