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UNGI Unconventional Resources Geomechanics Workshop June 24, 2011 Westin Market Street - San Francisco

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UNGI

Unconventional Resources

Geomechanics

Workshop

June 24, 2011

Westin Market Street - San Francisco

1

Unconventional Resources Geomechanics Workshop

Westin Market Street Hotel, San Francisco - June 24, 2011

Morning Session

8:00 – 8:05 Welcome, Introduction and Safety Instructions

Peter Smeallie and Azra Tutuncu

8:05 – 8:15 Geomechanics in Unconventional Gas Reservoirs

Dr. Azra Tutuncu, Colorado School of Mines and UNGI

8:15 – 8:25 North American Shale Gas from 1821 to 2011: Evolution to Revolution in Science and

Technology

Dr. John Curtis, Colorado School of Mines

8:25 – 8:35 European unconventional gas developments

Dr. Ruud Weijermars, Delft University

8:35 – 8:45 Optimizing Oil & Gas Asset Design Using Geomechanical Earth Modeling

Technology

Dr. Peter Connolly and Dr. Harvey Goodman, Chevron

8:45 – 8:55 Injectivity and Hydraulic Fracturing related to Water Injection

Dr. Paul van den Hoek, Shell International EP

8:55 - 9:05 Fractures and the Matrix: Combined Anisotropy and Compliance

Dr. Laura Pryak-Nolte, Purdue University

9:05– 9:15 Explosive Fracturing for Permeability Enhancement Dr. Chris Bradley, Los Alamos National Laboratories

9:15– 9:25 Simulating Hydrofracture Growth and Gas Production in Natural Fracture Networks

Thomas Doe and William Dershowitz, Golder Associates

9:25 – 10: 10 COFFEE BREAK

10:10 - 10:20 Fractures and Unconventional Resources

Dr. Charles Fairhurst, Itasca Consulting Co. and University of Minnesota

10:20 - 10:30 Hydraulic Fracture Complexity and Containment in Unconventional Reservoirs

Tom Bratton, Schlumberger

10:30 – 10:40 Microseismic Fracture Mapping in Shales - Mechanisms and Validation

Dr. Norm Warpinski, Pinnacle Technologies/Halliburton

10:40 – 12:00 DISCUSSION PANEL

12:00 – 1:30 LUNCH BREAK

UNGI

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Afternoon Session

1:30 – 1:40 Hydraulic Fracturing Field Experiments - Multiple Hydraulic Fractures and

Fracture Reorientation

Jordan Ciezobka and Kent Perry, Gas Technology Institute

1:40 – 1:50 The Contribution of Microseismic Monitoring in Fracturing of Unconventional

Reservoirs

Dr. Peter Duncan, Microseismic Inc.

1:50 – 2:00 Inadequacies in nationwide monitoring of groundwater quality and quantity,

and water use implications for energy development

Dr. David R. Wunsch, National Ground Water Association

2:00 – 2:10 Benefits and Challenges in Using Abandoned Coal Mine Water Sources for

Hydraulic Fracturing Processes in Marcellus Shale Gas Play

Dr. Anthony Iannacchione, University of Pittsburgh

2:10 – 2:20 CO2 Sequestration Geomechanics and Modeling

Dr. John Rutqvist, Lawrence Berkeley National Laboratories

2:20 – 2:30 Air Quality Issues Facing the Industry

Dr. Nancy Brown, Lawrence Berkeley National Laboratory

2:30 – 2:40 Shale Reservoir Properties from Digital Rock Physics

Dr. Amos Nur, Stanford University and InGrain

2:40 – 2:50 Overcoming Barriers to Shale Reservoir Development through Improved

Geomechanical Modeling

Dr. Dan Moos, GMI and Baker Hughes

2:50 – 3:15 COFFEE BREAK

3:15 – 5:00 DISCUSSION PANEL

5:00 Adjourn

3

UNGI

Unconventional Resources Geomechanics Workshop

June 24, 2011 – San Francisco

Speaker Biographies and Abstracts

Introduction to Unconventional Resources Workshop

Geomechanics in Unconventional Resources

Dr. Azra N. Tutuncu • Professor, Harry D. Campbell Chair and Director, Unconventional

Natural Gas Institute (UNGI), Colorado School of Mines, Immediate Past President, ARMA

Professor Tutuncu is the Harry D. Campbell Chair at the

Petroleum Engineering Department and the director of

Unconventional Natural Gas Institute at Mines. She held various

research and leadership assignments in Well Engineering, Rock

Physics, Geomechanics and Subsurface R&D groups at Shell

International E&P and Shell Oil Companies. Her research interest

areas include rock-fluid interactions, integrated borehole stability,

geomechanics, reservoir characterization and formation damage

detection, mitigation and removal. She is an Executive Board

Member and immediate past president of American Rock

Mechanics Association (ARMA), the SEG AGI representative in

Environmental Geoscience Advisory Committee, and a member of

SEG Research Council in addition to serving on several SPE, SEG,

ARMA and ISRM committees. She is a licensed Professional

Petroleum Engineer and Licensed Geoscientist in the State of

Texas.

Geomechanics is one of the key disciplines providing input to the success of the unconventional resource

from reservoir characterization and sweet spot identification to directional and horizontal drilling,

multistage hydraulic fracturing, production enhancement, and monitoring. The Unconventional Natural

Gas* Institute (UNGI) at Colorado School of Mines has been established to highlight the ongoing

multidisciplinary research capabilities in unconventional natural resources area at Mines and to bring the

associated research conducted at several research centers and departments under one umbrella in

addition to contribute solving technical challenges for industry and government organizations together.

