Chevron said on Wednesday it will allow other oil producers to use a chemical technology it developed to improve oil recovery from shale wells, as the company seeks to support higher U.S. crude production amid slowing well productivity.
The U.S. oil major will license its proprietary chemical surfactants technology to chemicals manufacturer ZL Chemicals, which will manage sales to other energy companies. Chevron said the technology has increased production from newly drilled wells by up to 20% in the first year while reducing decline rates in existing wells by 5% to 8%.
The move comes as shale producers face diminishing returns from mature drilling areas, prompting the industry to adopt advanced technologies to sustain output instead of relying solely on drilling more wells.
Chevron’s Chief Technology and Engineering Officer, Ryder Booth, said expanding access to the technology will help producers bring more energy to market at a time when global supply remains constrained. The announcement also follows renewed calls by U.S. President Donald Trump for major oil companies to increase production to help lower gasoline prices.
The chemical surfactants work by reducing damage caused during hydraulic fracturing and improving the separation of oil from shale rock, allowing more crude to flow to the surface. Chevron said it will begin testing an enhanced version of the technology in the third quarter, while broader adoption could also boost production from wells in the Permian Basin where the company holds royalty interests.