J. Daniel Arthur, P.E., S.P.E.C.
ALL Consulting
2012 IEEE Green Technologies Conference
Tulsa, OK
April 19 -20, 2012
 Understanding
Environmental
Costs of Energy
 Energy in America
 Example ECOE
Analysis
 Shale Resource
Basics
 Conclu...
The Environmental Cost of Energy
 “Environmental Cost” as presented herein
is a euphemism for Impact
 Impacts are a change – the physical
demonstration o...
5
Clockwise from top to left
(1) Wind farm in San Gorgonio Pass, CA
(3,218 turbines – 615 MW installed
capacity, ~70 sq. m...
 All energy resources have
associated impacts (either
direct or indirect)
 Each requires materials,
manufacturing and
co...
7
 Concerns regarding energy
sources and energy use are high!
 Public concerns exist for every
energy source and every met...
The Environmental Cost of Energy
--------------Energy--------------
RenewablesTypes
Non-
renewables
Biomass
Fuels
Solar
Thermal
Wind,
Hydro
Photo-
voltaics...
 Some Sources are
Primarily Suited for
Certain Uses
 Nuclear – Electric
 Coal – Electric
 Petroleum –
Transportation
...
 Fossil fuels supply
84% of current
energy use
 Renewables supply
about 7%
 Wind, geothermal,
and solar supply less
tha...
 United States energy
consumption is expected to
grow 21% by 2035
 Much of the increased
demand will be for the
transpor...
 U.S. Economy is
dependent upon secure,
abundant, reliable, and
affordable energy
 Natural gas is a key
component of the...
 Clean burning
◦ About 50 % less CO2 than coal
◦ About 30% less CO2 than oil
 Secure
◦ 88 % of our natural gas is produc...
Water Intensity
Surface Disturbances
Visual Impacts
Air Emissions
16
 Raw fuel water intensity
is the amount of water
needed to extract, mine,
or grow materials that
are processed and later
...
 Includes the acreage disturbed in the
course of acquiring the fuel (e.g.,
mine, well, crop field, etc.) as well as
the s...
19
Wind Farm and Oil Field near Forsan, Texas.
Howard Glasscock
Oil Field
(Production initiated in
1925, current average
p...
 Biodiesel from soy has
the highest surface
disturbance/1,000 MW
 Solar surface disturbance
is 10 X higher than for
geot...
21
Wind
Turbine
1.5 MW
(262.46’)
Wind
Turbine
2.3 MW
(393.70’)
Statue of
Liberty
(301.25’)
Nuclear Hybrid
Cooling Tower
(1...
22
Source: U.S. EIA, “Table 1.1: Net Generation by Energy Source: Total (All Sectors), 1996 through March
2010),” Electric...
 All comparisons are
for “Light Duty
Vehicles” as
expressed in Pounds
of emissions per
1,000 miles traveled
 Gasoline em...
Introduction
History
Characteristics
Technologies
Environmental Considerations
24
 Shale O&G holds tremendous potential
for energy supply.
 Environmental considerations,
especially those related to high...
 First Commercial Gas well – Fredonia, NY (1821)
◦ NewYork’s “Dunkirk Shale” at a depth of less than 30 feet
 Ohio Shale...
27
Gas Shale Basin Barnett Fayetteville Haynesville Marcellus Woodford Antrim New Albany
Estimated Basin Area,
square mile...
Two technologies have made
shale gas economically
viable:
 Horizontal Drilling
◦ Allows greater contact
with the “pay zon...
 New Development
Areas/Urban
 Well Site Selection
 Traffic
 Wildlife
 Noise
 NORM
 Air Emissions
 Hydraulic Fractu...
 Fear and lack of
knowledge creates
trepidation among
mineral and non-
mineral owners
 Education of public
takes time
 ...
 Scrutiny and greater concern
because of proximity to
populous
 Local government
ordinances:
◦ Restrict operation times
...