A significant portion of the integrated multidisciplinary research is conducted using fundamental

geomechanics concepts and their application in geoscience and petroleum engineering technology

applications and novel technology development. The UNGI is a vehicle for transferring the technologies

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in an integrated multidisciplinary form quickly and the most efficient way to the industry in assisting the

deployment of much needed technologies in unlocking the unconventional resources. UNGI has already

state-of-the-art experimental research laboratories capable of simulating in situ stress, pore pressure and

temperature conditions for geomechanics, rock physics, petrophysics and flow measurements and

modeling in unconventional resources. One of the key functions of UNGI has been identified as rapid

deployment of the technology in addition to educating the future employees for the industry as well as

independents and major oil and gas companies on unconventional resources and providing quick

answers with strong environmental emphasize to questions coming from the industry. UNGI has been

focusing on developing and/or enhancing technologies for no surprise drilling, production and

stimulation operations and minimizing the environmental impact of the hydraulic fracturing. The

institute has various ongoing projects and several new consortium proposals with oil and gas industry and

government organizations focusing on educating independent and major oil and gas companies using

improved technologies for enhancing our understanding on gas shale, shale oil and other unconventional

resource characterization and reservoir recovery enhancement in order to increase efficiency for each

step of the exploration and production operations from unconventional reservoirs and is aiming to

provide a sustainable bridge between fossil fuels and renewable energy.

Introduction to Unconventional Resources Workshop

Peter Smeallie • Executive Director, American Rock Mechanics Association and President,

Research Opportunities Management

In 1995 Peter Smeallie was appointed the first Executive Director

of the American Rock Mechanics Association (ARMA), a

professional society of approximately 500 individuals and the US

National Group to ISRM. Prior to this, Mr. Smeallie worked for 12

years at the National Academy of Sciences where his

responsibilities included directing advisory research studies in

areas such as geotechnology, energy engineering, construction

technology, infrastructure and urban systems, and advanced

technologies applied to design and engineering practice. Mr.

Smeallie's last position at the Academy was Director of the

Geotechnical Board and its U.S. National Committee for Rock

Mechanics. He was study director for over 20 major studies,

including Rock Fractures and Fluid Flow: Contemporary

Understanding and Applications (1996) and Drilling and

Excavation Technologies for the Future (1994). Mr. Smeallie has a

degree in Urban Studies from St. Lawrence University. He is author (with P. Smith) of New Construction

for Older Buildings: A Design Sourcebook for Architects and Preservationists, published by John Wiley &

Sons in 1990.

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North American Shale Gas from 1821 to 2011: Evolution to Revolution in

Science and Technology

Dr. John B. Curtis • Professor of Geology and Geological Engineering and Director, Potential

Gas Agency Colorado School of Mines

Professor John B. Curtis is Professor of Geology and Geological

Engineering and Director, Potential Gas Agency at the Colorado

School of Mines. He received a B.A. (1970) and M.Sc. (1972) in

geology from Miami University and a Ph.D. (1989) in geology

from The Ohio State University. He is a licensed Professional

Geologist (Wyoming). He was an officer in the United States Air

Force from 1972-1975. Dr. Curtis has been at the Colorado School of Mines since July, 1990. He had 15 years prior

experience in the petroleum industry with Texaco, Inc., SAIC,

Columbia Gas, and Brown & Ruth Laboratories/Baker-Hughes.

He serves on and has chaired several professional society and

natural gas industry committees (included the Supply Panel,

Research Coordination Council, and the Science and Technology

Committee of the Gas Technology Institute (Gas Research

Institute)). Dr. Curtis co-chaired the AAPG Committee on

Unconventional Petroleum Systems from 1999-2004 and is an invited member of the AAPG

Committee on Resource Evaluation. He was a Counselor to the RMAG from 2002-2004, an Associate

Editor of the AAPG Bulletin from 1998 – 2010 and has published studies and given numerous invited

talks concerning hydrocarbon source rocks, exploration for unconventional reservoirs, and the size

and distribution of U.S., Canadian and Mexican natural gas resources and comparisons of resource

assessment methodologies. As Director of the Potential Gas Agency, he directs a team of 100

geologists, geophysicists and petroleum engineers in their biennial assessment of remaining U.S.

natural gas resources, teaches petroleum geology, petroleum geochemistry and petroleum design at

the Colorado School of Mines, where he also supervises graduate student research.

Shale gas production, which dates from 1821 in the United States, is now rapidly increasing,

accounting for approximately 23% (4.9 Tcf) of U.S. annual production in 2010. The U. S. EIA reports

that shale gas accounted for 21% (60 Tcf) of U. S. proved reserves. Shale gas is also an increasingly

large component of future, technically recoverable North American gas resources. The Canadian

National Energy Board and British Columbia Ministry of Energy and Mines released a joint report in

May 2011 that assigns 78 Tcf of potential marketable shale gas to the Horn River Basin. This is the

first publically released, probability based resource assessment of a Canadian shale basin. The

Potential Gas Committee latest biennial assessment (April 2011) showed an overall increase of 70 Tcf

for U.S. shale gas resources, to a total of 687 Tcf. The bulk of this increase is for shale gas resources

assessed in the Anadarko, Arkoma, Gulf Coast, Michigan Basin and Rocky Mountain area. Both of

these resource trends are due to improvements in exploration, completion and production

technologies, which help to counter current low wellhead prices. This presentation analyses North

American shale gas future potential in light of past production, current proved reserves, geological

and geochemical realities. Examples of novel technologies illustrate the industry’s response to our

energy needs.

