Recent Progress in Natural Gas and New. Understanding of its Position in Clean Energy in China

Transcription

1 International Natural Gas Conference Recent Progress in Natural Gas and New Understanding of its Position in Clean Energy in China Research Institute of Petroleum Exploration and Development-Langfang

2 Contents I. Recent Progress of Natural Gas Exploration in China II. New Understanding of Potential of Natural Gas Resources III. Position of Natural Gas in Clean Energy

3 I. Recent progress of Natural Gas Exploration in China Since 2000, 10 major breakthroughs and advances have been made in tight sandstone, carbonate rock, foreland basian, and volcanic rock; in which 4 more than 1 Tcm and bcm; simultaneously it is revealed that cartbonate rock and tight sandstone have great exploration potential. Tight sandstone (1) Sulige (2) Xujiahe in Sichuan Basin (3)Deep glutenite in Songliao Basin Carbonate rock (4) Gaoshiti-Moxi (5) Middle Tarim Kuqa Middle Tarim Deep glutenite in Songliao Basin Kelameili Deep volcanic rock in Songliao Basin Sulige Dongping West Jingbian Southeast well group (6) Longgang Foreland thrust belt (7) Kuqa (8) Dongping Volcanic rock (9)Deep volcanic rock in Songliao Basin (10) Carboniferous in Junggar Basin Xujiahe in Sichuan Basin Gaoshiti-Moxi Longgang

4 探明储量 ( 亿方 ) The great discovery of tight sandstone and carbonate rock provides significant support for increase of reserve The newly-added reserves is 4 Tcm since 2006, of which tight sandstone and carbonate rock is 3 Tcm, accounting for 75% Volcanic Structure 致密砂岩 Tight sandstone 碳酸盐岩 Carbonate rock 前陆冲断带 Foreland thrust belt 火山岩构造 - 岩性 rock lithology Proved reserve (0.1 bcm) Distribution Diagram of Natural Gas Proved Reserve of CNPC from 2006 to 2013

5 The accumulated gas reserves of tight sandstone for past years and annual output account for 33.1% and 27.17% of the whole country respectively, and two major exploration and development gas areas are developed. Key exploration fields of tight sandstone gas reservoir in China Jurassic - Cretaceous in Kuqa Deep layers in Songliao Basin Jurassic in Tuha Basin Upper Paleozoic in Ordos Basin Tight standstone gas tcm Conventional gas tcm Xujiahe Formation in Sichuan Basin The accumulative proved reserve was 9,010 billioncm at the end of 2012, of which the tight sandstone gas accounts for 33.1%. Tight standstone gas 26.6bcm Important discovery: Upper Paleozoic in Ordos Basin, Xujiahe Formation in Sichuan Basin, Urassic - Cretaceous in Kuqa, Jurassic in Tuha Basin and deep layer in Songliao Basin. Reserve and output: At the end of 2012, the total proved reserve of conventional gas had reached 9,010 bcm and the annual output is 97.8 bcm. Among them, the reserve of tight sandstone gas accounts for 33.1% and its output accounts for 27.2%. Two major gas areas: Upper Paleozoic in Ordos Basin and Xujiahe Formation in Sichuan Basin Conventional gas 71.2 bcm The annual output in 2012 was bcm, of which the tight sandstone gas accounts for 27.2%.

