Chevron Opens Up Chemical Tech to Boost Shale Output

Chevron has announced that it will license its chemical surfactants technology to ZL Chemicals, allowing rival oil producers to purchase the chemicals and boost production from shale wells. The move is part of a broader push by Chevron to increase U.S. oil output.

The technology has shown promising results in improving well productivity, with newly drilled wells experiencing up to 20% increased production during the first year. Existing wells have also seen a reduction in production decline, ranging from 5% to 8%. The chemicals work by reducing damage to the shale formation and aiding the separation of oil from rock.

Industry experts say that the current oil recovery rate in shale is just 10%, with the remaining 90% left in the ground due to limited technology. Improving this rate is critical as many of the best drilling areas have been tapped out over time.