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European Unconventional Gas Developments

Dr. Ruud Weijermars • Department of Geotechnology, Delft University of Technology

Ruud Weijermars is a structural geologist and tectonician. Part of

his research focuses on rock mechanics to optimize production-

well fracture-architecture (natural and induced). Ruud also

models economic aspects of the gas value chain (downstream,

midstream, and upstream). He spearheads the Delft

Unconventional Gas Research Program.

The clean energy transition and EU 2020 targets require a further

shift from coal and oil toward natural gas. As a relatively clean

fossil fuel, gas must bridge the transition period required for

renewable energy technologies to mature such that larger energy

quantities can be economically produced to meet demand. Until

then, gas is required in Europe and energy scenarios suggest

Natural gas consumption will reach 740 bcma in 2020 and 810

bcma. However, conventional gas production in the EU will decline to 230 bcma in 2020 and 140 bcma

in 2030. This means the dependency on intercontinental LNG and pipeline imports will increase

further and – by 2030 – must account for up to 80% of total gas supply. Consequently, the development

of European unconventional gas resources could reduce the required gas imports and would improve

security of supply – and also reduces the risk of price shock. This paper outlines the imminent decline

of Europe’s conventional gas production, highlights the potential of unconventional gas resources and

advocates the key role of R&D to improve the performance of unconventional gas projects. Delft

University of Technology has launched the Unconventional Gas Research Initiative.

Optimizing Oil & Gas Asset Design Using Geomechanical Earth

Modeling Technology

Harvey Goodman and Peter Connolly• Chevron

Harvey E. Goodman is Chevron Fellow & Senior Research

Consultant in rock mechanics & geomechanical earth modeling

for Chevron’s Energy Technology Company in Houston. His key

technical responsibilities include rock mechanics technology

development and the application of geomechanics to well design

using the common earth model approach. He is a recipient of the

Chevron Chairman’s Award, the company’s highest technical

achievement award for work in geomechanics. He was an SPE

Distinguished Lecturer for 2004 – 2005 and 2009 – 2010 and

Journal of Petroleum Technology editor for Wellbore Integrity,

Sand Management and Frac Pack from 2004 - 2010. He is an

adjunct Professor at the Missouri University of Science &

Technology (MS&T), lecturing in the new mechanical earth

model (MEM) Petroleum Engineering degree program and holds

the Professional Degree in Petroleum Engineering from MS&T,

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where he also received his B.S. and M.S. degrees in Geological

Engineering.

Peter Connolly joined Chevron in 2005 worked in the research

organizations Rock Mechanics Team, for Drilling and

Completions. His technical responsibilities include Mechanical

Earth Modeling using 3D finite element analysis and associated

technologies. Most of his work is aimed at predrill salt exist

strategies; well bore stability in non-Andersonian stress fields,

sanding and completion/fracture design and reliability. Connolly

also supplies numerical modeling support, assists in

mesh/volumetric description issues and supplies structural geology

expertise. Prior to joining Chevron, he was project manager at the

Geophysical Institute Uni. Karlsruhe and the World Stress Map. Previous assignments included several

post doc positions in fractures and numerical modeling in Europe and 3 years mud-logging in Middle

East in the 1980's.

Selected oil & gas operators and service providers have laid the groundwork to enable the

characterization of large geological volumes, or geo-bodies, as engineering materials for field

development design and performance prediction. Often, seemingly unrelated non-productive events

that can plague high-risk, high-cost developments can be best understood when the geological

environment, the geology & geophysics (G&G), is described as an engineering material, i.e. the rock

mechanical properties that include formation strength and stress. A consistent characterization of

formation stress and strength with the geological structure, lithology and seismic attributes used to

recognize the prospect, ensures the explorationists’ vision is linked to the well engineers’ design.

This presentation summarizes the geomechanical earth model building process. Models linked to well

engineering applications for a high-risk deepwater subsalt asset development will be presented.

Injectivity and Hydraulic Fracturing Related to Water Injection

Dr. Paul J. van den Hoek • Shell

Paul van den Hoek joined Shell E&P in 1989 after obtaining a

PhD degree in physical chemistry from the Free University in

Amsterdam, The Netherlands. He worked most of his career in EP

R&D with one 4-year outstep into Operations in NAM. His R&D

experience stretches over a variety of topics in the areas of

geomechanics and reservoir engineering, particularly related to

secondary and tertiary recovery, and data assimilation (history

matching). He is the “founding father” of various Shell proprietary

software packages in the geomechanics, production technology

and reservoir engineering. He worked in production operations,

technology and business planning in NAM, has 10 years

leadership experience in R&D and technology deployment. He

currently heads the Quantitative Reservoir Management R&D

team, focusing on the development of ‘big-loop’ history-match

assimilating data incorporating static and dynamic methodologies.

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The number of projects with (produced) water injection under fracturing conditions is increasing

because of the increasing number of mature fields worldwide. Typical applications are reservoir

management (sweep) and water disposal. Understanding the processes taking place in the reservoir is

of key importance because such an operation involves various risks such as disappointing injectivity,

sweep problems, unwanted breaking of geological features and early water breakthrough. For proper

reservoir management, it is essential that the impact of growing induced fractures is incorporated in

the reservoir simulations, especially for produced water injection in which case the fractures can

become sizeable (order 100m or more).

The presentation focuses on Industry (particularly Shell) experience with (produced) water

(re)injection under fracturing conditions to date. Differences with injection under matrix conditions

are highlighted. A number of field examples are discussed showing where and how new technology

can add value in the design of waterfloods and water disposal schemes, and in interpreting / trouble-

shooting existing water injection schemes.

