shale oil – what does it take?
DESCRIPTION
PESA Qld Breakfast 22 May 2014. Shale oil – what does it take?. David Lowry. www.lowryresources.com.au. Source rock issues: Total Organic Carbon Hydrogen Index Maturity Kinetics Thickness Porosity Fraccing Issues Poissons Ratio, Youngs Modulus Reservoir/seal couplets - PowerPoint PPT PresentationTRANSCRIPT
Shale oil – what does it take?
Shale oil – what does it take?
David LowryDavid Lowry
PESA Qld Breakfast 22 May 2014
PESA Qld Breakfast 22 May 2014
www.lowryresources.com.au
www.lowryresources.com.au
Source rock issues:Total Organic CarbonHydrogen IndexMaturityKineticsThicknessPorosity
Fraccing IssuesPoissons Ratio, Youngs ModulusReservoir/seal couplets
Resource Estimates
Exploration in Australia
Source rock issues:Total Organic CarbonHydrogen IndexMaturityKineticsThicknessPorosity
Fraccing IssuesPoissons Ratio, Youngs ModulusReservoir/seal couplets
Resource Estimates
Exploration in Australia
Source rock issues:Need a good source rock
Initial Total Organic Carbon > 4%
Initial Hydrogen Index > 400
Source rock issues:Need a good source rock
Initial Total Organic Carbon > 4%
Initial Hydrogen Index > 400
(my impression)(my impression)
Obtain from RockEval pyrolysis.Preferably core, or at least hand-picked cuttings.Regular cuttings likely to be full of cavings and may steer you away from a good source rock
Obtain from RockEval pyrolysis.Preferably core, or at least hand-picked cuttings.Regular cuttings likely to be full of cavings and may steer you away from a good source rock
Source rock issues:Need a rich source rock
Initial Total Organic Carbon > 4%
Initial Hydrogen Index > 400
Source rock issues:Need a rich source rock
Initial Total Organic Carbon > 4%
Initial Hydrogen Index > 400
(my impression)(my impression)
mg HC generated from 1 g Organic Carbon at full
maturity
mg HC generated from 1 g Organic Carbon at full
maturity
ImmatureImmature
1000 mg Organic Carbon ~ 1200 mg kerogen1000 mg Organic Carbon ~ 1200 mg kerogen
Fully mature
Fully mature
600 mg Oil & Gas600 mg Oil & Gas
Source rock issues:Need a rich anoxic source rock
PyriteLamination (no bioturbation)Good preservation of organic
matter because no scavengers
Source rock issues:Need a rich anoxic source rock
PyriteLamination (no bioturbation)Good preservation of organic
matter because no scavengers
(my impression)(my impression)
ImmatureImmature
Fully mature
Fully mature
Source rock issues:
Need a rich mature source rock
Maturity 0.8% — 1.1% Ro
Source rock issues:
Need a rich mature source rock
Maturity 0.8% — 1.1% Ro
Estimating maturityVitrinite reflectance – traditional but very likely suppressed in oil-prone shale. VIRF or FAMM - goodTMax from RockEval – good for Proterozoic rocks; but
suppressionModelling – good if heat flow and stripping histories are
known; good for mapping; can use old wells but need some calibration.
Estimating maturityVitrinite reflectance – traditional but very likely suppressed in oil-prone shale. VIRF or FAMM - goodTMax from RockEval – good for Proterozoic rocks; but
suppressionModelling – good if heat flow and stripping histories are
known; good for mapping; can use old wells but need some calibration.
Source rock issues:Need to know your kerogen kinetics
Source rock issues:Need to know your kerogen kinetics
How easily does your kerogen crack?Track change in oil/gas ratio with maturityUse A and E parameters to model maturity
How easily does your kerogen crack?Track change in oil/gas ratio with maturityUse A and E parameters to model maturity
Thickness: the thicker the better. Minimum 30 m?
volumetrics; engineering; seismic
Thickness: the thicker the better. Minimum 30 m?
