breaking through fact and fiction: fracking” and the...
TRANSCRIPT
![Page 1: Breaking Through Fact and Fiction: Fracking” and the …ener-pol.com/.../2013/04/Claude_Cooke_MTBC_Presentation_032213_vF.pdfBreaking Through Fact and Fiction: “Fracking” and](https://reader031.vdocuments.mx/reader031/viewer/2022030423/5aab4bb47f8b9a8d678baa82/html5/thumbnails/1.jpg)
Breaking Through Fact and Fiction:
“Fracking” and the Shale Revolution
March 22, 2013
Claude E. Cooke, Jr.
![Page 2: Breaking Through Fact and Fiction: Fracking” and the …ener-pol.com/.../2013/04/Claude_Cooke_MTBC_Presentation_032213_vF.pdfBreaking Through Fact and Fiction: “Fracking” and](https://reader031.vdocuments.mx/reader031/viewer/2022030423/5aab4bb47f8b9a8d678baa82/html5/thumbnails/2.jpg)
1
Hydraulic fracturing is an important innovation with
impact across the world
35%
23%
21%
15%
6%
Social Media
GPS
iPhone
FrackingTechnology
Other
Participants of WSJ executive conference in Singapore were
asked: “What is the best innovation of recent times?”
Source: Wall Street Journal, Feb 26, 2013
![Page 3: Breaking Through Fact and Fiction: Fracking” and the …ener-pol.com/.../2013/04/Claude_Cooke_MTBC_Presentation_032213_vF.pdfBreaking Through Fact and Fiction: “Fracking” and](https://reader031.vdocuments.mx/reader031/viewer/2022030423/5aab4bb47f8b9a8d678baa82/html5/thumbnails/3.jpg)
2
Background of hydraulic fracturing
![Page 4: Breaking Through Fact and Fiction: Fracking” and the …ener-pol.com/.../2013/04/Claude_Cooke_MTBC_Presentation_032213_vF.pdfBreaking Through Fact and Fiction: “Fracking” and](https://reader031.vdocuments.mx/reader031/viewer/2022030423/5aab4bb47f8b9a8d678baa82/html5/thumbnails/4.jpg)
3
Is it “Fracking” or “Fracing” and why do we do it?
Popular / press definition (Fracking)
• “’Fracking’ refers to the entire exploration and production process, including horizontal
drilling, fracturing, and extraction of the gas via the well, rather than an engineering
process for fracturing low permeability rock”
– KKR: Historic Opportunities From the Shale Gas Revolution (2012)
Technical definition of hydraulic fracturing (fracing, “frac’ing”)
• Forming a crack (fracture) in rock using hydraulic fluid pressure
• Classical fracturing: Simple vertical fractures created in vertical well
• Shale fracturing: Complex fracture “network” created in horizontal well
Why fracture an oil / gas well?
• Improve economics in all but high-producing wells (faster payback, more reserves)
• In many reservoirs, rock is not permeable enough to produce oil / gas economically
without fracturing, so wells would not be drilled without fracturing (more reserves)
![Page 5: Breaking Through Fact and Fiction: Fracking” and the …ener-pol.com/.../2013/04/Claude_Cooke_MTBC_Presentation_032213_vF.pdfBreaking Through Fact and Fiction: “Fracking” and](https://reader031.vdocuments.mx/reader031/viewer/2022030423/5aab4bb47f8b9a8d678baa82/html5/thumbnails/5.jpg)
4
Hydraulic fracturing is not a new technology; oil / gas
wells have leveraged the technology for 60+ years…
• 1947: First well intentionally hydraulically fractured (Hugoton Field, KS)
• 1948: R.F. Farris and J.B. Clark (Stanolind) file patents on the same day
• 1949: First commercial jobs (Oklahoma and Texas) on the same day
First Intentional Fracture First Commercial Fracture
Source: SPE Monograph, Halliburton
![Page 6: Breaking Through Fact and Fiction: Fracking” and the …ener-pol.com/.../2013/04/Claude_Cooke_MTBC_Presentation_032213_vF.pdfBreaking Through Fact and Fiction: “Fracking” and](https://reader031.vdocuments.mx/reader031/viewer/2022030423/5aab4bb47f8b9a8d678baa82/html5/thumbnails/6.jpg)
5
…However, the last ~10 years have seen a rapid increase
