Presentation by Cabot Oil & Gas Corporation and Baker Hughes at the Clean Frac'ing Conference in Houston, TX on February 17. Discussing use of fleet of bifuel hydraulic fracturing engines to complete a 10-well pad in Susquehanna County, Pennsylvania. Then a transition into the communications process behind discussing any highly-technical topic.

1. Clean Natural Gas: the Best
Frac'ing Fuel
Jeramie Morschhauser – Cabot Oil & Gas Corporation
Ronnie Hughes – Baker Hughes International
George Stark – Cabot Oil & Gas Corporation

2. Determining a Bifuel solution to
meet operational needs
Jeramie Morschhauser
Completions Engineer
Cabot Oil & Gas Corporation

3. What is Bifuel?
• Bifuel – The ability of an engine to co-fire
two different types of fuel.
• Bifuel engines utilized in Cabot
operations co-fire Natural Gas and Diesel

4. Driving Force
• Cabot had already……..
•
Built a CNG facility
•
Converted vehicles
•
Ran drilling rig on CNG

5. Why the Frac’ing Delay?
• Needed a consistent fuel source to
handle the hydraulic horsepower demand
of a frac operation
• Typical frac requires 17,000 HHP
 That’s enough HHP to power 253
homes…
• Bifuel engines meet the horsepower
demands AND allow for the option to run
ONLY on diesel

6. Natural Gas Fueling Selection
Fueling Options Available:
1) Compressed Natural Gas (CNG)
2) Liquefied Natural Gas (LNG)
3) Line Gas
Considerations:




Is pipeline infrastructure in place?
Gas Quality?
Sufficient line pressure and
volume?
Are there reliable refueling stations
for LNG and CNG in close
proximity?

7. Why Cabot Chose Line Gas
• Logistics/Increased Efficiencies
• Reduction in Diesel and
Emissions
• Economic Benefits

8. Logistics
• Infrastructure: Pipeline in place
• Sustained line pressure of 800+ psi
• No compression needed
• Consistent fuel supply
• Elimination of trucking from resupply
of CNG or LNG

9. Line gas: Increased Efficiencies
• Increase in Bifuel Engine
performance from high
quality natural gas
Fuel Savings
• High quality natural gas:
 Dry
 97% Methane
 1030 BTU
Substitutio
n
Gas Quality
Low Quality
Medium Quality
High Quality
LNG

10. Reduced Diesel
2013
Pads
NG Stages
HHP
Gas Used
Diesel Saved
3 Well Pad
39
57,3614
9,82 MCF
6,871 GAL
10 Well Pad
170
242,5063
15,025 MCF
105,176 GAL
2 Well Pad
45
70,3849
4,771 MCF
33,398 GAL
1 Well Pad
19
260,124
3,005 MCF
21,032 GAL
4 Well Pad
75
1,209,004
6,638 MCF
46,468 GAL
3 Well Pad
74
972,924
10,275 MCF
71,924 GAL
422
6,144,578 HHP
Total:
40,695 MCF 284,868 GAL
• Gallons of Diesel saved would allow a tractor trailer to circle
the globe 80 times
• You could fill your car up 17,800 times

11. Closer Look at Savings
$1,139,472
$203,477
$976,690
In Diesel savings
In Natural Gas costs
In total savings
Which breaks
down into:
$2,314
Per Stage
Savings of
**Assuming $4.00/gal diesel & $4.00/MCF NG

12. The Big Picture

13. Reduced Emissions
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
CO
PM
NOx

14. Gathering Line

15. Meter Skid

16. Gas Processing Unit (GPU)

17. Feed Line

19. The “Handoff”

20. Baker Hughes International –
providing solutions that work
Ronnie Hughes
Director, Operational Efficiency for Pressure Pumping
Baker Hughes International

21. What are we going to cover?
© 2014 Baker Hughes Incorporated. All Rights
Reserved.
▪ Perfect HSE Days
▪ Safety & Environmental
▪ Job Details
▪ Bifuel basics
▪ Location Layout
▪ Conclusion
21

22. Perfect HSE Day is a day with zero recordable injuries or
illnesses, zero serious spills/releases, and zero motor vehicle
accidents across the enterprise. A Perfect HSE Day means all
employees go home safely to their families and the environment is
not harmed.
© 2014 Baker Hughes Incorporated. All Rights
Reserved.
“In addition to the records set, this job included 28 Perfect HSE
days,” said Phil Urlacher, District Operations Manager in Mill
Hall, Pa. “This achievement truly shines a light on Baker Hughes
and demonstrates our ability to exceed our customer’s needs
through the use of our outstanding personnel”.
22