Sound blankets and barriers
are often used for noise
mitigation in sensitive areas
32
• Directional lighting
has become common
• Illuminates well sites
for worker safety
• Directed downward
and shielded to
pr...
 Options vary by location
and operator
 Competing water users
and availability must be
considered
 Groundwater Use in
B...
 Groundwater
protection
 Fracturing fluid
chemistry
 Water sourcing
 Water disposal and
reuse
35
36
 Geology & lithology
 Coring and core analysis
 Geophysical logging
 3D Seismic
 Correlation Analysis
 Fracture grad...
 Fracturing a horizontal well uses 3 to 7
million gallons of water
◦ Delivered by truck or temporary pipeline
◦ Stored in...
39
• During a fracturing event, each stage is
continuously monitored to assure a
successful fracture treatment. Some of
th...
 Disclosure
becoming a non-
issue with FracFocus
and agency
disclosure rules
 There is a growing
trend toward
reduction ...
 Underground Injection
 Treatment and Discharge
 Treatment and Reuse
 Municipal/Commercial Treatment Plants
 Commerci...
Value of Using an ECOE Approach
Key Messages on Shales
Technical Recommendations on
Shale Development
42
 All energy sources have environmental costs
 Sound decisions about our energy future
require that the environmental cos...
 Typical analyses tend to focus on:
◦ Only one energy source, such as coal, natural gas,
wind, or solar, or
◦ Only one en...
 Can serve as the basis for objective
evaluation of different energy
sources
 Can help us get past emotion-laden
rhetori...
 Shale O&G Resources are widespread in North
America
 A game changing national resource
 Shale play development growing...
 Pre-site assessments and planning
are imperative for success!
 Developing baseline information is
critical
 The proces...
48
 Looking at the environmental
considerations associated with only
shale gas development doesn’t really
tell us much
 ...
Dan Arthur P.E., SPEC
darthur@all-llc.com
ALL Consulting
1718 S. Cheyenne Avenue
Tulsa, Oklahoma 74119
www.ALL-LLC.com
49
...
Upcoming SlideShare
Loading in …5
×

IEEE Presentation on Shale Resources and Environmental Cost of Energy

620 views

Published on

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

  • Be the first to like this

No Downloads
Views
Total views
620
On SlideShare
0
From Embeds
0
Number of Embeds
6
Actions
Shares
0
Downloads
11
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

IEEE Presentation on Shale Resources and Environmental Cost of Energy

  1. 1. J. Daniel Arthur, P.E., S.P.E.C. ALL Consulting 2012 IEEE Green Technologies Conference Tulsa, OK April 19 -20, 2012
  2. 2.  Understanding Environmental Costs of Energy  Energy in America  Example ECOE Analysis  Shale Resource Basics  Concluding Remarks 2
  3. 3. The Environmental Cost of Energy
  4. 4.  “Environmental Cost” as presented herein is a euphemism for Impact  Impacts are a change – the physical demonstration of the effect of energy production or use on the environment  The public often associates impacts as negative. However, not all are, and this should not mean that energy use has an overall detrimental impact on society. Quite the opposite: the advantages to civilization of energy systems are vast. 4 Hydroelectric impoundments may alter river ecosystems, but they also provide new recreational opportunities. Glen Canyon Dam, Lake Powell, AZ.