volumetrics; engineering; seismic
Source rock issues:Thickness
Source rock issues:Thickness
Porosity: Organic porosity important at Ro ~1%
Generation can also fracc the shale, giving permeability
Porosity: Organic porosity important at Ro ~1%
Generation can also fracc the shale, giving permeability
Source rock issues:Porosity
Source rock issues:Porosity SEM with ion
milling SEM with ion
milling
Source rock issues:Porosity
Source rock issues:Porosity
10% TR10% TR
80% TR80% TR
0%0% 14%14%
Jarvie ,2012Jarvie ,2012
Fraccing IssuesPoissons Ratio, Youngs ModulusReservoir/source couplets
Fraccing IssuesPoissons Ratio, Youngs ModulusReservoir/source couplets
clay rich, ductile
clay rich, ductile
cemented by silica, calcite or dolomite. Good to fracccemented by silica, calcite or dolomite. Good to fracc
Optimum: interbedded reservoir/source ouplets
Optimum: interbedded reservoir/source ouplets
Slatt, 2013Slatt, 2013
Oil generated= Thickness (m)x initial TOC x initial Hydrogen
Indexx Transformation
Ratio
Oil generated= Thickness (m)x initial TOC x initial Hydrogen
Indexx Transformation
Ratio
Available Oil in place = Thickness (m)x initial TOC x initial Hydrogen
Indexx Transformation
Ratio— Adsorbed oil — Migrated oil
Recoverable oilx Recovery factor
Available Oil in place = Thickness (m)x initial TOC x initial Hydrogen
Indexx Transformation
Ratio— Adsorbed oil — Migrated oil
Recoverable oilx Recovery factor
Resource EstimatesResource calculation
TOC. In anoxic marine source rock, uranium is adsorbed on the organic matter. Gamma Ray log roughly proportional to TOC
Resource EstimatesResource calculation
TOC. In anoxic marine source rock, uranium is adsorbed on the organic matter. Gamma Ray log roughly proportional to TOC
Cluff, 2012 Cluff, 2012
Image deleted; data not yet open file
Image deleted; data not yet open file
Kerogen adsorbs early-formed oil. Not available for migration into pores and fractures
Pepper & Corvie (1995) estimate: 100 mg oil / g organic C
Kerogen adsorbs early-formed oil. Not available for migration into pores and fractures
Pepper & Corvie (1995) estimate: 100 mg oil / g organic C
Problem of adsorption Problem of adsorption
Suppose HI source rock is 500 and take particular Ro/TR kinetics curve.
At Transformation Ratio 0.2, kerogen will have generated 500 x 0.2 = 100 mg oil / g TOC
Just at start of expulsion at Ro 0.84%
Suppose HI source rock is 500 and take particular Ro/TR kinetics curve.
At Transformation Ratio 0.2, kerogen will have generated 500 x 0.2 = 100 mg oil / g TOC
Just at start of expulsion at Ro 0.84%
To quantify expulsion, need to quantify kinetics and initial HI
To quantify expulsion, need to quantify kinetics and initial HI
Image deleted; data not yet open file
Image deleted; data not yet open file
Recovery Factors for shale oilLook to US experience
Recovery Factors for shale oilLook to US experience
Evaluating production potential of mature us oil, gas shale plays. Oil & Gas Journal 12/03/2012 Evaluating production potential of mature us oil, gas shale plays. Oil & Gas Journal 12/03/2012
Eagle Ford fairway Eagle Ford fairway
Recovery Factors for shale oilOil & Gas Journal 12/03/2012
Recovery Factors for shale oilOil & Gas Journal 12/03/2012
US Energy Information Administration 2013. Based on U.S. shale production experience, ...... the recovery factors for shale oil range from 3 percent to 7 percent of the oil in-place with exceptional cases being as high as 10 percent or as low as 1 percent.
US Energy Information Administration 2013. Based on U.S. shale production experience, ...... the recovery factors for shale oil range from 3 percent to 7 percent of the oil in-place with exceptional cases being as high as 10 percent or as low as 1 percent.
http://www.eia.gov/analysis/studies/worldshalegas/
Recovery Factors for shale oilOil & Gas Journal 12/03/2012
Recovery Factors for shale oilOil & Gas Journal 12/03/2012
Recovery Factors for shale oilOil & Gas Journal 12/03/2012
Recovery Factors for shale oilOil & Gas Journal 12/03/2012
Study the core as source
Rock Eval, RockEval on extracted samples, extract GCMS; Py-GC, Bulk and MSSV multicomponent kinetics, FAMM or VIRF, SEM with ion milling, clay XRD.
Study the core as reservoirMechanical properties, helium porosity, MICP, % carbonate, Dean-Starke saturation; dipole sonic log, image log
Study the core as sourceRock Eval, RockEval on extracted samples, extract GCMS; Py-GC, Bulk and MSSV multicomponent kinetics, FAMM or VIRF, SEM with ion milling, clay XRD.
