Over the past two years, the background for oil industry was dissuaded by the recession. Numerous small cities whose entire welfare depended on oil production reached a point of bankruptcy. Once producers hit dead ends, they would drag the town economy down with them. On the other hand, some small U.S. cities managed to withstand these hardships. Occidental Petroleum Corp. together with other such businesses resorted to traditional oil production for a simple yet effective solution.
The Traditional Oil Production Technique Recycles Carbon Emissions
Occidental Petroleum Corp together with other oil wells near the border of New Mexico managed to survive the two-year-old recession. Their strategy was based mostly on a traditional oil production technique. This way, they were able to keep carbon emissions at low levels while improving the production at the same time.
This business saving drilling method relies on recycling the carbon dioxide that power plants emit. Such emissions are then redirected back to the fields. Besides rendering the environment cleaner nearby oil wells, this move puts more pressure underground. In the end, there is more oil than usual rising to the surface.
This traditional oil production technique would work perfectly with all oilfields in the United States. However, the Congress has to give its consent for this measure to take national proportions. Nonetheless, this method aligns with the ambitions of Trump administration to improve coal industry.
This work method is part of the enhanced oil recovery (EOR) collection of strategies. These efficient strategies have the goal to extend the lifespan of oil wells as much as possible. At the same time, they can boost output by 450,000 extra barrels per day. It was an energy consultancy, Advanced Resources International, which measured this spectacular production supplement.
EOR Strategies Can Improve Production as Much as 60%
Usually, a company can extract around 10% from a reservoir based on fact checks conducted by the Department of Energy. On the other hand, the ideas that are introduced in EOR collection can leverage the production between 30% and 60% of a reservoir.
Therefore, Occidental Petroleum Corp managed to take advantage of this production boost and overcome the last downturn. Moreover, executives invested the profits from carbon business into shale business. These two areas work hand in hand, which saves executives from difficult business transitions.
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