  5. 5. 5 Clockwise from top to left (1) Wind farm in San Gorgonio Pass, CA (3,218 turbines – 615 MW installed capacity, ~70 sq. miles) (2) BP oil spill, Gulf of Mexico (4.9 Mbbl spilled, ~ 8.33 MWh lost) (3) Sempra Energy Solar Farm, El Dorado, NV (10 MW installed capacity on 80 acres) (4) Mountaintop removal coal mine in southern WV (~625 – 1,000 acres) (5) Nuclear Reactor (Three-mile Island) (802 MW installed capacity, ~225 acres)
  6. 6.  All energy resources have associated impacts (either direct or indirect)  Each requires materials, manufacturing and construction  Most require land for facilities  Energy resources tend to have regional density variations & characteristics 6
  7. 7. 7
  8. 8.  Concerns regarding energy sources and energy use are high!  Public concerns exist for every energy source and every method of power generation.  Scientifically sound information that crosses all energy/power sources is scarce (virtually non- existent).  Decisions on our energy future are being made without understanding environmental costs across energy resources/types. 8
  9. 9. The Environmental Cost of Energy
  10. 10. --------------Energy-------------- RenewablesTypes Non- renewables Biomass Fuels Solar Thermal Wind, Hydro Photo- voltaics Fossil Fuels Nuclear Fuels Geothermal Heat Generator Electricity Chemical Nuclear Photosynthesis End Uses: Transportation Residential & Commercial Industrial Electricity Gas Oil Coal Fission Modified from Tester, J.W., E.M. Drake, M.J. Driscoll, M.W. Golay, and W.A. Peters. 2005. Sustainable Energy: Choosing among Options. Cambridge, MA: MIT Press. 10
  11. 11.  Some Sources are Primarily Suited for Certain Uses  Nuclear – Electric  Coal – Electric  Petroleum – Transportation  Some Sources are More Versatile  Renewables  Natural Gas Source: Adapted from Energy Information Administration, Annual Energy Review 2008, June 2009, Table 1.3 and Figure 2.0. 11 Percent of Source Used Percent of Sector Use Supply Sources (% of total) End Uses (% of total) s s
  12. 12.  Fossil fuels supply 84% of current energy use  Renewables supply about 7%  Wind, geothermal, and solar supply less than 1%  In 2008 the United States consumed over 99.2 quadrillion Btu’s of energy. Sources: Energy Information Administration, Annual Energy Outlook 2010, Early Release Overview, December 2009, Figures 3 and 7, pp. 4-9. 12 37.00% 24.00% 23.00% 9.00% 3.71% 2.38% 0.49% 0.35% 0.07% Petroleum Natural Gas Coal Nuclear Power Biomass Hydropower Wind Geothermal Solar Energy Use by Source
  13. 13.  United States energy consumption is expected to grow 21% by 2035  Much of the increased demand will be for the transportation and industrial sectors – which affects the energy sources that can meet that demand  Highlights the need to be able to make well-informed decisions in order to meet the energy and environmental challenges of the future Projection of Energy Consumption by Sector, 1980 – 2035 (quadrillion Btu) Sources: Energy Information Administration, Annual Energy Outlook 2010, Early Release Overview, December 2009, Figures 3 and 7, pp. 4-9. 13
  14. 14.  U.S. Economy is dependent upon secure, abundant, reliable, and affordable energy  Natural gas is a key component of the U.S. energy supply ◦ Provides 24% of U.S. energy needs ◦ Has significant expansion potential Source: EIA Annual Energy Outlook 2011 14
  15. 15.  Clean burning ◦ About 50 % less CO2 than coal ◦ About 30% less CO2 than oil  Secure ◦ 88 % of our natural gas is produced in the U.S. ◦ Imports come from Canada and Mexico  Versatile ◦ Heating ◦ Electricity ◦ Transportation 15
  16. 16. Water Intensity Surface Disturbances Visual Impacts Air Emissions 16
  17. 17.  Raw fuel water intensity is the amount of water needed to extract, mine, or grow materials that are processed and later used for electrical generation or transportation fuels.  Not all energy sources have raw fuel (e.g., wind, solar, geothermal, hydroelectric)  Natural gas and coal have the lowest water intensity of any raw fuels.  Corn ethanol and biodiesel have the highest water intensity 17 Sources: Matthew E. Mantell (Chesapeake Energy Corporation), “Deep Shale Natural Gas: Abundant, Affordable, and Surprisingly Water Efficient,” paper prepared for Presentation at the 2009 GWPC Water/Energy Sustainability Symposium, Salt Lake City, Utah, September 13-16, 2009; and U.S. DOE, “Energy Demands on Water Resources,” report to Congress on the Interdependency of Energy and Water (December 2006), Table B- 1.
