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Submitted To Submitted ByDr. Leela Manohar SANYAM JAINDr. Tapas Palai Roll No: 13759 Submission Date: 5 April 2016

National Institute of Technology Hamirpur H.P.

CHEMICAL ENGINEERING DEPARTMENT

Presentation on Shale Gas

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Content What is Shale Gas? How Shale is formed? How Shale Gas is formed? History Shale Gas Potential Shale Gas in India India’s participation in the Shale Gas industry in the

US Importance of Shale Gas Supporting Evidence The people’s view Concerns Pros & Cons Conclusion References

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What is Shale Gas? Natural gas Unconventional Found in certain types of shale 2,000-7,000 feet deep Low permeability Confined in fractures within the

shale itself Reserves higher than Oil Enhanced Global Availability

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How is Shale formed? Shale is formed from muddy sediments deposited in seas millions of years ago

As these sediments were buried, they were heated and turned into rock and the organic matter was converted into oil or gas

These rocks are often the source rocks for conventional oil and gas fields but have low permeability so it is difficult to extract oil or gas from them directlyOrganic rich shale at the ground

surface

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How is shale gas formed?

Source: Geologic Time 1. Which geologic event took place first and when?

• Shale is sandwiched between two thick, black fine-grained shale deposits

• Continued pressure from burial forces most of the natural gas to migrate from the organic shales into sandstone and limestone forming conventional reservoirs.

• The natural gas remaining in the shales is termed shale gas.

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Shale Gas Formation Natural gas in shales has, essentially, formed from the remains

of plants, animals, and microorganisms that lived millions of years ago.

Though there are different theories on the origins of fossil

fuels, the most widely accepted is that they are formed when organic matter (such as the remains of a plant or animal) is buried, compressed and heated in the earth’s crust for long time.

In the case of natural gas, this is referred to as thermogenic methane generation.

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1821 – First US commercial natural gas well in Fredonia, NY, produces natural gas from shale;

After 160 years of development and experiments

1980s – Department of Energy spearheads research in micro seismic and other 3-dimensional mapping techniques that proved critical to shale gas recovery;

2000s – natural gas holds steady in United States with the highest annual increase in production of any energy technology – modern natural gas boom

When it began?

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Presence of Shale Gas worldwide

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Shale Gas Potential

North America is currently the most profitable shale gas producer.

Worldwide development of shale gas plays are expected to develop, especially in Europe and Asia.

Shale gas contributes an 11% rise in natural gas in the U.S.

Pennsylvania Marcellus Shale contains about 500 trillion cubic feet of natural gas.

China is estimated to have the world's largest shale gas reserves.

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ONGC finds country's first-ever shale gas reserve in West Bengal

India's biggest energy explorer ONGC has discovered the country's first shale gas reserve at Durgapur in Burdwan district of West Bengal.

The gas reserve - spread over 12,000 square km in the Durgapur-Ranigunj area - is the world's third shale gas find.

According to ONGC estimates, India's shale gas reserves range between 600 and 2,000 trillion cubic feet.

"The successful pilot testing of first-ever shale gas on surface will put India on shale gas map of the world. It has opened up new hopes for meeting our energy needs and encouraged to venture into many shale sequences"

Shale Gas in INDIA

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INDIAN ENERGY SECTOR : AN OVERVIEWWorld Asia Pacific India

Energy Consumption 11294.9 3981433

5th Largest Energy Consumer

Energy Mix (%)Coal 29% 51% 53%Oil 35% 29% 31%Natural gas 24% 11% 8.6%Nuclear 5.5% 3% 0.80%Hydro 6.4% 5.3% 6%

Oil & Gas Imports 3245 1097 129(US$ 76 billion)

Growth in Energy (10 yrs)Total Primary Energy 2.1% 4.1% 4.8%

Natural Gas 2.5% 6.5% 6.6%India – A Fast Growing Energy Market with Growth in Natural Gas

Consumption more than World & Asia Pacific.

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India’s participation in the Shale Gas industry in the US

RIL has made big investments (US$ 3.5 billion) in the Marcellus and Eagle Ford shales through joint ventures with Chevron, Carrizo, and Pioneer. Marcellus has been described as the largest discovered unconventional gas field in the US and one of the largest worldwide, with estimated net recoverable resources of 318 trillion cubic feet (tcf). (In comparison, the resources in RIL’s own D6 fields in the KG Basin were estimated to hold around 3.4 tcf in November 2012, dropping from 10.3 tcf in December 2006).

