SHALE GAS/ OIL: OPPORTUNITIES CMPDI S ENDEAVOURS

Transcription

1 SHALE GAS/ OIL: OPPORTUNITIES & CMPDI S ENDEAVOURS

2 KEY POINTS 1. India s Energy Scenario 2. Development of Non-conventional energy resources. 3. Shale Gas : Generation and Storage 4. Shale Gas: CMPDI s Endeavour 5. CMPDI s Achievements 6. Challenges in development 7. Ways Ahead

3 India s Energy Scenario Being an underdeveloped country for better quality of life India requires a sustained economic growth. In recent decades Indian economy is driven by a GDP growth of around 7%. Placing enormous demand on energy resources. Created a sizeable gap between demand and supply.

4 India s India s Energy Basket Coal 53% Oil/ Gas 40 % Others 7% Source: India Energy Book 2012

5 Development of Non-conventional Energy Resources Growing energy demand Limited resources of Petroleum and Natural gas Problems being faced in development of Nuclear and Hydel Power Need to develop other Non-conventional energy resources Environmental Concern Safe

6 Development of Non-conventional Energy Resources CBM/CMM attracted lot of interest globally and in India for its commercial development as lot of methane is being vented to atmosphere due to mining activity. After the formulation of CBM Policy by the Government of India in 1997, CBM has established an important place as a clean energy source in India and commercial production has already started in several blocks. Shale Gas

7 What is Shale Gas? In situ hydrocarbon gas present in organic rich, fine grained, sedimentary rocks. Shale gas may contain thermogenic, biogenic or mixed gas. Biogenic Gas: Bacterial Process Thermogenic Gas: Geochemical Process In case of Shale Gas, shale acts as both source as well as reservoir rock.

8 Shale Gas: Generation Concept Kerogen: Organic matter (plant and microorganism fossils) deposited in sedimentary rock characterized by Depositional matter. Kerogen Kerogen Gas/Oil Kerogen Gas/Oil Kero Gas/Oil

9 Shale Gas: Storage Mechanism Adsorbed Gas (Within matrix of Kerogen) Free Gas (in pore spaces and fractures) Disso lved Gas Shale Gas

10 Shale Gas: Generation Capability Generation Capability is Mainly Driven By: Quantity/Concentration of Kerogen (TOC) Type of Kerogen (Indicator of hydrocarbon product) Vitrinite Reflectance or Thermal maturity

11 Shale Gas: Generation Capability TOC : Total amount of Organic Carbon in rock (Wt %) Organic materials such as microorganism fossils and plant matter provide the requisite carbon, oxygen and hydrogen atoms needed to create natural gas and oil. Characterization of Source Rock based on TOC (Wt%) < 0.5% Non source Fair Good >2.0 Excellent

12 Shale Gas: Generation Capability Kerogen Type Type I Type II Type III Type IV Primary HC Generation OIL OIL GAS NONE Depositional Matter Sea Water Algae Land plants & marine algae Woody land plants Dead Plants Van-Krevelen Diagram

13 Shale Gas: Generation Capability Thermal Maturity: Thermal maturity measures the degree to which a formation has been exposed to high heat needed to break down organic matter into hydrocarbons. Vitrinite Reflectance: Ro : % Oil Window Ro: 0.9->2.0% Gas Window Ro: % Wet gas window Ro: >1.3% Dry Gas Window Source: Sciencedirect.com

14 Other Parameters The following set of geologic and reservoir properties are also required to identify the prospective area: Shale deposition Net interval thickness (net pay) Reservoir pressure gradient and depth Matrix porosity Natural fractures Mineralogy Other geologic properties, such as presence, nature and distribution of large-scale faults, etc., need to also be established.

15 Development of Shale Gas in India Development of shale gas in USA The Game Changer Provided momentum to other developed and under developed countries for development of Shale Gas In line with the international development, development of Shale Gas in India was also taken as priority area both at Government and industry level.