Fractures and the Matrix: Combined Anisotropy and Compliance

Dr. Laura Pryak-Nolte • Professor, Physics Department, Purdue University

Laura J. Pyrak-Nolte is a Professor in the Department of Physics

at Purdue University with courtesy appointments in the

Department of Earth and Atmospheric Sciences and in the

College of Civil Engineering at Purdue. She received her B.S. in

Engineering Science from SUNY at Buffalo, her M.S. in

Geophysics from VPI&SU, and her Ph.D. in Material Science

and Mineral Engineering from the University of California,

Berkeley. In 1995, she received the Schlumberger Lecture

Award from the International Society of Rock Mechanics. Prof.

Pyrak-Nolte received the Young Investigator Awards from the

National Science Foundation and the Office of Naval Research.

Her interests include applied geophysics, experimental and

theoretical seismic wave propagation, rock mechanics, micro-

fluidics, particle swarms, and fluid flow through earth materials.

Identifying mechanical discontinuities (i.e., micro-cracks, fractures, joints, faults, etc.) in the

subsurface is complicated because these structural features occur on all length scales, either singly or

as sets, and are easily perturbed by natural and/or anthropogenic processes. In this talk, I will present

the results of several laboratory experiments that illustrate the complexity of interpreting fracture

properties when the rock matrix contains micro-cracks that contribute significant compliance and/or

anisotropy to the matrix.

Full waveform measurements were made on intact and fractured samples of Austin Chalk and

granite. The induced fractures were created using a technique similar to Brazil testing. A seismic

array was used to collect compressional and shear waves (central frequency 1 MHz) as the samples

were subjected to a range of stresses. The signals were analyzed to obtain velocity, transmission

coefficients and spectral content.

The intact samples were found to exhibit shear wave velocity anisotropy of 10% and 5%, for the

granite and Austin Chalk samples, respectively. Interpretation of fracture specific stiffness, using the

displacement discontinuity theory and the data from the intact and fracture samples, presented

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several challenges. First, we observed that the fracture and matrix compliances for the granite

samples exhibited similar magnitudes, resulting in fractured samples that transmitted as well as the

intact samples. Second, identification of fractures using spectral content is complicated in fractured

layered rock, such as Austin chalk, because of dispersion contributed by the layering. Finally, the

intact Austin chalk samples exhibited signatures of two competing sources of anisotropy, structural

and textural, that exhibited different symmetry axes. A grand challenge is the interpretation of

fracture specific stiffness from seismic data of complex topologies with the goal to identify dominant

flow paths through fractured rock.

Acknowledgments: The author wishes to acknowledge support of this work by the Geosciences

Research Program, Office of Basic Energy Sciences US Department of Energy (DE-FG02-09ER16022),

ExxonMobil Corporate Strategic Research, and the GeoMathematical Imaging Group at Purdue

University.

Explosive Fracturing for Permeability Enhancement

Dr. Christopher Bradley • Los Alamos National Laboratories

Christopher R. Bradley (Ph.D. Marine Geophysics, 1994 Mass.

Institute of Technology and Woods Hole Oceanographic

Institution; LANL Technical Staff Member – Geodynamics,

Seismology and Explosion Phenomenology) – His work has been

in coding optimal methods for simulating seismic wave

attenuation in fully heterogeneous anelastic material for the

Comprehensive Test Ban Treaty and modeling attenuation in

oceanic spreading centers. The work involves 2- and 3-D finite

difference and finite element modeling of seismic and shock

wave propagation, ground motion simulation from earthquakes

including nonlinear inversion for dynamic fault rupture.

Current work is in explosion coupling to earth materials, including explosive fracturing and studying

risk associated with CO2 sequestration. He has published on numerical methods, seismic yield

determination, dynamic fault rupture, Q structure in the earth, acoustic scattering, microseismic

noise and geothermal energy.

Los Alamos and other national laboratories have been involved with unconventional fracturing for

energy extraction intermittently since the late 1960’s. This research included some experiments

using nuclear explosions in tight gas formations like Gasbuggy (1967) in the Mesa Verde Sandstone

and Rulison (1970) in the Piceance Basin tight gas formation. There has also been some considerable

effort in using conventional high explosives in the Unconventional Gas Research (UGR) Programs at

Lawrence Livermore Laboratory in the Marcellus Shale and at Los Alamos during the UGR Multi-

well Experiment (MWX) in Colorado in the late 1970’s and 1980’s. Currently, Los Alamos is involved

in conventional and unconventional fracturing. Fortuitously, much of the data on tight gas and oil

formations gather by DOE earlier can be harvested for particular properties useful in our current

projects like shock hugoniots and elastic and strength properties. I will be presenting some

information from our past research and how we are applying it to some current projects in

unconventional gas. Hydrodynamic simulations in example formations show that plastic strain may

be used as a proxy for fractured permeability enhancement.

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Simulating Hydrofracture Growth and Gas Production in Natural

Fracture Networks

Dr. Thomas Doe and Dr. William Dershowitz • FracMan Technology Group, Golder

Associates

Dr. Thomas Doe works in the FracMan Technology Group at

Golder Associates in Redmond, Washington and is also a past

president of ARMA. He specializes in flow in discrete fracture

networks as well as hydraulic fracturing stress measurement, and

he has recently applied both of these backgrounds to analysis of

gas production from shales.

Dr. William Dershowitz developed the FracMan discrete fracture

network modeling package and has spearheaded its applications to

radioactive waste disposal, civil construction, oil reservoirs, and

gas-shale production. He is currently serving as ARMA treasurer

Discrete fracture network models represent a rock mass’s fracture

system as individual conducting features. The methodology grew

from the rock mechanics discipline, which pioneered the

description of individual fractures and the properties of fracture

networks. This presentation addresses two approaches to

simulating gas production in hydraulically-fractured tight shales.

