Challenge of Mae Sot Oil Shale Exploration in Thailand (In the First Phase, 2008) Apichart Jeennagol Apiradee Suwannathong

Transcription

1 Challenge of Mae Sot Oil Shale Exploration in Thailand (In the First Phase, 2008) by Apichart Jeennagol Apiradee Suwannathong The 28 th Oil Shale Symposium October 15, 2008 Colorado School of Mines, Golden, Colorado

2 Outline 1. Thailand Energy Status 2. Thailand Energy Security Policy 3. Previous Exploration 4. Oil Shale Project in Thailand 1. Scope 2. Oil Shale Project 2008 (Phase I: Exploration) 3. Goal and Activities 4. Geology - General Geology - Stratigraphy - Structure 5. Classification and Correlation 6. Evaluation Oil Shale Quality - Quality of Oil shale - Thickness and Distribution of Oil shale (Drilling results and Seismic survey results) 5. Problems of oil shale exploration 6. Oil Shale Project Situation 7. What will we do in the next year? 8. Conclusions

3 Crude Oil Price Thailand Energy Status In 2007 Value of energy consumption = trillion baht Daily commercial energy consumption ~ 1.6 million barrel oil equivalent Primary Commercial Energy Coal 15% Hydro 2% Other 3% Oil 42% Natural Gas 38% Mostly used in Power Generation Imported 35% Energy Consumption by business sectors Industry 38.2% Res & Com 20.5% Agriculture 5.3% Mostly used in Transportation Sector Imported 85% Transportation 36%

4 Imported Energy Value Unit: MMBaht Jan-Jun Jan-Jun Crude 284, , , , , , , , ,342 Petroleum Product 28,522 25,817 30,735 41,533 55,680 60, ,253 22,264 20,744 Natural Gas 30,559 35,073 42,635 46,053 62,827 77,843 77,843 38,510 37,240 Coal 7,489 7,872 9,370 12,275 15,422 18,896 18,896 14,713 17,495 Electricity 4,701 4,474 4,159 5,659 7,114 8,294 8,294 3,446 2,295 Total 355, , , , , , , , ,116 Source: EPPO, Bank of Thailand Thailand spent ~11% of GDP for energy import in 2007 As of 2007 Thailand s GDP = 8,485,500 MMBaht And, the situation may be worse in 2008

5 Thailand Energy Security Policy Targets Reduce oil import Diversify fuels consumption Promote indigenous resources Oil Shale can be One of Alternative Fuel Sources in Thailand Challenge of Oil Shale Exploration begins

6 General Information and Previous Exploration Mae Sot Basin : located in Mae Sot and Mae Ramat Districts, Tak Province Mae Sot Basin consists of 2 Sub-basins - Northern Sub-basin (A) - Southern Sub-basin (B) covering with 250 km 2 is target exploration Exploration of Department of Mineral Resources (DMR) in 1997 : Focus on The southern sub-basin (B) : Cover investigated area with 315 km 2 A B Source: DMR, 1997

7 Area Selection In 1997, Studied by DMR Potential area Northern part of Southern Sub-Basin B above Ban Haui Kaloke In 2007, Studied by Department of Mineral Fuels (DMF) & Electricity Authority of Thailand (EGAT) The oil shale project covering 104 km 2 Ban Huai Kalok Unit c Ban Hui Kalok Potential area: covering 34 km 2 Ban Hui Kalok Unit A Legend Existing Holes 1997 Potential area 1997 Fault Selected area 2008 DMR, 1997

8 Oil Shale Project The Feasibility Study of Mae Sot Oil Shale Project Area ( 4 years between covering 104 square kilometer) Cooperation between Department of Mineral Fuels (DMF) and Electricity Generating Authority Thailand (EGAT) Scope of Project 2008 (Phase I) Exploration to estimate reserve and quality 2009 (Phase II) Studying the development and utilization oil shale in commercial Ban Huai Kalok 2010 (Phase III) Evaluation of initial Environment 2011(Phase IV) Project conclusion Remark : Public participation in every period

9 Oil Shale Project in 2008 (Phase I) Phase I : Exploration and Analysis Goals To study geology in the area To estimate reserve To study quality of oil shale Combustion: Heating values for power plant Activities Oil yield: Pyrolysis, Crude assay Geologic Exploration : Surface mapping Seismic survey Drilling Chemical Analysis

10 General Geology Outcrops are exposed in project area Moei River Ban Wang Kaew Limestone Ban Huai Kalok Mai Ban Mae Pa Tai Ban Huai Kalok Oil shale color : Brown to dark brown

11 Stratigraphy Recent Tertiary (Surapol Tanomsap,1983) Mae Sot Formation Mae Pa Formation Mae Ramart Formation Pre Tertiary Limestone Upper Formation Lower Formation Coal in Mae Pa Formation Limestone Marlstone in Mae Ramat formation

12 Structural Geology Characteristic of Basin :Syncline Major fault Direction : NW-SE Direction : NW-SE Direction Conformity of oil shale layer E-W direction : continuous oil shale layer N-S direction : uncontinuous oil shale layer

