Digitalizing Reservoirs: Beyond O&G Borders

Q: Since our last conversation, how has the adoption of digital technology in your laboratory evolved, and what impact has it had on your service offerings in Mexico?

A: Our primary objective is to introduce advanced technology for rock and fluid laboratory measurements, particularly among those that have reached a technical limit with conventional methods. This applies to two main markets: the oil and gas sector, where Petricore has been active since its inception, and other areas involving porous media: rocks, ceramics, or any porous component important enough to be measured.

In oil and gas, many of the conventional technologies we use have been effective for years because they continue to meet industry requirements. For instance, characterizing a reservoir from extracted rock samples is crucial for certifying reserves and determining its development potential. However, the industry is increasingly encountering reservoirs with far more complex characteristics.

While we strive to recreate subsurface behavior, the physical limitations of conventional equipment and the complexity of the reservoirs prevent us from accurately modeling fluid flow, which is essential for estimating reserves and commercial viability. Here, our digital technologies become transformative. As long as physics permits, we can recreate this behavior using physical equations governing fluid flow in porous media. This shifts the technical limit from what laboratory equipment can physically do to what physics allows us to model. While conventional equipment evolves slowly, digital technologies are bound only by the laws of physics, enabling us to recreate virtually any behavior.

Q: What has been a success story Petricore has had with the application of this technology?

A: We were conducting a technological pilot in Mexico to introduce this very technology, which was a resounding success. We applied it to a rock sample from a highly compacted reservoir where conventional laboratory evaluations were either extremely challenging, too time-consuming, or simply impossible. We were able to obtain a complete characterization that ultimately allowed the client to fully characterize their reservoir and certify more reserves. An operating company cannot certify reserves without accurately determining the petrophysical characteristics of the rock, meaning how fluids will behave in that reservoir. Even if fluids are present, if conditions do not allow for their efficient extraction, the reservoir may not be profitable, or the recoverable reserves might be drastically reduced.

For Petricore, it was incredibly satisfying that this technology resolved such a critical issue. Furthermore, what would have taken approximately six to eight months in a conventional lab, had it even been possible, was achieved with digital solutions in just 6 to 8 weeks. This not only provides usable data but delivers it significantly faster, which is tremendously valuable.

Q: How do these technological evolutions translate into value for the industry and operators?

A: It is not always possible to extract perfect rock samples from every well. What we call a "core," a cylindrical tube of rock taken to the lab for study, is ideal. In Mexico, we call it a núcleo, but in some South American countries, they call it a testigo (witness), which is a beautiful word because it truly is a witness to what is happening beneath the surface. Companies specialized in core extraction go to great lengths and use specific technology to preserve the rock's original conditions, including its fluid content. This is the ideal scenario.

However, it does not always happen. In fact, we are seeing a global trend of fewer cores being taken because it is costly and requires pausing drilling. This means our sources of information from perfect rock samples are becoming limited. But every well, when drilled, produces rock cuttings—small fragments. The advantage of our digital technology is that while conventional labs often need a precise, smaller cylinder from a perfect core to fit their equipment, we can characterize the reservoir from these rock fragments. This means we do not need the perfection of a core; a fragment is sufficient. This adds significant value, especially in Mexico, where this applies not only to complex reservoirs but also to those from which perfect rock samples are unavailable. The combination of both capabilities presents immense potential. 

Our Mexican clients have high expectations for what can be achieved, and we are confident in our ability to meet them. This technological pilot has truly opened new possibilities.

Q: What is the potential of these technologies and advancements for other industries?

A: Just as we characterize rocks for the oil and gas industry, we can also characterize rocks for the mining industry. Technologically speaking, mining has historically lacked access to the same level of technology as oil and gas, primarily due to cost. However, mining companies still need tools to determine what they are extracting or what they are encountering during extraction operations. Certain laboratory tests regularly used in our petrophysics can be applied in the mining industry. 

Q: How do you assess Mexico's position regarding the understanding and adoption of these technologies?

A: Our activity in Mexico is currently lower than in previous years, primarily due to budgetary constraints, as international operating companies have, in some cases, re-evaluated their programs. I would not call it a delay; they are simply readjusting their agendas, which has led to an overall decrease in activity in Mexico.