in hydraulic fracturing activity driven by “shale” gas
SPE Papers
Horsepower (MM)
0
200
400
600
800
194
9
195
2
195
5
195
8
19
61
196
4
196
7
197
0
197
3
197
6
197
9
198
2
198
5
19
88
199
1
199
4
199
7
200
0
200
3
200
6
200
9
201
2
2.1 2.3 2.9 3.9 5.7
7.2 7.9 10.0
15.0 18.0
0
5
10
15
20
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
0.5% CAGR
28% CAGR
15% CAGR
North American pressure pumping horsepower
Society of Petroleum Engineers publications discussing hydraulic fracturing
Source: Society of Petroleum Engineers (publications): Includes: “Hydraulic Fracturing”, “Fracing”, and “Fracking”, Spears and Associates – Tulsa (Horsepower)
![Page 7: Breaking Through Fact and Fiction: Fracking” and the …ener-pol.com/.../2013/04/Claude_Cooke_MTBC_Presentation_032213_vF.pdfBreaking Through Fact and Fiction: “Fracking” and](https://reader031.vdocuments.mx/reader031/viewer/2022030423/5aab4bb47f8b9a8d678baa82/html5/thumbnails/7.jpg)
6
The “Shale Revolution” will impact much of the USA;
fracturing is a key part of developing the resources
Source: EIA
![Page 8: Breaking Through Fact and Fiction: Fracking” and the …ener-pol.com/.../2013/04/Claude_Cooke_MTBC_Presentation_032213_vF.pdfBreaking Through Fact and Fiction: “Fracking” and](https://reader031.vdocuments.mx/reader031/viewer/2022030423/5aab4bb47f8b9a8d678baa82/html5/thumbnails/8.jpg)
7
Furthermore, the global impact of the technology’s
application is just beginning to be understood
Source: PacWest Consulting Partners
![Page 9: Breaking Through Fact and Fiction: Fracking” and the …ener-pol.com/.../2013/04/Claude_Cooke_MTBC_Presentation_032213_vF.pdfBreaking Through Fact and Fiction: “Fracking” and](https://reader031.vdocuments.mx/reader031/viewer/2022030423/5aab4bb47f8b9a8d678baa82/html5/thumbnails/9.jpg)
8
Hydraulic fracturing basics: Geology, theory, and application
![Page 10: Breaking Through Fact and Fiction: Fracking” and the …ener-pol.com/.../2013/04/Claude_Cooke_MTBC_Presentation_032213_vF.pdfBreaking Through Fact and Fiction: “Fracking” and](https://reader031.vdocuments.mx/reader031/viewer/2022030423/5aab4bb47f8b9a8d678baa82/html5/thumbnails/10.jpg)
9
Hydrocarbons are found trapped in rocks; shale is a
“source rock” for conventional oil / gas
Source: Canada National Energy Board
![Page 11: Breaking Through Fact and Fiction: Fracking” and the …ener-pol.com/.../2013/04/Claude_Cooke_MTBC_Presentation_032213_vF.pdfBreaking Through Fact and Fiction: “Fracking” and](https://reader031.vdocuments.mx/reader031/viewer/2022030423/5aab4bb47f8b9a8d678baa82/html5/thumbnails/11.jpg)
10
In conventional and shale rocks, oil / gas is held in the
“pores” of the rock; larger spaces are easier to produce
Sandstone
Permeability: 1 Darcy
Limestone
Permeability: 1 Darcy
Shale
Permeability: 0.000001 Darcy
We are now producing oil / gas
from rocks >1 million time less
permeable than ~50 years ago
Source: Kansas Geological Society
![Page 12: Breaking Through Fact and Fiction: Fracking” and the …ener-pol.com/.../2013/04/Claude_Cooke_MTBC_Presentation_032213_vF.pdfBreaking Through Fact and Fiction: “Fracking” and](https://reader031.vdocuments.mx/reader031/viewer/2022030423/5aab4bb47f8b9a8d678baa82/html5/thumbnails/12.jpg)
11
Rock outcroppings give us a basic view into what might
be occurring in shales underground
Source: ALL Consulting (2008), Brian Cardotte – Oklahoma Geological Survey (2007)
![Page 13: Breaking Through Fact and Fiction: Fracking” and the …ener-pol.com/.../2013/04/Claude_Cooke_MTBC_Presentation_032213_vF.pdfBreaking Through Fact and Fiction: “Fracking” and](https://reader031.vdocuments.mx/reader031/viewer/2022030423/5aab4bb47f8b9a8d678baa82/html5/thumbnails/13.jpg)
12
Simple Fracture Complex Fracture
