LNG and CNGCO2 and N2Transportation and
Logistics
Hydraulic Fracturing with Cryogenic Fluids: Boosting Hydrocarbon
Production While Conserving Fresh Water Resources
2015 International Petroleum Environmental Conference (IPEC)Denver, CO
Water Resources
Presented by: Andre Tweed, Ferus LP
Co-Authors: Murray Reynolds and
Juliana Buendia, Ferus Inc.
November 18, 2015
CURRENT CHALLENGES IN UNCONVENTIONAL FIELD DEVELOPMENT
• Demand growth• Volumes• Number of wells• Water management• Logistics
Slide 2
• Logistics• Well performance• Environmental footprint• Emissions and GHG’s• Truck traffic on county roads• COST!!
0
5
10
15
20
Sta
ge
s (#
)
# Stages
0
200
400
600
800
1,000
We
lls (
#)
Well Count
Montney gas/ average per well YoY
DEMAND GROWTH
Slide 3
2012 2013 2014
0
2012 2013 2014
0
2012 2013 2014
0
5,000
10,000
15,000
Flu
id P
um
pe
d (
m3)
Total Fluid Pumped
2012 2013 2014
0
500
1,000
1,500
2,000
Pro
pp
an
t (t
on
ne
s)
Total Proppant Placed
Source: Canadian Discovery Frac DataBase
15
16
17
18
Average # Stages
-
5,000
10,000
15,000
Average Water Pumped
2014 Montney gas/ average per well
OPTIMIZE JOB SIZE
Slide 4
Source: Canadian Discovery Frac DataBase
15
Average of Well - Stages Actual (#)
Non-Energized Energized
1,500
1,600
1,700
1,800
Average of Well - Total Proppant Placed (t)
Average Total Proppant Placed
Non-Energized Energized
-
Average of Well - Total Fluid Pumped (m3)
Non-Energized Energized
WATER MANAGEMENT
• Water sourcing and sourcing restrictions
• Water transportation
• Water storage
• Water infrastructure investment
• Disposal and recycling challenges
Slide 5
Fox Creek Water Pit
• Disposal and recycling challenges
• Pad sizing
• Hidden costs
NA Water Stress Map
6
• Optimize job size• Energize your wells
Water Based Average
[CAT
EGO
RY
NAM
E]…
Che
mical
s
-1%
Optimize number of stagesOptimize sand tonnageReduce water usage
ALTERNATIVES TO MANAGE CHALLENGES
Slide 7
9,400
m3
5,000
m3
Water Based Average
Fluid Volume
Energized Average
Fluid Volume
Wate
r
90%
Wat
er
24%
Pro
ppa
nt…
[CA
TEG
O…
N2
or
C…
In 2014 on
average, energized
fracturing fluids
volume were ~50%
smaller than water
based fracturing fluids
volumeSource: Canadian Discovery Frac DataBase
10,119,148
10,016,778
14,982,909
4,000
5,000
6,000
7,000
8,000
9,000
Ave
rag
e W
ate
r P
um
pe
d p
er
We
ll (
m3)
WCSB Estimated Total Water Consumption for Completions YoY
REDUCE WATER USAGE
Slide 8
Source: Canadian Discovery Frac DataBase
2,552,223
3,953,434
5,429,895
-
1,000
2,000
3,000
4,000
1,500 1,600 1,700 1,800 1,900 2,000 2,100 2,200 2,300
Ave
rag
e W
ate
r P
um
pe
d p
er
We
ll (
m
Well Count per Year
Energized
Water Based
Bubble size is the estimated total water used YoY (in Million m3)
322,168,052 355,946,136
490,052,109
3,000
4,000
5,000
6,000
150,000
200,000
250,000
300,000
We
ll C
ou
nt
Ave
rag
e N
2 v
ol/
we
ll (s
cm)
WCSB N2 Estimated Usage YoY
500,000
600,000
700,000
800,000
Ave
rag
e N
2 V
olu
me
pe
r w
ell
Estimated N2 use Top Plays YoY
Montney/Doig Gas
Deep Basin Gas
Cardium Oil
Glauconitic Hoadley Gas
Nitrogen Usage Growth in WCSB
FOLLOW PRODUCTIVE INITIATIVES
Slide 9
0
1,000
2,000
3,000
0
50,000
100,000
150,000
2011 2012 2013 2014 2015
We
ll C
ou
nt
Ave
rag
e N
2 v
ol/
we
ll (s
cm)
YearEstimated Total N2 Pumped/ Average N2 Pumped per well (scm)
Total Well Count
Total N2 Well Count
0
100,000
200,000
300,000
400,000
500,000
0 200 400 600
Ave
rag
e N
2 V
olu
me
pe
r w
ell
Well Count
Source: Canadian Discovery Frac DataBase
Kakwa river water usage
REDUCE TRUCK TRAFFIC
Slide 10
$2,500
$3,000
$3,500
$4,000
$4,500($KCAN)
REDUCE COST
Slide 11
Source: SPE 175948
$0
$500
$1,000
$1,500
$2,000
SW N2 Foam E-SW E-WB BI Foam CO2 FoamFluid System
Binary Foam saves $850K and CO2 Foam saves $950K over Slickwater
ENHANCE WELL PERFORMANCE
• Water damage mechanisms:• Clay swelling / softening / movement• Aqueous phase trapping (high capillary pressure)• Proppant embedment• Fracture face damage (fluid imbibition)