The first approach considers hydraulic fracture generation in a

natural fracture network using the following principles. It divides

natural fractures into groups – (1) dilatable fractures, those whose

normal stress is less than the treatment pressure; (2) critically-

stressed fractures, which may shear but whose normal stresses

exceed the treatment pressure, and (3) naturally conducting fractures that take fluid but are not

modified by the treatment. If the natural fractures have insufficient storage or flow capacity when

pressurized, the model creates new hydraulic fractures to accommodate the injected mass. The

simulator visualizes the locations of critically-stressed and dilatable fractures as points for comparison

with microseismic data. The second approach uses existing microseismic data to create a fracture set

representing the hydraulic fractures that superpose on the shale reservoir’s natural conducting

fractures. Simulations in this presentation show that the effectiveness of hydraulic fracture treatments

for improving productions depends on the pre-existing natural-fracture transmissivities and rock-

matrix permeability. Natural fractures may change drainage patterns considerably beyond the

immediate volume of fracture treatment.

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Fractures and Unconventional Resources

Dr. Charles Fairhurst • Itasca Consulting Group and University of Minnesota

A native of England, Charles Fairhurst received a Ph.D. in mining

engineering from Sheffield University in 1955. He moved to the

United States in 1956 to take a position as a research associate in

the School of Mines at the University of Minnesota. Dr. Fairhurst

held various positions at the University of Minnesota from full

professor to the head of the School of Metallurgical Engineering

and then head of the Department of Civil and Mineral

Engineering. He retired and became Professor Emeritus in 1997

after having served more than 40 years on the faculty of the

University of Minnesota. He is recognized for his key role in

establishing rock mechanics as an engineering discipline. His

leadership in several innovations has revolutionized the field of

rock mechanics. In addition, he is the author of more than 100

publications that span nearly all aspects of rock mechanics and

rock engineering. He is elected as an ARMA Fellow and has honorary fellow award from university of

Minnesota and other universities. Dr. Fairhurst is currently working at Itasca.

Stimulation of both natural gas and ‘enhanced’ geothermal resources involves fluid pressurization and

fracturing of the reservoir at depth. Analysis of this stimulation process usually assumes (a) that the

host rock is initially unfractured; (b) hydraulic fractures generated by fluid pressurization develop

symmetrically on each side of the wellbore. The presentation will describe recent developments in

numerical 3D modeling of discretely fractured rock and fracture development during pressurization

of naturally fractured formations, including fracture development observed in the field by

microseismic monitoring. It is seen that the classical assumptions can be unrealistic.

Hydraulic Fracture Complexity and Containment in Unconventional

Reservoirs

Tom Bratton • Scientific Advisor, Schlumberger

Tom Bratton is a scientific advisor for Schlumberger and has 34

years of experience in the oil and gas industry. He is currently

developing drilling and completion solutions for horizontal wells

in unconventional reservoirs. He is a licensed professional

geoscientist (Texas), specializing in geophysics, petrophysics and

geomechanics. Tom has worked in multiple segments including

Wireline and Testing, Drilling and Measurements, Well Services

and Data and Consulting Services. He has been active in field

operations as well as research and engineering and has been

exposed to reservoirs worldwide including deepwater and land

based operations. Tom has a BS degree in Physics from Nebraska

Wesleyan University, an MS degree in atomic physics from Kansas

State University and is a member of SPE, SPWLA, SEG and

ARMA. He currently resides in Denver, Colorado.

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An understanding of geomechanics is critical to maximizing production and minimizing expense in

the development of unconventional reservoirs. For instance, geomechanics controls variables such as

stimulation complexity and hydraulic fracture containment. While petrophysics and acoustic moduli

have been shown to be quite important in developing stress models, other factors such as natural

fracturing and curvature are also important. This talk will highlight some of the recent advances in

geomechanics as applied to unconventional reservoirs.

Microseismic Fracture Mapping in Shales - Mechanisms and Validation

Dr. Norm Warpinski • Director of Technology, Pinnacle – A Halliburton Service

Norm Warpinski is the Director of Technology for Pinnacle – A

Halliburton Service in Houston, Texas, where he is in charge of

developing new tools and analyses for hydraulic fracture mapping,

reservoir monitoring, hydraulic fracture design and analysis, and

integrated solutions for reservoir development. He joined

Pinnacle in 2005 after previously working at Sandia National

Laboratories from 1977 to 2005 on various projects in oil and gas,

geothermal, carbon sequestration, waste repositories, and other

geomechanics issues. Norm has extensive experience in various

types of hydraulic fracture mapping and modeling and has been

involved in large scale field experiments from both the hardware

and software sides. He has also worked on formation evaluation,

geomechanics, natural fractures, in situ stresses, rock behavior and

rock testing. He received his MS and PhD in Mechanical

Engineering from the University of Illinois, Champaign/Urbana in

1973 and 1977, respectively, after receiving a BS in Mechanical Engineering from Illinois Institute of

Technology in 1971.