Study the core as reservoirMechanical properties, helium porosity, MICP, % carbonate, Dean-Starke saturation; dipole sonic log, image log
A lot more science is needed than in conventional exploration. Companies will need staff with strong skills in the theory and practice of geochemistry and rock mechanics.
Australia Shale oil: McArthur BasinBarney Creek Fm (1.6 Ga) & Velkerri Fm (1.4 Ga) Australia Shale oil: McArthur BasinBarney Creek Fm (1.6 Ga) & Velkerri Fm (1.4 Ga)
Barney Creek Fm Velkerri FM Barney Creek Fm Velkerri FM
HI 1000
HI 1000
TmaxTmaxCrick et al., 1988
Crick et al., 1988
Permits held/applied for by Armour Energy
Permits held/applied for by Armour Energy
Southern McArthur Basin
Southern McArthur Basin
Northern Georgina Basin
Northern Georgina Basin
Who are the players?
Who are the players?
Imperial O&G (Empire Energy)
Imperial O&G (Empire Energy)
Tamboran Resources. Farmed out to Santos
Tamboran Resources. Farmed out to Santos
Falcon O&GBeetaloo Sub-basin.
Falcon O&GBeetaloo Sub-basin.
No obvious burial since Cambrian;
chance of overpresssuring
is limited
No obvious burial since Cambrian;
chance of overpresssuring
is limited
Law et al., 2010Law et al., 2010
Relatively simple structure; source
rocks in both gas and oil window
Relatively simple structure; source
rocks in both gas and oil window
2011 Shenado
ah-1 flowed wet gas
from Velkerri
e
2011 Shenado
ah-1 flowed wet gas
from Velkerri
e
Pangaea O&G
Pangaea O&G
Southern Georgina Basin
Southern Georgina Basin
MacIntyre-2H June 2012 1080 m in Arthur Creek Hot Shale. Oct 2012 9 stage fracc. Testing
suspended (H2S)
MacIntyre-2H June 2012 1080 m in Arthur Creek Hot Shale. Oct 2012 9 stage fracc. Testing
suspended (H2S)
Baldwin-2Hst1 August 2011 875 m in Arthur Creek
Hot Shale. Oct 2012 fracc; casing failed
Baldwin-2Hst1 August 2011 875 m in Arthur Creek
Hot Shale. Oct 2012 fracc; casing failed
Owen-3H August 2011 966 m in Arthur Creek Hot
Shale. Oct 2012 10 stage fracc; recovered fracc
fluids but no hydrocarbons
Owen-3H August 2011 966 m in Arthur Creek Hot
Shale. Oct 2012 10 stage fracc; recovered fracc
fluids but no hydrocarbons
Buru Energy is major player in Canning
Basin
Ordovician Goldwyer Fm recognised as
major shale oil opportunity
Buru Energy is major player in Canning
Basin
Ordovician Goldwyer Fm recognised as
major shale oil opportunity
NENE SWSW
New Standard Energy holds a large area
New Standard Energy holds a large area
New Standard Energy
New Standard Energy
New Standard; ConocoPhillips &
Petrochina farming in
New Standard; ConocoPhillips &
Petrochina farming in
XX
Hess – formerly Kingsway
Hess – formerly Kingsway
XX
XX
Perth Basin. Hovea Mbr of Kockatea Shale (Earliest
Triassic)
Perth Basin. Hovea Mbr of Kockatea Shale (Earliest
Triassic)
AWE active exploration for tight gas. Four vertical wells stimulated. Arrowsmith-2 5 stage fracc.
AWE active exploration for tight gas. Four vertical wells stimulated. Arrowsmith-2 5 stage fracc.
22 bbl
22 bbl
Eromanga Basin. Toolebuc Shale
Early Cretaceous
Eromanga Basin. Toolebuc Shale
Early Cretaceous
Exoma & CNOOC drilled a dozen wells on the Maneroo Platform.
Maturity not quite high enough
Exoma & CNOOC drilled a dozen wells on the Maneroo Platform.
Maturity not quite high enough
Elsewhere Toolebuc is largely immature; need
to find an area with high heat flow and deep
maximum burial
Elsewhere Toolebuc is largely immature; need
to find an area with high heat flow and deep
maximum burial
Shale oil – what does it take?
Shale oil – what does it take?
David LowryDavid Lowry
PESA Qld Breakfast 22 May 2014
PESA Qld Breakfast 22 May 2014
www.lowryresources.com.au
www.lowryresources.com.au
Exceptional geology; lots of money
Exceptional geology; lots of money