department for manufacturing, innovation, trade, resources ... manufacturing/paul... · 1...

1

Department for Manufacturing,

Innovation, Trade, Resources and Energy

Opportunities in Unconventional Gas

www.dmitre.sa.gov.au

By Paul Goiak

Director,Industry Participation

DMITRE

2

Industry Participation Office

PACE

Manufacturing DEVELOP

ICNSA CONNECT

MIPO FORECAST

Review results of

procurement packages

Improve industry

awareness

Pre-qualification

Match local suppliers

to project packages

Identify companies

to be developed

Capability development

programs

Promote

clustering

National Water

Sector Manager

Supply chain Gap

Analysis

Policy Development

Centres of

Excellence

Research &

Development

Attract new

competencies

Strategic Capability Development

MIPO Industry Development Process

Strategic interaction with Industry

Review of International/Developed Supply chains

South Australian scenario and opportunity identification

Prioritisation :- Barriers to entry, ease of execution, value

Project Execution

3

4

Why Shale Gas ?

• Global demand

increasing

• Export market

• Australian deposits

• Existing infrastructure

5

Impact of Shale Oil & Gas in Houston

6

Differences between Australia and the USA

• Road, rail and

pipeline network

• Service companies

• Geology

• Cost

7

Unconventional Gas Lifecycle

Exploration & Appraisal

Drilling Program

Completion

Production / Processing

Decommissioning

Seismic surveys

Pilot well program

Rig count increases

Wells drilled, logged, cased and cemented

Wells perforated

Hydraulic fracturing

$$$$

Well management

Processing plant

Plugging and sealing

of wells

8

Unconventional Gas Lifecycle

Appraisal to Development

Rapid increase in number of wells being drilled

• Seismic survey

• Data analysis

• Pilot drilling

• Reservoir

characterisation

• Development

Program

9

Unconventional Gas Supply Chain Opportunities

Appraisal & Development

Rig count increases

Wells drilled, logged, cased and cemented

• Lined ponds

• Land clearing

• Road construction

• Accommodation

• Water, gas & oil pipelines

• Rig maintenance services

10

Completion

Wells perforated


$$$$

• Proppant and

water

• Fraccing fleets

• Produced water

• Chemicals


11

Supply Chain Constraints

12

Where are the $$ spent?

13

Completion

Wells perforated


$$$$

• Proppant types


Completion

Wells perforated


$$$$


• Sand Processing Facility

Completion

Wells perforated


$$$$

• Essential equipment

Mixing tanks Storage Silos


Completion

Wells perforated


$$$$

• Essential equipment

Mixing rigs Fraccing Rigs


Production/Processing

Well management

Processing plant

• Separation units

• Storage tanks

• Flare units

• Flow lines

• Well maintenance.


Production/Processing

Well management

Processing plant

• Gas compression

• Vertical separators


Well Decommissioning

Plugging and sealing

of wells

• Dismantle well

head

• Plug well

• Seal well


Unconventional Gas – A key industry target

Opportunities identified and progressing

Five key opportunities identified as potentials for SA industry to develop

Two progressed through to business cases for project management

• Growing of the guar plant

- produces fracturing gel to release oil and

gas in wells

• The supply of proppants

- either frac sand or ceramics to ‘prop’ open

fractures to provide pathways for oil and

gas to flow

Unconventional Gas – A key industry target

Guar Trials – being developed

• Business case demonstrated potential

feasibility

• Committee established, SARDI, Uni of

Adelaide, SANTFA DMITRE

• $50k committed by DMITRE for trials

• Interest by petroleum producers to further

develop

• 4 trial crops planted across SA

• Positive growth rates with heat tolerance

recorded

• Harvest & scientific assessment in March

Unconventional Gas – A key industry target (cont)

Proppant supply in South Australia - developing

Investigations into two types of proppant;

1.Frac sand to supply Cooper Basin & eastern Australian CSG

2.Manufactured proppant alternative supplied from South Australia

Enormous quantities will be required for a fully developed unconventional gas scenario

in the Cooper Basin & other basins in Australia

- Business cases being developed

- Potential for industry partnerships

to develop opportunities

- Research and Development

collaboration with SA R&D

providers

- Opportunity for a new industry

Summary

Cost reduction and higher drilling success rates will be key

• Watch the rig count - leading indicator

• Get to know the supply chain - tier 1's

• Differences - USA / Australia

• Cost reduction - key driver in Australia

• Appraisal to development - increasing local content

• Familiar with standards (safety)

• Use government resources

• Industry/University collaboration importance


Department for Manufacturing,

Innovation, Trade, Resources and Energy

Industry Participation Office

Office of Manufacturing and Innovation, DMITRE:

Paul Goiak

Director, Industry Participation

Phone: 8303 2465

Email: [email protected]

www.dmitre.sa.gov.au

department for manufacturing, innovation, trade, resources ... manufacturing/paul... · 1...

Documents