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Manitoba 2011-12 Oil Activity
Review
Bismarck, ND
May 22, 2012
20th Williston Basin Petroleum Conference
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• Manitoba 2011-12 Oil Activity
• Bakken – Three Forks Play
• Lower Amaranth (Spearfish) Play
• Public Concerns
Record Breaking Year
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Manitoba Drilling Activity
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0
20
40
60
80
100
0
100
200
300
400
500
600
05 06 07 08 09 10 11
% of Total Completions
Wells Completed
Bakken-3 Forks L. Amaranth % of Total Completions
Manitoba Completion Activity
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MANITOBA OIL FIELD MAP
>6 wells drilled per Township 0 wells drilled per Township
1-5 wells drilled per Township Oil Field Boundaries
Producing oil wells (colour corresponds to Period in Strat. column)
Oil shows (colour corresponds to Period in Strat. column)
(Where Devonian oil show occurs in Devonian producing area, show is deeper than surrounding producing wells).
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Manitoba’s Top Drillers – 2011
578 wells drilled by 28 different companies
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Manitoba Daily Oil Production
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0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,0001
99
5
20
00
20
05
20
10
BB
L
Year
Annual Production
Bakken
Mississipian
Triassic
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Initial Oil Production (Oil per Hour (m3))
Data presented in NAD 83 Zone 14 co-ordinates.
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Bakken TVD(m)
Subcrop edge of the Bakken Formation
BAKKEN -THREE FORKS PRODUCERS
400
600
800
1000
1200
1300
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BAKKEN -THREE FORKS PRODUCERS
LegendBakken Producing WellsOil Field Boundaries
Subcrop edge of the Bakken Formation
Bakken TVD(m)
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• Daily Production
17,325 BOPD Avg
• Waterflood Projects
12
Daly Sinclair FieldBakken- Three Forks
Completions
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LOWER AMARANTH DEVELOPMENT
Triassic Lower Amaranth WellsLower Amaranth / Mississippian WellsMississippian Mission Canyon WellsPool BoundariesField Boundary
Waskada Field
Pierson Field
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WASKADA FIELD DEVELOPMENT
Triassic Lower Amaranth WellsMississippian Mission Canyon WellsPool BoundariesField Boundary
Plotted on the Dominion Land Survey System Grid
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Common Public Concerns about Fracing
• Fracing can contaminate groundwater• Fracing uses a lot of water• Frac fluids are not properly managed • Fracing causes earthquakes• Frac fluid additives are toxic
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Fracing in Manitoba
• Fracing in Manitoba is regulated under
The Oil & Gas Act• Fracing has been used to increase oil production from
Manitoba wells for over 60 years • There is currently no shale gas development in
Manitoba• Manitoba has shale gas potential• Natural gas prices and other economic factors make
near-term shale gas development in Manitoba unlikely
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Protection of Groundwater
• There has never been a known case where fracing has resulted in groundwater contamination in Manitoba.
• In Manitoba, oil reservoirs are located 400 – 1000 metres below groundwater aquifers.
• This separation distance coupled with the regulatory requirements for the drilling, construction and operation of oil wells minimizes the risk of groundwater contamination from fracing.
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Frac Fluid Management
• Frac fluids in Manitoba are managed from cradle to grave
• Frac fluids are stored in tankage before being injected into a well
• Frac fluids produced back from a well are disposed of into an approved underground disposal zone using a disposal well permitted for that purpose
• Closed loop approach minimizes potential adverse environment impacts associated with fracing
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Fracing - Water Use
• Oil industry water use in Manitoba is regulated • Fracing operations in Manitoba use significantly less
water than shale gas fracing in other jurisdictions. • Average frac job in Manitoba uses 400 -700 cubic
metres of water• The average family of 4 uses 500 cubic metres of water
a year
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Fracing - Earthquakes• Seismic activity potentially resulting from fracturing measures less
than 3.5 on the Richter scale
Richter Scale (worldwide):
2 or less 8,000 / day Not felt
2 – 2.9 1,000 / day Not felt, recorded
3 – 3.9 49,000 / year Often felt, rarely causes damageNote: Each level on scale is 10 x stronger than the previous level
• Damaging earthquakes reported in the news have 10,000 times more energy than earthquakes linked to fracing
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Fracing – What’s Next• Oil industry has been proactive in adopting new policies and
procedures for fracing to address public concerns • Petroleum Branch is reviewing adoption of new guidelines and
regulations in Manitoba to ensure that fracing remains safe and public concerns are addressed
• Initiatives under review– Enhanced submissions requirements– Disclosure of frac fuid contents– Baseline water well testing – Collection of water source and usage date