PowerPoint Presentation

The Evolution of EnergyFrom Scarcity to Abundance

Unconventional Hydrocarbon Resource Researchat West Virginia University

Tim Carr

RTitle The Revolution of Energy From Scarcity to AbundanceAuthors - Timothy R. CarrAffiliation - Department of Geology and Geography, West Virginia University, Morgantown, West Virginia, USA.1The REvolution of EnergyUS Surpasses Russia as the Worlds Largest Energy Producer (Liquids and Natural Gas)Geopolitical UpheavalInfrastructure UpheavalAppalachian Basin Gas Production2008 - 2.3% of US Production2012 - 11% of US Production2020 - 30% of US Production Northeast Self Sufficient?Natural Gas PriceNYMEX Crude Oil Natural Gas Ratio, historical Norm 7.5X before 20072008 54X, Now Averaging 30XHenry Hub Spot $3.73 MMBtu (10/11/2013)Marcellus NE PA $1.94 MMBtu (10/11/2013)Impact on Consumers and EnergySlide 2The ratio between crude oil and natural gas (NYMEX) futures yesterday was 27.7. That is crude prices in $/Bbl were 27.7 X natural gas prices in $/MMbtu. The ratio today is far higher than its historical norm of 7.5X before 2007. It started to increase in 2008 and reached 54 X last year when gas prices crashed below $2/MMBtu. This year the ratio has averaged 27 X and has shown no clear trend up or down. The ratio is important because it underpins two of the key features of the shale boom to the US economy - cheap energy in the form of natural gas and higher prices for refined product and petrochemical exports.2Unconventional Hydrocarbon Resource ResearchMultiple Research Areas (Applied and Basic)Subsurface EfficiencyGeographic Information SystemsSubsurface ImagingGeocellular Modeling (Static and Dynamic)Microbial DiversitySurface ImpactsDrilling FluidsLand UseWater ProtectionUtilizationSocietal/PolicyOverseas Poland, Jordan, ChinaEducationHigher Education/Professional EducationPublic OutreachLand Grant MissionSlide 33West Virginia University and Ohio State University PartnershipDeep Shale Microbial Biodiversity (NSF)Paula Moser OSU Shikha SharmaGeographic Information SystemsLand Use -Shawn GrusheckyGeologic Petroleum Engineering ModelingGeophysical ImagingDrilling FluidsIlkin Belgesu WVU Jeff DanielsSocietal/Policy/OverseasMOU Polish Technical Universities Robert BlobaumShale Energy and Environment Laboratory (SEEL)Transparent Utica and Marcellus Wells

Slide 44Primary Representative - Tim CarrCommunications - Trina Wafle

WVU Steering CommitteeWVU Research VPFred KingWVU Steering CommitteePrimary Representative Jeff DanielsCommunications - Gina Langen

WVU Steering CommitteeOSU Research VPCaroline WhitacreOSU Steering CommitteeGlobal Unconventional Resource Basins http://www.unconventionalenergyresources.com/Slide 7

North America shale basins showing the location of active and potential unconventional oil and gas shale plays. Active shale gas and oil plays that have been assessed as part of a study funded in part by the National Energy Technology Laboratory of the US Department of Energy are highlighted. Active areas of the Utica and Marcellus shale plays are labeled. Information is available online at (http://www.unconventionalenergyresources.com/).7

UticaMarcellusNorth America Unconventional Resourceshttp://www.unconventionalenergyresources.com/Slide 8North America shale basins showing the location of active and potential unconventional oil and gas shale plays. Active shale gas and oil plays that have been assessed as part of a study funded in part by the National Energy Technology Laboratory of the US Department of Energy are highlighted. Active areas of the Utica and Marcellus shale plays are labeled. Information is available online at (http://www.unconventionalenergyresources.com/).8West Virginia ProductionSlide 9

74%West Virginia ProductionSlide 10

West Virginia Marcellus Horizontal Wells Reporting ProductionYearWellsPadsWells/Pad2007221.0200811101.1200959401.52010164931.820113571622.220126402232.90.4%West Virginia ProductionSlide 11

37%West Virginia ProductionSlide 12

2%Marcellus and Utica ProductionSlide 13

82%Marcellus and Utica ProductionSlide 14

29%Marcellus Horizontal Wells Through 2012

8,440 Horizontal Wells & Locations200 KmSlide 15GIS - Surface DisturbanceSlide 16

Shawn Grusheky and WV GIS Tech CenterGlobal Unconventional Resource Basins Slide 17

Metabolic Activities and Trophic NetworkMicrobial Community DynamicsPaula Mouser and Shikha SharmaNorth America shale basins showing the location of active and potential unconventional oil and gas shale plays. Active shale gas and oil plays that have been assessed as part of a study funded in part by the National Energy Technology Laboratory of the US Department of Energy are highlighted. Active areas of the Utica and Marcellus shale plays are labeled. Information is available online at (http://www.unconventionalenergyresources.com/).17Geocellular ModelingWang and Carr, 2012

Slide 183D Geocellular ModelingSlide 19Wang and Carr, in press

Marcellus Shale lithofacies 3D model by sequential indicator simulation algorithm: (a) Top of Otaka Creek Member in 3D view; (b) Top of Union Spring Member in 3D view; (c) cross sections; (d) fence diagram zoomed into Pennsylvania and north West Virginia.19Subsurface Imaging

Faults from Arcadian OrogenySlide 20Ineffective Fracture Stimulation

Each square 500 x 500 feetJ1J1A1Microseismic, Inc.Slide 21West Virginia UniversityNew ProgramsNew Faculty HiresDownstream UtilizationProduction of Fuels and ChemicalsCombustion in stationary SourcesMobile Vehicle SystemsEnhanced Applications Fuel Cells, Waste Heat UtilizationEnergy Policy and Economic DevelopmentRegulatory AspectsRegional AnalysisSustainabilityShale Energy and Environment Laboratory (SEEL)Ohio State University-West Virginia UniversityTransparent Utica and Marcellus Wells

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Tim CarrPhone: 304.293.9660Email: tim.carr@mail.wvu.edu

Thank YouSlide 2323