ewp applied technology

7/31/2019 EWP Applied Technology

1/71

Gas and Oil Producing Shale

and Nonconventional OilOpportunity with Knowledge

and Technology

r. marc bustin


2/71

DEFINITION OF

UNCONVENTIONAL RESOURCES

hydrocarbon distribution controlled not necessarily by

buoyancy no obvious reservoir seal Low Matrix Permeabilities (


3/71

UNCONVENTIONAL GAS AND

RESOURCE PLAYS

TIGHT GAS SANDS

Continuous Deposition

Low Permeability

Both Traditional andBasin-Center Settings

COALBED METHANE

Self-Sourcing Reservoir

Gas Adsorbed in Coal

Requires Depressuring andUsually Dewatering

GAS and Oil Prod. SHALES

Self-Sourcing Plus TraditionalPorosity Reservoirs

Gas Adsorbed in Organic Matter

Requires Pervasive NaturalFract. Network or K pathways

RESOURCEPLAYS

Kuuskraa, 2006

METHANEHYDRATES


4/71

UNCONVENTIONAL GAS AND

RESOURCE PLAYS

TIGHT GAS SANDS

Continuous Deposition

Low Permeability

Both Traditional andBasin-Center Settings

COALBED METHANE

Self-Sourcing Reservoir

Gas Adsorbed in Coal

Requires Depressuring andUsually Dewatering

GAS and Oil Prod. SHALES

Self-Sourcing Plus TraditionalPorosity Reservoirs

Gas Adsorbed in Organic Matter

Requires Pervasive NaturalFract. Network or K pathways

RESOURCEPLAYS

Kuuskraa, 2006

METHANEHYDRATES

opportunity


5/71

unconventionalreservoir rock

conventionalreservoir rock

UNCONVENTIONAL OIL PLAYS

modified form Russum, 2010

Conventional Oil in Unconventional RocksUnconventional Oil in Conventional Rocks


6/71

Russum, 2010

0

opportunity

opportunityopportunity


7/71

opportunity - understanding andevaluating rock systems and application of

appropriate technologies can result in

commercial exploitation of hydrocarbon

resources previously considered sub

economic

assess to opportunity- network ofcontacts and companies who want to dobusiness and savvy to make it work


8/71

East-West Competitive Advantage

experienced technical professionalsaccess to ideas, technology and innovation

strong committed board of directors

business savvy strong and very very aggressive financial

support

access to opportunity- strong land positionand access to much more


9/71

GAS SHALES- source rocks with retained HCs

Cap Rock

Source Rock

Reservoir Rock

Gas

Oil

Gas and Oil

Burial ofOrganic Rocks

Kerogen

Biogenic Gas

ThermogenicGas and Oil

Wet Gas

Dry Gas

background

Oil & Gas Shales- source rocks with retained HCs


10/71


Cap Rock

Source Rock

Reservoir Rock

Gas

Oil

Gas and Oil


Kerogen

Biogenic Gas


Wet Gas

Dry Gas

Antrim

Eagleford

Haynesv.


background

GreenRiver


11/71



12/71


heavy oilreservoir access

tight rock


13/71


Cap Rock

Source Rock

Reservoir Rock

Gas

Oil

Gas and Oil


Kerogen

Biogenic Gas


Wet Gas

Dry Gas

Antrim

Eagleford

Haynesv.

0.38 nm

background



14/71

Complexities and Predictions

ANTRIM SHALELEWIS SHALEOHIO SHALE

facies controlled permeability

fracture or fraced controlled permeability

haynesville barnett fayetville woodford ohio lewismontney eagle ford

background


15/71

Definition: Gas/Oil Shale

Shale gas/oil is defined as a fine grained

reservoir in which gas/oil is self sourced andsome of the gas is stored in the sorbed state

