And that’s going on in North America. It’s going on all over the globe.
Samantha Hoh: Just a real quick follow-up on that. Can you take associated gas and treat it and do whatever and then use it for injection for — to boost production?
Larry Bruno: Yes, absolutely. And in fact, that was the focus of our — or one of the primary focuses of our EOR study on unconventional reservoirs was to take available gases associated either with nearby production or simultaneous from the well. And then look at what chemical changes, what composition you would need to achieve maybe adding some propane or dialing in some ethane, getting the right chemistry of the associated gases or available gases and going back into the same wellbores that you’ve been producing. And that goes through a soaking process, the physics involved in that, are different than a traditional gas flood where the main driver was to push drive oil from injections to producers. Rather, in this case, the injected gas vaporizes some of that oil.
And then as its withdrawn and the pressures dropped, that oil drops out of the injection gases. And so this is a multi-cycle process that goes on where we keep adjusting the chemistry of the gas for injection to get the most oil out. And there are companies that are doing that today.
Samantha Hoh: Okay. Great. And maybe for my next question, just a little bit on the PE side. What are you anticipating in terms of the energetic sales, obviously, a rebound here in the frac activity? I’m just kind of curious what you’re expecting throughout the year in terms of demand for your energetic products. The type of seasonal trends, I guess, we should be thinking about for PE beyond the current quarter?
Gwen Gresham: Yes, Samantha, we think that for PE and our energetic product sales will continue to have market penetration with that as well as benefit from activity that will go on throughout 2023. We have seen, as we’ve started the year that we’re on a bit of a climb out, let’s say, from Q4 from the holidays. So we’re not quite back to pre-holiday let’s say, frac spread levels, but we can see that we’re starting to move in that direction. So we think it’s going to be another nice year of healthy activity.
Samantha Hoh: Are you guys anticipating like much of an increase in frac activity this year? I think it’s a bit of debate in terms of what the demand is and the movement across the basins.
Chris Hill: Yes. So this is Chris. I think what we’re seeing is at least we exited. If you look at where we were in Q4, it was at a pretty high-level, I think the frac spread either approached or reached 300. And like, Gwen was saying, we’re — it kind of dipped off as the holidays were in, which is very typical. And then it sort of rebounds as we begin the New Year, and we’re seeing that as well. So we think it’s going to come back to that 300 level. But we think there are some headwinds to growth there. The rigs are kind of full up and the frac spreads are also kind of full up. But as companies start to bring new equipment online, we do think that that will be put to work and maybe there’s more opportunity for some growth from where we kind of exited the year as we get a little deeper into 2023.
Larry Bruno: I think I’d sum it up by saying we think in total, 2023 will be a better year for energetic sales than 2022.
Chris Hill: Yes, year-over-year.
Larry Bruno: Yes, in the U.S. and globally, year-over-year.
Gwen Gresham: Thank you, Samantha.
Samantha Hoh: Thanks, guys.
Larry Bruno: Welcome.
Operator: The next question comes from Simon Galligani with Awilco AS. Please go ahead.
Gwen Gresham: Hi Simon.
Simon Galligani: Hi, good morning, guys.
Larry Bruno: Good morning.
Chris Hill: Good morning.
