Shale Gas Production Challenges

Transcription

1 Shale Gas Production Challenges Dr. Ir. Rene Peters Director Gas Technology TNO Energy

2 Overview Shale Gas deposits in the NL and EU An update on estimated reserves from EIA Potential risks related to Shale Gas development Drilling and well completion Hydraulic fracturing Induced seismicity Technology initiatives in Europe

3 Shale gas revolution initiated by innovations Long reach horizontal drilling Multi stage hydraulic fracturing Drilling factory

4 New shale gas map EIA per June 10, EIA estimate TRR: 204 TCM Shale Gas From: EIA technical recoverable shale gas and oil reserves June 2013

5 EIA Unconventional gas in Europe EIA estimate TRR: 13 TCM Shale Gas

6 Potential gas shales in the Netherlands Zijp & van Bergen (TNO)

7 NL is rich on geological data Over 5000 boreholes More than km 2D seismic lines More than km 2 3D seismic datasets Numerous reports Reservoir parameters Gas composition Pressures Etc

8 7 M.H.A.A. Zijp Data scarcity Posidonia Shale Formation (PSF) 98 well penetrations, most drilled before 1970 ~ 30 wells with logs 9 wells with core samples core material 4 wells not usable limited logging cored interval Good 3D seismic coverage in western part

9 Mud logs indicate presence of gas in Posidonia Posidonia Formation ,000 ppm Shale Gas reservoir ppm Werkendam-03 well Conventional Gas reservoir Röt Fringe Sandstone Member ppm (highest peak in the Triassic) Van Bergen & Verreussel (TNO)

10 Public opinion to shale gas is negative, mainly because of Hydraulic Fracturing

11 Hurdles for shale gas development in Europe Densely populated areas concerns for the public Noise production From drilling and fraccing activities Induced seismicity From fraccing operations Environmentally protected areas concerns for the environment Risk of chemical pollution Productions of radioactive materials (NORMs) Leakage into the water bearing layers Spills from storage tanks and trucks In General: Public Acceptance is lacking

12 Production challenges for shale gas exploitation Emissions to air (noise, CO 2 & CH 4 ) Spills (frac water, chemicals) Seismic activity caused by fraccing Leakage along natural faults Leakage of frac water or gas along cement towards water table Use of chemicals In the subsurface

13 Multiple casings are required to reduce the risk of leakage Cement Bond Logging is used to check for well integrity

14 Fracturing fluid Composition of fracturing fluid (Arthur et al. 2008) EPA, 2011

15 Chemicals used for the fraccing process Acid (p.e. HCL) to dissolve minerals and initiate cracks Biocides (p.e. Glutaraldehyde) to kill bacteria Friction reducer (p.e. Polyakrylamide) to reduce wall friction Corrosion inhibitor to prevent corrosion of the tubing Clay stabilizer to prevent clay swelling Gelling agent enables the sand to be dissolved in the liquid Scale inhibitor to prevent scaling of the tubing Each operator has a different mixture of chemicals These are published on For exploration and production, different chemicals are used The chemicals used need to be registered according to REACH

16 Source water Fracturing fluid and flowback water 10-40% recovery of original fracturing fluid in 1 st two weeks (25 to 70% (Pickett, 2009, Veil, 2010, Horn, 2009) to 10-30% in Marcellus (Arthur et al. 2008)) Recovered fluid stored in storage tanks or impoundment pits In EU open pits are not allowed Flowback water can contain NORMs and heavy metals and may need to be treated as chemical waste Well Flowback water Source water Well Keith Minnich, Talisman Energy Flowback water

17 Frac facts the Netherlands Hydraulic fracturing is not a new technique: - For conventional gas: 200 wells fracced in NL, mostly vertical 22 frack jobs in : 9 onshore, 13 offshore* several wells have been fracced below the Posidonia - For deep geothermal energy, e.g. Soultz-la-Foret No negative consequences reported (in the Netherlands!)* However, it has not been applied to shale gas layers yet Number of wells and frac stages along horizontal sections is usually larger for shale gas than for conventional gas * Source: NOGEPA- Netherlands Oil and Gas Exploration and Production Association (