Unconventional reservoirs in general require some form of stimulation to economically produce

hydrocarbons, but gas shale reservoirs are particularly dependent on stimulation because of the

extremely low permeability of most shale systems. Most shale stimulations consist of large-volume,

high-rate waterfracs in multi-stage, multi-cluster horizontal wells that presumably result in a network

fracture system created through a combination of hydraulic fractures and natural fracture activation

and opening. Microseismic monitoring has been used to determine the size of the network, usually

termed the stimulated reservoir volume or SRV, as well as other fracture geometry parameters, but it is

now also being used to extract other information about the hydraulic fracture that often has

questionable validity. These microseisms are largely shear events that occur because of changes in stress

and pressure due to the opening of and fluid leakoff from the dilated hydraulic fracture. Although they

may or may not be directly connected to the hydraulic fracture, their presence in the vicinity of the

fracture marks the stimulated region, and interpretation of this microseismicity in this region provides

the information from which fracture characteristics are measured. This presentation will focus on what

we know about microseismicity in these reservoirs based upon field experiments and microseismic

characteristics, and also in comparison to hydraulic fractures in tight sandstones reservoirs. It will

discuss the stress and reservoir conditions under which the microseismicity is generated and will show

what types of results and inferences are physically realistic and what interpretations cannot plausibly

be made. Field examples will be used to highlight specific features of microseismic behavior.

13

Hydraulic Fracturing Field Experiments - Multiple Hydraulic Fractures

and Fracture Reorientation

Kent Perry • Executive Director, GTI and Jordan Ciezobka, Gas Technology Institute

Mr. Ciezobka is a Mechanical Engineer by education and began

his career as a field engineer with Halliburton Energy Services in

South Texas in their pressure pumping services, mainly hydraulic

fracturing and cementing. In 5 years with Halliburton, Mr.

Ciezobka held various positions as a field engineer and later

transitioned into an Account Representative serving as a technical

advisor to Shell Oil Company. Mr. Ciezobka joined the Gas

Technology Institute in 2010 and is engaged in well completion

research across various US and international unconventional

plays.

Kent Perry holds Executive Director, Exploration & Production

Research at Gas Technology Institute (GTI). The GTI program

includes interactions with all major oil and gas companies in the

United States and regional producer organizations such as the

Oklahoma Independent Producer Association, Texas Independent

Producer & Royalty Owners Association, and the Independent

Producers of Rocky Mountain States. The program is coordinated

with the Department of Energy’s Fossil Energy program and

maintains involvement with the Society of Petroleum Engineers

(SPE) at the local and national levels. Mr. Perry has served as an

SPE Distinguished Lecturer and has participated in National

Petroleum Council studies and authored papers on low

permeability resources and hydraulic fracturing. Previously, Mr.

Perry ran the Producer Business Unit, which added new sources

of funding for future R&D activities.

Comprehensive field based research experiments have been performed in the past to better

understand the process of hydraulic fracturing, the growth of those fractures, their potential to

reorient and other factors impacting their effectiveness. Included experiments include the Mounds

drill cuttings experiment performed in Oklahoma and the Hydraulic Fracture Test Site experiment

conducted in Colorado.

While both experiments were performed in past years they remain the most comprehensive field

experiments conducted to date. The results of the research will be review with the implications to

today’s fracturing assessed

14

The Contribution of Microseismic Monitoring in Fracturing of

Unconventional Reservoirs

Dr. Peter M. Duncan • President, Microseismic Inc.

Peter M. Duncan is founding President of MicroSeismic, Inc. a

Houston based geophysical service company. He holds a Ph.D. in

Geophysics from the University of Toronto. He began his career as

an exploration geophysicist with Shell Canada before joining

Digicon Geophysical, first in Calgary then in Houston. In 1987 he

helped Digicon found ExploiTech Inc, an exploration and

production consultancy. He was named President of ExploiTech

when it became a subsidiary of Landmark Graphics in 1989. In

1992 he was one of 3 founders of 3DX Technologies Inc., an

independent oil and gas exploration company where he served as

Vice President and Chief Geophysicist. Duncan was 2003-04

President of the Society of Exploration Geophysicists (SEG) and the

Fall 2008 SEG/AAPG Distinguished Lecturer. He is a Life Member

of SEG and an Honorary Member of the Canadian Society of Exploration Geophysicists (CSEG), the

Geophysical Society of Houston (GSH) and the European Association of Geoscientists and Engineers.

Shale gas and oil have created a revolution in the domestic E&P business. We all desire to be good

stewards of our environment while at the same time taking advantage of the resources at our disposal.

Microseismic monitoring offers opportunity to demonstrate and ensure that hydraulic fracturing,

water injection and other production related processes are not adversely affecting drinking water

supply or creating other hazards.

Inadequacies in nationwide monitoring of groundwater quality and

quantity, and water use implications for energy development

Dr. David Wunsch • Director of Science and Technology, National Ground Water Association

Dr. Wunsch is the director of science and technology for NGWA.

Wunsch worked 10 years as state geologist for New Hampshire

prior to his current position. He served as a Congressional Science

Fellow with the U.S. House Subcommittee on Energy and Mineral

Resources, as the coordinator of the coalfield hydrology program

at the Kentucky Geological Survey and as a geology instructor at

Central Michigan University. Wunsch has served on, several

National Academy of Science panels, and is currently an associate

editor of NGWA’s peer-reviewed journal, Ground Water®.

Wunsch was elected to Fellowship in the Geological Society of

America in May 2011 and has been an adjunct professor at the

University of New Hampshire and the University of Kentucky, a

visiting scholar at Dartmouth College, has been a voting member

of the Joint Board of Licensure for Professional Geologists and the

New Hampshire Water Well Board. He served as president of the

Association of American State Geologists in 2010.

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Dr. Wunsch earned his bachelor’s degree in geology with a minor in chemistry from the State

University of New York at Oneonta, his master's degree with a hydrogeology emphasis from the

University of Akron, and his doctorate in hydrogeology with an emphasis on low-temperature

geochemistry from the University of Kentucky.

