Shale Gas - Risks & Overview

557 views
459 views

Published on

Published in: Education, Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
557
On SlideShare
0
From Embeds
0
Number of Embeds
24
Actions
Shares
0
Downloads
21
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Shale Gas - Risks & Overview

  1. 1. What Is Acceptable Shale Oil and Gas Development?
  2. 2. What Is Acceptable Shale Oil and Gas Development?
  3. 3. Shale gas characteristics • Two key technologies: Horizontal drilling and hydraulic fracturing • Large areas • Vast numbers of wells • The true extent of reserves in a given play emerges only with Multiple wells Source: Geology.comSource: Irvine Energy plc
  4. 4. Important distinctions Conventional vs unconventional High quality conventional gas Low quality conventional gas Tight gas Coalbed methane Shale gas Gas hydrates Volume Technologicalrequirements,costs Free vs associated • Natural gas may be free or associated, i.e., dissolved in oil or located in a cap of free gas above the oil • Associated gas may have low production costs but may also as a by-product present inflexibility problems – A challenge to OPEC oil producers • Associated gas may be marketed but is often reinjected or flared Source: World Bank’s GGFR Programme
  5. 5. Shale gas opportunities outside North America • Most screening to date has amounted to looking for analogues to the successful US shale basins • Key criteria: – Onshore – Gas prone – Organically rich – Volumetrically extensive – Thermally mature – Passable permeability – Brittle – Frac barriers – Shallower than 4000 m • Also favourable fiscal framework conditions, availability of land, availability of services, infrastructure, gas demand, local support… • Tough to find opportunities that match all requirements!
  6. 6. What is ACCEPTABLE? The right set of practices? The right set of regulations?
  7. 7. Current Practices Community and Environmental Risks Community and Environmental Risks Which Risk Scenario Do You Believe? A B Current Practices Designed to Mitigate Risks
  8. 8. Center for Strategic and International Studies Washington D.C. Strategic insight, bipartisan policy
  9. 9. Key Finding 1: Resource base is enormous and readily available but industry and regulators are in the early stages of learning how to optimize the value of the resource. Key Finding 2: Availability of relatively affordable natural gas can create jobs, spur economic growth and support important manufacturing sectors.
  10. 10. Gas Crude Oil Pipeline Associatedgas Non-Associated gas Liquefaction Syngas Gas To Liquids (GTL) Refined Oil Products Chemical Reaction Gas to Power/ Residential & Commercial LNG for Export LNG for Transport Gas to Chemicals Possible Gas Pathways Key Finding 3: Several key domestic energy and environmental policies will drive greater U.S. domestic gas consumption and, along with natural gas exports, can provide an important stabilizing element for gas development. Copyright Royal Dutch Shell
  11. 11. Key Finding 4: Development risks are manageable today but understanding risks and evolving cost-effective risk management approaches is a long term, continuous process. Image courtesy of Anadarko Key Finding 6: Public acceptance of unconventional gas development is a critical issue and the ability to manage risks must be demonstrated. Key Finding 5: Technology innovation is key to production, risk management and demand.
  12. 12. Excess noise, road damage Induced Seismicity Air Quality Non- attainment State regulations Injection volumes Increased traffic accidents % water recycled Excessive GHG Emissions Disposal methods/volumes GW Degradation Surface Water Degradation Regional Water Depletion Ecosystem Degradation Land Disturbance PW/FF volumes Shale Gas Develop ment RISKS RISK FACTORS Air Issues Community Impacts Water Issues Land Issues Rule violations Regional water use % water recycled Federal regulations Well casing procedure Fresh water use # of wells Rule violations # of horizontal wells Fresh Water use State regulations PW/FF volumes # of horizontal wells # of wells % water recycled Disposal methods/volumes # of wells Pad density Disposal methods/volumes % green completions % water recycled % water recycled % water recycled % water recycled % water recycled
