History of Hydraulic Fracturing Mark Parker

Transcription

1 History of Hydraulic Fracturing Mark Parker Halliburton Mid-Continent Area Technology Manager

2 Safety Moment Driving Safety

3 Distracted Driving The only thing you should do when Driving is Driving Focus on the task at hand Driving Safely No interfacing with GPS/Navigation systems No calls No texts No eating 3

4 The Oil & Gas Industry Activity Today

5 Transition to Unconventional Reservoirs The Shale Revolution Sandstones and carbonates to source rock reservoirs Horizontal Drilling Increased reservoir contact Hydraulic Fracturing What it is and is not 5

6 Resource Triangle Conventional Reservoirs Small Volumes Easy to Develop Unconventional Reservoirs Large Volumes Difficult to Develop Gas Shales High Medium Quality Low Perm Oil Tight Gas Sands Heavy Oil Coalbed Methane Increased Cost Improved Technology Gas Hydrates Oil Shale Reference: OTC Stimulation of Tight Gas Reservoirs Worldwide Stephen A. Holditch, Texas A&M University 6

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8 Benefits - Horizontal Wells and Reservoir Contact Increase contact area of formation Improve efficiency and economic viability Reduce surface footprint 8

9 Hydraulic Fracturing What it is σ Hydraulic Fracture Mechanics σ v > 1psi/ft Stage # Flow Path Fracture Design Treatment Schedule Fluid System Prop Type Stage Time (min) 1 1 Shut-In In 20# Water Frac G In 20# Water Frac G SAND PREMIUM 20/40, BULK, SK ( ) In 20# Water Frac G In 15% Hydrochloric Acid In 20# Water Frac G In 20# Water Frac G SAND-CRC PREMIUM-20/40, BULK ( ) 7.02 σ max 1 8 In 20# Water Frac G SAND-CRC PREMIUM-20/40, BULK ( ) σ min 1 9 In 20# Water Frac G SAND-CRC PREMIUM-20/40, BULK ( ) 8.96 ν σ = + min ν 2 1 [ σ ] z α 1 P R + α P R σ Tec In 20# Water Frac G SAND-CRC PREMIUM-20/40, BULK ( ) 1 11 In 20# Water Frac G Shut-In Total

10 Well Construction

11 Why do we need to cement wells? Protect fresh water and other formations from well fluids Protect the well casing from damaging formation conditions Ensure a durable and competent casing string throughout the life of the well Possibly the most critical phase in well construction or completion 11

12 Typical casing strings Cement Conductor Casing Cement Cement Fresh Water Aquifer Surface Casing Lost Circulation Zone or High Pressure Zone Intermediate Casing Cement Production Casing High Pressure Reservoir 12

13 How Did We Get Here?

14 How Did We Get Here Concept development and understanding Chemical system development Equipment development Engineering understanding 14

15 Velma, Oklahoma The First Commercial Hydraulic Fracturing Treatment March 17,

16 The Hydraulic Fracturing Process The Use of Fluids To Apply Hydraulic Pressure to Create A Fracture in a Rock Formation The Continued Injection of Fluids Into The Created Fracture To Develop the Geometry The Placement of Small Granular Solids Into The Fracture To Insure It Remains Open After The Hydraulic Pressure Is No Longer Being Applied 16

17 The Objective of The Hydraulic Fracturing Process Increase The Rate At Which The Well Is Capable of Producing Oil or Gas Increase The Economically Recoverable Reserves For A Well 17

18 Principal Stress And Fracture Orientation σ V σ H 1 σ H 2 Lowest 18

19 Propping Agents 19

20 Chemical Development 20

21 Reservoir Characterization 21

22 Fluid Mechanics/Rheology Engineering and Testing 22

23 Performance Testing Fracture Conductivity 23

24 Reservoir Understanding - Rock Mechanics 24

25 Software Development 25

26 History of Halliburton Frac Fluids - 1 The Industry 1949 Oil Frac 1950 s Viscosified Water 1960 s Crosslinked Fluids 1970 s Foamed Fluids Halliburton 1969 HyGel /LoGel 1972 VersaGel 1974 Kleer-Gel II 1977 AcidGel Frac II 1982 VersaGel HT 26

27 Massive Hydraulic Fracturing late 1970 s through the 1980 s Targets Low permeability reservoirs Natural gas production Deeper Hotter Higher pressure Technology Complex chemical fluid systems Long pump times Computer designs 27

28 Where Are We Now?

29 The Rise of Unconventional Reservoirs Source Rock Reservoirs Shale Gas Shale Oil Horizontal Wells and Hydraulic Fracturing Accelerated development Increased productivity 29

30 Evolution of Fracturing 1990 s to Today Engineering understanding of the fracturing process Ultra-low permeability reservoirs Coal Bed Methane (CBM) Source Rock Reservoirs Alteration of design based on the reservoir Computational improvements Fracture Design Simulators Reservoir Simulators Hybrid treatment designs 30

