Azra N. Tutuncu, Colorado School of Mines

Harry D. Campbell Chair, Petroleum Engineering

Director, Unconventional Natural Gas and Oil Institute (UNGI)

November 14, 2014

Golden, Colorado

Unconventional Oil and Gas Developments and Energy Revolution

UNGI

Unconventional Resources

• Tight Gas Sands

• Gas Shale and Shale Oil Reservoirs

• Oil Shale

• Heavy Oil Sands

• Heavy Oil Carbonates

• Coal Bed Methane

• Gas Hydrates

• Geothermal Energy

• CO2 and other chemical injection EOR

UNGI

Unconventional Natural Gas and Oil InstituteUNGI

• An umbrella organization for enhancing internal and external CSM teaching and research collaboration with industry, government and other academic organizations worldwide

• Exchange and visiting scholar programs for students and faculty in partnership with established research institutions

• State of the art laboratory facilities equipped with nano/micro/core and field scale measurement capabilities for unconventional research/teaching

• Training for undergraduate-graduate students and industry with special expertise in unconventional resource technology, environmental sustainability and regulatory aspects, K-12 education (STEM)

• Impartial resource for public, federal and state government

Colorado School of Mines (CSM) http://ungi.mines.edu

UNGI Unconventional R&DIndustry, Academia and Government Collaboration

• Research Consortia – UNGI CIMMM – UNGI Vaca Muerta– NREL Geothermal Drilling– Several Consortia on CO2 injection,

caprock integrity and inducedseismicity are in development

• Proprietary Research Projects (Eagle Ford. Bakken, Niobrara, Oil Shale, Marcellus,…)

• Technical Training for Professionals• Regulator/Policy Maker Training Classes

– TOPCORP Regulator Training (Domestic)– UGTEP Collaborative Program (International)

• Public Engagements

UNGI Consortia

UNGI

Mines Unconventional Educational Curriculum UNGI

World Recoverable Unconventional Oil and Gas Resources

UNGI

African Unconventional Resources

2009 Natural Gas Market (TCF, dry) Proved Gas

Reserves (TCF)

Technically Recoverable

Shale Gas (TCF)

Production Consumption Imports (Exports)

South Africa 0.07 0.19 63% - 485

Libya 0.56 0.21 (165%) 54.7 290

Tunisia 0.13 0.17 26% 2.3 18

Algeria 2.88 1.02 (183%) 159.0 231

Morocco 0.00 0.02 90% 0.1 11

Western Sahara - - - 7

Mauritania - - 1.0 0

EIA (2011)

UNGI

Unconventional Resources in Africa

Region Oil production 2012

(thousand bbl/d)

Proved crude oil

reserves 2013(billion barrels)

Dry natural gas

production 2011 (Bcf)

Proved natural gas

reserves 2013 (Tcf)

Crude oil refinery

capacity 2012(thousand

bbl/d)

East Africa3

122 7.5 165 11.3 265

Southern Africa4

181 0.0 45 2.8 485

West Africa 2667 38.0 1161 184.8 604

Central Africa 2912 17.1 318 23.2 121

North Africa 4151 65.0 5434 293.2 1743

Total Africa 10033 127.6 7124 515.4

UNGI

0 500 1,000 1,500 2,000 2,500 3,000

Middle East

Eurasia

Asia & Oceania

North America

Central & South America

North Africa

Sub-Saharan Africa

Europe

Proved Natural Gas Reserves

O&G Journal,; EIA, U.S. natural gas reserves, 2010

0 200 400 600 800 1,000

Middle East

Central & South America

North America

Eurasia

North Africa

Sub-Saharan Africa

Asia & Oceania

Europe

Proved Crude Oil Reserves (billion barrels)

Unconventional Wells in Pennsylvania UNGI

Horizontal Drilling and Hydraulic Fracturing UNGI

Why Coupling Horizontal Wells and Multistage Fracturing ?

Vertical Well Contact

Area~ 15 m2

2000 ft Horizontal Well

30 m

20 times

Vertical Well

Contact

Area~ 300 m2

Horizontal Well

No fractures

~957 Vertical

48 Horizontal Well

2000 ft Horizontal

with 10 multistage fractures

150 ft length each

Contact

Area~ 14,223 m2

UNGI

Shale Reservoir Development

• Coupling of horizontal drilling and hydraulic fracturing is key for economically viable production

• Effectiveness of the fracturing operations strongly depend on

– Production rates, drainage area and recovery efficiency

– Knowledge of in situ stress state, formation characteristics and anisotropy influence the design and execution of the operations

• Main challenges include

– Reservoir and fracture characterization/ sweet spot identification

– Upscaling/downscaling for capturing heterogeneity and anisotropy

– HF/ NF coupled geomechanics/flow modeling for permeability

– Environmental issues

– Adequate infrastructure

UNGI

UNGI 3rd Generation Coupled-Geomechanics-Flow Characteristics Laboratories UNGI

UpscalingStress and Rock Property Anisotropy Evaluation from Logs and Cores

Padin and Tutuncu (2013)

Willis and Tutuncu (2014)

MonitoringBorehole Microseismic Mapping

Injection WellObservation Well

Typically 12-3CLevel @ 10M

Digital seismic Array

Observation Distance

Depends on Seismic Attenuation

Perforated

Interval

Recorded Events

Courtesy of Pinnacle Technology

Surface and Ground Water Protection and Air Quality

• Public and media attention concerning potential ground water contamination from hydraulic fracturing

• A Hz well ~5000 ft with 20-25 stages use 2-6 million gallons water

• Recycled water contains particulates, suspended solids, dissolved organics (organic acids), silica and bacteria

• Waste water disposal is also a concern for induced seismicity

• NOx, CO, particulate matter, benzene, toluene, other volatile organic compounds (BTEX) and ozone are among pollutants of concern for air quality

• Radionuclides like radium, thorium and radon from the wastewater treatment of fluids, malodors and methane are additional sources of air pollution

• Acids• Sodium Chloride• Potassium Chloride• Sodium/Potassium Carbonate

• Petroleum Distillates• Citric Acid• Polyacrylamide• Ammonium Bisulfite• Ethylene Gylcol

• Guar Gum• N, n-Dimethyl Formamide• Borate Salts• Proppant• Isopropanol

UNGI

Hydraulic Fracturing – Aquifer Contamination?

0 0

2000 610

4000 1220

6000 1830

8000 2440

10000 3050

Barnett Shale Perforation/Fracture TVDs

Fracture Stages Sorted by Perforation Mid-Points

De

pth

(ft) (m)

Fisher, 2010

UNGI

A Well Pad Reclamation Practice in ColoradoBLM (2006)

UNGI

UNGIhttp://ungi.mines.edu

THANK YOU