The environmental benefits of refracs
The benefits of hydraulic refracturing extend beyond an immediate increase in production and estimated ultimate recovery (EUR). Refracturing existing wells can reduce the total number of new wells required to satisfy oil and gas demand and associated emissions.
THE POTENTIAL TO REDUCE CO2 EMISSIONS
Considering a five-well program, similar production could be obtained by drilling two wells and refracturing each well twice, saving approximately 300 tons of emissions (mainly from typical fuels consumption rates). Further emission reductions would come from eliminating associated processes such as site preparation and transportation of new wells.
AVOIDING METHANE EMISSIONS, A POWERFUL ACCELERATOR OF GLOBAL WARMING
Currently, there are millions of abandoned wells, with many confirmed to be discharging pollutants, including methane, a powerful greenhouse gas. Refracturing existing wells will reduce the number of wells that are abandoned.
According to an article published in National Geographic, methane can have a much larger effect on global warming than carbon dioxide. The U.S. Environmental Protection Agency reported that more than 3.2 million abandoned oil and gas wells in the U.S. emitted 281 kilotons of methane in 2018 alone, the equivalent to consuming about 16 million barrels of crude oil. In addition to the environment, methane emissions may negatively impact human health, wildlife, and ecosystems.
THE COST OF CLEANING ABANDONED WELLS
According to the organization Carbon Tracker, the cost for cleaning abandoned wells is estimated to be in the billions, and the industry does not have sufficient resources allocated to cover these costs. If the total number of abandoned wells is reduced, resources dedicated for this purpose could be invested in other environmental initiatives in the future.
THE USE OF TECHNOLOGY TO CONTRIBUTE TO LOWER EMISSIONS
The adoption of refracturing is greatly influenced by well economics. Until recently, commercially available refracing technology could not compete with new drills; those technologies were too expensive and too risky, or unreliable and took too long to show ROI. That changed with the development of MorphPackers’ disruptive technology.
MorphPackers’ refrac tools offer a reliable and economical solution to extend the life of existing wells, improving EUR and supporting ESG initiatives.
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Our shareholders at EV Private Equity are proud signatories of the UN Principles for Responsible Investment. Denise Johnstone, Morphpackers Financial Controller and ESG Officer leads our internal sustainability/responsible investment initiatives.
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