Core Laboratories Inc. (Core Lab) provides proprietary and patented reservoir description and production enhancement services and products to the oil and gas industry, primarily through client relationships with many of the world’s major, national, and independent oil companies. These services and products can enable the company’s clients to evaluate and improve reservoir performance and increase oil and gas recovery from their new and existing fields.
The company makes measurements on reservoi...
Core Laboratories Inc. (Core Lab) provides proprietary and patented reservoir description and production enhancement services and products to the oil and gas industry, primarily through client relationships with many of the world’s major, national, and independent oil companies. These services and products can enable the company’s clients to evaluate and improve reservoir performance and increase oil and gas recovery from their new and existing fields.
The company makes measurements on reservoir rocks, reservoir fluids (crude oil, natural gas, and water), and their derived products. In addition, the company assists clients in evaluating subsurface targets associated with Carbon Capture and Sequestration (CCS) projects or initiatives. The company has over 70 offices in more than 50 countries.
Business Strategy
The company’s business strategy is to provide advanced technologies that improve reservoir performance by continuing the development of proprietary technologies through client-driven research and development; expanding the services and products offered throughout its global network of offices; and acquiring complementary technologies that add key technologies or market presence and enhance existing services and products.
Development of New Technologies, Services and Products
The company conducts research and development to meet the needs of its clients who are continually seeking new services and technologies to lower their costs of finding, developing and producing oil and gas. The company intends to continue concentrating its efforts on services and technologies that help its clients reduce risk by evaluating geologic and engineering aspects of subsurface stratigraphic targets to improve reservoir performance and increase oil and gas recovery, as well as CCS projects and other projects directed at the global objective to reduce carbon emissions.
International Expansion of Services and Products
Another component of the company’s business strategy is to broaden the spectrum of services and products offered to its clients on a global basis. The company intends to continue using its worldwide network of offices to offer its services and products that have been developed internally or obtained through acquisitions. This global emphasis allows the company to increase its revenue and enhance its profit through efficient utilization of its worldwide network.
Operations
The company operates through two segments, Reservoir Description and Production Enhancement.
Reservoir Description
Encompasses the characterization of petroleum reservoir rock, and reservoir fluids samples to increase production and improve recovery of crude oil and natural gas from the company’s clients' reservoirs. The company provides laboratory-based analytical and field services to characterize properties of crude oil and crude oil-derived products to the oil and gas industry. Services associated with these fluids include determining the quality and measuring the quantity of the reservoir fluids and their derived products, such as gasoline, diesel, and biofuels. The company also provides proprietary and joint industry studies based on these types of analyses and manufacture associated laboratory equipment. In addition, the company provides reservoir description capabilities that support various activities associated with energy transition projects, including services that support carbon capture, utilization and storage, geothermal projects, and the evaluation and appraisal of mining activities around lithium and other elements necessary for energy storage.
Production Enhancement
Includes services and manufactured products associated with reservoir well completions, perforations, stimulation, production, and well abandonment. The company provides integrated diagnostic services to evaluate and monitor the effectiveness of well completions and to develop solutions aimed at increasing the effectiveness of enhanced oil recovery projects.
The company offers its services worldwide through a global network of offices. The company manufactures products primarily in five facilities for distribution on a global basis.
Reservoir Description
The company provides services that characterize the porous reservoir rock, all three reservoir fluids and their derived products. Services associated with these fluids include determining the quality and measuring the compositional, physical and volumetric properties of the complex reservoir hydrocarbons and their derived products, such as various fuels. Fluid analyses account for approximately two-thirds of Reservoir Description revenue. The company also provides more advanced laboratory analyses which measures reservoir hydrocarbons at reservoir conditions to determine the changes in the hydrocarbon’s physical properties with changing pressure and temperature.
The company analyzes samples of reservoir rocks to determine lithologic, geochemical, and pore system properties. The company measures rock properties, such as porosity, which determines reservoir storage capacity, and permeability, which defines the ability of the fluids to flow through the rock. These measurements are used to determine how much oil and gas are present in a reservoir and the rates at which the oil and gas can be produced. Conversely, the properties must also be known for injection projects, such as CCS and water disposal. The company also use its proprietary services and technologies to correlate the reservoir description data to wireline logs and other subsurface data.