Groundwater is the source of approximately 78 percent of community water systems, and nearly all

of rural America’s private household wells. Expansive growth in the development of unconventional

natural gas plays has focused attention on the process of hydraulic fracturing. Shale gas potential

exists in about half of the 50 states, so water issues related to production from these fields are diverse.

Typically, the successful fracing of a horizontal production well requires on the order of several

million gallons of water, but this is usually an acute need. However, this quantity of water can be

difficult to obtain in remote areas, or in semi-arid regions where surface water supply is limited. As of

2007, only 37 States operated statewide or regional ground-water level monitoring networks, and just

32 States have at least one active statewide or regional ground-water quality monitoring program.

Moreover, the types of data collected, and the frequency of collection vary from state to state. From

the water use perspective, there is significant disparity between state water-use regulatory programs.

Some states simply register water users, while others require a permit for large withdrawals; and

others still have no reporting program whatsoever. Moreover, the volumetric thresholds for

withdrawals for either registering or permitting vary by orders of magnitude from state to state.

Currently, the federal advisory Subcommittee on Ground Water (SOGW), is coordinating the efforts

of federal agencies, states, and tribes to create a national ground water monitoring network to collect

more uniform groundwater data from across the country. We will present statistical information on

the status of monitoring programs, and also demonstrate the need for upgrading the composite

infrastructure for water management information systems, and current progress toward this end.

Benefits and Challenges in Using Abandoned Coal Mine Water Sources

for Hydraulic Fracturing Processes in Marcellus Shale Gas Play

Dr. Anthony Iannacchione • Associate Professor and Director of the Mining Engineering

Program, Swanson School of Engineering, University of Pittsburgh

Dr. Anthony Iannacchione joined the University of Pittsburgh as

the director of Mining engineering program and as an associate

professor after a 33 year career with the U.S. Bureau of Mines and

National Institute for Occupational Safety and Health where he

conducted research on health, safety, and environmental issues

related to the U.S. Minerals Industry. His research interests

include strata control and mine ventilation engineering, mining-

induced seismic analysis, and major hazard risk assessment.

Iannacchione holds a PhD in civil engineering, two MS degrees in

civil engineering and geology from the University of Pittsburgh,

and a BS degree in geology from California University of

Pennsylvania. He is a past-president of the Pittsburgh Section,

American Society for Civil Engineers and currently serves on the

Board of Directors of the American Association of Rock

Mechanics. Iannacchione is also a professional engineer and

geologist in the State of Pennsylvania.

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Hydraulic fracturing of the Marcellus Shale represents a significant water resource challenge for

southwestern Pennsylvania. Considerable quantities of industrial grade water are needed to drill and

hydraulically stimulate the vast number of gas wells projected within this region in the coming

decades. While the northern Appalachian region is blessed with plentiful reserves of water, clean

water is at a premium. Local opponents to Marcellus Shale gas development often cite the loss of

clean water resources as a negative outcome. But there is a unique solution to this region’s problems

and it comes from a source that has previously been looked at as an environmental liability. That

source is the huge water supply found in the regions abandoned underground coal mines.

This presentation will identify the scale and distribution of the water sources contained within the

many mine pools found throughout southwestern Pennsylvania. These mine pools have a range of

water compositions. In particular, waters with relatively low concentrations of sulfates are viewed as

more attractive for hydraulic fracturing purposes. But withdrawing water from existing mine pools

does present potential technical and legal difficulties. Engineering challenges will be highlighted.

Lastly, most mine pool waters in this region are known to be both highly acidic and relatively high in

total dissolved solids. Some water treatment will be needed and different options are presented. This

overview is meant to provide an assessment of the opportunities and challenges facing the use of coal

mine pool water as a source for drilling and hydraulic fracturing operations in southwestern

Pennsylvania. It represents a novel solution to an important water resource issues facing the

unconventional gas industry.

CO2 Sequestration Geomechanics and Modeling

Dr. John Rutqvist • Staff Scientist, Lawrence Berkeley National Laboratories

Dr. Rutqvist has Masters and Technical Licentiate degrees in Civil

Engineering and Rock Mechanics from Luleå University of

Technology in Sweden. During my Ph.D. studies at the Royal

Institute of Technology in Stockholm, he worked with coupled

processes modeling of fractured rock masses funded by the

Swedish Nuclear Power Inspectorate, and spent time at the

Lawrence Berkeley National Laboratory (LBNL), Berkeley,

California. After receiving his Ph.D. at the Royal Institute of

Technology in 1995, he returned the LBNL’s Earth Sciences

Division for a post-doctorate study on coupled processes modeling

and stayed at the LBNL, became a Geological Scientist in 1998,

and was promoted to Staff Scientist level in 2004. His research is

currently focused on modeling of coupled thermal-hydraulic-

mechanical-chemical (THMC) processes in geological media with

geoscientific and geoengineering applications, including geological, sequestration of CO2, enhanced

geothermal systems, gas hydrate bearing sediments, geological disposal of spent nuclear fuel,

underground compressed air energy storage, and shale gas extraction Geomechanics plays a critical

role in the performance assessment of geologic carbon dioxide (CO2) sequestration operations. This

includes assessment of well integrity, caprock sealing performance, potential fault reactivation, and

induced seismicity. Geomechanics is also important for monitoring of subsurface fluid movements

and for detection of unwanted CO2 migration toward the groundsurface. Geomechanical modeling is

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essential to interpret monitoring data related to ground surface deformations, micro-seismicity, and

4D seismic surveys. As a practical example, recent results are reviewed from studies of CO2

sequestration geomechanics and modeling associated with CO2 injection at the In Salah CO2 storage

project, Algeria. The site is an ideal test bed for geomechanical studies: the CO2 injection pressure is

sufficiently high to cause measurable ground-surface deformations and microseismicity, and the

targeted injection zone consists of fractured sandstone intersected by minor faults.

