Hydraulic Fracturing with Cryogenic Fluids: Boosting Hydrocarbon Production While Conserving Fresh Water Resources

Transcription

1 CO 2 and N 2 LNG and CNG Transportation and Logistics 2015 International Petroleum Environmental Conference (IPEC) Denver, CO Hydraulic Fracturing with Cryogenic Fluids: Boosting Hydrocarbon Production While Conserving Fresh Water Resources Presented by: Andre Tweed, Ferus LP Co-Authors: Murray Reynolds and Juliana Buendia, Ferus Inc. November 18, 2015

2 CURRENT CHALLENGES IN UNCONVENTIONAL FIELD DEVELOPMENT Demand growth Volumes Number of wells Water management Logistics Well performance Environmental footprint Emissions and GHG s Truck traffic on county roads COST!! Slide 2

3 DEMAND GROWTH Montney gas/ average per well YoY Wells (#) 1, Well Count Stages (#) # Stages ,000 Total Fluid Pumped 2,000 Total Proppant Placed Fluid Pumped (m 3 ) 10,000 5, Proppant (tonnes) 1,500 1, Source: Canadian Discovery Frac DataBase Slide 3

4 OPTIMIZE JOB SIZE 2014 Montney gas/ average per well Average # Stages Average Water Pumped Average of Well -Stages Actual (#) 15,000 10,000 5,000 - Average of Well -Total Fluid Pumped (m3) Non-Energized Energized Non-Energized Energized Average Total Proppant Placed 1,800 1,700 1,600 1,500 Average of Well - Total Proppant Placed (t) Non-Energized Energized Source: Canadian Discovery Frac DataBase Slide 4

5 WATER MANAGEMENT Water sourcing and sourcing restrictions Water transportation Water storage Water infrastructure investment Disposal and recycling challenges Pad sizing Hidden costs Fox Creek Water Pit Slide 5

6 NA Water Stress Map 6

7 ALTERNATIVES TO MANAGE CHALLENGES Optimize job size Energize your wells In 2014 on average, energized fracturing fluids volume were ~50% smaller than water based fracturing fluids volume Optimize number of stages Optimize sand tonnage Reduce water usage Water Based Average Fluid Volume 9,400 m 3 [CAT EGO RY NAM E] Pro ppa nt Energized Average Fluid Volume Wat 5,000 er m 3 24% Che mical s -1% Wate r 90% [CA TEG O N2 or C Source: Canadian Discovery Frac DataBase Slide 7

8 REDUCE WATER USAGE WCSB Estimated Total Water Consumption for Completions YoY Average Wa ater Pumped per Well (m 3 ) 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 2,552,223 10,016,778 3,953,434 10,119,148 5,429,895 14,982,909 Energized Water Based - 1,500 1,600 1,700 1,800 1,900 2,000 2,100 2,200 2,300 Well Count per Year Bubble size is the estimated total water used YoY (in Million m3) Source: Canadian Discovery Frac DataBase Slide 8

9 FOLLOW PRODUCTIVE INITIATIVES Nitrogen Usage Growth in WCSB 800,000 Estimated N2 use Top Plays YoY Montney/Doig Gas 300,000 WCSB N2 Estimated Usage YoY 6,000 Average N2 Volum me per well 700, , , , , ,000 Deep Basin Gas Cardium Oil Glauconitic Hoadley Gas Average N2 vol/well (scm) 250, , , ,000 50, ,168, ,946, ,052,109 5,000 4,000 3,000 2,000 1,000 0 Well Count 100, Well Count Year Estimated Total N2 Pumped/ Average N2 Pumped per well (scm) Total Well Count Total N2 Well Count Source: Canadian Discovery Frac DataBase Slide 9

10 REDUCE TRUCK TRAFFIC Kakwa river water usage Slide 10

11 REDUCE COST ($KCAN) $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 Binary Foam saves $850K and CO 2 Foam saves $950K over Slickwater SW N2 Foam E-SW E-WB BI Foam CO2 Foam Fluid System Source: SPE Slide 11

