Jeff Meisenhelder
VP Unconventional Resources
Unconventional Gas:
Efficient and Effective Appraisal
and Development
The Barnett Story – Perserverence and Technology Make the Difference
*IHS Database
0
500
1000
1500
2000
2500
3000
85 90 95 00 05 10
Mil
lio
n C
ub
ic F
ee
t
Date of First Production
Vertical Wells
Deviated Wells
Horizontal Wells
Key Success Factors for Unconventional Development
3
High potential
resources
Enabling fiscal
& regulatory
regime
Land access &
operability
Open &
extensive gas
distribution
network
Growing
demand
Fair price
Capable
service sector
Successful
Unconventional
Development
Little
competition
from
conventional
New Long Term Energy Resources
Large Resource Base
Energy Security & Independence
Economy Benefits
>1,600,000 Potential Jobs
Local Business Growth
Social Benefits
Lower Energy Costs
Reduced CO2 Emissions (1997 level)
Shale Gas Revolution – N. American Story
4
Benefits
0
40
80
120
160
200
D&
C S
pend
$B
Year
US Drilling and Completion Spend
Land Offshore
US Drilling and Completion Spend
Source : Spears Drilling & Production Outlook Dec 2011
Execution efficiency improves economics on development projects
Improving Economics through Efficiency
Source: Talisman Investor Relations
Drilling Technologies – Creating Efficiency
6
Planning: High Efficiency Rigs, BHA’s, Optimized Fluid Design, applied geomechanics
RT optimization: RPM, WOB, GPM, T&D, hydraulics, vibration, PP, ECD
Drilling Automation: Next Generation of High Efficiency Rigs
11
12
13
14
15
16
17
0 5 10 15 20 25 30 35 40 45
50 Days
De
pth
k
fee
t
Drilling Performance
Drilling
: 48
days
Efficiency = Reliability
Efficiency vs Effectiveness
*IHS Database
0
500
1000
1500
2000
2500
3000
85 90 95 00 05 10
Mil
lio
n C
ub
ic F
ee
t
Date of First Production
Vertical Wells
Deviated Wells
Horizontal Wells
05
101520253035
% U
npro
ductive P
erf
ora
tions SPE 144326
Brewster and MacKay 2008 DGS/RMAG 3-D Seismic Symposium
Heterogeneity
8
Photo courtesy D. Spratt
Challenges for Effective Shale Development
All Gas Shales Are Different
Shale
Reservoirs
Conventional
Grains >4 μm
Argillaceous
CalcareousSiliceous
Matrix
Composition
Marcellus
Eagleford
Barnett
All shales are different and complex –
there is no “Plug and Play”
You must understand:
Reservoir quality
Completion quality
Lateral Heterogenity
Application of appropriate technology
leads to improved:
Production
Effective use of capital
Economic results
Schlu
mb
erge
r Private
10
Effective Drilling Use technology to land well laterally and vertically
80ft displacement from center targetSPE 138438
Integrating Data Placing the well for the best performance
Reservoir Quality
Completion Quality
17 Geometric stages
17 Optimized stages
Eagle Ford Optimization: Engineered Approach
Mangrove Applications: Completion Design
Shalle basins w defined
resources
Shale Basins, unassessed
Emerging Worldwide Plays (2013)
12
“Factory” Approach
High number of wells
Surface disturbance
Service intensity / well
Heavy truck traffic
Extensive Resources
Produced water mgmt
Air emission reporting
Noise control
Need improvement for
Complex reservoirs
Production economics
Technology development focused on reducing impact
Will this work outside North America?
14
Efficient and Effective Approach for Shale Reservoirs
More Knowledge
Less Uncertainty
− Advanced basin modeling
− Integrate core/log/seismic
− Define reservoir quality
− Define completion quality
− Sweet spots
More Pay Zone
Less Rig Time
− Engineered bit/BHA
− Hole cleaning & quality
− Longer laterals, > ROP
− Cuttings and mud logs
− Wellbore placement
More Reservoir Contact
Less Environment Impact
− Engineered frac design
− Efficient stim hardware
− Green chemistry
− Reduce water/proppant
− Well integrity
Focus of Research and Application of Technology - Producing More with Less
More Recovery
Less Waste
− Manage flowback/cleanup
− Optimize pressure / rate
− Coiled tubing interventions
− Measure zone contribution
− Maximize recovery
Evaluate Drill Complete Produce