6 The accumulative carbonate rock reserve for past years and annual output respectively accounts for 25.6% and 20.4% nationwide, and a new situation is opened recently for exploration of ancient carbonate rock. Carbonate rock gas 2,310 bcm Others 6,700 bcm Zhonggu 5 Gucheng 6 Zhongshen 1 Su 203 Longgang 1 Moxi 8 Gaoshi 1 Heshen 1 The accumulative proved reserve was 9,000 bcm at the end of 2012, of which the carbonate rock gas reservoir accounts for 25.6%. Middle Tarim: Proved reserve: 353bcm Longgang: Proved reserve: 72 bcm Gaoshiti-Moxi: Proved reserve: 440. bcm West Jingbian: 222 bcm Basic information:carbonate rock resource is mainly distributed in Tarim, Ordos, Sichuan basins etc. The early exploration is based on reef and weathering crust. The large gas fields such Jingbian and Wubaiti have been discovered. Since "11th five-year plan" the exploration of palaeohigh carbonate rock karst gas reservoir has been developed. Major breakthroughs Longgang 1 in 2006 Zhonggu 1, Zhonggu 8 and Zhonggu 21 in 2008 Gucheng 6 and Zhongshen 1 in 2010 Gaoshi 1 in 2011 Moxi 8 in 2012 Heshen 1 in 2013 Carbonate rock gas 20 bcm Others 71 bcm The annual output in 2012 was 97.8 bcm, of which the carbonate rock gas accounts for 20.4%.

7 Contents I. Recent Progress of Natural Gas Exploration in China II. New Understanding of Potential of Natural Gas Resources III. Position of Natural Gas in Clean Energy

8 II. New Understanding of Potential of Natural Gas Resources With continous development of geological theories and technology, the resource quantity increases continuously. The recent great discovery of carbonate rock and tight sandstone promotes the understanding of resources. Resource Quantity of Natural Gas for Nationwide Resources Assessment for three times Proved rate of carbonate rock and tight sand stone resources Natural 天然气资源量 gas resources ( 万亿方 (in trillion ) cubic metres) 全国合计 38 Nationwide total 34 Basin 盆地小计 subtotal Basin Type Resources assessment for the third time (in 1,000 bcm) Carbonate rock weathered crust Tarim O- : 1.8 Carbonate rock reef flat Tight sandstone gas 塔里木 Tarim 鄂尔多斯 Ordos Other 其他盆地 basins Ordos Sichuan C-Pzl:1.1 Zn:0.2 O:1.3 T 2 f-p 2 : 2.5 Upper Paleozoic : 3.4 Xujiahe Formation: 0.9 Sichuan 四川 East China 东海 Sea Qaidam 柴达木 Yinggehai 莺歌海 Bohaibay 渤海湾 Qiongdongnan 琼东南 Songliao 松辽 Junggar 准噶尔 第三次资评 The third resources assessment 第二次资评 The second resources assessment 第一次资评 The first resources assessment Accumulative resource quantity for resources Accumulative proved reserve by the end of Proved rate 41% 62% The third nationwide resources assessment : inadequate understanding of carbonate rock and tight sand stone, resulting in low calculation of resources quantity.

9 The carbonate rock formation is rich in gas reservoir types and the main direction for recent natural gas exploration. For key basins, the resource quantity is 14-19Tcm through the recognition and the quantity increases by Tcm compared with the third resources assessment(2006). Remaining resource quantity: Tcm New proved natural gas reserve: 14,100-19,100 billion m 3. Middle Tarim Proved reserve: bcm Gucheng 6 and 8 Hetian Proved reserve: 61.6 bcm Gaoshiti-Moxi Proved reserve: bcm Jingbian Proved reserve: bcm Longgang Proved reserve: 72 bcm Puguang Proved reserve: bcm Basin Type Resources assessment for the third time (in 1,000 bcm) Carbonate rock weathered crust Tarim O- : 4-6 Ordos Sichuan C-Pzl:1.1 Zn:3-5 O:2-3 Carbonate rock reef flat T 2 f-p 2 : 4.0 Recalculate the resource quantity according to area abundance, analogy method etc.

