U.S. Shale Producers Rely on Surfactant Soap to Boost Oil Output

U.S. oil producers are turning to an unlikely hero in their quest for increased efficiency and productivity: better soap. Companies like Chevron Corp., Diamondback Energy Inc., and Permian Resources Corp. have begun using surfactant additives, similar to those found in household cleaners, to coax more oil from underground rocks.

The use of surfactants has been growing rapidly, with demand expected to increase by 29% by 2030 to 313 million gallons sold. Oil and gas operators worldwide are projected to spend $1.7 billion on the additives this year, with nearly three-quarters coming from U.S. companies.

The potential gains from surfactant use are significant, with some wells seeing a 20% boost in oil output over the first 10 months of their life. Chevron's Chief Financial Officer Eimear Bonner noted that the company has started using surfactants on about 40% of its Permian wells and plans to reach 85% by 2026.

While some experts are optimistic about the prospects for increased oil production, others caution that the industry's reliance on new technologies may be temporary. Brendan McCracken, CEO at Ovintiv Inc., said that surfactants have been a 'real needle mover' in improving output, increasing Ovintiv's oil productivity by around 9% compared to wells without treatment.