The combined use of both the reservoir rock and fluid data are invaluable inputs for clients in determining the economic viability of hydrocarbon deposits and in identifying the most efficient methods to optimize the recovery, processing, and refinement of these hydrocarbons. Early evaluations and key decisions about well performance and viability are important for optimizing a reservoir. This is accomplished by using proprietary and patented laboratory methods, including both traditional physical measurements and more recently introduced new technologies, such as Core Lab’s Non-Invasive Technologies for Reservoir Optimization (NITRO) services. NITRO services include Dual Energy Computed Tomography (DECT), Micro Computed Tomography, high and low frequency nuclear magnetic resonance, high-resolution gamma logging, and continuous high energy x-ray fluorescence, along with pressure-volume-temperature (PVT), compositional analysis, and other Core Lab proprietary technologies.
Core Lab conducts a wide variety of physical laboratory tests to measure and evaluate fluid flow through the rock, often at in-situ reservoir temperatures and pressures. These are most commonly applied to conventional reservoirs. The company has also developed unique analytical processes to understand the flow characteristics and saturation profiles of unconventional reservoir systems.
Core Lab has been at the forefront of digital transformation technologies for more than two decades. Core Lab’s extensive, proprietary databases and analog technologies, coupled with artificial intelligence (AI) and machine learning, help its clients improve efficiencies and lower operating costs throughout the upstream value chain. The analysis and integration of these critical datasets is enhanced because of Core Lab’s proprietary RAPIDTM database. Core Lab’s Digital Innovation Group works collaboratively with multiple international and national oil companies on projects that utilize Core Lab’s proprietary digital technologies and services. Core Lab’s proprietary Advanced Rock Typing technology combines Core Lab’s vast, comprehensive database of physical measurements and World Wide Rock Catalog with its proprietary image acquisition technology and innovative AI image recognition. Core Lab’s proprietary World Wide Rock Catalog provides a database and analog reference set for predicting properties when physical measurements are unavailable. These technologies provide clients with analog data sets in situations where the acquisition of new conventional core may not be possible or where only wellbore drill cuttings are available. High-resolution images of wellbore cuttings and sidewall cores are quickly and efficiently matched with analogs from Core Lab’s proprietary database of samples from around the world. Physically measured data sets from the matching analogs are delivered to its clients in time to make appraisal and development decisions.
Core Lab’s proprietary legacy portfolio of geological studies and rock and fluid property datasets on conventional reservoirs and seals, accessible through Core Lab’s database platform, RAPID, are being leveraged in energy transition projects as well, and are proving invaluable to operators evaluating potential CCS sites.
Core Lab holds various patents, trade secrets, and proprietary designs for laboratory equipment required to analyze reservoir rocks as well as the properties and phase behavior of reservoir fluids and derived products. The company manufactures a wide range of ambient and reservoir condition rock and fluid analysis laboratory equipment for its own use throughout its international laboratory network. Among these devices are complex, high-pressure, high-temperature, reservoir condition, multi-phase flow systems and full visualization Pressure-Volume-Temperature cells, along with the ancillary equipment required to support these laboratory programs. The company also sells equipment of this type to universities, government institutes, and client company research labs.
While recognizing the need to optimize the full value chain of the company’s clients, from producing well to retail sales of hydrocarbon products, a state-of-the-art IT platform, CONNECT: was launched to efficiently acquire and optimize workflows of field data, laboratory results, and other observations relevant to its client base. The system is designed for single data entry, and that data can be used for further analysis and, more importantly, be shared with its clients by process flow dashboards with key performance indicators. The system can also share real-time data on mobile devices, enabling the company’s clients to make quick decisions.
The company continues to add new modules to its suite of data management platforms that enhance customer experience and improve access to project results.
The company conducts numerous large-scale, multi-company reservoir description projects, applying proprietary and state-of-the-art techniques from the earliest phases of a field development program until the last economic barrel of oil is recovered. The company initiates and delivers a group of international and U.S. based consortium studies to evaluate both conventional and unconventional reservoirs. These projects, which often run more than a year, are of increasing importance to oil companies as the incremental barrel is often the lowest cost and most profitable barrel in the reservoir. Producing incremental barrels increases the company’s clients’ cash flows which will result in additional capital expenditures by its clients, and ultimately further opportunities for the company. Core Lab retains rights of ownership to complete joint industry project studies, which can be resold at a later date.
The company’s databases, technology and analytical methods also allow it to assist its clients in other ways. Many of the company’s clients have begun investing in and developing other sources of energy, including renewables. Some of these initiatives include deployment of technologies associated with the assessment of strata to establish strategies tied to subsurface gas storage and mining of elements, such as lithium, which are critical components of batteries for energy storage. Measurement and analytical techniques are also used to assist the company’s clients with reporting requirements associated with carbon sequestration.
