Unconventional plays in the Permian Basin are a significant and growing part of Oxy’s business. By mid- 2018,
Permian oil and gas accounted for 55% of Oxy’s total worldwide production. With
nearly 5.2 million gross and 2.5 million net acres in the Permian, Oxy manages operations and production through two business units. The Permian EOR BU, which utilizes enhanced oil recovery techniques such as CO2
sequestration, waterfloods, and exploitation of non-EOR conventional play
assets and the Permian Resources BU, which consists of growth oriented unconventional play opportunities particularly in the Delaware Basin
of New Mexico.
The key growth engine for Permian Resources is developing the unconventional targets with pinpoint horizontal
drilling, modern frac design and cost efficient execution techniques while
utilizing a comprehensive technical workflow. The workflow starts with a
regional basin overview to identify the primary rich source rocks and
production analogs, followed by establishing an understanding of the source
rocks geochemistry through cuttings and core analyses that leads to bench
appraisal incorporating petrophysics, geophysics and geomechanics from pilot holes. The output is an integrated reservoir description within
which 3-D seismic depth and impedance volumes play an integral role for
development. Understanding the structural and stratigraphic complexities of our
multiple reservoirs is critical to efficiently and effectively unlock the value of Oxy’s extensive acreage.
Maintenance and logistic hubs, secured supply availability, modular development and water recycling programs help improve execution efficiencies. In addition, an unmatched infrastructure position and
technical expertise in EOR processes could help maximize ultimate recoveries
and profits of our unconventional reservoirs.