australian shale gas exploitation the challenges and...

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Australian Shale Gas Exploitation the Challenges and Solutions Andrew Buffin: Geoscience Manager (Baker Hughes) Sydney October 2012

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Page 1: Australian Shale Gas Exploitation the Challenges and Solutionsresevalconsulting.com/wp-content/uploads/2018/05/... · • Georgina Basin • Gulf of Carpentaria • Repair and Maintenance

Australian Shale Gas Exploitation the

Challenges and Solutions

Andrew Buffin: Geoscience Manager (Baker Hughes)

Sydney October 2012

Page 2: Australian Shale Gas Exploitation the Challenges and Solutionsresevalconsulting.com/wp-content/uploads/2018/05/... · • Georgina Basin • Gulf of Carpentaria • Repair and Maintenance

Challenges and Solutions

• Remoteness– Hardware and crew deployment– Repair and Maintenance

• Drilling / Equipment– Delivery Time & Cost– Drill Stress fields (Change with time)– Well bore stability / shale stability– Well bore bearing

• The subsurface – Temperature– Reservoir variability

• Fracturing – Cost– Horse Power

• Public Perception• Economics

• Geomechanics• Drilling

– Bits– Motors / BHA

• Data Acquisition & Interpretation– Coring / Rotary Coring– Logging (HT Logging)– Seismic

• Commitment• Education

Challenges Solutions

Page 3: Australian Shale Gas Exploitation the Challenges and Solutionsresevalconsulting.com/wp-content/uploads/2018/05/... · • Georgina Basin • Gulf of Carpentaria • Repair and Maintenance

Challenge - Remoteness

• Hardware and crew deployment– Established basins

• Cooper Basin

• Perth Basin

– The New Frontier Basins• Canning Basin

• Georgina Basin

• Gulf of Carpentaria

• Repair and Maintenance– Support Bases

– Redundancy

• Weather– Cyclic patterns; plan ahead

• Environmental impact & water

Page 4: Australian Shale Gas Exploitation the Challenges and Solutionsresevalconsulting.com/wp-content/uploads/2018/05/... · • Georgina Basin • Gulf of Carpentaria • Repair and Maintenance

Challenge - Drilling

• Delivery Time & Cost

– A paradigm shift in thought

• Drill Stress fields (Change with time)

• Well bore stability / shale stability

• Well bore bearing and defining the fracture (permeability) patterns

Page 5: Australian Shale Gas Exploitation the Challenges and Solutionsresevalconsulting.com/wp-content/uploads/2018/05/... · • Georgina Basin • Gulf of Carpentaria • Repair and Maintenance

Challenge - Subsurface

• Temperature– Logging Tools

– Mud systems

– Completion

• Reservoir– Understanding reservoir

variability

– No gas shale is the same, no single solution…

– TOC distribution varies with

changes in depositional

environment

– Planning sufficient wells

– Defining the production history

– Develop confidence for future forecasting and development planning

Modelled crustal temperature at five kilometres depthRed > 305CBlue<65C

Page 6: Australian Shale Gas Exploitation the Challenges and Solutionsresevalconsulting.com/wp-content/uploads/2018/05/... · • Georgina Basin • Gulf of Carpentaria • Repair and Maintenance

Challenges - Fracturing

• Cost and Horse Power

• Fracture design and fracture placement

• Consolidation of water, water management and water (re)-use

• Improving candidate selection

• Availability of materials

• Testing equipment and ability to conduct long term testing

• Resources particularly manpower

• Logistics and all ancillary services to drilling and stimulation operations

Frac-Point™ System – Overview

Page 7: Australian Shale Gas Exploitation the Challenges and Solutionsresevalconsulting.com/wp-content/uploads/2018/05/... · • Georgina Basin • Gulf of Carpentaria • Repair and Maintenance

Challenges – Public Perception

• What’s happened to the Coal Bed Methane Industry ?

• Politicians are generally driven by public image the polls and the next election

• The general public are driven by …………………?!