18 Passive seismic monitoring fracking activities Fracturing creates micro-seismic events in the subsurface, which can be recorded Standard service in industry during fraccing (short term) TNO is investigating possibility to record micro-seismic events in the subsurface on the long term (i.e. during production) Monitoring for safety and production optimisation

19 Overview of seismic activity in NL (tectonic and induced) and natural faults

20 Magnitudes of induced seismicity Horn river basin (Canada): MW up to 3.6 Bowland shale (UK) Mw up to 2.3 Groningen (NL) Mw up to 3.6 Moment magnitudes are generally low geothermal Higher magnitude earthquakes related to reactivation of existing faults Higher magnitude earthquakes due to waste water injection From: Rutledge, 2012 Site specific research required!

21 European Research Program on Shale Gas TNO is program manager Leading Institutes TNO The Netherlands ECN The Netherlands IFPEN France GEUS - Denmark Sintef - Norway UKERC - UK LNEG Portugal Sub R&D programs identified Assessment of shale gas potential Technology for safe exploitation Environmental impact & footprint Energy and carbon efficiencies Regulations, market and policy issues Public perception In total 24 institutes from 15 European countries involved.

22 EERA joint R&D program on shale gas EERA program: In total 24 institutes and geological surveys From 15 EU member states

23 Innovative drilling techniques to prevent fraccing Under evaluation Radial drilling Short radius drilling Jetting stimulation Needle wells Aim Minimise water use Eliminate chemical use Maximise connectivity Status Evaluation of innovative techniques in pilot projects From: World Oil 2011

24 Facilitate public debate in Europe

25 Following the IEA golden rules to develop unconventional gas resources increases cost but will also enable public acceptance of shale gas

26 Thank you for your time and attention Contact details Rene Peters Phone

27 References J.D. Arthur, ALL PE, P.G. Brian Bohm, A.L.L. Consulting, M. Layne (2008) Hydraulic fracturing considerations for natural gas wells of the Marcellus shale, Ground Water Protection Guard, Cincinnati L. Eisner, V. Grechka, S. Williams-Stroud (2011) Future of Microseismic Analysis: Integration of Monitoring and Reservoir Stimulation. AAPG Hedberg Conference, Dec. 5-10, 2010, Austin, Texas S. Baisch, R. Vörös (2010) Reservoir Induced Seismicity: Where, When, Why and How Strong? Proceedings World Geothermal Congress Apr , 2010, Bali, Indonesia Intergovernmental Panel on Climate Change (2007) IPCC fourth assessment report (AR4). Working Group 1, The Physical Science Basis. R.W. Howarth, R. Santoro, A. Ingraffea (2011) Climatic Change, DOI /s G. Thyne (2008) Evaluation of Phase II Hydrogeologic Study for Garfield County Pickett, A. (2009, March). New solutions emerging to treat and recycle water used in hydraulic fracs. American Oil & Gas Reporter. Veil, J. A. (2010, July). Final report: Water management technologies used by Marcellus Shale gas producers. Prepared for the U.S. Department of Energy, National Energy Technology Laboratory, Department of Energy award no. FWP Argonne, IL: Argonne National Laboratory. Horn, A. D. (2009, March 24). Breakthrough mobile water treatment converts 75% of fracturing flowback fluid to fresh water and lowers CO2 emissions (No. SPE ). Presented at the Society of Petroleum Engineers E&P Environmental and Safety Conference, San Antonio, TX. EPA (2011) Draft Plan to Study the Potential Impacts of Hydraulic Fracturing on Drinking Water Resources. EPA/600/D-11/001/February 2011/ Stephen G. Osborn, Avner Vengosh, Nathaniel R. Warner, and Robert B. Jackson (2011) PNAS Early Edition, Keith Minnich (2011) Evaluating Recent Results from Successful Frac Water Handling Activities to Minimize the Risk of Aquifer Contamination, Presentation, Shale Gas Results in Europe 2011, Warsaw The Royal Society (2012) Shale gas extraction in the UK a review of hydraulic fracturing. Raeng.org.uk/shale EIA report (june 2013) Technical recoverable shale gas and shale oil resources -