Air Quality Issues Facing the Industry

Dr. Nancy J. Brown • Senior Scientist, Lawrence Berkeley National Laboratories

Dr. Nancy J. Brown is a Senior Scientist and Department Head of

the Atmospheric Sciences Department at the Lawrence Berkeley

National Laboratory. Her research interests are chemical kinetics,

atmospheric science, air quality modeling, model uncertainty and

sensitivity, aerosols, high performance computing, combustion,

combustion modeling, and emissions. She received a B.S. in

Chemistry at Virginia Polytechnic Institute, an M.S. in Molecular

Physics and Ph.D., in Chemical Physics at the University of

Maryland. Dr. Brown has published numerous scientific papers

and served as a principal investigator on many projects. She has

also held a number of teaching and research positions on the

Berkeley campus and remains an Affiliate faculty in the Energy

and Resources Group of the University of California at Berkeley.

She has been a Professor Inviteé, Université Pierre et Marie Curie,

Paris VI, a Governor's Appointee, Scientific Advisory Committee,

State of California Acid Deposition Program, Member, Board of Directors, The Combustion Institute.

She has also served on numerous State and Federal Advisory Committees.

Air Quality affects human and ecological health, climate, and visibility. Two pollutants that are

especially important for all three of these are ozone and particulate matter (PM), especially PM that is

smaller than 2.5 microns-PM-2.5. Although PM is emitted directly from combustion sources, ozone

and PM are formed in the atmosphere from emissions that are both anthropogenic and biogenic in

origin. EPA is considering making the ozone and PM-2.5 National Ambient Air Quality Standards

(NAAQS) more stringent. This talk will review some of the science, regulatory, and strategic issues

that will face the industry when the NAAQS change.

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Shale Reservoir Properties from Digital Rock Physics

Dr. Amos Nur • Emeritus Professor, Stanford University and CTO, InGrain

Dr. Amos Nur joined Ingrain as a director and chief technology

officer following his retirement in 2008 from nearly four

decades in rock physics research at Stanford University. In

addition to founding the Stanford Rock Physics project in 1977,

Dr. Nur has served as the Wayne Loel Professor of Earth

Sciences since 1988. Throughout his career, Dr. Nur has

conducted critical research in 3-D and 4-D seismic imaging and

is widely considered to be one of the world's top academic

authorities on rock physics. He holds a B.S. in geology from

Hebrew University in Jerusalem and a Ph.D. in geophysics from

the Massachusetts Institute of Technology. Prof. Nur served

twice as chair of the Geophysics Department, from 1985 to 1991

and again from 1997 to 2000 and became the founding director

of the Stanford Rock Physics and Borehole Geophysics Project

in 1977. In 2001 he was elected to the National Academy of Engineering. Over the course of his

career at Stanford, Nur guided 51 doctoral and 20 master's students through earning their degrees.

Digital Rock Physics can provide reliable SCAL data for a wide range of shale lithologies. Digital

Rock Physics capabilities for shale include whole core 3D imaging for fractures, burrows, layering,

rapid whole core facies identification from density and Zeff, porosity; connected, total, kerogen, TOC,

Kabs; absolute perm (x, y, z), Kg/Kw and Ko/Kg rel permeability, capillary pressure, drainage and

imbibition, visual and quantitative understanding of pore space, fractures, and heterogeneities and

improved sample selection process.

Overcoming Barriers to Shale Reservoir Development through

Improved Geomechanical Modeling

Dr. Daniel Moos • Technology Fellow, Baker Hughes

Dr. Daniel Moos received his PhD from Stanford University and

was a co-founder in 1983 of the L-DGO Borehole Geophysics

Group at Columbia University. He returned to Stanford’s SRB

group in 1987, and in 1996 was a co-founder of GeoMechanics

International. GMI was acquired by Baker Hughes’ Reservoir

Development Services in 2008. Dr. Moos is now a Baker Hughes

Technology Fellow. He has published more than 70 papers and

holds 8 patents in geomechanics, rock physics and pore pressure

prediction. His recent focus is on development of an integrated

approach for application of geomechanical principles to shale

reservoirs.

The single largest barrier to shale production optimization is lack of understanding of the key

parameters that control well performance; however, most of what we know about optimizing

production is derived from meta-analyses of full-well production data. Although such analyses can

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provide general guidelines performance variations of individual stages and the large number of

uncontrolled or poorly constrained parameters limit the predictive value of look-back studies. Real

improvements of understanding require carefully controlled studies of testable theories of how

production occurs from these reservoirs. This talk will outline a geomechanical approach to

understanding shale well behavior and show an example of how a study designed to test a specific

hypothesis can lead to recommendations for operational improvements.

Acknowledgment

On behalf of ARMA and UNGI, we would like to thank all the workshop speakers and the attendees

for their contributions to this workshop. The SEG Research Committee has fully supported the

ARMA/UNGI Workshop and published the date as a joint event at the SEG website. We appreciate

the support from SEG, Colorado School of Mines Petroleum Engineering Department and UNGI in

sharing the significance of the role geomechanics play on unlocking the Unconventional Resources

worldwide. Special thanks to ARMA Executive Director Peter Smeallie for the full support and help

in organizing the workshop.

Once again, we thank all the participants and speakers for making this event a fruitful gathering for

Geomechanics Community.

Dr. Azra N. Tutuncu, P.E., P.G.

Director, UNGI

Harry D. Campbell Chair, Petroleum Engineering Department

Colorado School of Mines

Immediate Past President, ARMA

UNGI