Dow, State of Wyoming and University of Wyoming partner to advance oil recovery

Rhea-AI Summary

Dow, the State of Wyoming, and the University of Wyoming have partnered for the Wyoming Gas Injection Initiative (WGII) to enhance oil recovery in Wyoming. This collaboration involves advanced oil recovery methods like foam-assisted gas injection using recovered hydrocarbon gases and carbon dioxide. The project aims to extend the life of oil fields and mitigate greenhouse gas emissions. Wyoming will provide $25 million in matching funds through the University of Wyoming, and private operators such as Ballard Petroleum, Devon Energy, and Occidental will contribute an additional $25 million. Dow will support field implementation and research activities by supplying tailored conformance control agents and leveraging its ELEVATE™ additives to increase oil production and extend the economic life of oil assets.

Positive

• Dow, Wyoming, and the University of Wyoming have formed a strategic partnership to enhance oil recovery.
• Wyoming will provide $25 million in matching funds for the WGII project.
• Private operators are contributing an additional $25 million to the initiative.
• The project uses advanced methods like foam-assisted gas injection to revitalize oil fields.
• The initiative aims to mitigate greenhouse gas emissions while enhancing oil productivity.
• Dow will offer tailored conformance control agents and share learnings from previous projects.
• Initial research involves using Dow's ELEVATE™ additives, which could significantly boost oil production.
• The project extends the economic life of oil assets, benefiting long-term financial performance.

Negative

• The success of the WGII project relies heavily on the efficacy of new technologies, which remain unproven on a large scale.
• There is a substantial financial outlay required, totaling $50 million, which poses a risk if the project does not yield expected results.
• Oil recovery projects are often subject to regulatory and environmental scrutiny, which could delay progress.

Insights

Energy Market Analyst

This collaboration between Dow, the State of Wyoming and the University of Wyoming represents a forward-thinking approach to optimizing oil recovery while addressing environmental concerns. Enhanced oil recovery (EOR) techniques, especially those utilizing gas injection, are important for revitalizing mature oil fields. The Wyoming Gas Injection Initiative (WGII) suggests a significant potential for increased oil production, given the involvement of advanced EOR methods like foam-assisted gas injection. The use of recovered hydrocarbon gases, carbon dioxide and other gases not only aims to boost productivity but also aligns with carbon sequestration initiatives, which could make oil extraction more sustainable.

From an investor's perspective, this project indicates potential long-term benefits for involved companies, including improved operational efficiency and extended oil field lifetimes. Investors should note the $50 million total funding towards these pilot programs, split equally between public and private sectors, indicating a strong commitment and belief in the project's success. In the short term, the immediate financial impact might be limited, but the long-term gains in productivity and sustainability could be substantial.

Environmental Analyst

The WGII initiative stands out for its dual focus on improving oil recovery and reducing greenhouse gas emissions. Foam-assisted gas injection is a notable technique since it helps enhance oil recovery by improving the sweep efficiency of the injected gas, thereby pushing more oil towards production wells. Importantly, this method also offers the ancillary benefit of using greenhouse gases like CO2 for injection, which can help in carbon sequestration.

This integrated approach is particularly beneficial in regions like Wyoming, balancing economic and environmental objectives. For investors, this represents an alignment with increasingly stringent environmental regulations and the growing investor emphasis on Environmental, Social and Governance (ESG) criteria. The initiative could improve the environmental profile of participating companies and potentially offer a competitive edge in future regulatory landscapes.

Tech Product Analyst

The introduction of Dow's ELEVATE™ additives in the WGII pilot projects is an exciting development. These tailored conformance control agents are designed to optimize the gas injection process, potentially leading to significant boosts in oil production. This technology could address one of the primary challenges in EOR—efficiently mobilizing trapped oil in mature reservoirs.

For investors, the technical success of these additives could translate into higher returns on investment as oil recovery rates improve. It also places Dow at the forefront of innovation in the oil recovery sector, showcasing their ability to drive technological advancements. This could positively impact Dow's market position and offer substantial value in the long term.

Field pilot projects under the Wyoming Gas Injection Initiative will extend the life of oilfields and recover more oil with fewer resources

MIDLAND, Mich., May 16, 2024 /PRNewswire/ -- In a unique state-university-industry collaboration, Dow (NYSE: DOW), the State of Wyoming and the University of Wyoming have come together to launch The Wyoming Gas Injection Initiative (WGII), a program designed to enhance oil well productivity and recovery from existing fields and wells in Wyoming.

