Shale gas in Poland – prospects and

challenges

Marcin LutyńskiSilesian University of TechnologyGliwice, Poland

UNCONVENTIONAL GAS & CO2 STORAGE LABORATORY

- One of the biggest technical universities in Poland,

- the University consists of fifteen faculties which offer about 50 courses and almost 200 specializations,

-the University employs 1863 scientific-didactic staff, including 173 titular professors and 237

doctors of science,

-at present there are almost 29,000 students at the University.

The Rector’s insygnia

History:

- the Silesian University of Technology was founded on 24th May 1945 with setting up of four faculties: Mechanical, Electrical, Metallurgical and Civil Engineering,

- the first inauguration of the academic year at the University in Gliwice took place on 29th October 1945 and 2750 students began their studies,

- so far, 114 thousand engineers have graduated from the University which has also granted 3,5 thousand PhD and 550 DSc degrees.

A lecture at the Faculty of Electrical Engineering in the 1950s

International Cooperation:

- the Silesian University of Technology participates in European programmes for academic exchange:- LLP-ERASMUS, - CEEPUS - Central European Exchange Program for University Studies, - STF – Scholarship and Training Fund,- CEI – Central European Initiative,- Support for the International Mobility of Researchers.

A class at the Faculty of Architecture

Faculties:

- Faculty of Architecture - Faculty of Automatic Control, Electronics and Computer Science- Faculty of Biomedical Engineering- Faculty of Civil Engineering- Faculty of Chemistry- Faculty of Electrical Engineering- Faculty of Mining and Geology- Faculty of Energy and Environmental Engineering- Faculty of Applied Mathematics - Faculty of Mechanical Engineering- Faculty of Materials Science and Metallurgy- Faculty of Organization and Management-Faculty of Transport-Foreign Language College-Institute of Physics – Centre for Science and Education

The Silesian University of Technology gives an opportunity to develop in any field

Faculty of Mining and Geology:

- employs 30 professors and PhD DSc holders and 113 PhD holders,

-conducts research into modern mining technologies comprising geological prospecting, economically efficient extraction of mineral deposits, application of energy–efficient and reliable machines, compliance with all safety regulations and protection of the natural environment.

Courses: - Mining and Geology- - Safety Engineering

The main entrance to the building of the Faculty of Mining and Geology

Energy dependence rate of EU countries in 2008

The most important suppliers of crude oil and natural gas were Russia (33% of oil imports and 40% of gas imports) and Norway (16% and 23% respectively).

Denmark is the only net energy exporter: -36,8%

Energy dependency rate, EU-27, 2006-2009

2006 2007 2008 2009

All products 53.7 53 54.7 53.9

Solid fuels 41 41.3 44.7 41.1

Crude oil 83.9 83.6 85 84.1

Natural gas 60.8 60.3 62.3 64.2

The new source? Unconventional Gas – Shale Gas

Global spread in shale gas resources

Unconventional Gas…What’s that…?

• According to National Petroleum Council:„natural gas that cannot be produced at economic flow rates nor in

economic volumes of natural gas unless the well is stimulated by a large hydraulic fracture treatment, a horizontal wellbore, or by using multilateral wellbores or some other technique to expose more of the reservoir to the wellbore”

Unconventional Gas Reservoirs• deep gas• tight gas• gas-containing shales (SHALE GAS)• coalbed methane (CBM)• geopressurized zones• Arctic and sub-sea hydrates

Unconventional Gas Resources

Resources Pyramid

Conventional Gas reservoir

Tight Gas reservoir

Shale Gas reservoir Tightl Gas fracturing

Tight Gas•This is gas that is stuck in a very tight formation underground, trapped in unusually impermeable, hard rock, or in a sandstone or limestone formation that is unusually impermeable and non-porous (tight sand)•For example it’s appr. 21% of the total recoverable US Natural Gas reserves

Conventional reservoir

Tight gas formation

Shale GasReservoir characterization

• Low permeability reservoirs: 0.0001 - 0.01 md• High organic content TOC > 1-6% wg.• Shale is a source and sink for the gas• Sorption of gas on organic matter in micro and nano pores• „Free gas” in macropores and fractures• In order to produce gas stimulation is needed, the most common method

is hydraulic fracturing (slickwater)• Injection of proppant in order to sustain fracture• Low production rates (15 000 – 140 000 m3/well/day) but longer life of a

well (up to 30 years)• Horizontal wells provide higher recovery – 2 x more expensive

