Changes

On the development and production front, new enhanced oil recovery approaches for tight shale reservoirs are being more widely implemented. Natural gas or CO2 injection is currently being utilized in the Bakken Formation, Eagle Ford Formation, Anadarko Basin, and the Permian Basin to optimize injection sequences and boost recovery. Refracturing of existing wells to reduce drilling costs, improve production, and prolong well productive life has also begun to occur more widely in developed plays.

On the development and production front, new enhanced oil recovery approaches for tight shale reservoirs are being more widely implemented. Natural gas or CO2 injection is currently being utilized in the Bakken Formation, Eagle Ford Formation, Anadarko Basin, and the Permian Basin to optimize injection sequences and boost recovery. Refracturing of existing wells to reduce drilling costs, improve production, and prolong well productive life has also begun to occur more widely in developed plays.

International interest in exploiting hydrocarbons from unconventional reservoirs continues to develop, with active exploration projects on most continents. Europe remains relatively underexplored as compared to North America, although a total of 141 exploration and appraisal wells with a possible shale-gas exploration component have been spudded, including horizontal legs from vertical wells. Shale exploration has made a breakthrough in China with shale gas output in 2019 of 10 billion cubic meters (35.3 Bcf), 60% of which was produced from Sinopec’s Fuling Shale Gas field. Lacustrine shale oil exploration has also been successful in the Sichuan and Ordos Basins in central China, Junggar and Tarim Basins in northwest China, and Songliao Basin in north China, and Bohai Bay Basins in northeast China as of 2018.

International interest in exploiting hydrocarbons from unconventional reservoirs continues to develop, with active exploration projects on most continents. Europe remains relatively underexplored as compared to North America, although a total of 141 exploration and appraisal wells with a possible shale-gas exploration component have been spudded, including horizontal legs from vertical wells. Shale exploration has made a breakthrough in China with shale gas output in 2019 of 10 billion cubic meters (35.3 Bcf), 60% of which was produced from Sinopec’s Fuling Shale Gas field. Lacustrine shale oil exploration has also been successful in the Sichuan and Ordos Basins in central China, Junggar and Tarim Basins in northwest China, and Songliao Basin in north China, and Bohai Bay Basins in northeast China as of 2018.

South America’s potential as an unconventional shale gas and oil province is mainly in Argentina and Brazil, where the production from Neuquen Basin’s tight shale of the Vaca Muerta Formation has been steadily increasing since 2016, but only 4% of the shale resource has been developed thus far. According to International Energy Agency’s report in 2013, Brazil holds the 9th largest unconventional gas reserves. Brazil has shale oil and gas potential in the Parana, Solimoes and Amazon Basins and is actively producing from the oil shale unit of the Irati Formation. In 2019, the Brazil energy ministry launched REATE 2020 to boost onshore investments that include the expectation of drilling an experimental unconventional well in the northeast region.

South America’s potential as an unconventional shale gas and oil province is mainly in Argentina and Brazil, where the production from Neuquen Basin’s tight shale of the Vaca Muerta Formation has been steadily increasing since 2016, but only 4% of the shale resource has been developed thus far. According to International Energy Agency’s report in 2013, Brazil holds the 9th largest unconventional gas reserves. Brazil has shale oil and gas potential in the Parana, Solimoes and Amazon Basins and is actively producing from the oil shale unit of the Irati Formation. In 2019, the Brazil energy ministry launched REATE 2020 to boost onshore investments that include the expectation of drilling an experimental unconventional well in the northeast region.