Complex Fracture
With Fissure Opening
Complex Fracture
Network
Simple Fracture Complex Fracture
Complex Fracture
With Fissure Opening
Complex Fracture
Network
Fractures are created to allow oil / gas to flow out of the
rock and into the wellbore
In shale
fracturing, the
more fractures
the better
Source: Pinnacle
![Page 14: Breaking Through Fact and Fiction: Fracking” and the …ener-pol.com/.../2013/04/Claude_Cooke_MTBC_Presentation_032213_vF.pdfBreaking Through Fact and Fiction: “Fracking” and](https://reader031.vdocuments.mx/reader031/viewer/2022030423/5aab4bb47f8b9a8d678baa82/html5/thumbnails/14.jpg)
13
Fundamentals of vertical well fracturing: Pump the “pad”
fluid to open cracks in the rock
Source: Ralph Veach
![Page 15: Breaking Through Fact and Fiction: Fracking” and the …ener-pol.com/.../2013/04/Claude_Cooke_MTBC_Presentation_032213_vF.pdfBreaking Through Fact and Fiction: “Fracking” and](https://reader031.vdocuments.mx/reader031/viewer/2022030423/5aab4bb47f8b9a8d678baa82/html5/thumbnails/15.jpg)
14
Fundamentals of vertical well fracturing: Pump the
proppant slurry to ensure the fracture stays open
Source: Ralph Veach
![Page 16: Breaking Through Fact and Fiction: Fracking” and the …ener-pol.com/.../2013/04/Claude_Cooke_MTBC_Presentation_032213_vF.pdfBreaking Through Fact and Fiction: “Fracking” and](https://reader031.vdocuments.mx/reader031/viewer/2022030423/5aab4bb47f8b9a8d678baa82/html5/thumbnails/16.jpg)
15
Fundamentals of vertical well fracturing: Flow frac water
back to surface and put well on production
Source: Ralph Veach
![Page 17: Breaking Through Fact and Fiction: Fracking” and the …ener-pol.com/.../2013/04/Claude_Cooke_MTBC_Presentation_032213_vF.pdfBreaking Through Fact and Fiction: “Fracking” and](https://reader031.vdocuments.mx/reader031/viewer/2022030423/5aab4bb47f8b9a8d678baa82/html5/thumbnails/17.jpg)
16
Shale fracturing applies the same principles as vertical
fracturing; “stacks” many frac jobs in a horizontal well
The “Shale
Revolution”
would not have
been possible
without
directional
drilling
Source: Canada National Energy Board
![Page 18: Breaking Through Fact and Fiction: Fracking” and the …ener-pol.com/.../2013/04/Claude_Cooke_MTBC_Presentation_032213_vF.pdfBreaking Through Fact and Fiction: “Fracking” and](https://reader031.vdocuments.mx/reader031/viewer/2022030423/5aab4bb47f8b9a8d678baa82/html5/thumbnails/18.jpg)
17
Horizontal wells are completed in “stages”; each stage
is like a separate frac job
Source: CARBO Ceramics, Marathon Oil
Link to original animation:
http://www.youtube.com/watch?v=mitLngz03dg
Additional hydraulic fracturing animation:
http://www.youtube.com/watch?v=VY34PQUiwOQ
![Page 19: Breaking Through Fact and Fiction: Fracking” and the …ener-pol.com/.../2013/04/Claude_Cooke_MTBC_Presentation_032213_vF.pdfBreaking Through Fact and Fiction: “Fracking” and](https://reader031.vdocuments.mx/reader031/viewer/2022030423/5aab4bb47f8b9a8d678baa82/html5/thumbnails/19.jpg)
18
Significant water, proppant,
time, and cost incurred too
•Water: ~6 million gallons
•Sand / proppant: 8 million
pounds
•Horsepower: 10,000
•Stages: 8 - 40
•Time: 1 week
•Cost: $1,500,00 - $3,000,000
Hydraulic fracturing is an industrial process and
requires specialized equipment
Heavy equipment is required to
execute a successful frac job
Frac pump
Water tank
Blender
Data van
Source: CalFrac, Trican Services, Dragon Equipment
![Page 20: Breaking Through Fact and Fiction: Fracking” and the …ener-pol.com/.../2013/04/Claude_Cooke_MTBC_Presentation_032213_vF.pdfBreaking Through Fact and Fiction: “Fracking” and](https://reader031.vdocuments.mx/reader031/viewer/2022030423/5aab4bb47f8b9a8d678baa82/html5/thumbnails/20.jpg)
19
