Reducing the Environmental Footprint of Unconventional ...€¦ · Reducing the Environmental...
Transcript of Reducing the Environmental Footprint of Unconventional ...€¦ · Reducing the Environmental...
Reducing the Environmental Footprint of
Unconventional Reservoir Development
Jean-François Poupeau
Executive Vice President
Corporate Development & Communication The Aspen Institute Forum on Global Energy, Economy and Security
June 10, 2015
This presentation contains “forward-looking statements” within the meaning of the federal
securities laws, which include any statements that are not historical facts, such as our financial
targets and other forecasts or expectations regarding business outlook; growth for Schlumberger
as a whole and for each of its segments (and for specified products or geographic areas within
each segment); oil and natural gas demand and production growth; oil and natural gas prices;
improvements in operating procedures and technology; capital expenditures by Schlumberger and
the oil and gas industry; the business strategies of Schlumberger’s customers; demand for our
integrated services; the success of Schlumberger’s joint ventures and alliances and its integration
of acquired companies; introduction of new technologies; future global economic conditions; and
future results of operations. These statements are subject to risks and uncertainties, including, but
not limited to, global economic conditions; changes in exploration and production spending by
Schlumberger’s customers and changes in the level of oil and natural gas exploration and
development; demand for our integrated services and new technologies; Schlumberger’s future
cash flows; general economic, political and business conditions in key regions of the world,
including in Russia and the Ukraine; pricing erosion; weather and seasonal factors; operational
delays; production declines; inability to acquire target companies or integrate new acquisitions;
changes in government regulations and regulatory requirements, including those related to
offshore oil and gas exploration, radioactive sources, explosives, chemicals, hydraulic fracturing
services and climate-related initiatives; the inability of technology to meet new challenges in
exploration; and other risks and uncertainties detailed in our Forms 10-K, 10-Q, and 8-K filed with
or furnished to the Securities and Exchange Commission. If one or more of these or other risks or
uncertainties materialize (or the consequences of such a development changes), or should
underlying assumptions prove incorrect, actual outcomes may vary materially from those reflected
in our forward-looking statements. The forward-looking statements speak only as of the date of
this presentation, and Schlumberger disclaims any intention or obligation to update publicly or
revise such statements, whether as a result of new information, future events or otherwise.
2
11.4 10.9
11.7
US Russia Saudi
Production MMbpd
Wells Drilled # wells and sidetracks
Footage Drilled Million ft.
399
8,688
35,699
Saudi US Russia
3
83
297
US Saudi Russia
Global Drilling Intensity Will Increase
Source: IEA, EIA, Spears, SLB Analysis 3
2014 Liquids Related Activity
Shale Interest
International Shale Tests
Source: Schlumberger
Emerging Unconventional Plays
4
5
High Spec Rigs Pad Drilling Zipper Fracturing Engineered Completions
1,560
~32,000
~400,000 ~2,000,000
RIGS WELLS STAGES CLUSTERS
2013 North America average Horizontal Rig Count
Source: Schlumberger Analysis, RigData, June Warren-Nickle's
Evolution of North America Basin Development
Vertical, Perforated Well with
Single Hydraulic Fracture Vertical, Perforated Well
200 Ft High x 6” Wellbore 200 Ft High x (1) 200 Ft Frac with 2 Wings Each
315 Sq Ft 160,000 Sq Ft
Horizontal, Perforated Well with 15 Hydraulic Fractures
200 Ft High x 6” Wellbore x (15) 200 Ft Frac with 2 Wings Each
2,400,000 Sq Ft
Why Hydraulic Fracturing?
50 40 30 20 10 0
kilometers
Core Tier 1 Tier 2
Barnett Shale
Transportation
60%
Storage
22%
Supply
10%
Treatment
2%
Disposal
6%
Direct Annual Use for Hydraulic
Fracturing:
Over 90 Billion Gallons in United States
Average of 2.4 Million Gallons per Well
Total Associated Costs over $6.4B
Best Practices Include:
Recycling of Flowback
Alternate Sources of Water
How About the Water…
0%
20%
40%
60%
80%
100%
0%
3%
6%
9%
12%
15%
Cum
ulat
ive
Pro
duct
ion
Con
trib
utio
n
% P
rodu
ctio
n fr
om P
erf C
lust
er
Perf Cluster Heel Toe
0%
50%
100%
0%
5%
10%
15%
20%
