The document provides an overview of natural gas, including its origins, composition, extraction process, and uses. It discusses how George Mitchell unlocked vast shale gas resources through hydraulic fracturing and horizontal drilling. It also outlines the economic and environmental benefits of natural gas, such as reduced emissions and increased energy independence for the United States.

1. Natural Gas 101: Covering the Basics
ANGA – Think About Energy Summit
Tuesday, Oct. 29, 2013 – Denver
Alan Harrison, Vice President Drilling Operations

2. 2
The New Renaissance for an Underappreciated Resource
Unlocking our Natural Gas Resources
ANGA – Think About Energy Summit | Oct. 29, 2013

3. The Shale Gas Revolution: Vision and Persistence
Mitchell Energy credited with shale gas revolution
► George Mitchell is not the father of horizontal drilling and hydraulic fracturing. However, this
technology exposed vast quantities of gas and oil.
► Unlocked “shale gas” potential in the Barnett Shale in Ft. Worth basin.
► Several years of trying with mostly uneconomic success
► As with many successful ventures ̶ it’s “teamwork”
…and the story continues across our nation!
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4. An Abundance Beneath Our Feet
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5. 5
Origin of Natural Gas
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6. What is Natural Gas?
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Generated by two processes
► Thermogenic – heat, pressure and
geologic time convert organic carbon
to natural gas.
► Biogenic – methanogens (bacteria
consortia) formed in marshes, bogs,
landfills and shallow sediments less
than 190⁰ F
Naturally occurring hydrocarbon gas consisting primarily of methane and varying amounts
of higher alkanes (ethane, propane, etc.)
ANGA – Think About Energy Summit | Oct. 29, 2013

7. A Long Time in the Making!
Period of
Oil and Gas
Formations
*MYA = Millions of Years Ago
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8. Late Cretaceous Paleogeography (75 Ma)
Piceance
Basin
DJ Basin
75 Million Years Ago…
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9. Fossil Fuels – What are these?
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They are actually the preserved
remnants of micro-organisms
and plant debris.
• Plankton
• Algae
• Grasses, trees, plants, etc.
Heat and Pressure
Coal - Low heat and pressure
Oil - Moderate heat and
pressure
Gas - High heat and pressure
ANGA – Think About Energy Summit | Oct. 29, 2013

10. Where Does Oil and Gas Accumulate in the Earth?
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Limestone
Fossil fuels found in
sedimentary basins
Source rock subject to heat
and pressure
Overburden squeezes oil and
gas into porous rocks
If trap exists, an accumulation
(reservoir) is formed
ANGA – Think About Energy Summit | Oct. 29, 2013

11. Natural Gas Processed Prior to Utilization
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From the field to the burner tip
ANGA – Think About Energy Summit | Oct. 29, 2013

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How we Find and Develop
Our Natural Gas Resources
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13. 3 Main Ingredients for Economic Successes
1. Hydrocarbon Rich Basin Accumulation
2. Technology
3. Commodity Price
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A vast accumulation of hydrocarbons known
to exist over a large areal extent and/or thick
vertical section, which typically exhibits lower
geologic and/or commercial risk with a
repeatable distribution of recoveries (per well)
than compared to conventional type plays.
Definition of Resource Play:
ANGA – Think About Energy Summit | Oct. 29, 2013
1. Hydrocarbon Rich Basin Accumulation
2. Technology
3. Commodity Price

14. The Exploration Model
GEOLOGY
FIND ECONOMIC OIL & GAS
LAND GEOPHYSICS
EXPLORATION
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15. Geophysics: Energy at Surface = Subsurface Geology
Most common methods
► 2D - viewed as a profile
or slice through the
earth
► 3D - record multiple
lines simultaneously
for 3-dimensional view
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16. Geologists Spend Lots of Time Studying Rocks
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Responsible Development through
Technology, Innovation and
Environmental Stewardship
ANGA – Think About Energy Summit | Oct. 29, 2013

18. Modern Rig Designs Providing Many Benefits
Multi-well Pad Drilling 100% Natural Gas
Minimize Disturbance
• Multiple wells from single well pad
• Less trucking and moving of materials
• Shift to LNG and natural gas for fuel
• Improved safety features
WPX Energy – Piceance Basin
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19. Drill Depths
6000’-9000’
1500’- 3000’ of gas
saturated Williams Fork
Formation
Multi-well
Drilling Pads
Small,
Discontinuous
Sand Bodies
10-Acre Well
Spacing
Gas Saturated
Zone
Multi-well Pads and Directional Drilling Minimize Impacts
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20. Horizontal Drilling Dominating Shale Plays
Horizontal Solution
► Homogenous continuous reservoir
► Single layer source – low permeability
(i.e. shale)
► Objective – contact more rock
► Fewer surface locations needed
► Lateral sections greater than 2 miles
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Common terms used to describe horizontal wells
ANGA – Think About Energy Summit | Oct. 29, 2013