Page 8: Australian Shale Gas Exploitation the Challenges and Solutionsresevalconsulting.com/wp-content/uploads/2018/05/... · • Georgina Basin • Gulf of Carpentaria • Repair and Maintenance

Challenge - Economics

• The gas price

• Transportation

• National / International energy requirements

Australian Treasury forecast Australia gas price curve to 2050

(Ref: http://claudiafox.hubpages.com/hub/gas-price-curve-for-south-east-Australia#)

Page 9: Australian Shale Gas Exploitation the Challenges and Solutionsresevalconsulting.com/wp-content/uploads/2018/05/... · • Georgina Basin • Gulf of Carpentaria • Repair and Maintenance

Solutions - Geomechanics

• Stress fields

• Provide selective strategy for drilling horizontal wells to optimize production and reduce NPT

• Provide selective strategy for hydraulically fracturing to optimize gas recovery and reduce completion/stimulation cost

• Break-out stress analysis

• Natural fracture analysis

• Integration of core data with log and image data

Dip directions

Fracture Orientation

Break-out

Azimuth

Page 10: Australian Shale Gas Exploitation the Challenges and Solutionsresevalconsulting.com/wp-content/uploads/2018/05/... · • Georgina Basin • Gulf of Carpentaria • Repair and Maintenance

Solutions - Drilling

• Drilling Optimization – Modified PDC Bits

– Model Re-design BHA - torque, drag, hydraulics

– Optimized Parameters - WOB, Rotation

– Critical Speed Analysis to Reduce Vibration

• The result: – An increased ROP

– An increase in savings

• In-fill drilling with multiple wells per pad

– 8-10 wells from a single pad

– Purpose-Built Skidding Rig

– Fit for Purpose Eco-Centre™ to handle Solids and Waste

5+ DAYS SAVED

Page 11: Australian Shale Gas Exploitation the Challenges and Solutionsresevalconsulting.com/wp-content/uploads/2018/05/... · • Georgina Basin • Gulf of Carpentaria • Repair and Maintenance

Solutions - Data Acquisition

• Coring– Core handling

– Core catching

– Core analysis at well site and laboratory

• Percussion Side Wall Cores

• Rotary Coring

• Core Analysis– Mineralogy

• Thin Sections

• Scanning Electron Microscopy (SEM)

• X-Ray Diffraction (XRD)

• Clay Volume (VCL)

• Grain Density

– Geochemistry• Vitrinite Reflectance

• Total Organic Carbon (TOC)

• Rock Eval / Pyrolysis

• Desorption and Adsorption gas content and storage potential

– Lithology & Sedimentology• Facies Analysis

• Stratigraphy

– Geomechanics

– Fluid sensitivity

Page 12: Australian Shale Gas Exploitation the Challenges and Solutionsresevalconsulting.com/wp-content/uploads/2018/05/... · • Georgina Basin • Gulf of Carpentaria • Repair and Maintenance

Solutions - Data Acquisition

• Logging– Geochemical Logging: Mineralogy

– Spectral Gamma Ray

– Image Logging: Fracture Analysis / Breakout

– Porosity Logging

– Density and Acoustic logging

– Mini Frac’s / Sampling

• Core to log integration and Geochemical calibration

• Defining high permeability streaks

• Determine Rock Mechanics and fracability (Brittleness)

• Input into Geomechanical models

Page 13: Australian Shale Gas Exploitation the Challenges and Solutionsresevalconsulting.com/wp-content/uploads/2018/05/... · • Georgina Basin • Gulf of Carpentaria • Repair and Maintenance

Solutions - Data Interpretation

• Integration

• Defining the “sweet spots”– Direct Measurement of TOC

– Advanced Mineralogy

– Detailed Geomechanical Properties

– Litho-typing / Rock Typing

• Accurate reservoir GIP measurement

• Optimal lateral well placement

• Input for effective stimulation program design

Data Processing

Data Acquisition

Data Editing

Data QC

Data Interpretation

Data to Information

Page 14: Australian Shale Gas Exploitation the Challenges and Solutionsresevalconsulting.com/wp-content/uploads/2018/05/... · • Georgina Basin • Gulf of Carpentaria • Repair and Maintenance

Shale Gas Evaluation and Hydraulic Fracturing

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Radial strain [mm/mm] Axial Strain [mm/mm]

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Core calibration

“SHALE + TOC” “MATRIX” “WATER”

Shale Gas Petrophysical Rock Model (scenario “B”)

Vclay

VTOC

ΦtVsand

+

Vcarbonate

“SHALE + TOC” “MATRIX” “WATER”

Shale Gas Petrophysical Rock Model (scenario “B”)

Vclay

VTOC

ΦtVsand

+

Vcarbonate

Shale Gas Petrophysical Rock Model (scenario “B”)

Vclay

VTOC

ΦtVsand

+

Vcarbonate

Petrophysical Volumes

“Static”

Rock Mechanical

Property Model

In-situ Stress &

Pressure Model

Organic Content and

Fracture Confinement

Comparison

Shale Pressure

Overburden Stress

Acoustic Properties

Formation Density

Shale

LithologyNMR

Porosity

Organic

Content

Borehole

Failure

Fracture

Analysis

Post-frac

Production

Logging

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si]

