Enhanced Oil Recovery offers Significant upside for U. S. | Russell T. Rudy Energy LLC
“Rigzone” reports that consulting group Wood Mackenzie predicts that enhanced oil recovery (EOR) advances could add an additional 1.5-3 million barrels per day by 2030, an increase of 25%, according to their latest analysis. While this technology is not commercially available today, it is currently being tested by operators like EOG in the Eagle Ford shale in South Texas. Wood Mackenzie sees this as a step change in technology, with the potential to increase recovery rates by 100%.
If these increases are realized, this additional production could flood the domestic crude market putting downward pressure on prices here and creating a $30 per barrel discount against world prices. This would in turn depress investment, resulting in shut in production and undeveloped reserves. This could be avoided by repealing the crude oil export ban so U. S. production could be sold in the world market at prevailing prices.
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