RIL’s revenues from the shale gas business more than doubled to US$ 545 million in 2012 compared to 2011. RIL views its investment as a profitable proposition and not necessarily at gaining technology and experience to explore for shale gas in India.

Oil India Limited (OIL), Indian Oil Corporation (IOC), and GAIL India Limited have also made investments in shale gas production in the US.

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• The other interesting contribution to shale gas development in the US is the export of guar gum from India, which helps in improving the viscosity and flow of water in the fracking process.

• The gum is extracted from guar ki phalli, grown mainly by farmers in arid lands in Rajasthan and Haryana.

• Its use in shale gas extraction, its production has risen enormously, earning almost US$ 5 billion during the period from April 2012 to Jan 2013.

India’s participation in the shale gas industry in the US

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Importance of Shale Gas

2000 2010 20350%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

1%

10%

46%

Contribution of Shale Gas in the production of Natural Gas in US

% S

hale

Gas

use

• Shale gas has become an increasingly important source of natural gas in the United States.

• U.S. government's Energy Info. Administration predicts that by 2035, 46% of the United States' natural gas supply will come from shale gas.

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Supporting Evidence

Plentiful Cleaner than other fossil fuels Economy

Low maintenance costs Environment friendly Speedy creation of Infrastructure

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The People’s View

Most critics support the production of natural gas from Shale. Analysts expect shale gas will greatly expand worldwide energy

supply. Unconventional gas production is expected to rise from 42% in 2007

to 64% in 2010. There is enough shale gas to support the U.S. gas needs for 90 years. According to a recent report by the IEA2 , the rapid development of

‘unconventional’ natural gas resources, most notably shale gas, could herald a golden age for gas’ with demand surpassing that for coal by 2030, and by 2035 natural gas could account for 25% of all global energy use.

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Concerns Shale Gas- Earthquake: The possible link between fracking for

shale gas and small earthquakes has triggered considerable concern, two small earthquakes in April and May 2011 in the Blackpool area (2.3 and 1.5 respectively on the Richter Scale)

Contamination of drinking water:

Contamination of drinking water sources either by chemicals used in fracking fluids and/or by methane escape as a result of the fracking process itself

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Pros and Cons of Shale Gas

Pros: Under our toes, a wealth of gas exists that burns clean and could wean the U.S. off energy dependence. But getting to it is a bit tricky.

The Obama administration believes that increased shale gas development will help reduce greenhouse gas emissions. In 2012, US carbon dioxide emissions dropped to a 20-year low. Human and public health will both benefit from shale gas displacing coal burning.

Cons: First of all, it's 5,000 feet below ground. To get a hold of it requires pumping hydraulic fracturing (fracking) fluids, which could

contain hazardous chemicals, into the ground along with water and sand at high pressures. The result is "a super-salty brine, prone to bacterial growth, and potentially contaminated

with heavy metals," the National Geographic wrote in its series on shale gas.

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Conclusion

Enough unconventional Reservoir exist in the country. Unconventional Reservoirs are required to be evaluated by collection

of more data by initiating Pilot Projects in Shale Gas as earliest as possible.

Exploration blocks may be awarded for unconventional reservoirs. Economically, Projects in Shale Gas looks viable. There is a need to undertake more extensive exploration and

appraisal activities to better assess the commercial viability of shale gas

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References

https://en.wikipedia.org/wiki/Shale_gas Facts About Shale Gas - American Petroleum Institute Likely to be Country’s key Fuel over next 50 years by Chowdhury Sabir Ahmed

M.Sc. (2nd Semester) Department of Geology http://www.business-standard.com/india/news/ongc-finds-maiden-shale-gas-

reserves-in-india/123723/on http://articles.timesofindia.indiatimes.com/2011-01-26/india-business/

28380148_1_shale-gas-damodar-basin-gas-source Report on Shale Gas by The Energy and Resources Institute Policy brief June 2013 Live Mint E-paper April, 2013-ONGC begins shale gas exploration in India by live

mint E paper on April 2013 The Times of India, 26 January 2011, article

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Thank You for your valuable time

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Questions??