21. How Do We Get Hydrocarbons to Surface?
► Holes (perforations) shot
through casing to allow O&G
to enter the wellbore.
► Sand and water pumped
downhole to create fractures
in the reservoir.
► Fractures are kept open
by sand.
► Allows O&G easier flow
to the wellbore.
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22. Hydraulic Fracturing… It’s Safe!
More than 1,000,000 hydraulic fracturing stimulations within the U.S. without
compromising fresh groundwater.
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23. Other Things to Know About Hydraulic Fracturing
Often times misrepresented and
misunderstood by public
► Not new, and not part of drilling
process
► First HF in 1947
► No cases of ground water
contamination from fracturing
► Utilizes less than .1% of CO water use
COGCC rules and regulations most
comprehensive among states
► Prevention and Protective
► Wellbore construction and integrity
► Chemical disclosure
► Baseline water sampling (pre and post)
► Emission reductions
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Now that we have covered the “Upstream” portion
…Let’s Think About the rest of the Natural Gas Story.
ANGA – Think About Energy Summit | Oct. 29, 2013

25. Life Cycle of Natural Gas
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26. Outlook for Production Growth
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Majority
of growth
from PA
and TX
At current production rates we have 100+ years of natural gas resources remaining

27. Unconventional Gas Accelerating Production Growth
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28. Where is Natural Gas Used?
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33
32
31
3
41
3
75
20
Percent of Sources Percent of Sectors
ANGA – Think About Energy Summit | Oct. 29, 2013
Primary energy consuption by Source and Sector, 2011 (quadrillion BTU)
Petroleum
(36%)
Natural Gas
(26%)
Coal
(20%)
Renewable Energy
(9%)
Nuclear Electric Power
(8%)
Source
Transportation
(28%)
Industrial
(21%)
Residential &
Commercial
(11%)
Electric Power
(40%)
Sector

29. Demand Will Grow Across All Sectors
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30. Key Users of Electricity from Natural Gas
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31. What is the Natural Gas Resurgence Impact Nationwide?
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32. 32
What’s Happening in Colorado!
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33. The Bigger Economic Driver
► Shale exploitation not limited to natural gas
► Oil production is currently the biggest driver
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Source: Colorado Oil and Gas Conservation Commission
ANGA – Think About Energy Summit | Oct. 29, 2013

34. Active Colorado Oil and Gas Wells by County
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Source: Colorado Oil and Gas Conservation Commission
ANGA – Think About Energy Summit | Oct. 29, 2013

35. Natural Gas Resurgence ‒ Impact to Colorado
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Multiple Opportunities in the Transportation Sector
ANGA – Think About Energy Summit | Oct. 29, 2013

37. Natural Gas Solutions
Compressed Natural Gas (CNG)
► Source: Pipeline
► Compressed to 3,600 psi
► Focused on light- and medium-duty vehicles, but has heavy duty
capability
► Ideal for return-to-base fleets or fleets that require fast filling
► Time-fill and fast-fill capability/stored in pressurized tanks
Liquefied Natural Gas (LNG)
► Source: Liquefaction plant
► Converted to liquid form for ease of storage and transport
(cooled to -260° F and 40 psi)
► Ideal for medium- to heavy-duty fleets
► Fast-fill/stored in tanks (similar to diesel size)
37ANGA – Think About Energy Summit | Oct. 29, 2013

38. CNG – Already Cheaper Alternative
Jan. 27, 2013 article at
www.owegopennysaver.com
Owego, N.Y.
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39. Commercially Available CNG Fleets
CNG Vehicles
► CNG-powered vehicles produce almost half of the emissions
federal guidelines allow, making Waste Management’s hauling
vehicles among the cleanest fleets of heavy-duty trucks in the
United States. Waste Management of Orange County operates
54 CNG trucks.
Operating the Orange County fleet of clean-burning trucks is equivalent
to taking more than 4,000 vehicles off the road each day!
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For each diesel truck replaced is an equal annual reduction
of 8,000 gallons of diesel and 22 metric tons of greenhouse gases.
ANGA – Think About Energy Summit | Oct. 29, 2013

40. Detroit, We Want CNG Vehicles!
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41. Thank You.
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