31 Equipment 31

32 Equipment 32

33 History of Halliburton Frac Fluids - 2 The Industry 1980 Improved Breakers 1990 Reduced Polymer Fluids 2000 Reduced Residue Fluids 2010 Guar-Free, Green Fluids 2012 High TDS Crosslink Fluids Halliburton 1986 Pur-Gel 1986 Thermagel 1987 BoraGel 1991 HyborGel 1997 Delta Frac 2001 HMP 2002 SilverStim LT 2002 Sirocco 2003 SeaQuest 2004 DeepQuest 2005 phaserfrac 2008 OmegaFrac 33

34 Concerns for the Industry

35 Concerns for the Industry Water resources Environmental pollution Sustainability 35

36 Overarching US Debate - Federal Versus State Oversight Federal Diesel Regulation Federal Lands EPA Study SEAB State Legislators and regulators vie to regulate oil and gas industry at the federal level Waxman inquiry prompts EPA to expand regulatory guidance on diesel use in frac fluids BLM reviewing operations and revising oil and gas regulations on federal lands EPA HF study to include water withdrawals, storage, treatment, disposal and recycling Natural Gas Subcommittee recommendations on improved safety & environment in shale development State regulators seeking to maintain primacy over oil & gas regulation 36

37 State Regulation - Under Review New York Wyoming Pennsylvania Colorado Texas California De facto moratorium awaiting final SGEIS ruling in 2014? Chapter 3 regulations address well construction and completions Lawsuit over disclosure Chapter 78 regulations address well construction and completions Rule 205-A ruling sets new standards for HF chemical disclosure April 1st HB 3328 regulation sets new standards for HF chemical disclosure Feb. 1st SB 4 proposes new legislation on upstream activities including HF disclosure 37

38 Water Use Comparison Shale Gas Development < 1% 38

39 Fracture Location Determination - Barnett Study Bottom of deepest aquifers Thousands of feet of separation Top of fractures Kevin Fisher, Data Confirm Safety of Well Fracturing, The American Oil & Gas Reporter July

40 40

41 Frac Fluid Composition *Image: EnergyinDepth.org 2009 Source: Compiled from Data collected at a Fayetteville Shale Fracture Stimulation by ALL Consulting

42 FracFocus Chemical Disclosure Registry Publicly available information on a well by well basis Standardizes reporting for all fracturing operations Supports multiple state disclosure efforts Provides information on state regulations and educational material 42

43 Environmentally Focused Energy Development 43

44 Environmental Advancements In Fracturing Chemistry Scoring Index (CSI) Assess Health, Safety and Environmental hazards of products Considers relative hazards in formulating new products Can be adopted by entire industry Health Safety Environmental 44

45 Comprehensive Environmental Stewardship CleanStream Ultra-violet light to control bacteria CleanWave TM Electrocoagulation to recycle water for fracturing process ADP TM Blender Dry powder gelling agent to eliminate carrier fluids SandCastle Solar energy and gravity rather than diesel power Treated > 860 million gallons of water eliminating 129,000 gallons of biocide Recycled > 31 million gallons water saving 7,400 truck loads Dual fuel technology Powering equipment with a blend of diesel and natural gas Eliminated > 30 million gallons of mineral oil from fracturing operations Saved > 1.4 million gallons of diesel and avoided 31 million pounds of CO Statistics 45

46 Sources of Information STRONGER API IOGCC/GWPC Energy In Depth Halliburton In-depth peer review of the regulatory programs in OH, PA, OK, LA and CO Detailed guidance documents and recommended practices for industry FracFocus website providing well by well hydraulic fracturing information to the public E.I.D. launches new grassroots initiatives in northeast PA, southern NY and eastern Ohio HF microsite contains detailed fluid information and educational material 46

47 Additional Information Gradient Report National Human Health Risk Evaluation for Hydraulic Fracturing Fluid Additives SPE Environmental Risk Arising From Well Construction Failure: Difference Between Barrier and Well Failure, and Estimates of Failure Frequency Across Common Well Types, Locations and Well Age Vicki Vaughan Article Water for fracking is dwarfed by other usage Chesapeake Energy Overview Water Use in Deep Shale Gas Exploration SPE Paper Measurements of Hydraulic-Fracture-Induced Seismicity in Gas Shales University of Texas Methane Study: Kevin Fisher Article, Oil & Gas Reporter Data Confirm Safety Of Well Fracturing %20Data%20Prove%20Safety%20of%20Frac.pdf Energy From Shale Informational website: 47

48 Where Are We Going?

49 Where are we going Frac of the Future Subsurface Visualization 49

50 Tomorrow s Fracturing Location Industry leading reliability Effective land usage Highly efficient operations Environmental responsibility Safe and easy to the wellhead Remotely operable 50

51 CYPHER Earth Model Properties 51

52 3D Framework with Lateral Wells 52

53 Conclusions Across the US, abundant natural gas and oil is being enabled by hydraulic fracturing and other technologies Well construction and sound engineering practices are the keys to protecting ground water Hydraulic fracturing is a safe and well understood process with a long and proven track record With scientifically based and balanced regulations shales can be developed in an environmentally sensitive and cost effective manner Technological advancements are making real impacts in reducing the industry s overall footprint Source: EIA Annual Energy Outlook

54 Thank you 54