shale gas - risks & overview
TRANSCRIPT
What IsAcceptable Shale Oil and Gas
Development?
What IsAcceptable Shale Oil and Gas
Development?
Shale gas characteristics
• Two key technologies: Horizontal drilling and hydraulic fracturing
• Large areas
• Vast numbers of wells
• The true extent of reserves in a given play emerges only with Multiple wells
Source: Geology.comSource: Irvine Energy plc
Important distinctions
Conventional vs unconventional
High quality conventional gas
Low quality conventional gas
Tight gas
Coalbed methane Shale gas
Gas hydrates
Conv
entio
nal
Unco
nven
tiona
l
Volume
Tech
nolo
gica
l req
uire
men
ts, c
osts
Free vs associated• Natural gas may be free or associated, i.e., dissolved in
oil or located in a cap of free gas above the oil • Associated gas may have low production costs but may
also as a by-product present inflexibility problems – A challenge to OPEC oil producers
• Associated gas may be marketed but is often reinjected or flared
Source: World Bank’s GGFR Programme
Shale gas opportunities outside North America
• Most screening to date has amounted to looking for analogues to the successful US shale basins• Key criteria:
– Onshore– Gas prone – Organically rich– Volumetrically extensive– Thermally mature – Passable permeability– Brittle– Frac barriers– Shallower than 4000 m
• Also favourable fiscal framework conditions, availability of land, availability of services, infrastructure, gas demand, local support…
• Tough to find opportunities that match all requirements!
What is ACCEPTABLE?
MitigateEnvironmental and Community
Concerns
The right set of practices?
The right set of regulations?
Current Practices
Community andEnvironmental Risks
Community and Environmental Risks
Which Risk Scenario Do You Believe? A B
Current PracticesDesigned to
Mitigate Risks
Center for Strategic and International StudiesWashington D.C.Strategic insight, bipartisan policy
Excess noise, road
damage
Induced Seismicity
Air QualityNon-
attainment
State regulations
Injectionvolumes
Increased traffic
accidents
% waterrecycled
ExcessiveGHG
Emissions
Disposal methods/volumes
GW Degradation
Surface Water
Degradation
Regional Water
Depletion
Ecosystem Degradation
Land Disturbance
PW/FFvolumes
Shale GasDevelop
ment
RISKS
RISK FACTORS
Air Issues
Community Impacts
Water Issues
Land Issues
Ruleviolations
Regional water use
% waterrecycled
Federal regulations
Well casing procedure
Fresh water use
# of wells
Ruleviolations
# of horizontal
wells
Fresh Water use
State regulations
PW/FFvolumes
# of horizontal
wells
# of wells
% waterrecycled
Disposal methods/volumes
# of wells
Pad density
Disposal methods/volumes
% green completions
% waterrecycled
% waterrecycled
% waterrecycled
% waterrecycled % waterrecycled
Water Sources and Demand for the Hydraulic Fracturing of Oil and Gas Wells in Colorado from 2010 through 2015Colorado Division of Water ResourcesColorado Oil and Gas Conservation CommissionColorado Water Conservation Board
http://cogcc.state.co.us/Library/Oil_and_Gas_Water_Sources_Fact_Sheet.pdf
WATER ACQUISITIONApproximately 3 MG is required for HF of horizontal wells
Potential Impact:• Regional water supplies can be depleted• Transport of water can lead to excess truck traffic
CHEMICAL MIXINGWater is combined with proppant and chemicals to make HF fluid.
Potential Impact:• Spills or leaks can contaminate ground or surface water
WELL INJECTIONPressurized HF fluid is injected into well to create fractures
Potential Impact:• Breach of well casing can contaminate aquifer• Fractures can intersect natural fractures contaminating aquifers
FLOWBACK AND PRODUCED WATERWhen pressure in the well is released, HF fluid, formation water and gas flow back. These fluids are temporarily stored on site.