Sorbed gas is predominately stored in theorganic fraction so organics present

Not just shaleBustin, 2005, AAPG

Background

Clay


16/71

Classify Petroleum Systems as

Conventional

USGS 2003


17/71

orContinuous

USGS 2003


18/71

Characteristics of Continuous

Accumulations Regional in extent

Diffuse boundaries

Low matrix permeabilities

No obvious seals or traps No hydrocarbon/water contacts

Close to or are source rocks with non expelledhydrocarbons

Low recovery factors Includes tight sandstones, coalbed gas, oil andgas in shale and chalk


19/71

NATURAL GAS PYRAMID

HighQuality

Medium Quality

Low Quality

Tight Gas Sands

CBM Gas Shale

Low Btu Gas Hydrates / Other

1000 md

100 md

1 md

0.00001 mdProduced

Reserves

Undiscovered ResourcesNew Fields CBM

Tight Gas Gas Shales Low Btu

Emerging / Future ResourcesSub-Volcanic New Gas Shale New Tight Gas

Deep CBM Basin-Center

Gas Hydrates / Other

technology price


20/71


21/71

0.5 mm

Eagle Ford ShaleWet BarnettWet MarcellusDuvernay


22/71


23/71

Implications of the New Gas Shale World


24/71

What are the World Gas ShaleResources and Reserves?

estimates based on source rock studies withassumptions about how much gas retained in sourcerocks

-Rogner 1997 estimate Resource Endowment at 16,119TCF-US NPC estimates total unconventional at about 32 000TCF

-IEA World Energy Endowment assumes 40% ofendowment is recoverable 6350 TCF

-so we are pretty much making intelligent guesses.....

Estimates of World Wide Distribution of Unconventional Gas Resources


25/71

US NPC SPE 68755

Region CoalbedMethane (TCF)

Shale Gas(TCF)

Tight Gas(TCF)

Total(TCF)

North America 3017 3842 1371 8228

Latin America 39 2117 1293 3448Western Europe 157 510 353 1019

Central and East

Europe

118 39 78 235

Former Soviet Union 3957 627 901 5485

Mid East & NorthAfrica

0 2548 823 3370

Sub-Saharan Africa 39 274 784 1097

Centrally planned Asia

and China

1215 3528 353 5094

Pacific (OECD) 471 2313 705 3487

Other Asia Pacific 0 314 549 862

South Asia 39 0 196 235

World 9051 16112 7406 32560

Estimates of World Wide Distribution of Unconventional Gas Resources

Source: "Tight Gas Sands", Journal of Petroleum Technology, June 2006, Page 86-93.Table 1 - Distribution of Worldwide Unconventional-gas resources (After Rogner 1996, Taken from Kawata and Fujita 2001)


26/71

North American Gas Production Forcast

EnCana, 2010, IP


27/71

Producing Shale

Plays

Horn River100-150 Bcf/sect.

Montney100 Bcf/sect.

Barnett140-160Bcf/sect.

Fayetteville25-65 Bcf/sect.

Haynesville150-200 Bcf/sect.

Marcellus

45 Bcf/sect.

Woodford

100 Bcf/sect.

Antrim6-15 Bcf/sect.

Utica45 Bcf/sect.

Lewis40 Bcf/sect.

Ohio5-10Bcf/sect.

New Albany7-10Bcf/sect.

Eagle Ford50-150 Bcf/sect.

Duvernay? Bcf/sect.

? Oil

green denotesliquids production

based mapmodified from

EnCana IP. 2009


28/71

TransCanada Pipeline (June 2010, Investor Presentation)

Projected Gas SupplyTransCanada Pipeline


29/71

EnCana Investor Presentation, 2010

Trend to fewer wells with longer lateral lengths


30/71

Range Resources, April 2010

Trend to fewer wells with longer lateral lengthswith more frac stages


31/71

Southwest Energy, March 2010

the learning curvecontinuesto flatten


32/71

The costs of shale gas

Source: Chesapeake Energy:January 2010 Investor Presentation

Source: Vello Kuuskraa, President of ARI Inc, in presentation to the Copenhagen summit, 12December 2009


33/71

Horsfield and Schulz, 2010 AAPG

unconventional opportunities exist where ever


34/71

Conventional Gas Distribution

Source: Oil and Gas Journal

unconventional opportunities exist where everconventional production existsand many other areas


35/71

Geological Characteristics Common to

Producing Gas and Oil Producing Shales

Organic rich

Marine to transitional marine

Interbedded source and seal Comparatively thick

Permeability enhanced by fracturing

or interbedded facies with higher

perm.


