Enabling Unconventional Resources

Transcription

1 Enabling Unconventional Resources 8 th U.S. - China Oil and Gas Industry Forum San Francisco, California U.S.A. September 9-11, 2007

2 ROLE OF UNCONVENTIONAL Increasing contribution by unconventional resources to energy supply Required to offset declining conventional resources Enabled by technology advances Heavy Oil, Tight Gas, Gas and Coal Bed Methane are currently major contributors ~15% 2 0 USA Natural Gas Production, TCF History ~40% Conventional Reservoirs Projections ~50% Unconventional Reservoirs Modified from: DOE/EIA Report #: DOE/EIA-0383(2007) 10 3 m 3 /d Alberta, Canada - Liquids Supply Actual Pentanes plus Light-medium Heavy Forecast Non upgraded bitumen Synthetic Crude Oil Modified from: Alberta EUB ST

3 CHALLENGES Development of unconventional resources is challenging: Complex Hydrocarbon System Commercially at the margin Operationally intensive Technology dependent

4 LEARNING CURVE Technology drives exponential capability growth Pace of innovation consistently exceeds tendency to linearly extrapolate from present Experimentation and learning process can take multiple years - Technology development effort requires long term commitment kcf/d 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 Barnett Peak Month Production Vertical wells Horizontal wells Data from: IHS, ,000 1,500 2,000 2,500 Fixed Platform TLP/CT/DDCV FPSO/SS Global DW Production (IHS) Deepwater technology development schematic Production (MB/D)

5 HEAVY OIL Defined as API < 22 O Initial technology research and development began in 1960 s Significant contributor to supply Production from mining, cold flow, and thermal extraction techniques Future challenges related to recovery from more complex lithologies Researching a range of technologies to improve commercial methods and to develop new methods with potential breakthrough performance Process Gas Injection Cold Flow Polymer Flood In situ Combustion Steamflood Cyclic Steam Stimulation (CSS) ExxonMobil EOR Research Viscosity (cp) Primary recovery Displacement Thermal Steam-Assisted Gravity Drainage Surface Mining SAGD schematic

6 OIL SHALE Production by heating and pyrolysis of kerogen-rich rocks Oil shales known to exist in many parts of the world Significant growth in global resource estimate expected Emerging in-situ recovery technologies show promise, but require field testing to demonstrate viability - ExxonMobil developing the Electrofrac TM method for subsurface heating and recovery Distribution of World Oil Deposits by Continent / Region China Asia Australia- Pacific Europe Africa South America Russia North America Distribution of 3.3 trillion bbls shale oil in place from: Dyni (2003) and Russell (1990) ExxonMobil in-situ Electrofrac TM concept

7 TIGHT GAS U.S. annual tight gas production exceeds 5 TCF per year (~30% of total) Declining production from conventional gas reservoirs began in 1980 s Important to optimize drilling, completion and production activities ExxonMobil developed proprietary technology allowing targeted perforation and hydraulic fracturing of sands have enabled >5 TCF gas per year production = 30% Conventional Gas Reservoir Permeability Unlocking Tight Gas Just-in-Time Perforating Technology advancements from challenged reservoirs Tight Gas - Developable Tight gas - Challenged ~0.1 md ~0.01 md ~0.001 md Technology growth Annular Coiled Tubing Fracturing Ultra tight Gas ExxonMobil Breakthrough Technology

8 SHALE GAS Numerous US basins have proven shale gas potential Two variants: Thermogenic gas produced from organically rich, thermally mature shales Biogenic gas found in shallow, immature shales Initially, minor shale gas produced from mature Illinois, Michigan, and Appalachian basins - gas is supplying 5% US total More recent focus and growth in Barnett shale in Fort Worth basin ExxonMobil is utilizing horizontal drilling and multi-frac experience to develop opportunities Mowry US Gas Basins >5 TCF per year = 30% Bakken Green River Pierre New Albany Fm. Lewis / Mancos s Woodford / Caney McClure West Texas Barnett / Woodford Ft Worth Barnett s Modified from: Devon, Sept 2004 USA Annual Gas Production 0.8 TCF per year = 4.5% Antrim Appalachian s - shale gas/oil potential - shale gas production - tight oil production Advanced Resources International, 2007

9 COAL BED METHANE Global coal reserves are well documented, with U.S., China and Russia major resource holders Gas produced from coals is based on two main types: coal mine mouth and coal bed methane Quality of coal for CBM potential dependent on coal characteristics, gas content and permeability USA Annual CBM Production 1.7 TCF per year = 10% Initial U.S. developments in San Juan and Warrior basins, more recent focus on N. Rockies basins; developments progressing in Canada CBM contributing 1.7 TCF gas per year, over 10% of U.S. total supply Advanced Resources International, 2007

10 FOCUS ON TECHNOLOGY IS KEY Consistent, long-term approach to technology investment Focus on proprietary research to enable unconventional resources Balance between breakthrough and technology extensions Substantial research effort dedicated to issues across value chain Recovery Processes: Fundamental Studies Value Chain Unique Laboratory Capabilities ExxonMobil Competitive Advantage Staged Field Pilots Next-Generation Thermal Simulator

11 INTEGRATED SOLUTIONS Oil & Gas Production Tight Gas Bitumen Natural Gas Power Plant Goal: To maximize unconventional resource value across the value chain Utilize proprietary technology Refinery Gas Processing Deliver scale advantages Enhance energy integration Produce premium products Chemical Plant LNG/GTL plant

12 CONCLUSIONS Enabling unconventional resource requires: Development and application of new technology to maximize recovery Stable, clear regulatory and fiscal environment - Global market pricing Large acreage position and reasonable contract periods for exploration, development and production