USA – the World leader in shale gas production• Commercial production so far only in US and Canada• In US Unconventional Gas (i.e. CBM + Shale Gas) accounts for 42%

of the total gas production, in 2020 it should grow up to 64%)• In Canada Unconventional Gas accounts for 24% of the total gas

production

Two technologies that contributed to the development of shale gas

reservoirs in the world

1. Hydraulic fracturing

2. Horizontal (directional) wellbores

Shale Gas Production principles

Fracturing of shale reservoirs

Source: STATOIL

Fracturing of shale reservoirs

Proppant

Fracture

Hydraulic Fracturing OperationEquipment1. Well head and frac tree with ‘Goat Head’ 2. Flow line (for flowback & testing)3. Sand separator for flowback4. Flowback tanks5. Line heaters6. Flare stack7. Pump trucks8. Sand hogs9. Sand trucks10. Acid trucks11. Frac additive trucks12. Blender13. Frac control and monitoring center14. Fresh water impoundment15. Fresh water supply pipeline16. Extra tanksProduction equipment17. Line heaters18. Separator-meter skid19. Production manifold

wg. New York State Department of Environmental Conservation; Division of Mineral Resources

Fracturing requires precise logistic planning

Typical Marcellus Frac: 10 Stages, 4 MM lbs of sand, and 3 MM gal of waterpumped at >100bbls/min

Source: DOE, GWPC: Modern Gas ShaleDevelopment In the United States:A Primer (2009)

Compound Purpose Common ApplicationAcids Helps dissolve minerals and initiate fissure in rock

(pre-fracture)Swimming pool cleaner

Glutaraldehyde Eliminates bacteria in the water Disinfectant; Sterilizer for medical and dental equipment

Sodium Chloride Allows a delayed break down of the gel polymer chains

Table Salt

N, n-Dimethyl formamide Prevents the corrosion of the pipe Used in pharmaceuticals, acrylic fibers and plastics

Borate salts Maintains fluid viscosity as temperature increases Used in laundry detergents, hand soaps and cosmetics

Polyacrylamide Minimizes friction between fluid and pipe Water treatment, soil conditionerPetroleum distillates "Slicks" the water to minimize friction Make-up remover, laxatives, and candyGuar gum Thickens the water to suspend the sand Thickener used in cosmetics, baked goods,

ice cream, toothpaste, sauces, and salad dressing

Citric Acid Prevents precipitation of metal oxides Food additive; food and beverages; lemon juice

Potassium chloride Creates a brine carrier fluid Low sodium table salt substituteAmmonium bisulfite Removes oxygen from the water to protect the pipe

from corrosionCosmetics, food and beverage processing, water treatment

Sodium or potassium carbonate Maintains the e#ectiveness of other components, such as crosslinkers

Washing soda, detergents, soap, water softener, glass and ceramics

Proppant Allows the fissures to remain open so the gas can escape

Drinking water filtration, play sand

Ethylene glycol Prevents scale deposits in the pipe Automotive antifreeze, household cleansers, deicing, and caulk

Isopropanol Used to increase the viscosity of the fracture fluid Glass cleaner, antiperspirant, and hair color

Composition of fracturing fluid

Shale gas in polandEstimated reservesin bln (109) m3

SHALE GAS POTENTIAL IN EUROPEin bln (109) m3

SHALE GAS – CURRENT SITUATION IN POLAND

Shale gas exploration concessions - issued

Shale gas exploration concessions - appliedConventional gas exploration concessions - issuedConventional gas exploration concessions - applied

SOURCE: Ministry of Environment

SHALE GAS – CURRENT SITUATION IN POLAND

EXPLORATORY WELLS AS OF 4.11.2013

SOURCE: Ministry of Environment

SHALE GAS – CURRENT SITUATION IN POLANDSTIMULATION JOBS IN WELLS

AS OF 4.11.2013

*DIAGNOSTIC FRACTURE INJECTION TEST

SOURCE: Ministry of Environment

STIMULATION JOB VERTICAL WELLSDIRECTIONAL/HORIZONTAL

WELLSIN TOTAL

FRACTURING 13 7 20

MICRO-FRACTURING/DFIT* 4 0 4

WITHOUT FRACTURING 23 4 27

TOTAL 40 11 51

Challenges and prospects• According to recent promises of the Minister of

Environment shale gas production on commercial scale should start in 2014

• Companies complain on formal obstacles• EU Directives on shale gas??• There is a strong support of government regarding

shale gas development – national research programme Blue Gas – 250 mln PLN ( 63 mln €) 6

MARCIN.LUTYNSKI@POLSL.PLThank you for Your attention!!