Consequently, our laboratory in Mexico, while fully capable of supporting our clients' operations, has excess capacity that is currently available to other markets. Our strategy has therefore been to expand geographically and diversify the industries we serve.

Historically, our Houston office has served the needs of our operations in the Middle East and Mexico. That was its traditional purpose. So much so that even today, many industry players in the US are unaware of Petricore, despite our 10-year presence in that market. This is because 80% of our work has been dedicated to serving our own operations in Mexico and the Middle East, not the US domestic market.

This year, 2025, something unprecedented occurred. For the first time, our Houston office sold a service in the US that it does not directly provide. Instead, the Houston office subcontracted Mexico to deliver that service. The US market is highly fragmented and competitive, yet it greatly values specialization. As a company, we are not trying to compete in every aspect, because many US companies already do that. What interests us is focusing on those services where we know we are superior to the competition.

Q: What opportunities do you identify regarding support and partnerships opportunities across industries in Mexico?

A: Mining is one example. Another is geothermal energy. There is a significant buzz around geothermal. I am a very active member of the board of the Society of Petroleum Engineers (SPE), Mexico Section. While our association's name refers to petroleum engineers, our mission and vision have evolved to encompass the broader energy industry. Last August, our association hosted a virtual event on geothermal energy. The goal was to demonstrate the existing synergies between the oil and geothermal industries. The latter utilizes many technologies from the former, and there's even more potential for collaboration. Technologies and processes from the oil industry can be adapted for geothermal applications.

Q: How can these characterization technologies support emissions reduction efforts?

A: In Mexico, we have a long history of injecting nitrogen and other gases to reactivate and re-energize depleted reservoirs. PEMEX and private companies all do it with varying degrees of success.

What Petricore focuses on regarding carbon capture is the necessity to ensure a habitable planet for future generations. In the United States, we have worked on carbon capture projects. Many of the reservoirs used for carbon capture are depleted oil fields. The idea is to reinject a fluid, which will now be CO2, hoping that the same rock that contained hydrocarbons for thousands of years will now contain the CO2.

What we do is re-characterize that reservoir and the caprock (the "seal rock") that will contain the CO2, to confirm that it can both store and contain the CO2. There is a third component we do not do: once you characterize a reservoir to determine if it can store and sequester hydrogen, the next step is to inject the CO2 and then monitor what happens afterwards—to check for CO2 leaks, etc. While we do not perform that part ourselves, we partnered with a company to monitor it. So, we cover the entire spectrum, from characterizing the reservoir for a CO2 project to monitoring the efficiency of that CO2 sequestration. In the US, the new administration has slowed things slightly, but the mandate to capture CO2 remains, and there are fiscal incentives for companies that do so.

Q: How is the adoption of this technology progressing in Mexico?

A: We have been in discussions with the Mexican CO2 Capture and Sequestration Platform (MeCCS). This association aims to identify Mexico's potential and requirements for carbon capture, as well as appropriate legislation. While they do not define legislation, they propose ideas and host many webinars and forums.  Our work on carbon capture projects in the United States is providing us with invaluable experience and best practices, preparing us for when this becomes a requirement in Mexico.

Q: What is the main challenge and where are the greatest opportunities for the industry at the moment?

A: In Mexico, we set aside the topic of unconventional reservoirs, despite the immense potential we have in the north of the country. This new administration wants to revisit this. I completely agree with the rationale for doing so, as the potential is substantial. There is now a growing demand for services like those our laboratory provides that can be applied to unconventional reservoirs. This is a common practice in the United States, where many of their reservoirs are unconventional, and the industry has adapted over years of experience. This presents another area where Petricore's experience in the US can be directly applied to Mexico.

Now, under Claudia Sheinbaum's administration, a scientist herself, there is a renewed focus on these types of reservoirs. It is no coincidence that geothermal energy is regaining importance; Mexico has tremendous geothermal potential. We have also discussed projects related to lithium, specifically evaluating lithium content in reservoir water, among other things.

Petricore provides reservoir rock and fluid characterization services to international oil and gas companies. Its most extensive operation is in Mexico, where it has been providing services to the national oil and gas company and other operators since 2009. Petricore is Mexico’s largest core and fluid analysis service provider.