Unconventional oil and gas implications for global field development

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What is the greatest driver of oilfield innovation and value in the 21st Century?

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Unconventional oil and gas implications for global field development

  1. 1. Unconventional Oil and Gas: Implications for Global Field Development Murray Roth – VP Global Consulting
  2. 2. Copyright © 2014, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 2 What is the greatest driver of oilfield innovation and value in the 21st Century?
  3. 3. Copyright © 2014, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 3 Sand!
  4. 4. Copyright © 2014, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 4 Lots of sand!
  5. 5. Copyright © 2014, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 5 Sand – “Horses for Courses”
  6. 6. Copyright © 2014, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 6 Current Fracking Locations
  7. 7. Copyright © 2014, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 7 The Fracking Process
  8. 8. Copyright © 2014, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 8 Perforating Tools Are Guided Down To Borehole
  9. 9. Copyright © 2014, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 9 Water And Sand Mixture Is Injected Into The Borehole
  10. 10. Copyright © 2014, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 10 The Proppant / Water Increases Size Of The Fissure
  11. 11. Copyright © 2014, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 11 Proppant Holds Fissures Open
  12. 12. Copyright © 2014, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 12 Open Fissures Allow Gas To Be Extracted
  13. 13. Copyright © 2014, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 13 How much sand?  ~5M lbs/well
  14. 14. Copyright © 2014, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 14 How much sand? 
  15. 15. Copyright © 2014, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 15 How much fluid? ~100,000 bbl/well (4.2 million gallons) (16 million litres)
  16. 16. Copyright © 2014, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 16 How much fluid? 1 bbl 2/3 bbl 1/2 bbl 360 wells 7200 wells
  17. 17. Copyright © 2014, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 17 Dramatic reversal of US Gas decline Shale gas production may reach half of US output by 2040 trillion cubic feet Source: EIA, Annual Energy Outlook 2014 Early Release billion cubic feet per day U.S. dry natural gas production
  18. 18. Copyright © 2014, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 18 The Unconventional Myth…
  19. 19. Copyright © 2014, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 19 The Myth dispelled Reversing the US oil declineU.S. crude oil production million barrels per day Source: EIA, Annual Energy Outlook 2014 Early Release U.S. maximum production level of 9.6 million barrels per day in 1970 Tight oil Lower 48 offshore Alaska Other lower 48 onshore History Projections2013 Tight oil production has added 2M b/d to US production, reversing the decline since “peak oil” in 1970
  20. 20. Copyright © 2014, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 20 US Oil and Gas Production versus Russia/Saudi Arabia
  21. 21. Copyright © 2014, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 21 1792 Active US Drilling Rigs Conventional Fields Permian 1921 DrillingInfo Wattenberg 1970 Bakken 1957
  22. 22. Copyright © 2014, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 22 1792 Active US Drilling Rigs
  23. 23. Copyright © 2014, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 23 1792 Active US Drilling Rigs
  24. 24. Copyright © 2014, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 24 U.S. production has rapidly increased from shale Sources: EIA derived from state administrative data collected by DrillingInfo Inc. Data are through December 2013 and represent EIA’s official tight oil & shale gas estimates, but are not survey data. State abbreviations indicate primary state(s). Conventional Fields
  25. 25. Copyright © 2014, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 25 Pad-based Multi-level Development Bakken/Three Forks Oil Development Continetal
  26. 26. Copyright © 2014, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 26 Shale Oil/Gas Myth  Only the unproven source rocks….
  27. 27. Copyright © 2014, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 27 Putin sees the value….
  28. 28. Copyright © 2014, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 28 Global Unconventional Opportunities New or Mature, onshore Oil (light) and Gas Fields with low-flow (low permeability) zonesAlFin Viking, Cardium Bakken Permian Brazhenov Achimov Wessex ? Cooper Sussex
  29. 29. Copyright © 2014, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 29 Implications for Global Field Development The Myth: Unconventional = Shale gas development where source rocks = reservoir = trap The Reality: North American oil and gas development is returning to older, lower risk fields including the Canadian Pembina (1953), the Texas Permian (discovered 1921) and the North Dakota Bakken/Three Forks (discovered 1957) - in the form of multi-zone, horizontal well drilling and hydraulic fracturing. The Opportunity: Previously uneconomic zones or peripheries of existing onshore fields in Europe, North Africa, the Middle East and beyond may now be developed as low-risk and high-value projects, applying proven horizontal drilling and completions technology
  30. 30. Copyright © 2014, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 30 Global Unconventional Opportunities >345 billion barrels of recoverable shale oil and 7.3 quadrillion cubic feet of recoverable shale gas (EIA 2013).
  31. 31. Copyright © 2014, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 31 Want To Learn More? More Analysis on our Blog: Tracking The Drilling Rig Feeding Frenzy The Modern Landman: How to Leverage Today’s Technology Well Interpretation: Structure and Stratigraphic Mapping

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