  18. 18.  Includes the acreage disturbed in the course of acquiring the fuel (e.g., mine, well, crop field, etc.) as well as the surface disturbance required for fuel processing and/or for electrical generation.  Surface Disturbance have different temporal impacts: ◦ Some surface disturbances are short term (e.g., pipeline installation). ◦ Some disturbances are essentially permanent. ◦ Some disturbances “move” over longer periods of time e.g. surface mines with continuous reclamation. 18
  19. 19. 19 Wind Farm and Oil Field near Forsan, Texas. Howard Glasscock Oil Field (Production initiated in 1925, current average production per well is 30 bbl/day/well or ~ 15,555 MW equivalence) Panther Creek Wind Farm (305 Turbines, 457.5 MW Installed Capacity)
  20. 20.  Biodiesel from soy has the highest surface disturbance/1,000 MW  Solar surface disturbance is 10 X higher than for geothermal, oil, natural gas, surface mined coal and wind.  Nuclear has the lowest surface disturbance/1,000 MW 20 1 10 100 1000 10000 100000 1000000 10000000 Nuclear Gas- ShaleGas Coal- UndergroundMines Oil-Shale Oil Wind ConventionalGas Coal- SurfaceMines Gas- CBNG ConventionalOil Geothermal Solar- CSP Solar- PV Hydroelectric Biodieselfromsoy Surface acreage disturbance incurred in the addition of 1,000 MW of “new” energy capacity. Horizontal scale is logarithmic The spatial dimension of energy development equals the sum total number of acres disturbed by the fuel harvesting, the fuel processing, and the electrical generation to arrive at the total acreage disturbed for the generation of 1,000 MW per hour annually.
  21. 21. 21 Wind Turbine 1.5 MW (262.46’) Wind Turbine 2.3 MW (393.70’) Statue of Liberty (301.25’) Nuclear Hybrid Cooling Tower (169.04’) Natural Draft Cooling Tower (500’) Pump Jack (15’) Gas Wellhead (6’) High Voltage Tower (82’) • Visual impacts can be highly subjective
  22. 22. 22 Source: U.S. EIA, “Table 1.1: Net Generation by Energy Source: Total (All Sectors), 1996 through March 2010),” Electric Power Monthly with Data for March 2010 (June 16, 2010), http://www.eia.doe.gov/cneaf/electricity/epm/table1_1.html (accessed June 2010). • Wood/Biomass fired generation emits the most CO2/MW generated, but accounts for less than 4% of US electricity • Coal emits about twice as much CO2/MW as natural gas and 25% more than oil
  23. 23.  All comparisons are for “Light Duty Vehicles” as expressed in Pounds of emissions per 1,000 miles traveled  Gasoline emits the most GHGs (in CO2 equivalents)  CNG emits the least GHGs 23 Gasoline E85 Diesel CNG Source: Board on Environmental Studies and Toxicology, Board on Energy and Environmental Systems, and Board on Science, Technology, and Economic Policy, Hidden Costs of Energy.
