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

1. Unconventional Oil and Gas:
Implications for Global Field
Development
Murray Roth – VP Global
Consulting

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

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Sand!

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Lots of sand!

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Sand – “Horses for Courses”

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Current Fracking Locations

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The Fracking Process

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Perforating Tools Are Guided Down To Borehole

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Water And Sand Mixture Is Injected Into The Borehole

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The Proppant / Water Increases Size Of The Fissure

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Proppant Holds Fissures Open

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Open Fissures Allow Gas To Be Extracted

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How much sand?

~5M lbs/well

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How much sand?


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How much fluid?
~100,000 bbl/well
(4.2 million gallons)
(16 million litres)

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How much fluid?
1 bbl
2/3 bbl
1/2 bbl
360 wells
7200 wells

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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

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The Unconventional Myth…

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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

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US Oil and Gas Production versus Russia/Saudi Arabia

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1792 Active US Drilling Rigs
Conventional
Fields
Permian
1921
DrillingInfo
Wattenberg
1970
Bakken
1957

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1792 Active US Drilling Rigs

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1792 Active US Drilling Rigs

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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

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Pad-based Multi-level Development
Bakken/Three Forks Oil Development
Continetal

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Shale Oil/Gas Myth

Only the unproven source rocks….

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Putin sees the value….

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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

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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

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Global Unconventional Opportunities
>345 billion barrels of recoverable
shale oil and 7.3 quadrillion cubic feet
of recoverable shale gas (EIA 2013).

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Want To Learn More?
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Tracking The Drilling Rig Feeding Frenzy
The Modern Landman: How to Leverage Today’s Technology
Well Interpretation: Structure and Stratigraphic Mapping