Production Enhancement
Core Lab's Production Enhancement group provides products and diagnostic services to help optimize well completions, reservoir operations and field development strategies, in order to increase recoverable reserves in the most efficient way. These product offerings include perforating technologies to establish communication between the wellbore and the reservoir. Diagnostic services are used to assess well completions and field floods. Two commonly used production enhancement methods are hydraulic fracturing of the reservoir rock to improve flow and flooding a reservoir with water, carbon dioxide, nitrogen or hydrocarbon gases to drive more oil and gas to the producing wellbores. Many oilfields today are hydraulically fractured and/or flooded to maximize oil and gas recovery. Although Core Lab is not a hydraulic fracturing company, Core Lab does provide services that are used by operators to develop and optimize hydraulic fracturing and field flood projects and to evaluate the success of those projects. These services, products and expertise play a key role in the success of stimulation and enhanced oil recovery programs.
The hydraulic fracturing of a producing formation is achieved by pumping a fluid slurry containing a proppant material into the reservoir zone at extremely high pressures. This fractures the rock and the proppant material ‘props’ or holds the fracture open after the pressure pumping is complete, so that reservoir fluids can flow through a highly conductive fracture network into the production wellbore. Data on rock type and strength generated in the Reservoir Description operating segment are critical for determining the proper design of the hydraulic fracturing treatment. In addition, further testing indicates whether the fluid slurry is compatible with the reservoir rock so that damage does not occur that would otherwise restrict production. Core Lab also provides testing of various propping agents and software to help select the best propping agent based on net present value calculations of client investments. Clients leverages the company’s diagnostic services and the associated proprietary and patented technologies in the Permian, Eagle Ford, Wolfcamp, Bakken, Haynesville, and other plays to assist them in the following areas;
Chemical frac water tracing services are used to aid operators in determining the efficiency of the fracturing fluids used to optimize hydraulic fracture stimulation of long, multi-stage horizontal wells in oil- and gas-shale plays in unconventional reservoirs. This technology also enables clients to evaluate load recovery, gas breakthrough, fluid leak-off and breaker efficiency, all of which are important factors for optimizing oil and/or natural gas production after the formation is hydraulically fractured.
Well diagnostic data sets are used to determine if and how effectively each frac stage is flowing and cleanup efficiency of the stimulation fluid, to determine whether horizontal wells are unobstructed and flowing through the entire length of a horizontal well. Clients use this data to confirm optimum cluster efficiency, stage spacing, stimulated reservoir volume, and to increase ultimate recovery. By applying this technology, clients can identify and remediate well obstructions that can negatively impact well performance, reserve calculations and reserve-based lending. Additionally, hydrocarbon production can be quantified from discrete segments in multi-stage horizontal well completions in unconventional tight-oil or gas plays. Frac stages with ineffective flows may warrant further stimulation or remedial actions, while guiding improvements in future frac designs and flowback procedures.
The diagnostic services are also used as a completion monitoring system, to determine flow rates from reservoir zones after they have been hydraulically fractured. This provides clients with a baseline of early production information that can be compared to subsequent data later in the life of the well to see how hydrocarbon production from different reservoir layers or different quality rock varies over time.
To help optimize the placement of unconventional horizontal wells, the company’s diagnostic services are used to monitor offset well interference by sampling offset well oil, gas and water production. The amount of tracer detected in offset wells is used to help clients optimize both horizontal and vertical well spacing and the optimum amount of fracturing fluids for each stage.
Dynamic flow tests of the reservoir fluids through reservoir rock are conducted, at actual reservoir pressure and temperature, to realistically simulate the flooding of a producing zone and assist in designing the enhanced hydrocarbon recovery projects. After a field flood is initiated, Core Lab is often involved in monitoring the progress of the flood to ensure the sweep efficiency during field flood is optimized and maximum incremental production is achieved.
The company’s tracer technologies and proprietary logging tools are also used in the evaluation of gravel pack effectiveness in unconsolidated reservoirs. Patented technologies are used to measure density changes in the gravel pack annulus to verify the competency of the gravel pack.