  24. 24. Introduction History Characteristics Technologies Environmental Considerations 24
  25. 25.  Shale O&G holds tremendous potential for energy supply.  Environmental considerations, especially those related to high volume hydraulic fracturing (HVHF), have generated spirited debate.  The environmental considerations for shale gas should not be viewed in isolation.  In order to make sound energy decisions for the future, we must make apples-to-apples comparisons of the various energy sources available. 25
  26. 26.  First Commercial Gas well – Fredonia, NY (1821) ◦ NewYork’s “Dunkirk Shale” at a depth of less than 30 feet  Ohio Shale – Big Sandy Field (1880)  Antrim Shale commercially produced (1930s)  Hydraulic Fracturing used in the Oil & Gas Industry (1950-60s)  Barnett Shale – Ft.Worth Basin Development (1982)  Horizontal wells in Ohio Shales (1980s)  Successful Horizontal Drilling in Barnett Shale (2003)  Horizontal DrillingTechnology Applied in Appalachian Basin, Ohio and Marcellus Shales (2006) 26
  27. 27. 27 Gas Shale Basin Barnett Fayetteville Haynesville Marcellus Woodford Antrim New Albany Estimated Basin Area, square miles 5,000 9,000 9,000 95,000 11,000 12,000 43,500 Depth, ft 6, 500 - 8,500 1,000 - 7,000 10,500 -13,500 4,000 - 8,500 6,000 – 11,000 600 – 2,200 500 – 2,000 Net Thickness, ft 100-600 20-200 200- 300 50-200 120-220 70-12 50-100 Depth to Base of Treatable Water, ft ~1200 ~500 ~400 ~850 ~400 ~300 ~400 Rock Column Thickness between Top of Pay and Bottom of Treatable Water 5,300– 7,300 500 – 6,500 10,100 – 13,100 2,125 - 7650 5,600 – 10,600 300 – 1,900 100 – 1,600 Total Organic Carbon, % 4.5 4.0-9.8 0.5 – 4.0 3-12 1-14 1-20 1-25 Total Porosity, % 4-5 2-8 8-9 10 3-9 9 10-14 Gas Content, scf/ton 300-350 60-220 100-330 60-100 200-300 40-100 40-80 Water Production, Barrels water/day 0 0 0 0 5-500 5-500 Well spacing, Acres 60-160 80-160 40-560 40-160 640 40-160 80 Original Gas-In-Place, Tcf 327 52 717 1,500 52 76 160 Reserves, Tcf 44 41.6 251 262, 500 11.4 20 19.2
  28. 28. Two technologies have made shale gas economically viable:  Horizontal Drilling ◦ Allows greater contact with the “pay zone” ◦ Reduces the number of wells that must be drilled  High Volume Hydraulic Fracturing (HVHF) ◦ Allows gas to flow to the well in tight formations 28
  29. 29.  New Development Areas/Urban  Well Site Selection  Traffic  Wildlife  Noise  NORM  Air Emissions  Hydraulic Fracturing  Water Sourcing/ Management NY EPA Scoping Meeting 9/13/10 Mark Raffalo & Pete Seeger address lawmakers at NYS capital regarding moratorium, July 2010 Quebec protester “Shale gas a moratorium now” 8/30/10 29
  30. 30.  Fear and lack of knowledge creates trepidation among mineral and non- mineral owners  Education of public takes time  Lack of infrastructure  Misinformation abounds 30
  31. 31.  Scrutiny and greater concern because of proximity to populous  Local government ordinances: ◦ Restrict operation times ◦ Reduced noise levels ◦ Lighting restrictions ◦ New setbacks ◦ Restrict truck traffic 31
  32. 32. Sound blankets and barriers are often used for noise mitigation in sensitive areas 32
  33. 33. • Directional lighting has become common • Illuminates well sites for worker safety • Directed downward and shielded to prevent illumination of residences, public roads, and buildings 33
  34. 34.  Options vary by location and operator  Competing water users and availability must be considered  Groundwater Use in Barnett shale counties ranges from 1.95 percent in to 85 percent, depending on the specific area Public Supply 82.70% Industrial and Mining 4.50% Power Generation 3.70% Irrigation 6.30% Livestock 2.30% Shale Gas Wells 0.40% Barnett Shale Water Uses Water sourcing Well Completion Flowback Well drilling Produced water Production Operations 34
  35. 35.  Groundwater protection  Fracturing fluid chemistry  Water sourcing  Water disposal and reuse 35
  36. 36. 36
  37. 37.  Geology & lithology  Coring and core analysis  Geophysical logging  3D Seismic  Correlation Analysis  Fracture gradient analysis  Etc. 37