16 Shale Gas Prospect in India BASIN GEOLOGICAL AGE 1 CAMBAY TERTIARY 2 RANIGANJ PERMIAN 3 JHARIA PERMIAN 4 BOKARO PERMIAN 5 KARANPURA PERMIAN 6 TALCHER PERMIAN 7 ASSAM TERTIARY 8 SATPURA PERMIAN 9 KG TERTIARY 10 CAUVERY TERTIARY Source: DGH

17 Challenges in Assessment? No data was generated for shale? Lack of Expertise? Lab studies for shale was not available? Limited availability of shale samples? Limited Lab practices

18 CMPDI s Strength The premier exploration agency for coal in the country Carried out lakh s of metres of coring drilling in Indian Gondwana coalfields since 4 decades and created huge data bank CMPDI Access to large volume of century old mining data Has a pool of geoscientists and mining engineers specialized in Gondwana sedimentary basin and are fully competent to take any challenging job

19 Shale Gas: CMPDI s Endeavour CMPDI took a lead: Perceived R&D Project on Assessment of prospect of Shale Gas in Gondwana Basin with special reference to CIL areas along with ARI as a sub implementing agency. Delineated and prepared Data Dossiers for six prospective Shale Gas blocks within Gondwana Basin and Sohagpur Basin. A S&T project on Shale Gas potentiality evaluation of Sedimentary basin in India along with NGRI and CIMFR.

20 Shale Gas: CMPDI s Endeavour with special Reference to Coal Bearing Damodar Valley Basin

21 Shale Gas: CMPDI s Endeavour Damodar Valley Basins: Thermally mature Known for housing high rank of coal Significant deposition of organic matter Shales of Damodar valley basin May be organically rich May have good prospect of gas These coalfields have been covered by intensive exploratory programme, which has resulted in detail knowledge for deposition of shale horizons.

22 Shale Gas: CMPDI s Endeavour Based on exploratory data CMPDI has identified certain potential shale horizon. Primary results of Geochemical analysis were found very encouraging. 1,400 1,200 Depth (M) 1, Total Organic Carbon (Wt. %) TOC v/s Depth relationship of samples in Gondwana Basin

23 Shale Gas: CMPDI s Endeavour Most samples are falling in Type II and Type III Kerogen

24 Shale Gas: CMPDI s Endeavour Most of the shale samples are falling in early oil to condensate zone (Ro: O.5-1.3%) Some samples at deeper level are falling in dry gas window (Ro>1.3%) that shows a high level of conversion of kerogen into hydrocarbon

25 Shale Gas: CMPDI s Endeavour Geochemical Method Real time Desorption Empirical Method of Gas-in-Place Shale gas Resource

26 Shale Gas: Opportunities The primary studies indicates encouraging shale gas prospects in Damodar Valley basins. Barren Measures shales that are devoid of workable coal seams also shown very good prospect. Barren Measure area with thick piles of shale can be a good prospect for future shale gas production as these areas are away from coal mining activities. Barakar Shales have excellent TOC and maturity is reached upto Gas window (Ro-1.3 %), but these horizons are covered with intensive mining operation.

27 CMPDI s Achievement Data Dossiers on Shale Gas prepared by CMPDI is the first systematic assessment of Shale Gas in the Coal Bearing Damodar Basins. CMPDI created lab facility (TOC analyser and Rock Eval) for shale gas specific data generation. CMPDI is generating shale gas specific data in the boreholes being drilled under Promotional Regional Exploration (PRE) funding. 25 Borehole are considered for studies in 12 th plan period.

28 Challenges in Development Challenges on Technological Front for Development of Shale Gas may account of: Limited Geographical Area Indian Shale deposits are of shallower depth. Low permeability and natural fractures may cause a huge cost per well during production. Hydro fracturing job will require huge amount of water. Most of the Damodar Valley shale deposits are in close proximity to either coal mining activity or CBM activity. Lack of proven technology for development of shale gas in Indian geomining condition.

29 Ways Ahead.. Development of shale gas should be given priority at the national level as it has the capacity to play a pivotal role in enhancing the energy security of the country Reputed International consulting agencies who are engaged in different phases of shale gas development may be engaged for development of shale gas Industry in India. Geophysical study is an important tool for shale gas. It is felt necessary that this study should be made necessary for shale gas exploration studies in India Shale gas policy which is in draft stage at Government level, may provide some regulatory framework in order to attract investment in this sector. Increasing price of gas may give a thrust to E&P companies to invest in this sector.

30 THANK Q Ankita Verma Asst. Manager (Mining), CMPDI, Ranchi. a.verma@live.in