In addition to Core Lab’s many patented reservoir diagnostic technologies, Production Enhancement has established itself as a global leader in the manufacturing and distribution of high-performance perforating products. Core Lab’s manufacturing operations in the United States and Canada continue to meet the global demand for the company’s perforating systems while gaining in efficiency and productivity. Core Lab’s unique understanding of complex reservoirs supports the company’s ability to supply perforating systems engineered to maximize well productivity by reducing, eliminating and overcoming formation damage caused during the drilling and completion of oil and gas wells. This ‘systems’ approach to the perforation of an oil or gas well has resulted in numerous patented products which are aimed at assisting clients with the following:
Perforating charges which provide a deeper and cleaner perforating tunnel into the oil and gas reservoir. This allows greater flow of hydrocarbons to the wellbore and helps to maximize hydrocarbon recovery from the reservoir.
Perforating charges designed specifically for optimizing fracture stimulation well completions by providing low standard deviation perforation hole size, which minimizes tortuosity effects. This not only results in better well stimulations and improved, cleaner perforation tunnels, but also less surface horsepower and less time to stimulate the well, which translates into lower costs.
Perforating technology which creates a uniform hole size through two strings of casing, utilized in mechanically isolated re-stimulation programs where the internal string is used to isolate older, depleted stages in previously under-stimulated wells.
Oriented perforating systems which deliver consistent-hole-size charges that can be aligned in a specific orientation in order to achieve uniform breakdown across each stage. These systems offers extreme limited entry perforating capability, precisely aligned perforations, and minimized connections and completion string length.
Proprietary plug and abandonment perforating systems, used in partial or full well abandonment projects, that allow for reduced rig time and efficient recovery of the interior casing, while eliminating risks and creating opportunities for production from untapped and still producing reservoir sections.
The patented X-SPAN and GTX-SPAN casing patches which have temperature ratings to as much as 600°F. These systems are capable of performing in high temperature as well as high pressure oil and gas environments and are used to seal non-productive reservoir zones from the producing wellbore.
Additionally, Core Lab’s Production Enhancement operating segment offers services to assist clients in determining the best energetic solutions for a specific rock type, to maximize productivity of an operator’s reservoir through its Reservoir Optimized Completions Lab (ROC Lab). The ROC Lab features an industry-leading, Ultra High Pressure/High Temperature perforation test vessel. The test vessel is paired with a proprietary flow system that uses highly specialized, internally developed and manufactured pumps and flow controllers. Combined, these technologies create a proprietary flow loop capable of dynamically displacing oil, brine and gas through rock samples that have been perforated with preselected energetics. Core Lab leverages its multi-decade expertise in conducting multi-phase fluid flow tests through porous medium to optimize this technological investment.
Core Lab’s proprietary downhole energetic solutions and instrumentation are designed to systemize, simplify, automate, and de-risk the deployment of perforating systems, which are utilized by international oil and gas operators for well completions. These technologies provide a unique range of perforating tools and equipment, which has been developed to provide a number of advantages over existing technology. Core Lab’s Production Enhancement team has experienced technical services personnel to support clients through its global network of offices for the everyday use of its perforating systems and the rapid introduction of new products. The company’s personnel are capable of providing client training and on-site services in the completion of oil and gas wells.
Marketing and Sales
The company markets and sells its services and products through a combination of sales representatives, technical seminars, trade shows, and print advertising. Direct sales and marketing are carried out by the company’s sales force, technical experts, and operating managers, as well as by sales representatives and distributors in various markets. The company’s Business Development group manages a Large Account Management Program to better serve its largest and most active clients by meeting with key personnel within their organizations to ensure the quality of its services and products are meeting their expectations and addressing any issues or needs in a timely manner.
International Operations
The company operates facilities in more than 50 countries.
Governmental Laws and Regulations
The company is subject to stringent governmental laws and regulations, both in the United States and other countries, pertaining to protection of the environment.
The company’s operations in the United States and foreign countries are subject to stringent occupational safety and health laws and regulations, which are intended to protect worker health and safety, including the federal Occupational Safety and Health Act, which establishes requirements to protect the health and safety of workers. The U.S. Occupational Safety and Health Administration (OSHA) hazard communication standard, the Environmental Protection Agency (EPA) community right-to-know regulations under Title III of the federal Superfund Amendment and Reauthorization Act and comparable state statutes require maintenance of information about hazardous materials used or produced in operations and provision of this information to employees, state and local government authorities and citizens. The federal Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) establishes requirements for the safe use and storage of explosives. Substantial fines and penalties can be imposed and orders or injunctions limiting or prohibiting certain operations may be issued in connection with any failure to comply with these laws and regulations. Foreign countries in which the company conducts operations may also have analogous controls that regulate its worker safety-related activities, which controls may impose additional, or more stringent requirements.
History
Core Laboratories Inc. was founded in 1936. The company was incorporated in 2023.
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