  38. 38.  Fracturing a horizontal well uses 3 to 7 million gallons of water ◦ Delivered by truck or temporary pipeline ◦ Stored in tanks, or local or centralized impoundments  Fracturing job takes a few days  Typically 10% to 30% of the fracture fluid is recovered in the first few weeks (flowback)  Produced water may continue long term. 38
  39. 39. 39 • During a fracturing event, each stage is continuously monitored to assure a successful fracture treatment. Some of the items monitored include: – Pressures at the Wellhead, Bottom Hole, in Flow lines – Slurry properties such as viscosity and density – Injection Rate Volumes – Additives in fracture fluids • These properties are measured by: – Computer Sensors – Inline Meters – People (an injection job may have as many as 45 people onsite) Monitoring Fracturing Activities (Fayetteville Shale) Source: ALL Consulting, 2008
  40. 40.  Disclosure becoming a non- issue with FracFocus and agency disclosure rules  There is a growing trend toward reduction in the number of chemicals used  There is a push to develop “Green” chemicals 40
  41. 41.  Underground Injection  Treatment and Discharge  Treatment and Reuse  Municipal/Commercial Treatment Plants  Commercial Disposal Facilities 41
  42. 42. Value of Using an ECOE Approach Key Messages on Shales Technical Recommendations on Shale Development 42
  43. 43.  All energy sources have environmental costs  Sound decisions about our energy future require that the environmental costs of all energy options be compared on an equal basis – “apples-to-apples”  Energy decisions will require trade-offs ◦ e.g., one source may have lower air emissions than another, but may have higher water demands – both must be considered 43
  44. 44.  Typical analyses tend to focus on: ◦ Only one energy source, such as coal, natural gas, wind, or solar, or ◦ Only one environmental aspect such as water use, air emissions, or surface disturbance  Many analyses do not consider practical limitations of different sources ◦ e.g., wind and solar are not effective in all areas, and have seasonal or daily peaks that require some sort of back-up capacity 44
  45. 45.  Can serve as the basis for objective evaluation of different energy sources  Can help us get past emotion-laden rhetoric allow reasoned discussion of the trade-offs involved.  Can help us make smart decisions that will ensure abundant, reliable, and affordable energy supplies that also protect the environment. 45
  46. 46.  Shale O&G Resources are widespread in North America  A game changing national resource  Shale play development growing rapidly  Potential environmental impacts viewed as concern by the public and E-NGOs  Opportunity for leadership by the USA!  The rest of the world is watching… 46
  47. 47.  Pre-site assessments and planning are imperative for success!  Developing baseline information is critical  The process of completing a well must include similar levels of detail and planning for the shallow portion of the well as for the production zone.  Incorporate environmental considerations into planning at the well and regional levels.  Don’t ignore or downplay environmental issues – they are key to successful development! Photo courtesy of Range Resources 47
  48. 48. 48  Looking at the environmental considerations associated with only shale gas development doesn’t really tell us much  We need energy and we need to protect the environment  If we are going to eliminate shale gas, what will we use to replace that energy?  Typical analyses tend to focus on: ◦ Only one energy source, such as coal, natural gas, wind, or solar, or ◦ Only one environmental aspect such as water use, air emissions, or surface disturbance  Natural Gas (particularly gas from shales) carries a desirable environmental footprint, is abundant, and has the ability to very positively change the economy and our reliance on foreign energy sources.
  49. 49. Dan Arthur P.E., SPEC darthur@all-llc.com ALL Consulting 1718 S. Cheyenne Avenue Tulsa, Oklahoma 74119 www.ALL-LLC.com 49 Citation Information: Arthur, J.D. (ALL Consulting), “The Environmental Costs of Energy and the Basics of Shale Development in America”, Presented at the IEEE Green Technologies Conference, Tulsa, Oklahoma, April 19, 2012.

×