36/71

What gas/oil shale properties are

important?

gas/liquid composition

gas and liquid capacity and content-sorbed and free gas

permeability- fracture or facies controlled

thickness

lateral extent ease of completion, reservoir access


37/71

SOME EXAMPLES


38/71

Ohio

Lewis

Background

New Albany

SOME EXAMPLES

Barnett

Antrim

Outcrop


39/71

TEM

50 000 nm

SEM

Background

Shales are heterogeneous rocks

200 000 nm

Outcrop

HandSpec.

Light

FESEM

200 nm
http://ccm.geoscienceworld.org/content/vol52/issue5/images/large/08-08.jpeghttp://ccm.geoscienceworld.org/content/vol52/issue5/images/large/08-08.jpeghttp://ccm.geoscienceworld.org/content/vol52/issue5/images/large/08-08.jpeg


40/71

4500

Background

Pressure and Temperature Space of

Producing Shales

0 20 40 60 80 140

0

1500

3000

Temperature C

Barnett

LewisOhio

New AlbanyAntrim

Pressur

e(PSIA) Woodford

CaneyFayetteville

Eagle Ford

Muskwa

Haynesville

UticaMarcellus

Maturity and Organic Matter Content


41/71

Maturity and Organic Matter Content

Background

1.6

Antrim

New Albany

Barnett

BIOGENIC GAS

OIL WINDOWRomax(%)

0

0.4

0.8

1.2

TOC (%)0 4 8 12 16 20 24

THERMOGENIC GAS

WoodfordCaney

Fayetteville

Muskwa

2.0Haynes-

ville

Eagle FordUtica

Marcellus

Ohio

Lewis

C l iti d P di ti


42/71

Complexities and Predictions

ANTRIM SHALE

LEWIS SHALEOHIO SHALE

facies controlled permeability

fracture or fraced controlled permeability

Muskwa/O

tterPark/Evie

Nordeg

g

Buckinghorse

Shaftsbury

Montne

y


43/71


44/71

What We Know!