13 Seismic Exploration Seismic Lines in 1997 ( 6 lines) Seismic Lines in 2008 ( 5 lines) Line No. Distance (km) Line No. Distance (km) MS0250 MS0150 MS0350 N-S direction MSO MSO MSO MSO MS0450 MS0650 E-W direction MSO Ban Huai Kalok MSO MSO MSO MSO MSO MSO Total distance The results of the seismic survey are being processed

14 Well Drilling Total 16 wells Total depth 4, m. Drilled depth : m. Characteristic and physical properties of oil shale Mudstone shale Oil shale Oil shale layer is thin if compared with oil shale layer of existing information (separate oil shale layer and shale layer) The highest thickness of single bed of oil shale layer is about 2.5 m. Depth of oil shale layer varies from surface to more than 300 m. Oil shale is interbedded with shale Color of oil shale varies form greenish gray, brown to dark brown Color of oil shale with high grade is brown to dark brown

15 Reserve Estimate Refers to 166 wells in 1997 and 16 wells in 2008 Reserve Estimated by USGS Cir 891 method (166 wells from 1997) Mae Sot Basin Project Area Estimated by Vulcan Program (166 wells in 1997 & 2008 wells) Mae Sot Basin Project Area Area 315 km km km km 2 Measured 621 (200 m) Indicated 1,271 ( m) Total 1, Processing!!!!!! End of November, We will know the result 2008 study identified and separated oil shale layer and shale layers Remark: density 1.9 g/cc

16 Classification of Oil Shale Zones MS 10 MS 11 MS 12 MS 13 MS 14 MS 15 MS 16 Based on Pattern of Geophysical logging Lithological Logging Classification 14 oil shale zones : MS 10, MS11, MS13, MS14, MS15, MS16, MS17, MS 18, MS19, MS20, MS21. MS 22 and MS23 MS 17 MS 18 MS 19 MS 20 MS 21 MS 22 MS 23

17 Correlation Model Based on Pattern of Geophysical logging Lithology Problem of correlating oil shale layers No key bed in horizontal direction Complexity of faults Result The level of acceptance in oil shale zone classification and oil shale layer correlation is quite low Solution Compile information of wells and Seismic lines together to correlate oil shale layers Try to find other programs to classify and correlate the relationship

18 Oil Shale Analysis 1. Oil Yield Analysis Oil shale samples from wells - 5 wells : MS 1/51 MS3/51 MS 6/51 MS 10/51 MS13/51 - Based on quality of oil shale, heating value, covering area - Total number of samples : 322 Quality of oil yield analysis ( result only 40 % of oil shale samples ) The average of TOC: 7.99 The average of Oil yield: 9.6 gallons per ton Result of oil yield analysis with 100% samples!!!!!! End of November, We will know the result

19 2. Combustion Analysis Oil shale samples from outcrop Oil shale analysis Oil shale samples from wells - Number of Samples : 13 -Total number of samples : 825 Quality of oil shale combustion Properties Existing information (all basin) (Outcrop In the project area) 2008 (wells) Heat capacity (kcal/g) ,055 3, ,207 Ash % Volatile (%) Moisture (wt %) Sulfur (wt % ) Special gravity

20 Oil Shale Quality Based on Heating Value Classified into 4 grades Grade 1 Grade 2 Grade 3 Grade 4 > 1,501 Kcal/Kg 1,001-1,500 Kcal/Kg 501-1,000 Kcal/Kg < 500 Kcal/Kg 1,116 kcal/kg 937 kcal/kg 3,045 kcal/kg 1,628 kcal/kg

21 Problems of Exploration (Phase I) 1. The result of seismic exploration is not good 2. Difficult to compile the seismic and well information together 3. Difficult to classify oil shale zones 4. Difficult to correlate the relationship of oil shale layers because of lack of clear marker beds 5. High structural complexity of in the potential area that make it difficult to correlate oil shale layers

22 Current Situation of Oil Shale Project The First Challenge!!!! Mae Sot oil shale exploration The Big Challenge!!!!! Oil shale project in Thailand will be stopped or be continued The last Challenge or Beginning challenge!!!

23 What do we plan next? Department of Mineral Fuels (DMF) want to study 2 major issues by focusing on Extraction oil from Mae Sot oil shale in pilot scale by using surface retorting (ATP) Composition of crude shale oil and refinery Potential of crude shale oil as oil-substitute fuel Potential utilization of spent shale in other industries (cement industry) Urgent! We would like to cooperate in this study project. Please Contact DMF if you are interesting and you have potential to contribute.

24 Conclusions 1. The color of good oil shale quality is dark brown 2. The thickness of oil shale layer vary from thin to thick bed and is interbedded with shale 3. The oil shale layers are not continuous because of structural control 4. Classifying oil shale zones and correlation are difficult because of structural control and occurrence

25 Conclusions (cont) 5. Heating values of oil shale samples vary from 76 3,200 Kcal/Kg 6. The quality of Mae Sot oil shale is quite low Oil shale project in Thailand will be the Last Challenge or the Beginning Challenge!!! Thank you for your attention!