US shale drillers are turning to advanced surfactant blends to pull more crude out of wells that typically leave most of the oil underground. Ovintiv reports a 9% productivity gain, Chevron reports output gains as high as 20%, and spending on the chemicals is projected to keep climbing through 2030.
Shale wells leave upward of 90% of crude behind underground, and producers are increasingly turning to detergent-like additives called surfactants to change that math. The chemicals work much like dish soap lifting grease from a plate, and new mixing methods developed over the past few years have pushed crude output gains as high as 20% in some cases without a major increase in spending.
Ovintiv and Chevron report productivity gains
Ovintiv chief executive officer Brendan McCracken called surfactants a major driver of improved output, with the company's new chemical mix increasing oil productivity by about 9% compared with untreated wells. Chevron, one of the largest drillers in the Permian Basin, told analysts its surfactant cocktails are yielding as much as 20% more oil over a well's first 10 months, chief financial officer Eimear Bonner said.
Chevron used surfactants on about 40% of its Permian wells in the first half of last year and plans to reach 85% in 2026, Bonner said. Diamondback Energy and Permian Resources have also reported promising early test results, though both companies cautioned it remains early days.
Spending set to keep rising
Demand for surfactants in US oil fields is expected to grow 29% by 2030 to 313 million gallons sold, according to oilfield consultant Spears & Associates. The firm projects operators worldwide will spend $1.7 billion on surfactants this year, with almost three-quarters of that coming from the US.
Out of an average $8 million total cost to drill and frack a shale well in the Permian, the firm estimates operators spend about $200,000 on surfactants. Executives have referenced the chemicals 90 times on earnings calls since the start of this year, more than in the previous two decades combined.
A push against a looming peak
The technology push comes as some executives and analysts warn US shale output is nearing a peak, a prospect that seemed distant only a few years ago. Select Water Solutions chief commercial officer Michael Skarke said almost 10% of all new frack jobs are now using surfactants, with 95% of those wells located in the Permian.
According to Rigzone: "There's a lot of room for this market to grow", Skarke said, adding that the segment has grown 50% year-over-year and should keep expanding into 2027. Devon Energy and Occidental Petroleum are also applying surfactants alongside carbon dioxide to boost crude oil recovery from older wells, a technique known as enhanced oil recovery.
Source: Rigzone
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