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Radial strain

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si]

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si]

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si]

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Core calibration

“SHALE + TOC” “MATRIX” “WATER”

Shale Gas Petrophysical Rock Model (scenario “B”)

Vclay

VTOC

ΦtVsand

+

Vcarbonate

“SHALE + TOC” “MATRIX” “WATER”

Shale Gas Petrophysical Rock Model (scenario “B”)

Vclay

VTOC

ΦtVsand

+

Vcarbonate

Shale Gas Petrophysical Rock Model (scenario “B”)

Vclay

VTOC

ΦtVsand

+

Vcarbonate

Petrophysical Volumes

“Static”

Rock Mechanical

Property Model

In-situ Stress &

Pressure Model

Organic Content and

Fracture Confinement

Comparison

Shale Pressure

Overburden Stress

Acoustic Properties

Formation Density

Shale

LithologyNMR

Porosity

Organic

Content

Borehole

Failure

Fracture

Analysis

Post-frac

Production

Logging

Organic Content and

Fracture Containment

Comparison

Page 15: Australian Shale Gas Exploitation the Challenges and Solutionsresevalconsulting.com/wp-content/uploads/2018/05/... · • Georgina Basin • Gulf of Carpentaria • Repair and Maintenance

Solutions - Data Acquisition

• Seismic– Micro – seismic surveys

• Monitoring frac containment and environmental implications

• Stimulating correct zone of interest

• Determine number of stages required

• Determine zonal coverage

• Is there interference from stages or

offset wells

• How close can off-set wells be placed

• What is the effect of rate and volume

changes

• Has a fault or any other problem been encountered

– Seismic Inversion a quantitative rock-property description of the reservoir

Page 16: Australian Shale Gas Exploitation the Challenges and Solutionsresevalconsulting.com/wp-content/uploads/2018/05/... · • Georgina Basin • Gulf of Carpentaria • Repair and Maintenance

Solutions - Commitment

• Partnership and understanding required• Collaboration between operators and service

providers• Combination of disciplines and expertise• First principles towards an ultimate goal

Page 17: Australian Shale Gas Exploitation the Challenges and Solutionsresevalconsulting.com/wp-content/uploads/2018/05/... · • Georgina Basin • Gulf of Carpentaria • Repair and Maintenance

Solutions - Education

• Stake-holder engagement by both the operators and the service providers

– Workshops

– Seminars

• Politicians and political lobbying through the various resource departments

– Web sites

• Regulatory guidance– Roadmap for unconventional gas

projects in SA

http://www.petroleum.pir.sa.gov.au/prospectivity/basin_and_province_information/unconventional_gas/unconventional_gas_interest_group/roadmap_for_unconventional_gas_projects_in_sa

1.Draft Roadmap for Unconventional Gas Projects in South AustraliaReleased for Public Comment by 27th July 2012

Monday 14th May 2012

2.

Convene a meeting of the Roundtable for Unconventional Gas to discuss and develop recommendations for draftChapter 9

Friday 27th July 2012

3. Last date for comments on the draft Roadmap 5 PM Friday 27th July 2012

4. Pre-publication Roadmap provided to Roundtable for final editorial comments By end August 2012

5.Roundtable has opportunity to undertake final perusal of Roadmap for publication In Sept 2012

6.Final Roadmap prepared In Oct 2012

7.Release of the Roadmap for Unconventional Gas Projects in South Australia In Nov 2012

Frequently asked Questions Unconventional Gas in South Australia

• Where does oil and gas come from?• What is conventional gas?• What is unconventional gas?• Why is unconventional gas important for South Australia?• How is unconventional gas extracted?• Why are chemicals sometimes used in hydraulic fracturing?• Has hydraulic fracturing been used in South Australia?• Where is de-watering required?• How are unconventional gas exploration and development activities regulated in South Australia?• What information is provided to stakeholders and land owners?• Where can I find out more?• Glossary

Page 18: Australian Shale Gas Exploitation the Challenges and Solutionsresevalconsulting.com/wp-content/uploads/2018/05/... · • Georgina Basin • Gulf of Carpentaria • Repair and Maintenance

Conclusions

• Short term the requirements are being met

• Beach Energy, Santos, Senex Energy and NorWest Energy are examples of short term success

• What about the long term?

– Increasing ‘players”

– Increasing requirements to supply the market

• Focussing on those projects with large potential growth will require commitment from the operators and to develop technical alliances with service providers

• All need to work with political bodies

• Use the analogies from North America (Lessons Learnt) but don’t slavishly follow

• Educate the masses