10 Since various palaeohighs are developed in cratonic basin, it is favorable exploration zone which has three major realization belts and six substitution belts. Palaeohigh control deposit: High-energy reef body developed easily North Tarim along the palaeohigh. Hetian Yimeng Uplift Middle Tarim Central Uplift Leshan -Longnvsi Kaijiang Luzhou Palaeohigh Palaeohigh control reservoir: Unconformity development, easy to form high-quality reservoirs such as polyphase karst. Palaeohigh control accumulation: Long-term development of palaeohigh as the direction of oil and gas migration. Inherited palaeohigh practical area: Middle Tarim, Gaoshiti-Moxi, etc. No. Substitution area Favorable condition Exploration area (in 10,000 km 2 ) Resource potential (100 million cubic metres) Evaluation 1 Ordovician in middle Tarim Three reservoir beds of Lianglitage formation, Yingshan formation, and Penglai formation 1.2 8,000-10,000 Ⅰ 2 Sinian - lower Palaeozoic system in Sichuan Large karst slope and developed dolomite ,000-30,000 Ⅰ 3 Reef body in North Sichuan Platform reef, high dolomitisation 0.6 3,000-5,000 Ⅰ 4 Ordovician in Maigaiti Slope of Tarim Long-term palaeohigh, phase III karst 0.8 8,000-10,000 Ⅱ 5 Weathering crust area of Leikoupo formation in Sichuan Developed weathering crust karst reservoir bed and dicovery in exploration 1.2 2,000-3,000 Ⅱ 6 Dolomite below salt bed in east Ordos Source rock found and low ouput in Longtan Ⅱ 7 Cambrian platform margin belt in Huanmanjiaer Depression of Tarim Combined part of uplift and depression with large platform margin belt developed 2.34 >10,000 Ⅲ 8 Permian dolomite area in west Sichuan Dolomite 20-40m thick, high output of nine wells 1.6 3,000-4,000 Ⅲ 9 Lower Ordovician dolomite in middle Tarim - north Tarim Developed karst and inside dolomite 1.5 8,000-10,000 Ⅲ

11 Tight sandstone gas is the important resource for the growth of reserve and production in the future. Current study progress: The tight sandstone is divided into three types: large area of tight sandstone in craton basin, deep tight sandstone in rift basin and deep tight sandstone in foreland thrust belt. Common point:source and reservoir overlapped or adjacent distribution, and tight control reservoir of large reservoir bed Difference: Geological background, conduction condition, seal & capping mechanism, migration & accumulation characteristics, etc. Key element Geological background Conduction condition Migration & accumulation condition Sealing & capping mechanism Enrichment condition Regularities of distribution Accumulation mode Craton tight sandstone gas reservoir Source and reservoir superimposition Net conduction of hole and fracture Power entrapment migration & accumulation Double blocking of reservoir and seal Near-source effective enrichment Near-source scale tight sandstone fault rift deep tight sandstone gas reservoir Adjacent contact of source and reservoir Fault hole and fracture conduction Fracture lithology control reservoir Mudstone barrier bed sealing Fault effective enrichment Ring groove tight glutenite body Tight sandstone gas reservoir of foreland thrust belt Adjacent contact of source and reservoir Fault hole and fracture conduction Structure lithology control reservoir Paste barrier bed sealing Anticlinal effective accumulation Relatively high-position tight sandstone Type and accumulation mode of tight sandstone

12 The resource quantity of tight sandstone gas is 32 Tcm; the proved rate is 9%; the remaining resource is aboundant. Basin Dixi 1 Kuqa in Tarim Tight sandstone Exploration area Basin area (in 10,000 km 2 ) Southern Junggar Taibei Depression of Tuha Basin Deep layers in Songliao Basin Exploration area (in 10,000 km 2 ) Baka Central Sichuan Series of strata Sulige Gas yield (tcm) Migration Factor Changshen 1 Upper Paleozoic group in Ordos Basin Xujiahe formation in central Sichuan Basin Prospective resource (tcm) 5% 95% 50% Ordos C-P % Sichuan T 3 x % Songliao K % Based on the new understanding and exploration achievements, it is estimated that the resource quantity of tight sandstone gas in key fields is 22,400-43,730 bcm according to the tight sandstone in broad sense by using the scale area and migration & accumulation factor method. And the exploration and development potential is great. The accumulative proved reserve is 2,980 bcm in the whole country and the proved rate is 9%. Tuha J % Tarim J % Total

