48 ron gusek vp corporate engineering sanjel corporation
TRANSCRIPT
Building a Better Mousetrap
Opportunities for Improvement in Tight Oil Stimulation
Ron Gusek, Vice President – Corporate Engineering
Outline
• Innovation § How do we define it? § Where do we focus? § What drives innovation?
• Innovation in Hydraulic Fracturing § Improved Completion
Efficiency § “Green” Fluids § Reduced Horsepower?
0 5000 10000 15000 20000 25000 30000 35000 40000 45000
• Significant positive change • A creative idea that is realized • Change that creates a new dimension of performance
Evolution Plot
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%
100.0%
US Rig Count Percentages by Type
% DIR. % HORIZ. % VERT.
What is Innovation
Source: IADC Drilling Contractor March 2011 Source: Baker Rig Count
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
Departure
From Invention to Innovation
The Reward
• Barnett gas production has exceeded the prior peak using half the previous number of rigs.
Source: Simmons and Company
0
20
40
60
80
100
120
140
160
180
200
0
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
160,000,000
180,000,000
Jan-
05
Apr-0
5 Ju
l-05
Oct-0
5 Ja
n-06
Ap
r-06
Jul-0
6 Oc
t-06
Jan-
07
Apr-0
7 Ju
l-07
Oct-0
7 Ja
n-08
Ap
r-08
Jul-0
8 Oc
t-08
Jan-
09
Apr-0
9 Ju
l-09
Oct-0
9 Ja
n-10
Ap
r-10
Jul-1
0 Oc
t-10
Jan-
11
Apr-1
1 Ju
l-11
Oct-1
1
Horiz
onta
l Gas
Rig
s
Prod
uctio
n (M
CF)
GW Gas Rig Count
It’s Like Turning on a Lightbulb
The Best Ideas Always Win
People Love New Ideas
Myths of Innovation
Opportunities in Stimulation
Opportunities in Stimulation
Resource Play
Typical Depth (meters) Vertical Measured
Completion Stages
Fracturing Horsepower Required
Frac Size (Tonnes / Stage)
2011E Wells Completed
Amaranth 500 – 1000 1500 – 500 10 – 50 6000 – 8000 20 – 40 tonnes 200 – 250 Bakken 1500 – 2000 3000 – 3500 15 – 20 4000 – 8000 6 – 12 tonnes 700 – 800 Cardium 1000 – 1500 2000 – 3000 6 – 18 6000 – 12000 20 – 30 tonnes 500 – 600 Deep Basin 1500 – 2500 2000 – 3000 5 – 10 12000 – 35000 80 – 200 tonnes 600 – 700 Horn River 2000 – 2500 4000 – 4500 15 – 22 40000 – 50000 200 – 300 tonnes 70 – 80 Lower Shaunavon
1000 – 1500 2000 – 3000 10 – 15 6000 – 8000 20 – 40 tonnes 100 – 200
Montney 2000 – 2500 3000 – 3500 8 – 22 15000 – 35000 100 – 200 tonnes 450 – 550 Viking 1000 – 1500 1500 – 2500 10 – 20 6000 – 8000 20 – 40 tonnes 550 – 650
WCSB Well Completion Profile by Resource Play
Source: Company Reports and CIBC World Markets Inc.
Pushing the Limits • During 2008/09, stage counts in the Bakken increased rapidly, followed by a shift toward
extended reach laterals. The long laterals should facilitate additional stages.
Incremental Bakken stages are showing declining returns, although an increase is still beneficial.
Source: Bernstein Research Oil Services Group - 2011
Given slowing incremental gains per stage, optimal stage count appears to be in the low 30’s in extended reach wells
0.00
100.00
200.00
300.00
400.00
500.00
600.00
0 10 20 30
Aver
age I
P (b
oep
d)
Bakken Average Stages The shift to almost exclusive use of extended reach laterals should accommodate additional stages.
0.00
0.50
1.00
1.50
2.00
2.50
3.00
0
2000
4000
6000
8000
10000
12000
1Q08
2Q
08
3Q08
4Q
08
1Q09
2Q
09
3Q09
4Q
09
1Q10
2Q
10
3Q10
4Q
10
1Q11
2Q
11
Avg.
Frac
Den
sity (
Stag
es / 1
000 f
t)
Bakk
en A
vera
ge La
tera
l Len
gth
(ft)
Avg. Lateral Length
Avg. Frac Density
Coiled Tubing Limitations
Do We Need to Mill Out the Seats? MC
FD
Source: SPE138322 # DAYS TIL
MCFD
LINE
PRE
SSUR
E
Frac sleeves milled out: day 157
The columns represent stages that are producing below the theoretical average by the percentages shown.
0
10
20
30
40
50
60
Woodford Barnett Fayetteville Eagleford Haynesville Marcellus STUDY TOTAL
Below 90% of Avg. Below 75% of Avg. Below 50% of Avg. Below 25% of Avg. Below 10% of Avg. Not Producing
Snapshot of Completion Efficiency
Source: SPE 144326
Actual stage production versus theoretical average production
What if the Ball Seats were Retrievable?
• Single trip retrievable system • No milling • Maximize lateral length • Minimize required coiled
tubing size • Ensure a debris-free full drift
liner • Add NPV through higher IP
and EUR
Environmental Footprint
Why Develop a Low Health & Environmental Impact Acid Spearhead?
• Objective is to reduce the hazard of all the blends and additives
• Regulatory and public pressure for low hazard chemicals in fracturing operations
• Fracturing operations often begin with acid spearhead treatment
• Hazards associated with acid spearhead outweigh those associated with fracturing fluid systems
“Green” Acid Blend
Additives Total Volume and Weight Rating Other Blend Additives Corrosion inhibitor
17.5 gal/1000 gal, 30.0 lb/1000 gal
32 • De-foamer • Iron control • Demulsifier
Additives Total Volume and Weight Rating Other Blend Additives Low toxicity corrosion inhibitor
7.5 gal/1000 gal, 50.0 lb/ 1000 gal
15 • De-foamer • Low toxicity iron control • Low toxicity demulsifier (2
options)
Original Blend
Low Health & Environmental Impact Blend
Horsepower Growth in North America
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Hor
sepo
wer
(000
s)
Source: Various Historical Reports
“Hold Your Horses”
• Examine opportunities to obtain effective treatment at reduced rates and pressures
• New chemistry to generate controlled energy downhole rather than on surface
• Investigate means to augment existing stimulation
Summary • Effective innovation requires: § The ability to clearly understand the problem, the talent to solve it and the successful use of it to improve things § A seed to get started § A network of support § Someone who is willing to be the first
• Successful application of innovation results in § Efficiency improvement § Reduced environmental footprint § Improved IP and/or EUR
Questions ?
Worldwide Innovation, Commitment, Performance, and Results sanjel.com