rocks referred to as gas/oil shales

range from true shales to tight sands

individual formations, members orunits within a shale unit may be

extremely heterogeneous in

mineralogy and fabric and hence poresystem and flow characteristics

Gas/Oil Shale Model


45/71

Shale

Mapping TOC

ThicknessTOC

Geochemistry

Gas CapacitiesAdsorbed Gas

Free Gas Solution Gas

Producibility

Moisture

Maturity

Al2O3 fraction

Fracturing

Temperature

Pressure

Area

PorositySedimentology

Diagenesis Silica contentsCoarser horizons

Gas/Oil Shale Model

So, Sg, Sw,

Permeability

Wireline logs


46/71

fabrics/

fracturesthickness

effective

stress

permeabilitydiffusivity

Reservoir exploration

anddevelopment

TOC

Porosity

gas in place

gas in place deliverability


47/71

fabrics/

fractures

effective

stress

permeabilitydiffusivity


anddevelopment

TOC

Porosity

thickness

gas in place


Outline


48/71

Factors Governing OOIP & GIP in Shale

Area

Thickness

Pressure

Temperature

Porosity

Gas Saturation

Area

Thickness

Pressure

Temperature

Total Organic

Content

Maturity

Free Gas in Poresand Fractures

Adsorbed Gas

Total Gas = Free Gas + Adsorbed Gas+Solution Gas

Solution Gas

Area

Thickness

Pressure

Temperature

Total Bitumen/

Liptinite content

Maturity

BACKGROUND

Isopach Net and Gross PayFrac barriers


49/71

OGIP Workflow Frac barriers

Structure Map

Vertical Depth

Temperature Gradient

Pore pressure Gradient

Bulk density

AdsorbedGas

Free

Gas +Liquids

Solution

Gas

AdsorptionIsotherms onsamples ofvarying TOC

MeasurementTOC onrepresentativesamples

Calibrationwell logsto TOC

Interpolationadsorbed gasthrough payinterval viacalibrated logs

Measurementof pore

compressibility

Measurementtotal porosity,Sw, Sorepresentativesamples

Calibrationporosity, Sw

and So towell logs

Interpolationfree gas + HCliquids innet pay viacalibrated logs

Measurementor calculationgas solubilityreservoir P & T

& salinity

Measurementtotalmobile water

Interpolationof solution gasthrough payinterval viacalibrated logs

Calibrationporosity, Swand So towell logs

TOTAL OGIP = adsorbed + free + solution gas + liquid HCs

GasCompositio

n

Canister Desorptiongas sampling f(t)

Gas Chromatographyisotopic analyses

Accessible OGIP = Total OGIP/m3 Stimulated Reservoir Volume

sample basedlog based


50/71

type curves are decline curves that are anticipated to (or do) reflect the

production profile of a well with a particular completion (ie laterallength, number of stages etc.) and represents the P50 case

at exploratory stage type curves of what are considered to be

analogous reservoir are used with early production IPs are

manipulated and later b

typically operational changes and more stages result in higher IPs with

typcally similar curve shapes

Applying Type Curves

number of stages

EnCana, 2009 IP


51/71

fabrics/

fractures

effective

stress

permeability

diffusion


and

development

TOC

Porosity

thickness

gas in place


Geomechanics Rock Mechanics


52/71

whether a rock is currently fractured and its ability to

be fractured are dependent on mechanical propertieswhich vary with mineralogy, fabric and diagenesis andhence stratigraphy

goal is to develop a geomechanical model of the

potential reservoir to assist in drilling, completions,and development

Geomechanics- Rock Mechanics

the future is mechanical stratigraphy


53/71

required for:

predicting orientation of frac (SRV) density, width and orientation of natural fractures optimal direction for horizontal wells for stability

and for intersecting fractures that are open borehole stability change in reservoir permeability during production

requires knowledge of: in situ stress orientation and magnitude

pore pressure pre existing rock fabric and moduli thermal and chemical state of reservoir and fluid

system


54/71

0000

appears most thermogenic gas and oil shales have FEW pre-existing fractures or those that exist are healed

object then is to shatter the rock during fracing to increase the

surface area available for drainage maximize the stimulated reservoir volume

not to connect to a pre-existing fracture network many shales do not have a pre-existing k network


55/71

0000

appears most thermogenic gas shales have FEW pre-existingfractures or those that exist are healed

object then is to shatter the rock during fracing to increase the

surface area available for drainage maximize the stimulated reservoir volume

not to connect to a pre-existing fracture network many shales do not have a pre-existing k network

Strong correlation between SRV


56/71

0

20

40

60

80

100

0 20 40 60 80 100 120 140 160Effective NormalStress (Residual), s , MPa

SheraStress,

t

,

MPa

Mohr's circle at 14 MPa Mohr's circle 31 MPa Coulomb failure Envelope

Friction Angle = 44.19

Linear Cohesion = 7 MPa

Stimulated Rock Volume (SRV) and shape ofSRV is a function of the in situ stress field,mechanical properties of the rocks and fracdesign and execution

Mayerhofer et al SPE 102103

gand production (excellentcorrelation between number ofstages at IP)

Hmin=Hmax

Hmin>>Hmax

SRV estimated from microseismic

SRV function of completion

completion function of in situstress, rock properties and designand implementation of frac


