July 28, 2024

Unconventional Wells in the Middle East

Unconventional drilling in the Middle East provides exciting opportunities for both exploration and new technological development.

The rise of unconventional drilling in the Middle East, particularly hydraulic fracturing and horizontal drilling, has significantly impacted the region's oil and gas industry over the past decade. Historically, the Middle East has been dominated by conventional oil production from large, easily accessible reserves. However, the global success of unconventional drilling, especially in North America, demonstrated the potential to tap into resources that were difficult to access, prompting Middle Eastern countries to explore these technologies.

Hydraulic fracturing and horizontal drilling involves injecting high-pressure fluid to fracture rock formations and using horizontal wells to access a larger surface area of the reservoir. Recognizing the potential of these methods, Middle Eastern countries began investing in the necessary technology and expertise. Saudi Arabia, through its state oil company Saudi Aramco, has been a leader in adopting unconventional methods, focusing on shale gas and tight oil projects. The United Arab Emirates has also invested in unconventional drilling, aiming to increase its gas production to meet domestic demand and reduce dependency on imports. Oman and Bahrain have launched initiatives to explore and develop unconventional resources, seeking to diversify their energy portfolios.

The Jafurah field in Saudi Arabia is estimated to contain 229 trillion cubic feet of gas and 75 billion barrels of condensates with Saudi Aramco expecting output to reach 420 million cubic feet per day of ethane by 2030.  The field is expected to produce some 630,000 barrels per day of gas liquids and condensates by 2030

The adoption of unconventional drilling allows these countries to tap into vast reserves of shale gas and tight oil, previously considered uneconomical. Enhanced domestic production of gas improves energy security and reduces reliance on imports. Additionally, increased production capabilities strengthen the Middle East's influence in global energy markets, potentially affecting oil prices and supply dynamics.

Looking ahead, ongoing investment in technology and infrastructure is expected to enhance the efficiency and viability of unconventional drilling. Technological advancements in drilling and extraction methods will likely reduce costs and improve the environmental footprint of unconventional operations. Overall, the rise of unconventional drilling in the Middle East marks a significant shift in the region's energy strategy, providing new opportunities and challenges in the evolving global energy landscape.

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