Unconventional Gas: Efficient and Effective Appraisal and Development. Jeff Meisenhelder VP Unconventional Resources

Transcription

1 Unconventional Gas: Efficient and Effective Appraisal and Development Jeff Meisenhelder VP Unconventional Resources

2 Million Cubic Feet The Barnett Story Perserverence and Technology Make the Difference Vertical Wells Deviated Wells Horizontal Wells Date of First Production *IHS Database

3 3 Key Success Factors for Unconventional Development Growing demand High potential resources Land access & operability Little competition from conventional Successful Unconventional Development Capable service sector Fair price Enabling fiscal & regulatory regime Open & extensive gas distribution network

4 D&C Spend $B Shale Gas Revolution N. American Story Benefits New Long Term Energy Resources Large Resource Base Energy Security & Independence Economy Benefits >1,600,000 Potential Jobs Local Business Growth US Drilling and Completion Spend US Drilling and Completion Spend Land Offshore Social Benefits Lower Energy Costs Reduced CO2 Emissions (1997 level) Year Source : Spears Drilling & Production Outlook Dec

5 Improving Economics through Efficiency Execution efficiency improves economics on development projects Source: Talisman Investor Relations

6 Depth k feet Drilling Technologies Creating Efficiency Drilling Performance Drilling : 48 days Days 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 Efficiency = Reliability 6

7 % Unproductive Perforations Million Cubic Feet Efficiency vs Effectiveness Vertical Wells Deviated Wells Horizontal Wells SPE Date of First Production *IHS Database

8 Heterogeneity Photo courtesy D. Spratt 8

9 Challenges for Effective Shale Development 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 All Gas Shales Are Different Conventional Grains >4 μm Barnett Shale Reservoirs Argillaceous Matrix Composition Siliceous Marcellus Calcareous Eagleford

10 Effective Drilling Use technology to land well laterally and vertically Schlumberger Private SPE ft displacement from center target Integrating Data Placing the well for the best performance 10

11 Eagle Ford Optimization: Engineered Approach Mangrove Applications: Completion Design Reservoir Quality 17 Geometric stages Completion Quality 17 Optimized stages

12 Emerging Worldwide Plays (2013) Shalle basins w defined resources Shale Basins, unassessed 12

13 Will this work outside North America? 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

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15 Efficient and Effective Approach for Shale Reservoirs Focus of Research and Application of Technology - Producing More with Less Evaluate Drill Complete Produce More Knowledge More Pay Zone More Reservoir Contact More Recovery Less Uncertainty Less Rig Time Less Environment Impact Less Waste Advanced basin modeling Integrate core/log/seismic Define reservoir quality Engineered bit/bha Hole cleaning & quality Longer laterals, > ROP Engineered frac design Efficient stim hardware Green chemistry Manage flowback/cleanup Optimize pressure / rate Coiled tubing interventions Define completion quality Cuttings and mud logs Reduce water/proppant Measure zone contribution Sweet spots Wellbore placement Well integrity Maximize recovery