Invert Muds Cost and Disposal Roadblocks
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1 Invert Muds Cost and Disposal Roadblocks
2 EDSI Since it s inception, EDSI has been focused on: Increasing drilling performance Increasing customer satisfaction Decreasing drilling cost We understand that drilling fluid is only about 5% of the cost to drill a well Need to look at how drilling fluid affects other aspects of drilling costs.
3 Roadblocks The two key roadblocks to drilling with invert drilling fluids historically have been cost and disposal. Our goal was to create an economical invert drilling fluid and develop an innovative way to dispose of the cuttings created while drilling with it.
4 Brief Oil Based History Oil muds have been around for nearly 100 years with companies like Shell having patents issued in the 1920 s. The first generation of oil muds started as diesel and asphalt solutions. The second generation of OBM s came in 1950 with the introduction of organophilic clays which provided the first manageable viscosity additive. In the 1960 s Baroid developed the third generation with the invert emulsion using Calcium Chloride brine to help stabilize water wet clays.
5 After 60 years it s time for a new solution In 2005 we completely disassembled the chemical package that is used today to formulate a fourth generation oil based drilling fluid. Several components were causing reductions in organophilic clay and emulsification performance. We replaced them with better / safer / and lower cost additives. The maintenance costs for this new fluid are significantly lower than traditional oil based mud.
6 Invert Issues Traditional emulsifiers, which include unsaturated fatty acids and poly amides, inhibit or reduce the viscosity building performance of organophilic clays, therefore, daily mixing of more clay is required.
7 Chasing Your Tail Traditional Emulsifiers Consume Organophilic Clay Add Organophilic Clay Add Emulsifier Organophilic Clay Consumes Traditional Emulsifiers
8 4G Is Born The removal of damaging components from the system and replacement of these materials with non-damaging alternatives allowed for the creation of a novel and patentable oil based drilling fluid formulation. We still use organophilic clays but we don t damage their performance with our products. This allows for the use of lower cost organophilic clays that actually perform better than the more expensive products in use by our competitors. 4G is prepared with the use of a patent pending process which incorporates a colloid mill. This device achieves high levels of shear and, as a result, the fluid can be prepared to the consistency of paint. EDSI is now able to provide 4G to a wellsite with customer-specified viscosity and emulsion stability in excess of 2000 volts.
9 4G is Built Using Colloid Mill
10 4GM Modified We have recently modified our formulation from 4G Plastic Viscosity 4-6 Yield Point 5-7 Electrical Stability The result is a fluid that is shear thinning at the bit for faster drilling but will gel up to provide for great hole cleaning. Shear thinning fluid also results in less fluid being lost over the shale shakers.
11 Plastic Viscosity/Yield Point Comparison Rheology Comparison 4GM / 4G / CTO-DETA Relative Values GM 4GM 4G 4G CTO/DETA Fluid Type Plastic Viscosity Yield Point
12 Encana Field Data CTO Emulsifiers, 2006/2007 4G, GM Encana Big Horn Drilling Data Year Int Csg Int $/day Main Csg Main $/day
13 Encana Field Data CTO Emulsifiers, 2006/2007 4G, GM Encana Big Horn Drilling Data Year Int Days Int $/m Main Days Main $/m
14 Encana Field Data CTO Emulsifiers, 2006/2007 4G, GM Encana Big Horn Drilling Data Year Total Losses Surface Losses Hole Losses
15 Encana Field Data CTO Emulsifiers, 2006/2007 4G, GM Encana Big Horn Drilling Data Year Int Days Main Days
16 Encana Field Data CTO Emulsifiers, 2006/2007 4G, GM Encana Big Horn Drilling Data Year Int $/m Main $/m Int m/day Main m/day
17 Drilling Faster Viscosity Comparison of Oil Based Drilling Fluid Equivalent Viscosity Around Drillpipe Viscosity (Pa.s) Drillpipe Drill Collars Drill Bit Annular and Bit Section of String 4G Invert Conventional Invert Base Fluid
18 Encana Big Horn Well Costs Chemical & Seepage Products Costs Encana Big Horn Wells $350, $300, $250, $200, $150, $100, $50, $ Chemicals Seepage Power (Chemicals) Log. (Seepage)
19 4GM Summary The Savings Mixing Procedure Colloid Mill ISO 2001 plant Can be custom blended to specific properties Mixed in mud plant vs. on location Enhances organophillic clay performance Significantly decreased maintenance reduce mud checks Shear Thinning Increased ROP Decreased losses over the shaker
20 Building Roads
21 Background EDSI, in partnership with McAsphalt, have developed and patented a solution that combines recycled tires and invert drill cuttings to create a product that replaces a portion of traditional aggregate in roads. Our solution offsets the stresses on gravel road infrastructure as well as eliminates the waste going into landfills.
