Oil Left in the Ground

Even with record-high oil prices, about two-thirds of the oil in known oil fields is being left in the ground. That’s because existing technologies that could extract far more oil–as much as about 75 percent of the oil in some oil fields–aren’t being widely used, according to experts in the petroleum industry.

Several well-established technologies, including “smart oil fields,” exist that could significantly boost the supply of petroleum from oil reservoirs. But a lack of investment in such technologies, particularly by the national oil companies that control the vast majority of the world’s oil reserves, is holding back implementation. When oil is drawn from a field too quickly, or from a bad location, or with the wrong kind of well, large amounts of oil can be left behind, says Richard Sears, a visiting scientist at MIT who has served as a vice president for exploration at Royal Dutch Shell, based in the Netherlands. But the best technologies for managing an oil field require up-front investment–when an oil field is mapped and characterized and the first wells are drilled–and the payoff can take decades.

Steven Koonin, BP’s chief scientist, says that cutting-edge research could lead to automated oil rigs on the sea floor, ultra-deep-water ocean drilling, and arctic exploration and production, as well as to technology for extracting oil from unconventional sources, such as shale. But although oil prices have been higher than $60 a barrel for almost three years, Koonin says that for the most advanced technologies, “oil prices will have to stay high for a couple of years longer before companies think they can make big investments.”

Technology Review