Insight
Mind the gap: ExxonMobil’s proprietary proppant is a US Lower 48 differentiator
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
ExxonMobil’s latest technology in the Permian is a proprietary petroleum coke (petcoke) proppant used in hydraulic fracturing, sourced from the company’s downstream operations. Its application is part of ExxonMobil’s growing synergy plan from its 2023 Pioneer acquisition. We believe the petcoke could increase completion effectiveness and raise recovery by up to 15% when used across multiple wells on a pad. Business integration allows for much cheaper sourcing and deployment than third-party alternative sources of specialist proppant. Depending on target reservoir and the consistency of application from well to well, petcoke rollout could increase NPV/boe by over 20% in success cases. Extrapolated to a widespread adoption, this could account for over a quarter of the company’s entire Pioneer synergy target, which now sits at US$3 billion per year.
Table of contents
- Executive summary
- Why is petcoke as a proppant this important?
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What is ultra lightweight proppant and why does it matter?
- Petcoke 101
- Accelerated deployment
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Data signatures in petcoke proppant wells
- Novi Labs well data enhances evaluation
- EUR and decline comparison
- Keeping costs comparable with standard completions is critical
- Reservoir performance then drives superior economics
- The implications of deploying petcoke at scale
- Ongoing tight oil innovation not a luxury
- Is petcoke a differentiator or could there be wider market adoption?
- Appendix
Tables and charts
This report includes the following images and tables:
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Nobles type curve parameters – normalized to 11,000 ft lateral
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Well cost D&C assumption summaryNobles Unit study area map – Lower Spraberry wells and three petcoke completions
What's included
This report contains:
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