Poor cleanup and water recoveries during flowback• Poor cleanup and water recoveries during flowback• Poor proppant transport / conductivity• Lower hydrocarbon rates and EUR’s
Slide 14
ADVERSE ROCK – WATER INTERACTION (VIKING ZONE)
Core Immersed in Bridge Creek 3% KCl WaterCore Immersed in Mcbride dugout water
SOURCE: Baker Hughes
Slide 15
CASE STUDY SHOWING ENHANCED PRODUCTION / REDUCED COST – SPE 175948
• Cryogenic N2 and CO2 used in energized fluid systems provide proven, effective technology to stimulate tight sands and shales
• Non-damaging fluid which greatly reduces water volumes, chemicals reduces water volumes, chemicals and proppants
• Reduces real and environmental costs while maximizing NPV
Source: BMO A&D Drill Bits – October 2011
Slide 16
• Fluid systems analyzedFluid Acronym
Slickwater SW
Energized Slickwater E-SW
Other Water Based Fluids WB
Energized Water Based E-WB
STUDY SCOPE
• >3,500 Hz Montney wells completed to date
• Study criteria:• Montney/Doig Gas• OGR < 75 stb/mmscf• 12 months of production data
Slide 15
Energized Water Based E-WB
Oil Based Oil
Energized Oil Based E-Oil
N2 Foam N2 Foam
CO2 Foam CO2 Foam
Binary (N2+CO2) Foam BI FoamEnergized Fluids < 50% CO
2or N
2
Foams CO2
/ N2
/ Both > 50%
The most comprehensive statistical analysis of the Montney
• 12 months of production data• On Production Date >2010• 1,627 wells met the criteria
34,499
41,166
3 mo Median Production (BOE)
PRODUCTION RECOVERY - 3 MONTH CUMULATIVE PRODUCTION
Slide 16
SPE 175948 • The Full Montney • M.ReynoldsBinary Foams outperform any other fluid on a 90 day basis!
30,098
31,042
- 10,000 20,000 30,000 40,000
Source: Canadian Discovery Frac Database & Accumap integrated through Visage
Flatter slope implies
increased variability
Completion cost doesn’t
include water disposal cost
3,020
2,930
Median Completion Cost (K$)
MONTNEY GAS COMPLETION COST
Slide 17
SPE 175948 • The Full Montney • M.Reynolds
Source: Canadian Discovery Frac Database & Accumap integrated through Visage
Slickwater is consistently the MOST expensive fluid used in the Montney!
3,880
3,482
3,020
0 1000 2000 3000 4000
WHAT WE LEARNED
Slide 18SPE 175948 • The Full Montney • M.Reynolds
Optimize Sand Optimize Sand Optimize Sand Optimize Sand ConcentrationConcentrationConcentrationConcentration
RECENT US SUCCESSFUL APPLICATION
• 2015 - first application of CO2 based fracture fluid in the Bakken fm (North Dakota)
• Over 6,000 tons used in a multi-stage fractured HZ completion
• Stay tuned for results• Stay tuned for results
Slide 21
LOGISTICAL CHALLENGES
• Large volume hydraulic fracturing jobs
- Supply constraints
- Truck traffic
- Site layout challenges
- Sub-optimal product delivery
Slide 20
- Sub-optimal product delivery
- Over-sizing of fracture treatments
- Cost
Ferus North American Operations
OPTIMIZE LOGISTICS
Slide 21
• Proximal Supply- Substantially reduced plant gate price
- Significantly reduced transportation
- Scheduling flexibility; reduced standby
- Reduced exposure to weather & road bans
OPTIMIZE LOGISTICS
• Demand Planning- 24/7 Real-Time Dispatch Services
- Coordinate storage, trucks and product deliveries
- Optimize delivery times through real-time interaction
• Reliable Transportation
Slide 22
• Reliable Transportation- Triple drive axle tractors allowing for larger
capacity
- Typically use tandem tractors requiring two trailers
• On-Location Storage
• On-Site Service - Field supervisors
INTEGRATED SOLUTIONS
• Holistic approach to solve the problem
• Technical services• Optimize job size• Improve fracturing fluid design
• Partner with experts• Supply
Logistics
Slide 23
• Logistics• Transportation
• Reduced costs
• Reduce environmental Impact
• Enhanced well productivity and economics
Questions?
• Contact info: [email protected]• [email protected]• Office: 303-293-1988
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