WGII will provide field pilot testing of advanced oil recovery methods, such as foam-assisted gas injection using recovered hydrocarbon gases, carbon dioxide or other gases for revitalization of oil fields, as well as mitigation of greenhouse gas emissions by operations in Wyoming. The State of Wyoming will provide $25 million in matching funds through the University of Wyoming to assist the oil and gas operators selected for the project – including, Ballard Petroleum Holdings, Devon Energy Corp. and Occidental – on enhanced recovery projects over a five-year period. Private operators selected for WGII contribute $25 million to the pilot, matched by $25 million from the state. As part of these projects, Dow and the Center of Innovation for Flow Through Porous Media (COIFPM) at the University of Wyoming, along with the oil and gas operators, will implement technologies to catalyze the beneficial use of greenhouse gases for carbon sequestration and oil recovery.

"The Wyoming Gas Injection Initiative is a powerful example of the possibilities that can be brought to life through collaboration with like-minded organizations, in this case meeting the world's growing energy demand with more sustainable technology," said Pankaj Gupta, business vice president, Dow Industrial Solutions. "Our team is proud to share our materials science portfolio and experience to help shape a future where oil recovery is optimized, resources are conserved, and greenhouse gas emissions are significantly reduced in Wyoming and across the globe."

Dow will support the field implementation and the research activities to be conducted at COIFPM by providing tailored conformance control agents (foaming additives) and sharing learnings from previous field pilot projects. Initial research will develop novel formulations using Dow's ELEVATE™ additives, which have the potential to increase oil production significantly and extend the economic life of oil assets. These formulations will then be further optimized and piloted in several Wyoming-based reservoirs with the selected oilfield operators to improve the utilization efficiency of gas injection recovery techniques.

"In Wyoming, our energy strategy is focused on using the full value of our energy resources and enhanced oil recovery is an important part of that strategy," said Governor Mark Gordon. "The Wyoming Gas Injection Initiative will not only help breathe new life into our oilfields, but also allow us to recover oil more efficiently while supporting our critical energy and manufacturing industries."

About Dow
Dow (NYSE: DOW) is one of the world's leading materials science companies, serving customers in high-growth markets such as packaging, infrastructure, mobility and consumer applications. Our global breadth, asset integration and scale, focused innovation, leading business positions and commitment to sustainability enable us to achieve profitable growth and help deliver a sustainable future. We operate manufacturing sites in 31 countries and employ approximately 35,900 people. Dow delivered sales of approximately $45 billion in 2023. References to Dow or the Company mean Dow Inc. and its subsidiaries. Learn more about us and our ambition to be the most innovative, customer-centric, inclusive and sustainable materials science company in the world by visiting www.dow.com.

About The University of Wyoming
The University of Wyoming is a public land-grant research university in Laramie, Wyo., with eight colleges: Agriculture, Life Sciences and Natural Resources; Arts and Sciences; Business; Education; Engineering and Physical Sciences; Health Sciences; Honors; and Law. The university offers over 200 undergraduate, graduate and certificate programs and is classified as an R2-Doctoral Universities with High Research Activity. https://www.uwyo.edu/index.html

For further information, please contact:

Sarah Young
+1 989 638 6871
Syoung3@dow.com

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SOURCE The Dow Chemical Company

FAQ

What is the Wyoming Gas Injection Initiative (WGII)?

The WGII is a collaboration between Dow, the State of Wyoming, and the University of Wyoming to enhance oil recovery using advanced methods like foam-assisted gas injection.

How much funding is allocated for the WGII project?

The WGII project has $50 million in funding, with $25 million provided by the State of Wyoming and $25 million from private operators.

Which companies are involved in the WGII project?

Companies involved in the WGII project include Ballard Petroleum Holdings, Devon Energy Corp., and Occidental.

What technologies will Dow provide for the WGII project?

Dow will provide tailored conformance control agents and leverage its ELEVATE™ additives to enhance oil recovery.

What are the environmental benefits of the WGII project?

The WGII project aims to mitigate greenhouse gas emissions through the beneficial use of gases like carbon dioxide for oil recovery.

What is the role of the University of Wyoming in the WGII project?

The University of Wyoming's Center of Innovation for Flow Through Porous Media (COIFPM) will conduct research and support field implementation for the WGII project.