australian shale gas exploitation the challenges and...
TRANSCRIPT
Australian Shale Gas Exploitation the
Challenges and Solutions
Andrew Buffin: Geoscience Manager (Baker Hughes)
Sydney October 2012
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
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
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
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
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
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 …………………?!
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#)
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
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
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
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
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
Shale Gas Evaluation and Hydraulic Fracturing
axial
axial
conf.conf.
LMPaxial
axial
conf.conf.
LMP
Radial strain [mm/mm] Axial Strain [mm/mm]
De
via
tory
Str
ess
, [p
si]
Axial strain
Radial strain
Radial strain [mm/mm] Axial Strain [mm/mm]
De
via
tory
Str
ess
, [p
si]
Axial strain
Radial strain
Radial strain [mm/mm] Axial Strain [mm/mm]
De
via
tory
Str
ess
, [p
si]
Radial strain [mm/mm] Axial Strain [mm/mm]
De
via
tory
Str
ess
, [p
si]
Axial strain
Radial strain
Core calibration
Radial strain [mm/mm] Axial Strain [mm/mm]
De
via
tory
Str
ess
, [p
si]
Axial strain
Radial strain
Radial strain [mm/mm] Axial Strain [mm/mm]
De
via
tory
Str
ess
, [p
si]
Axial strain
Radial strain
Radial strain [mm/mm] Axial Strain [mm/mm]
De
via
tory
Str
ess
, [p
si]
Radial strain [mm/mm] Axial Strain [mm/mm]
De
via
tory
Str
ess
, [p
si]
Axial strain
Radial strain
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
axial
axial
conf.conf.
LMPaxial
axial
conf.conf.
LMP
Radial strain [mm/mm] Axial Strain [mm/mm]
De
via
tory
Str
ess
, [p
si]
Axial strain
Radial strain
Radial strain [mm/mm] Axial Strain [mm/mm]
De
via
tory
Str
ess
, [p
si]
Axial strain
Radial strain
Radial strain [mm/mm] Axial Strain [mm/mm]
De
via
tory
Str
ess
, [p
si]
Radial strain [mm/mm] Axial Strain [mm/mm]
De
via
tory
Str
ess
, [p
si]
Axial strain
Radial strain
Core calibration
Radial strain [mm/mm] Axial Strain [mm/mm]
De
via
tory
Str
ess
, [p
si]
Axial strain
Radial strain
Radial strain [mm/mm] Axial Strain [mm/mm]
De
via
tory
Str
ess
, [p
si]
Axial strain
Radial strain
Radial strain [mm/mm] Axial Strain [mm/mm]
De
via
tory
Str
ess
, [p
si]
Radial strain [mm/mm] Axial Strain [mm/mm]
De
via
tory
Str
ess
, [p
si]
Axial strain
Radial strain
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
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
Solutions - Commitment
• Partnership and understanding required• Collaboration between operators and service
providers• Combination of disciplines and expertise• First principles towards an ultimate goal
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
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