all oil activity is oil & gas development new? data from the dnrc montana board of oil and gas...
TRANSCRIPT
DRILLING, HYDRAULIC FRACTURINGAND DEQ IN THE BAKKEN
STEVE KILBREATH, MDEQ
SLIDES FROM VARIOUS SOURCESINCLUDING TOM RICHMOND, MBOGC
All Oil Activity
Is Oil & Gas Development New?
Data From The DNRC Montana Board of Oil and Gas Data Miner Application
Horizontal Drilling Activity
Horizontal Oil Activity - Bakken
Jan-
86
Jan-
87
Jan-
88
Jan-
89
Jan-
90
Jan-
91
Jan-
92
Jan-
93
Jan-
94
Jan-
95
Jan-
96
Jan-
97
Jan-
98
Jan-
99
Jan-
00
Jan-
01
Jan-
02
Jan-
03
Jan-
04
Jan-
05
Jan-
06
Jan-
07
Jan-
08
Jan-
09
Jan-
10
Jan-
11
Jan-
12
-500,000.0
0.0
500,000.0
1,000,000.0
1,500,000.0
2,000,000.0
2,500,000.0
3,000,000.0
3,500,000.0
Montana Oil Production by County, Through October 2012
Big Horn Blaine Carbon Carter Chouteau Custer Daniels Dawson Fallon
Fergus Garfield Glacier Golden Valley Hill Liberty McCone Musselshell Park
Petroleum Phillips Pondera Powder River Prairie Richland Roosevelt Rosebud Sheridan
Stillwater Sweetgrass Teton Toole Valley Wibaux Yellowstone
Barr
els o
f Oil
Per M
onth
Richland
Fallon
Roosevelt
INTERESTING DIFFERENCESMONTANA VS NORTH DAKOTA
Typical Bakken Well Production
923
436
153
99 84 76 68 62 55 50 45 40 36 33 29 26 24 21 19 17 16 14 13 11 10 9 8 7 7
0
100
200
300
400
500
600
700
800
900
1000
0 5 10 15 20 25 30
Year
Bar
rels
of
Oil
per
Day
North Dakota DataFrom NDIC Oil and Gas Division
0 9 18 27 36 45 54 63 72 81 90 99 108 117 126 135 144 153 162 171 180 189 198 207 216 225 234 243 252 261 270 279 288 297 306 315 324 333100
1000
10000
Normalized Average Montana Bakken Well Production And Forecasts
Fit1 BOPM_Bakken Forecast Forecast2
Months Following Completion
Prod
uctio
n, B
arre
ls of
Oil
per M
onth
Averaged actual well produc-tion through first 100 months
Forecast 1: 8% annual decline rate, 23 year well life, ultimate cumulative produc-tion of 300,000 barrels of oil.
23.3% recovery during 1st 18 months.
Forecasts extended to ~300 barrels per month production rate which is consistent with a 20 to 30 year well life.
Forecast 2: 6% annual decline rate, 28 year well life, ultimate cumulative produc-tion of 334,119 barrels of oil.
20.9% recovery during 1st 18 months.
Average of actual production dur-ing 1st 18 months is 69,853 bar-rels.
Projection of actual historical data indi-cates a lower decline rate and less than 20% of the ulimate recovery produced during the first 18 months.
Analysis is based upon primary production only and assumes no future enhanced recovery projects or ef-forts to improve individual well performance, both of which could increase ultimate recovery.
From Mt BOGC
Rigs and Production
December Production1. North Dakota 23.5 MBls2. Montana 2.3 Mbls
Current Rig Count1. North Dakota – 1762. Montana - 11
Montana vs North Dakota Daily Production
2008
DEQ Related IssuesPermitting and compliance
Gravel miningSubdivision Stuff – Temporary Work Force
Wastewater, Wastewater, WastewaterZombies
Air registry permitsSolid Waste
Discharge permits – produced waterSewage Pumpers
Water Quality Issues Enforcement Issues
Gravel Mining
2011 and 2012 average 100-110Applications per yearNo good data for previous years
Air Registry - Oil or Gas Well Facility
Well
Heater/Treater
Oil Storage Tanks
Flare Pit
Pumpjack (“Horse Head”)
Recycle Pump
Water Storage Tank
Pumpjack Engine
1100 registered sites
Impact timing for Montana
Anthropogenic impacts in Montana relate to North Dakota increases!
We weathered through Elm Coulee just fine!
Solid Waste E & P Waste – Oaks
permitted January 2013 in use mid 2013
New E&P application in Outlook
PreApp E&P in Brockton
UIC sites/ produced water
TENORM & Filter Socks
Temporary Work Force HousingRV Parks, Richland County
These are subdivisions under 76-4
Work CampSheridan County
These are public water and wastewater but not subdivisions
Truck Parking Facility
Septic Pumpers
Two new land app sites in Richland County
Community Challenges
RV’s and Blue water ?
Permitting Challenges
• Example of a zombie system: this development was approved and occupied in the early 1980s, then vacated and returned to agricultural land, and is now being occupied again. How does this fit our regulations?
Enforcement Issues
66 Enforcement cases based on complaints – mainly subdivision and public water mainly follow up on county referrals.
9 Formal enforcement cases that will be AO’s and administrative penalties.
Get involved – if you see something funning call us.
Chad Anderson 406-444-2964
Water Quality Issues“What the frack”
Fracturing Process
Water
Concentrated gelFrac fluid additives
Frac fluid mixing/blending
Proppant mixing/blending
High-pressure pumping equipment
Wellhead connection
Source: Schlumberger
Chesapeake Rock Cave Marcellus Shale Well, West Virginia
Gel Slurry Tanker Truck
Chemical Storage Trucks
Frac Head/Goat Head
Data Monitoring Van
Frac Pumps
Frac Tanks – Hold Fresh Water
Sand Storage Units
Blender Pumps
Frac Tanks – Hold Flowback Water
Where is this all going?
The End - Any questions?