Potential Impact:• Spills or leaks can contaminate ground and surface water.• Gases can be released
WASTEWATER TREATMENT AND DISPOSALWastewater must be disposed either through injection, evaporation or recycling/reuse.
Potential Impact:• Faulty disposal methods could lead to contamination of water resources.
Excess noise, road
damage
Induced seismicity
Air qualitynon-
attainment
State regulations
Injectionvolumes
Increased traffic
accidents% waterrecycled
ExcessiveGHG
emissions
Disposal methods/volumes
Drinking water contamination
Water quality
degradation
Regional water
depletion
Ecosystem degradation
Land disturbance
PW/FFvolumes
Shale GasDevelop
ment
RISKS
RISK FACTORS
Air Issues
Community Impacts
Water Issues
Land Issues
Ruleviolations
Regional water use
% waterrecycled
Federal regulations
Well casing procedure
Fresh water use
# of wells
Ruleviolations
Degree ofmonitoring
Fresh Water use
State regulations
PW/FFvolumes
# of horizontal
wells
# of wells
% waterrecycled
Disposal methods/volumes
# of wells
Pad density
Disposal methods/volumes
% green completions % water
recycled
HAP health impacts
Degree of monitoring
Ruleviolations
Setbackrule
Setbackrule
Materials and Energy Balance for Oil and Gas Well
Cflowback
Well
Edrilling Efrac
Ein
EoilEgas
Qdrill
Qfrac
Qflowback
QproducedCproduced
Water Treatment and
Disposal
Qrecycle
Crecycle
Etreat
QevapQinject
ENERGY IN
ENERGY OUT
WATER IN
WATER OUT
Wattenberg Field
Water Intensity
Cflowback
Well
Edrilling Efrac
Ein
EoilEgas
Qdrill
Qfrac
Qflowback
QproducedCproduced
Water Treatment and
Disposal
Qrecycle
Crecycle
Etreat
QevapQinject
ENERGY IN
ENERGY OUT
WATER IN
WATER OUT
Fluids Management
Air Toxics
Frac flowbackhandling
Water Disposal
Truck Traffic
WaterAcquisition
Road Damage
GHG Emission
s
Surface Spills
GW Degradation
Surface Water
Impacts
WaterUse
Regional Water
Depletion
Ecosystem Impact
Air Issues
Community Impacts
Water Issues
Land Issues
Land Disturbance
Well paddesign
Leaks
Truck traffic
Excess noise, road
damage
Induced seismicity
Air qualitynon-
attainment
State regulations
Injectionvolumes
Increased traffic
accidents% waterrecycled
ExcessiveGHG
emissions
Disposal methods/volumes
Drinking water contamination
Water quality
degradation
Regional water
depletion
Ecosystem degradation
Land disturbance
PW/FFvolumes
Shale GasDevelop
ment
RISKS
RISK FACTORS
Air Issues
Community Impacts
Water Issues
Land Issues
Ruleviolations
Regional water use
% waterrecycled
Federal regulations
Well casing procedure
Fresh water use
# of wells
Ruleviolations
Degree ofmonitoring
Fresh Water use
State regulations
PW/FFvolumes
# of horizontal
wells
# of wells
% waterrecycled
Disposal methods/volumes
# of wells
Pad density
Disposal methods/volumes
% green completions % water
recycled
HAP health impacts
Degree of monitoring
Ruleviolations
Setbackrule
Setbackrule
RISK or CONCERNAir toxics released during well
development/operation impact health
Develop baseline, is it being maintained? MEASURE & REPORT
Real-time monitoring of VOCs in air
Compare measurements to baseline
BEST PRACTICES1) Utilize reduced emission
“green completion” techniques
2) Use closed loop fluid handling methods to prevent release of
VOCs
Use air quality data to evaluate practice efficacy
Potential Solution Framework
Potential Solution Framework
Water qualitysensors
Air qualitysensors Telemetry Public Web
Interface