  13. 13. Water Sources and Demand for the Hydraulic Fracturing of Oil and Gas Wells in Colorado from 2010 through 2015 Colorado Division of Water Resources Colorado Oil and Gas Conservation Commission Colorado Water Conservation Board http://cogcc.state.co.us/Library/Oil_and_Gas_Water_Sources_Fact_Sheet.pdf
  14. 14. WATER ACQUISITION Approximately 3 MG is required for HF of horizontal wells Potential Impact: • Regional water supplies can be depleted • Transport of water can lead to excess truck traffic CHEMICAL MIXING Water is combined with proppant and chemicals to make HF fluid. Potential Impact: • Spills or leaks can contaminate ground or surface water WELL INJECTION Pressurized HF fluid is injected into well to create fractures Potential Impact: • Breach of well casing can contaminate aquifer • Fractures can intersect natural fractures contaminating aquifers FLOWBACK AND PRODUCED WATER When pressure in the well is released, HF fluid, formation water and gas flow back. These fluids are temporarily stored on site. Potential Impact: • Spills or leaks can contaminate ground and surface water. • Gases can be released WASTEWATER TREATMENT AND DISPOSAL Wastewater must be disposed either through injection, evaporation or recycling/reuse. Potential Impact: • Faulty disposal methods could lead to contamination of water resources.
  15. 15. Excess noise, road damage Induced seismicity Air quality non- attainment State regulations Injection volumes Increased traffic accidents % water recycled Excessive GHG emissions Disposal methods/volumes Drinking water contamination Water quality degradation Regional water depletion Ecosystem degradation Land disturbance PW/FF volumes Shale Gas Develop ment RISKS RISK FACTORS Air Issues Community Impacts Water Issues Land Issues Rule violations Regional water use % water recycled Federal regulations Well casing procedure Fresh water use # of wells Rule violations Degree of monitoring Fresh Water use State regulations PW/FF volumes # of horizontal wells # of wells % water recycled Disposal methods/volumes # of wells Pad density Disposal methods/volumes % green completions % water recycled HAP health impacts Degree of monitoring Rule violations Setback rule Setback rule
  16. 16. Materials and Energy Balance for Oil and Gas Well Cflowback Well Edrilling Efrac Ein Eoil Egas Qdrill Qfrac Qflowback Qproduced Cproduced Water Treatment and Disposal Qrecycle Crecycle Etreat QevapQinject ENERGY IN ENERGY OUT WATER IN WATER OUT
  17. 17. Wattenberg Field
  18. 18. Water Intensity Cflowback Well Edrilling Efrac Ein Eoil Egas Qdrill Qfrac Qflowback Qproduced Cproduced Water Treatment and Disposal Qrecycle Crecycle Etreat QevapQinject ENERGY IN ENERGY OUT WATER IN WATER OUT
  19. 19. Fluids Management Air Toxics Frac flowback handling Water Disposal Truck Traffic Water Acquisition Road Damage GHG Emission s Surface Spills GW Degradation Surface Water Impacts Water Use Regional Water Depletion Ecosystem Impact Air Issues Community Impacts Water Issues Land Issues Land Disturbanc e Well pad design Leaks Truck traffic
  20. 20. Excess noise, road damage Induced seismicity Air quality non- attainment State regulations Injection volumes Increased traffic accidents % water recycled Excessive GHG emissions Disposal methods/volumes Drinking water contamination Water quality degradation Regional water depletion Ecosystem degradation Land disturbance PW/FF volumes Shale Gas Develop ment RISKS RISK FACTORS Air Issues Community Impacts Water Issues Land Issues Rule violations Regional water use % water recycled Federal regulations Well casing procedure Fresh water use # of wells Rule violations Degree of monitoring Fresh Water use State regulations PW/FF volumes # of horizontal wells # of wells % water recycled Disposal methods/volumes # of wells Pad density Disposal methods/volumes % green completions % water recycled HAP health impacts Degree of monitoring Rule violations Setback rule Setback rule
  21. 21. RISK or CONCERN Air toxics released during well development/operation impact health Develop baseline, is it being maintained? MEASURE & REPORT Real-time monitoring of VOCs in air Compare measurements to baseline BEST PRACTICES 1) Utilize reduced emission “green completion” techniques 2) Use closed loop fluid handling methods to prevent release of VOCs Use air quality data to evaluate practice efficacy Potential Solution Framework
  22. 22. Potential Solution Framework Water quality sensors Air quality sensors Telemetry Public Web Interface

×