22 RC-18 - The Key Presently, wood chips are used to stabilize the cuttings for transport, the wood chips are organic and cannot be used in the road design (leachate). EDSI s patent-pending drying agent is a superior alternative to peat or sawdust. Whether you use EDSI s 4G or a traditional oil-based mud system, the volume percentage of RC-18 to invert cuttings is 10-20% compared with up to 200% for sawdust. RC-18 reduces the volume of drying agent transported to location and the volume of waste created, saving you time and significantly reducing trucking costs during waste disposal. RC-18 is made from recycled tires environmental advantage
23 The Issues Landfills Environmentally unfriendly Filling up Limited space Gravel Roads Trucking Gravel roads are very dusty in the summer and are becoming very hazardous as more heavy trucks operate Expensive to maintain Gravel becoming scarce nonrenewable Increased greenhouse gas emissions Hard on roads Expensive Safety legislation becoming more stringent hours of operation OBM vs. WBM Water becoming scarce WBM still needs disposal in lots of cases OBM is easier to drill with less problems, speeds up drilling, lower maintenance OBM traditionally more expensive not any more Sawdust vs. RC-18 Presently, wood chips are used to stabilize the cuttings for transport, the wood chips are organic and cannot be used in the road design Sawdust performance decreases in wet environments Increased footprint in landfills Sawdust does not trap hydrocarbons Potential shortage closing sawmills
24 The Solution Landfills RC-18, combined with cuttings, already decreases the footprint in landfills Creating a road-building material eliminates the footprint altogether Gravel Roads Our solution eliminates fugitive dust on gravel roads making them safer to travel on Product eliminates the need for constant grading and re-gravelling Encapsulating cuttings with asphalt in the road structure will bind aggregates together keeping them from self crushing under traffic extending the life of the gravel - Gravel is becoming a scarce resource that we need to conserve. Trucking RC-18 dramatically reduces the amount of trucks required in and out of well sites Decreasing the amount of maintenance on gravel roads also decreases greenhouse gas emissions Less traffic on roads increases their lifespan Decreased trucking lowers overall cost of drilling OBM vs. WBM Drilling with OBM eliminates water usage OBM is becoming more economical Sawdust vs. RC-18 Our solution eliminates the need for sawdust When RC-18 is used as a replacement for sawdust, the volume of waste is significantly reduced Hydrocarbons contained
25 The Procedure Drill cuttings and RC-18 mixed while drilling Combined product shipped to road construction site Combined product mixed with virgin aggregate and in-situ gravel Blade out mixture on road and rolled, creating a dust-free surface
26 The Procedure The Procedure
27 The Procedure
28 The Procedure The Procedure
29 The Procedure The Procedure
30 Summary This solution is beneficial for the environment, oil & gas producers, and Alberta Municipalities This solution makes roads safer for travel This is a viable, long-term disposal alternative to landfills
31 Next Steps ERCB to re-approve application Build pilot section of road Test before and after freeze/thaw Apply to ERCB to have cuttings classified as recycled material
32 Questions?
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