13 Contents I. Recent progress of Natural Gas Exploration in China II. New Understanding of Potential of Natural Gas Resources III. Position of Natural Gas in Clean Energy

14 The energy comsumption increases continuously, and especially the growth rate is fast relatively in recent years. By 2013, the erngy consumption had reached 3.85 billion tons of standard coal. In recent ten years, the total energy consumption has an annual growth of 7-8% and the energy consumption presents the fast growth trend overally in China. In 10,000 tons of standard coal 单位 : 万吨标准煤 中国能源消费总量增长趋势 Growth Trend of Total China Energy Consumption

15 The proportion of clean energy increases in the primary consumption structure. From , the natural gas increased from 3.1% to 6%; the hydropower, nuclear power and wind power from 2.0% to 9%; the petroleum from 20.7% to 19.1% The coal decreased from 72.2% to 66.2%. Energy Consumption Strucuture from 1980 to 2013 Energy Consumption Strucuture in % 90% 80% 70% 60% Hydropower etc. Natural gas Petroleum oil 19% w arter pow er etc. gas 9% 6% 50% 40% Coal coal 66% 30% 20% 10% 0% 煤炭石油天然气水电 核电和风电等

16 Natural gas is the most practical source for clean and low-carbon development of energy consumption. Natural gas in fossil energy is characterized by low emission and less pollution, and thus it is an important development trend of current clean energy. Comparasion of fossil energy comsumption with the same calorific value and emission Coal Petroleum Natural gas Emission for 10,000 kcal heat (g) 66% 44% Carbon dioxide Sulfur dioxide Nitric oxide Smoke dust

17 Abundant natural gas resource:the resource quantity of convetional natural gas is 56 Tcm (2005); the estimated resource quantity of unconventional natural gas is 100 Tcm. Currently, the natural gas is being developed significantly. The proved rate of convetional natural gas resource is only 17% and the unconvetional natural gas exploration is still in the early stage. Change in primary comsumption structure in China 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Hydropower etc. Natural gas Petroleum Coal 煤炭石油天然气水电 核电和风电等 The development size of nuclear power is significantly uncertain. Accident of Fukushima Nuclear Power Plant: The nuclear power generation quantity of Japan decreases from the 3rd place to the 19th place; and Germany, Sweden and Belgium have planned to shut down all nuclear power plants in their countries. The development size of biomass energy is very limited. Current status:the imported corn and soya bean of China in 2012 were 13,980,000 tons and 58,380,000 tons respectively, accounting for 11% of the total grain yield. The development and utilization of wind power and solar power are restrained by the different positions of resource areas and consumption areas. More thaisn 80% of the wind energy and solar energy in the West and North China, but the demand for electricity is in the East China. The consumption structure which excessively depends on coal for a long term has caused serious ecological and environment problems; the development of new energy is restrained by various elements, thus being difficult to reach the expected level.

18 It is estimated that natural gas output will increase significantly and strong support is provided for implementing clean energy strategy. Prediction Diagram of Future Natural Gas Production in China Production: 0.1 bcm Shale gas Coal-bed gas Tight gas Conventional gas 1500

19 It is preliminarily estimated that natural gas will account for 13% in the primary energy consumption. Forecast of Energy Consumption Structure of China in 2030 Consumption Percentage (%) 100 million tons of standard coal 5 billion tons 5.5 billion tons Coal (100 million tons) Petroleum (100 million tons) Natural gas (100 million m 3 ) 5, Nuclear power (100 million kwh) 14, Renewable energy (100 million kwh) Including: hydropower (100 million kwh) 18, , Wind power (100 million kwh) 2,

20 Conclusion In a long run view, the energy structure dominated by coal is unsustainable, while clean and efficient natural gas is now the strongest stratigic choice for optimizing energy structure, saving energy and reducing the emission in China. It is estimated that China will estblish a low-carbon, clean, effieciet and safe new energy systen through development of natural gas, nuclear energy and renewable energy and further optimization of the energy structure by 2050 or so.