25%
30%
Cum
ulat
ive
Pro
duct
ion
Con
trib
utio
n
% P
rodu
ctio
n fr
om P
erf C
lust
er
Perf Cluster Heel Toe
0%
50%
100%
0%
2%
4%
6%
8%
10%
12%
14%
16%
Cum
ulat
ive
Pro
duct
ion
Con
trib
utio
n
% P
rodu
ctio
n fr
om P
erf C
lust
er
Perf Cluster Heel
Toe
-20%
0%
20%
40%
60%
80%
100%
-5%
0%
5%
10%
15%
20%
25%
% P
rodu
ctio
n fr
om P
erf C
lust
er
Perf Cluster Heel Toe
Cum
ulat
ive
Pro
duct
ion
Con
trib
utio
n
Production Contribution… Less than Optimal
10
Decent Distribution:
6% of Cases Dominant Clusters:
29% of Cases
Crossflow:
6% of Cases
Zero Production from at
least 10% of Clusters:
58% of Cases
Novel Completions Techniques
11
Improvement of well performance
Typical production increase of 20%
Novel Completions Techniques
Significant reduction in logistics, safety
risks and environmental footprint
Typical water consumption reduction of
25%
Typical proppant consumption reduction
of 40%
11:39:43 11:46:23 11:53:03 11:59:43
0
120
240
360
480
600
San
d C
once
ntra
tion,
kg
adde
d/m
3
Fracturing
Location
Disposal
Well
Fracturing
Location Disposal
Well
Fracturing
Location
Disposal
Well
Water Sourcing for Hydraulic Fracturing P
ast
Idea
l P
rese
nt
Produced
Water
Fresh Water
Recycled
Water
Recycled
Water
Fresh Water
Fresh Water
Cation Sample 1
Sodium 80423
Calcium 18938
Potassium 6800
Magnesium 889
Iron 82.29
Boron 364
pH 5.68
SG 1.187
TDS 275000
Water Sourcing for Hydraulic Fracturing
0
200
400
600
800
1000
0
50
100
150
200
250
300
0:00 1:00 2:00
Vis
cosi
ty [c
P]
BH
ST
[deg
F] /
She
ar R
ate
[1/s
]
Elapsed Time [hh:mm]
Green Chemistry
Green Chemistry
Traditional Fracturing Additive Portfolio
Traditional Fracturing Additive Portfolio
Stimulation Fluids
Engineering
Traditional Fracturing Additive Portfolio
Incr
ease
d C
ompo
und
Res
tric
tions
Time
Green Chemistry
Traditional Fracturing Additive Portfolio
Stimulation Fluids
Engineering
Green Chemistry
Stimulation Fluids
Engineering
Development of Modern Chemistries
The Schlumberger Definition
Priority Pollutants & SDWA (US EPA): 231 Constituents
Known Carcinogens (REACH): 1018 Constituents
Known Mutigens (REACH): 423 Constituents
Known Reprotoxins (REACH): 217 Constituents
Nonylphnol & Alkylphenol Ethoxylates: 31 Constituents
Suspected Carcinogens (REACH): 186 Constituents
Suspected Mutigens (REACH): 195 Constituents
Suspected Reprotoxins (REACH): 129 Constituents
91.6%
8.4% Meets the Criteria
Client: EXAMPLE CLIENTWell: EXAMPLE WELLBasin / Field: EXAMPLE FIELDCountry: EXAMPLE COUNTRYState: EXAMPLE STATECase: Prop FracDisclosure Type: PrejobWell Completed: -Date Prepared:Report ID: RPT-XXXXX
*
Potassium hydroxideGlycerol
67-48-17772-98-77789-38-01332-77-0
31726-34-865997-18-455566-30-81310-58-3
56-81-5
Sucrose
Dicoco dimethyl quaternary ammonium chloridePropan-2-ol
1310-73-2< 1 %
< 0.1 %< 0.1 %< 0.1 %
< 0.01 %
< 0.01 %< 0.01 %< 0.01 %
Cholinium chlorideSodium thiosulphate
Sodium bromate
Tetrakis(hydroxymethyl)phosphonium sulfate
107-21-1
7631-86-961789-77-3
67-63-0
57-50-1
Calcium magnesium sodium phosphate frit
1/1/2013 12:00 AM
OpenFRAC XL 100,000 GalContains: Water, Activator, Bactericide, Breaker, Buffer, Clay Control, Crosslinker, Gelling Agent, Propping
Agent, Scale Inhibitor, Stabilizing Agent, Surfactant
Fluid Description(s)
< 0.001 %
< 1 %
< 0.0001 %
Mass Fraction
The total volume listed in the tables above represents the summation of water and additives. Water is supplied by client.
~ 80 %Water (Including Mix Water Supplied by Client)*14808-60-7 Crystalline silica ~ 19 %
CAS Number Chemical Name-
9012-54-8
Potassium boratePolyethylene glycol monohexyl ether
< 0.01 %
< 1 %
< 0.0001 %
© Schlumberger 2013. Used by EXAMPLE CLIENT by permission.
Mix water is supplied by the client. Schlumberger has performed no analysis of the water and cannot provide a breakdown of components that may have been added to the water by
third-parties.
100%
9000-30-0
< 0.001 %< 0.0001 %
Guar gumSodium hydroxide
Hemicellulase enzyme
Ethane-1,2-diol
Non-crystalline silica
< 0.0001 %
List of Schlumberger Systems Pumped, including
system volumes and additive descriptions for
services provided during treatment
List of chemical constituents with CAS numbers and
mass fractions. Adds to 100% of known constituents
Transparency is a Must…
To Gain Public Trust…
… and to Allow Well Operators
to Prioritize Appropriate
Chemistries
System-Style Disclosure
Includes CAS Registry Numbers
Process Widely Accepted:
Frac Focus (USA)
Frac Focus (Canada)
IOGP’s Voluntary Disclosure Process