23. Safety, Environmental & Efficiency
▪ Baker Hughes worked with Cabot to ensure the components of the fracturing fluids
used on these wells were reviewed using the SmartCare™ process.
–
–
–
–
–
–
70,000 gallons of Friction Reducer
7,700 gallons of Scale inhibitor
15,400 gallons of biocide
210,000 gallons of HCL acid (42 transports)
64.5 million pounds of sand - 1,290 sand deliveries
1,358 tractor trailer loads
© 2014 Baker Hughes Incorporated. All Rights
Reserved.
▪ The Bifuel technology delivered significant benefits in terms of efficiency and
environmental performance. All 10 wells were fractured in 27 days, including a
record-setting nine stages in a single day.
23

24. Baker Hughes SmartCare™
▪ The Baker Hughes SmartCare™ qualified products, systems, and services minimize
environmental impact during hydraulic fracturing. This family of superior chemistry
and technology helps to ensure underground source drinking water remains safe
during the well life.
▪ SmartCare services’ 14-point checklist of environmental, toxicological, and physical
categories evaluate chemical components. This is a scientific protocol for assessing
and comparing potential product hazards within regulatory guidelines, enhancing
limited regulations, or establishing a benchmark when regulations do not exist.
© 2014 Baker Hughes Incorporated. All Rights
Reserved.
Benefits:
• Enhanced environmental stewardship without sacrificing performance
• Clear identification of environmental impact and risk
• Optimized, systems and additives combined to meet exact reservoir conditions
• Quantifiable and standardized method of comparing chemical components
• Verified compatibility among qualified products
Features:
• Credible scientific third-party protocol to evaluate human health, safety and environmental impact
• Methodical evaluation of products and systems for performance, compatibility, and costeffectiveness for optimal fracturing and stimulation
24

25. Cabot - Susquehanna County, Pa.
▪ The Baker Hughes Rhino™ Bifuel Frac pumps were able to replace as much as 70% of the engine’s diesel fuel supply with
natural gas with no loss in hydraulic horsepower. Baker Hughes provided an entire fleet of 14 Rhino Bifuel pumps to
stimulate the 10 wells and 170 stages in Susquehanna County, Pa.
▪ The field gas was piped in from some of the customer’s producing wells to a gas processing unit (GPU) near the fracturing
pumps. The GPU removed water and other impurities from the field gas to avoid engine performance problems. Upon
reducing gas pressure, the gas was piped to a manifold and distributed to the Rhino Bifuel pumps.
▪ Wellsite emissions:
– 50% reduction in nitrogen oxides
– 70% reduction in particulate matter
– 100% reduction in carbon monoxide
▪ The substitution of cleaner-burning natural gas for diesel lowered the wellsite’s emissions considerably. Cabot calculated the
use of the Baker Hughes Bifuel fleet allowed it to offset about 110,000 gal of diesel and save a substantial amount in fuel
costs.
© 2014 Baker Hughes Incorporated. All Rights
Reserved.
▪ The Bifuel pumps allowed the operator to significantly reduce the number of diesel resupply runs, simplifying logistics and
reducing the amount of traffic at the wellsite and through neighboring communities. HSE risks related to refueling
operations also were minimized.
25

26. Bifuel equals Dual Fuel
© 2014 Baker Hughes Incorporated. All Rights
Reserved.
–
–
–
–
26
Blending diesel fuel and natural gas in the combustion chamber
No loss of Hydraulic Horsepower
Up to 70% substitution of diesel
Requires low pressure natural gas supply (2-5 psi) @ about 8 scfh/kW

27. © 2014 Baker Hughes Incorporated. All Rights
Reserved.
Supply Manifold and Gas Train
Manual Valve
Filter
Dual Solenoid
Shutoff Valve
27
Low Pressure
Regulator
Supply Line
Methane
Detector
Regulator
Regulator

28. Rhino Bifuel Pumps
▪ Converted from the current Rhino™ pump
– 2,250HHP/15,000 psi
▪ No compromise to HHP and/or frac performance vs.
diesel pumps
▪ Exceeds all U.S. EPA emission standards
– Carbon Monoxide (CO): Effectively zero output
– Nitrogen Oxides (NOx): Up to 50% Reduction
– Particulate Matter (PM10): Up to 70% Reduction
▪ Substitution rates as high as 70/30
▪ Fuel flexibility
© 2014 Baker Hughes Incorporated. All Rights
Reserved.
– LNG, CNG, or line/field gas
– 100% diesel (when needed)
28

29. Increases Efficiency, Reduces HSE Risks
© 2014 Baker Hughes Incorporated. All Rights
Reserved.
▪ Bifuel pumps can operate continuously
twice as long as diesel-powered pumps
▪ Hence
– Reduces “hot fueling” by over 50%
– Minimizes spill & fire risks
– Improves efficiency
of frac operations
– Reduces number of fuel trucks
29

