Chowdhury Sabir Ahmed

M.Sc (2nd Semester)Department of Geology

Roll No – 91/AGE/101026

• Is shale gas a viable resource?• What are the problems with it?

– Social?– Environmental?

• Laws and regulations• Where is it?

Natural gas Unconventional Found in certain types of

shale 2,000-7,000 feet deep Low permeability Prevalent in the area Confined in fractures

within the shale itself Reserves higher than Oil Enhanced Global

Availability

How is shale gas formed?How is shale gas formed?• Shale containing natural gas is generally

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 more porous and permeable rock such as sandstone and limestone forming conventional reservoirs.

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

Steps

1.Leasing land2.Exploration3.Drilling

Hydraulic fracturing

Horizontal drilling

4.Collecting5.Restoration

~ 3500 feet

Cap rock

Cap rock ~ 100 feet Pay zone

Not to scale

Horizontal Drilling and Fracturing

Not To Scale

Plentiful Cleaner than other fossil fuels Economy Low maintenance costs Environment friendly Speedy creation of Infrastructure

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

Presence of Shale Gas Presence of Shale Gas worldwideworldwide

• 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

LOCALLOCAL• 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

INDIAN ENERGY SECTOR : AN INDIAN ENERGY SECTOR : AN OVERVIEWOVERVIEW

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

Consumption more than World & Asia Pacific.

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

Bengal India's biggest energy explorer Oil & Natural Gas

Corporation (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"

Relevant Technology: Relevant Technology: HydrofracturingHydrofracturing

• Hydraulic fracturing

• Is hydraulic fracturing widely used?

• Does hydraulic fracturing pose a serious threat to the environment?

• Although shale gas is one of the fastest growing trends in onshore oil and gas exploration there is still a long way to go!

• Better, more efficient technology needs to be obtained.

• Natural gas historically has only provided 22% of the total energy consumed

• Each gas shale basins is different and each has a unique set operational challenges.

• Because of these differences, the development of shale gas resources in each of these areas faces potentially unique opportunities and challenges.

• Protection of Groundwater• Wildlife Impacts

• Community Impacts• Surface Disturbances

• Chemicals are added to water to aide in fracturing the rock– This add goes to the amount of ground water

• Reduce, Reuse, Recycle – In using this technique researchers are trying to find a way to

cut down on water pollution• It takes 2 million to 4 million gallons of water

to drill and fracture a horizontal shale gas well– In the long run is not to bad compared to agricultural and

municipal use.– Only 1% - 8% of total water use

• Gas development Gas development can adversely can adversely affect animal affect animal habitat and habitat and wildlife.wildlife.– They can drill

underneath areas like wetlands to reduce wildlife disturbances..

• There are certain Community issues There are certain Community issues that can arisethat can arise– Damage to roads– Traffic congestion– Noise– Dust

• It takes intense planning to ensure It takes intense planning to ensure that these factors have the smallest that these factors have the smallest impact possibleimpact possible

• Vertical wells can require up to 40 acres per well or 16 wells per square mile.– Horizontal wells take

up much less space and are more efficient.

• Natural Gas is the cleanest of all fossil fuels– Can reduce the emissions of pollutants

into the atmosphere• The main products of natural gas

combustion are carbon dioxide and water vapor– Carbon dioxide is a less potent pollutant

• Natural gas does not contribute much to smog– Emits low levels of nitrous

oxide and almost no particulate matter

• Can be used to fuel vehicles– Cut down on the emissions

from gasoline and diesel..

• Advances in Hydraulic fracturing and horizontal completions

• Costs more to produce but low risk of shale gas wells

• North America the developing leader• Prospects

– 29,00 jobs– 2.3 billion dollars to the economy

ConclusionsConclusions

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.

ReferencesReferences• http://www.guardian.co.uk/business/2011/apr/08/shell-oil-gas-james-smith• http://www.naturalgas.org/naturalgas/exploration.asp• http://www.business-standard.com/india/news/ongc-finds-maiden-shale-gas-

reserves-in-india/123723/on• http://www.scientificamerican.com/article.cfm?id=shale-gas-and-hydraulic-

fracturing• http://www.api.org/policy/exploration/hydraulicfracturing/shale_gas.cfm• http://owni.eu/2011/02/14/shale-gas-energy-revolution-or-ecological-threat/• http://articles.timesofindia.indiatimes.com/2011-01-26/india-business/

28380148_1_shale-gas-damodar-basin-gas-source• http://en.wikipedia.org/wiki/Shale_gas• http://www.deccanherald.com/content/44366/shale-gas-game-changer-

india.html• http://www.energytomorrow.org/Shale_Gas.asp• The Times of India, 26 January 2011, article

Thank You!