Combined, the equipment makes up a “frac spread”
which moves onto the well site when drilling is complete
Source: Kansas Geological Society, DOE / NETL (Dec 2011)
![Page 21: Breaking Through Fact and Fiction: Fracking” and the …ener-pol.com/.../2013/04/Claude_Cooke_MTBC_Presentation_032213_vF.pdfBreaking Through Fact and Fiction: “Fracking” and](https://reader031.vdocuments.mx/reader031/viewer/2022030423/5aab4bb47f8b9a8d678baa82/html5/thumbnails/21.jpg)
20
To understand what is happening below the surface,
micro-seismic is often used to measure fracture creation
Source: Pinnacle
![Page 22: Breaking Through Fact and Fiction: Fracking” and the …ener-pol.com/.../2013/04/Claude_Cooke_MTBC_Presentation_032213_vF.pdfBreaking Through Fact and Fiction: “Fracking” and](https://reader031.vdocuments.mx/reader031/viewer/2022030423/5aab4bb47f8b9a8d678baa82/html5/thumbnails/22.jpg)
21
Micro-seismic can create a detailed picture of fracture
creation and often to optimize the treatment in real-time
Monitoring
well
Horizontal
wellbore
Source: Canada National Energy Board
![Page 23: Breaking Through Fact and Fiction: Fracking” and the …ener-pol.com/.../2013/04/Claude_Cooke_MTBC_Presentation_032213_vF.pdfBreaking Through Fact and Fiction: “Fracking” and](https://reader031.vdocuments.mx/reader031/viewer/2022030423/5aab4bb47f8b9a8d678baa82/html5/thumbnails/23.jpg)
22
Aggregating micro-seismic data in the Barnett Shale
creates a picture of fracture activity across the “play”
Source: Pinnacle / Halliburton
![Page 24: Breaking Through Fact and Fiction: Fracking” and the …ener-pol.com/.../2013/04/Claude_Cooke_MTBC_Presentation_032213_vF.pdfBreaking Through Fact and Fiction: “Fracking” and](https://reader031.vdocuments.mx/reader031/viewer/2022030423/5aab4bb47f8b9a8d678baa82/html5/thumbnails/24.jpg)
23
Environmental concerns / Looking forward
![Page 25: Breaking Through Fact and Fiction: Fracking” and the …ener-pol.com/.../2013/04/Claude_Cooke_MTBC_Presentation_032213_vF.pdfBreaking Through Fact and Fiction: “Fracking” and](https://reader031.vdocuments.mx/reader031/viewer/2022030423/5aab4bb47f8b9a8d678baa82/html5/thumbnails/25.jpg)
24
Recently, the environmental impact of hydraulic
fracturing has come under close scrutiny
Common concerns Background / details of concerns
Air pollution
Groundwater
contamination
Earthquakes
• Release of greenhouse gases by venting
and flaring during flowback
• Estimated 500-1,000 truck loads
per well on local roads
• Small surface spills
• Flowback water can contain contaminants
• Well construction may not seal
off water zone
• Sustained injection for water disposal
into active seismic area
Road traffic / noise
Surface water pollution
1
2
3
4
5
![Page 26: Breaking Through Fact and Fiction: Fracking” and the …ener-pol.com/.../2013/04/Claude_Cooke_MTBC_Presentation_032213_vF.pdfBreaking Through Fact and Fiction: “Fracking” and](https://reader031.vdocuments.mx/reader031/viewer/2022030423/5aab4bb47f8b9a8d678baa82/html5/thumbnails/26.jpg)
25
Looking forward, there are still many areas for
innovation in hydraulic fracturing
New materials and procedures
to create more fracture length
/ surface area
Technologies to clean or
re-use fracturing water
(less net water use)
Reduce surface footprint and
utilize natural gas-powered
equipment
Create more fracture
conductivity
Develop new
diagnostic tools Pump “Smart” proppant
![Page 27: Breaking Through Fact and Fiction: Fracking” and the …ener-pol.com/.../2013/04/Claude_Cooke_MTBC_Presentation_032213_vF.pdfBreaking Through Fact and Fiction: “Fracking” and](https://reader031.vdocuments.mx/reader031/viewer/2022030423/5aab4bb47f8b9a8d678baa82/html5/thumbnails/27.jpg)
26
Questions and Discussion
www.Ener-Pol.com