12 ENHANCE WELL PERFORMANCE Water damage mechanisms: Clay swelling / softening / movement Aqueous phase trapping (high capillary pressure) Proppant embedment Fracture face damage (fluid imbibition) Poor cleanup and water recoveries during flowback Poor proppant transport / conductivity Lower hydrocarbon rates and EUR s Slide 14

13 ADVERSE ROCK WATER INTERACTION (VIKING ZONE) Core Immersed in Mcbride dugout water Core Immersed in Bridge Creek 3% KCl Water SOURCE: Baker Hughes Slide 15

14 CASE STUDY SHOWING ENHANCED PRODUCTION / REDUCED COST SPE Cryogenic N 2 and CO 2 used in energized fluid systems provide proven, effective technology to stimulate tight sands and shales Non-damaging fluid which greatly reduces water volumes, chemicals and proppants Reduces real and environmental costs while maximizing NPV Source: BMO A&D Drill Bits October 2011 Slide 16

15 STUDY SCOPE >3,500 Hz Montney wells completed to date Study criteria: Montney/Doig Gas OGR < 75 stb/mmscf 12 months of production data On Production Date >2010 1,627 wells met the criteria Energized Fluids < 50% CO 2 or N 2 Foams CO 2 / N 2 / Both > 50% Fluid systems analyzed Fluid Slickwater Energized Slickwater Other Water Based Fluids Energized Water Based Oil Based Energized Oil Based N 2 Foam CO 2 Foam Binary (N 2 +CO 2 ) Foam The most comprehensive statistical analysis of the Montney Acronym SW E-SW WB E-WB Oil E-Oil N 2 Foam CO 2 Foam BI Foam Slide 15

16 PRODUCTION RECOVERY - 3 MONTH CUMULATIVE PRODUCTION 3 mo Median Production (BOE) 41,166 31,042 30,098 34,499-10,000 20,000 30,000 40,000 Binary Foams outperform any other fluid on a 90 day basis! SPE The Full Montney M.Reynolds Source: Canadian Discovery Frac Database & Accumap integrated through Visage Slide 16

17 MONTNEY GAS COMPLETION COST Flatter slope implies increased variability Median Completion Cost (K$) Completion cost doesn t include water disposal cost 2,930 3,020 3,482 3, SPE The Full Montney M.Reynolds Source: Canadian Discovery Frac Database & Accumap integrated through Visage Slickwater is consistently the MOST expensive fluid used in the Montney! Slide 17

18 WHAT WE LEARNED Optimize Sand Concentration SPE The Full Montney M.Reynolds Slide 18

19 RECENT US SUCCESSFUL APPLICATION first application of CO 2 based fracture fluid in the Bakken fm (North Dakota) Over 6,000 tons used in a multi-stage fractured HZ completion Stay tuned for results Slide 21

20 LOGISTICAL CHALLENGES Large volume hydraulic fracturing jobs - Supply constraints - Truck traffic - Site layout challenges - Sub-optimal product delivery - Over-sizing of fracture treatments - Cost Slide 20

21 OPTIMIZE LOGISTICS Ferus North American Operations Proximal Supply - Substantially reduced plant gate price - Significantly reduced transportation - Scheduling flexibility; reduced standby - Reduced exposure to weather & road bans Slide 21

22 OPTIMIZE LOGISTICS Demand Planning - 24/7 Real-Time Dispatch Services - Coordinate storage, trucks and product deliveries - Optimize delivery times through real-time interaction Reliable Transportation - Triple drive axle tractors allowing for larger capacity - Typically use tandem tractors requiring two trailers On-Location Storage On-Site Service - Field supervisors Slide 22

23 INTEGRATED SOLUTIONS Holistic approach to solve the problem Technical services Optimize job size Improve fracturing fluid design Partner with experts Supply Logistics Transportation Reduced costs Reduce environmental Impact Enhanced well productivity and economics Slide 23

24 Questions? Contact info: Office: