WASHINGTON, D.C. Amid the rise of refracs in the U.S. as part of the effort to boost domestic oil production, American shale oil producers are returning to existing wells and giving them a second, high-pressure blast.
The refracs, which are increasingly popular as shale oil producers try to take advantage of $100 per barrel crude, without making large investments in new wells and fields, was triggered by the global oil shortage, which caused U.S. President Joe Biden to call on shale producers to spend more of their profits on increasing output.
The firms have been under pressure from their shareholders to focus on returns rather than production growth.
Deficiency of steel, diesel, and workers has doubled oilfield inflation since January, making refracting even more attractive as a discounted way of increasing production.
Refracting can be up to 40 percent cheaper than drilling a new well, according to experts.
Garrett Fowler, chief operating officer for ResFrac, said it can double or triple oil flows from aging wells, as well as double or triple oil flows from aging wells. The firm that helps producers install refracting has seen twice as many inquiries compared to prior years.
Catherine Oster, head of Devon Energy's mid-continent properties, said that refracs can add output to existing pipelines while being affordable.
She said you go back and find out where you may be under-completed and under-fracked in the beginning.
ResFrac's Fowler said the most common refrac method is to place a steel liner inside the original well bore and then blast holes through the steel casing to access the reservoir. In some cases, the process uses half as much steel and frac sand, compared to drilling a new well.
U.S. oil production remains about one million barrels per day bpd below the 12.8 million barrels per day peak, with output limited by the rapid decline of shale wells. It is possible that there isn't enough spending to restrain output to current levels.
Stephen Ingram, a regional vice president at top U.S. hydraulic fracturing firm Halliburton, said Techniques like refracturing will allow the industry to continue to harvest the oil and gas from these reservoirs. Matt Johnson, CEO of Primary Vision Network, said that now is a great time to look at wells for refrac opportunities, based on inflation, supply chain issues and rising wages.