57/71

Geomechanics and


58/71

Diffusion/

MassFlow

MatrixBlock

Darcy Flow

Coals- fracture (cleat)spacing is so low thatmatrix perm/diffusion is

not considered ratelimiting

Shales- fracture spacingis commonly >5 cm andmatrix perm/diffusion

may be rate limiting

Geomechanics andPermeability/Diffusion Rate

P bilit /Diff i


59/71

Permeability/Diffusion

reservoir perm requires well tests

matrix perm/diff can be measured inlab

Diffusion/Advection

5 nm

Desorption

controlling variables


60/71

controlling variables

fracture permeability

fracture fabric

effective stress

rock mechanics

matrix permeability/diffusion

induced during fracs

existing fabric

depth

far field stressmoduli

mineralogyfabric

mineralog

yfabriceffectivestressrockmechanics

gascomposition

deliverabilitypressure/temperature/fluid properties

fracture spacing

I t t d O ti i ti


61/71

Integrated OptimizationProcess

Quirk, 2010

Integration Optimization


62/71

Integration Optimization

Process 1. It helps answer the questionsHow many

fracs do I need in my horizontal wellbore? How

big should my fracs be?

2. It integrates many types of data into onereservoir package, maximizing value for your

information.

3. It provides a way to model fractures in the

complex fracturing we find in shale gas

reservoirs (i.e. Horn River/Barnett).

The process can be used in any reservoir.

Quirk, 2010

I f ti th t C ll ti Mi i i D t t


63/71

Information that Collecting a Microseismic Dataset

Provides

Fracture Azimuth Fracture Length

Fracture Height

Fracture Complexity Calculation of Stimulated Reservoir Volume

Evaluation of the effectiveness of the

completion system

Calibrated Fracture Modeling and Integration

of Microseismic into a Reservoir Simulator

Quirk, 2010


64/71

Trican fracing shale well in north eastern British Columbia


65/71

Horn River Basin

11 mapped slickwater stages

Generally complex fracturing

Long fracture half lengths

NE-SW fracture azimuth

Stimulated Reservoir Volume

(SRV) is crucial to production

Portions of the horizontal are

under-stimulated

Apache Website

Horn River Basin from

http://www.apachecorp.com/Resources/Upload/PrevArticleFiles/files/Apache_2008_Analyst_Review_08_Canada.pdf


66/71

Conclusions

Low permeability reservoirs require large SRVs withsmall fracture spacing and adequate frac conductivity

Important to understand parameters in the reservoir that

will create complexity so fracture spacing in the SRV can

be understood Engineering measures to increase SRV and frac spacing

Length and orientation of horizontal well

Treatment size

Number of stages, number of perf clusters More stages and clusters in a cased/cemented completion

increased likelihood of dense fracturing

Zipper fracs, Simul-fracs

developing a strategy ranking


67/71

developing a strategy, ranking

prospects.....where do you start?vast resources of gas in tight rock either sorbed or free state how do you explore?

screens:

1. thickness

2. lateral extent

3. toc

4. maturity

5. mineralogy6. reservoir accessibility

7. rock mechanics

8. frac barriers

9. fluid sensitivity

10. reservoir pressure

11. cost

12. Poissons Ratio13. Mud logs./shows

need to know at start ifthere is enough gas inplace to warrant the cost

of exploring andcompletion what is thesize of the prize)

development risk

max. SRV; optimization ofdrilling and completions


68/71

AttributesLithology fine grained, will indurated

Thickness > 40 m

Current TOC >1% (min. not known)

Effective Porosity to Gas >2.5%Young Modulus > 4 mmpsia

Poisson's Ratio


69/71

Matrixporosity

MatrixPerm.

Maturity In SituStress

Pressure E

PROSPECT WINDOW

Depth\Diagen

esis

summary

Matrix Matrix TotalRock


70/71

Matrixporosity

MatrixPerm.

TotalGas

ocMechanics/Fractures

PROSPECT WINDOW

Depth\Diagen

esis

optimum zone

trade off betweenmany variables and

will be shalespecific

summary


71/71

ewp applied technology

Documents