HOUSTON, July 8 - Chevron announced on Wednesday it will make available a chemical surfactants technology it developed to enhance oil flow from shale wells, allowing rival producers to purchase the treatment through a third-party licensor.
The company said it will license the chemicals to ZL Chemicals, which will handle sales of the product to other oil companies. Chevron reported that the surfactants it is licensing have increased production from newly drilled wells by up to 20% in the first year after treatment. For wells already in production, the chemicals have narrowed decline rates by roughly 5% to 8%, according to the company.
Chevron framed the move as part of a broader effort to raise U.S. oil output. "With constraints on energy in the world today, there’s a call on oil and gas companies to get more energy to market," Ryder Booth, Chevron’s Chief Technology and Engineering Officer, said in an interview. "This is a way that we can answer the call to help boost production."
How the surfactants work
Chemical surfactants are designed to reduce damage inflicted on shale formations during hydraulic fracturing and to act in a manner similar to soap, cleaning fine particles and residues that can become lodged in fractures and impede oil flow. The treatment also helps separate oil from the surrounding rock, improving the ease with which hydrocarbons can travel to the surface.
At a recent demonstration inside a Chevron technology laboratory in Houston, researchers showed two glass vials to illustrate the effect. In one vial containing crude oil alone, the oil clung to the sides when the bottle was agitated. In a second vial that contained crude plus the surfactant chemicals, the oil moved freely, did not stick to the glass, and ultimately separated from the chemicals, providing a visual example of how the technology can free oil from tight rock.
Industry context and recovery rates
Industry experts cited by Chevron say the typical oil recovery rate in shale formations is about 10%, leaving an estimated 90% of the resource in the ground because current technologies cannot extract the remainder from compact rock. As prime drilling locations have been more fully developed, improving recovery from existing wells has grown more important.
"We’re at the point where big gains are not there anymore," said Bob Fryklund, chief upstream strategist at S&P Global Energy, though he noted that technological improvements have helped the sector generally surpass expectations.
Chevron also holds royalty interests in some Permian Basin wells operated by other companies. By licensing the previously proprietary chemical technology, the company stands to benefit from broader production gains across the top U.S. oilfield, not only from Chevron-operated assets. Booth said licensing the treatment "helps unlock production at a bigger scale beyond just the Chevron-operated areas."
Next steps
Chevron said it will begin testing an updated version of the chemical technology in the third quarter. ZL Chemicals will oversee commercialization and sales to other producers once the licensing process is in place.
The announcement follows calls from U.S. political leaders for major oil companies to raise output to help restrain gasoline prices amid geopolitical tensions. U.S. President Donald Trump recently urged oil companies, including Chevron and ExxonMobil, to increase oil production during the U.S.-Israeli war with Iran.
Implications for operators and markets
The licensing arrangement signals a potential pathway for broader adoption of a production-enhancing chemical across the shale sector. For operators, the technology could moderate the need to drill as many additional wells to sustain output, while for service providers and chemical manufacturers it opens new commercial opportunities. The extent of industry uptake will depend on ongoing testing and on commercial terms set by ZL Chemicals.