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Unconventional oil and gas implications for global field development
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Transcript of Unconventional oil and gas implications for global field development
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 declineShale 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 dayU.S. dry natural gas production
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The Unconventional Myth…
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The Myth dispelledReversing 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 of9.6 million barrels per day in 1970
Tight oil
Lower 48 offshore
Alaska
Other lower 48 onshore
HistoryProjections
2013
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
ConventionalFields
Permian1921
DrillingInfo
Wattenberg1970
Bakken1957
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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 DevelopmentBakken/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) zones
AlFin
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?
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