30. The Value of the BiFuel Service
▪ Helps meet regulatory requirements on gas emissions
▪ Reduces global carbon footprint
▪ Minimizes spill and fire risks (eliminates hot-fueling)
▪ Simplifies logistics
▪ Potentially cuts flaring activities
▪ Promotes natural gas consumption
© 2014 Baker Hughes Incorporated. All Rights
Reserved.
▪ Improves industry image
30

31. © 2014 Baker Hughes Incorporated. All Rights
Reserved.
14 Bifuel frac pumps, 10 well heads
31

32. © 2014 Baker Hughes Incorporated. All Rights
Reserved.
Spill Mats and vacuum connection
32

33. © 2014 Baker Hughes Incorporated. All Rights
Reserved.
Dryer skid, odorizer and distribution manifold
33

34. © 2014 Baker Hughes Incorporated. All Rights
Reserved.
Clean & Simple Rig up on Natural Gas Hoses
34

35. Conclusion
© 2014 Baker Hughes Incorporated. All Rights
Reserved.
•
•
•
•
•
•
35
BHI completed 170 stages on 10 wells in 27 “Perfect Days”
Used SmartCare products to help protect the environment
50% reduction in nitrogen oxides
70% reduction in particulate matter
100% reduction in carbon monoxide
Replaced 110,000 gallons of diesel with natural gas

36. Communicating Operations –
Connecting your content
with your audience
George Stark
Director, External Affairs
Cabot Oil & Gas Corporation

37. Process
• Defining your audience & goals
• Understand your topic
• Putting things into perspective
• Choosing the best way to communicate

38. Defining Your Audience & Goals

39. Who do I want to communicate with…
LANDOWNERS
EMPLOYEES
INVESTORS
REPORTERS
ENVIRONMENTALISTS
COMMUNITY MEMBERS
STUDENTS
SHAREHOLDERS
ANGRY PUBLIC
ELECTED OFFICALS
INDUSTRY MEMBERS
CONTRACTORS
…and what do they want to know?

40. • The story may be the same, but the points of focus will
differ
• What your landowners may care about most in your story
will not always be the same as what your employees care
about
• No matter who you are talking to, if they do not find value
in it they will not listen
• Irrelevant information can convolute the message

41. • Determine how you can look at your story from different
angles
Cabot & Baker Hughes Partner to use natural gas
completions fleet to fracture 10-well pad
• 10-well pad has incredible production
• Utilized natural gas which means cost savings
• Natural gas is cleaner burning vs. diesel
• Less trucks of diesel on the road refueling during ops
• First use of entire natural gas fleet for Cabot
• Cabot will move towards more natural gas production

42. Understanding Your Topic

43. Work closely with operations
individuals from the beginning
• Versus being looped in at the end you…
• Will have a better grasp of the overall topic
• Can start to think in terms of communicating with different
audiences from the beginning
• Can identify areas on which you’ll need more background
info
• Can start shaping messages early and make sure you
remain consistent
• Get approved numbers/specs to work with early on in the
process

44. Look to see how others communicated
similar ideas or stories
• Research
• Has anyone done something similar before?
• YES
• How did they do it?
• What worked/didn’t work?
• What new ideas can you bring to this topic?
• How can you build off of this in the future?
• NO
• How can you make this stand out?
• What are your important messages?
• How can you build off of this in the future?

45. Putting Things Into Perspective

46. Simply put: Step 1 + Step 2 = Step 3
• Combine all of your research
• You know what your topic is, what’s important, what you
want to make sure you talk about
• You have identified the audiences you want to target
Information
Target
Audience
Communication
Approach

47. Think like your audience
• What do you want the takeaway message to be?
• What kind of format will best reach your audience?
• How do you break down information in easy-to-
understand pieces?
• Will it spark interest in them?
• Will they then use it to spark interest in others?

48. What is 1 BCF of gas?
• Topic:
• Cabot produces 1 BCF of natural gas per day out of the
Marcellus operations*
• Audience:
• General public – elected officials – students – landowners
• Communications approach:
• Put the production numbers into something easy to
understand.
*1.5 BCF as of 12/13

49. What is 1 BCF of gas?

50. Cabot & Baker Hughes Partner to use
natural gas completions fleet to fracture
10-well pad

51. How else do you communicate topics?

52. Channels to communicate

53. Some stats to consider:

54. But it’s not just social media…
• What kind of audience are you reaching with your
traditional media outreach?
• Newspaper
• More than circulation, what are the demographics?
• Trade magazines
• Is this reaching your targeted audience?
• Radio interviews
• Is there someone out there who cares?
• Direct mailers
• Are they hitting the geographical area you need?

55. • Define your audience & goals
• Understand your topic
• Put things into perspective
• Choose the best way to communicate

56. QUESTIONS?