Bakken Pad Drilling Greater Resource Potential with a Reduced Environmental Footprint Multi-Well Pad Drilling Congress 2014 Houston, Texas October 1, 2014 John Harju Associate Director for Research 2014 University of North Dakota Energy & Environmental Research Center.
Pre-Bakken North Dakota Traffic Jam
Bakken Boom Traffic
Agenda Introduction to the Bakken Production Optimization Program Flaring Challenges and on-location power gen as part of the solution Drill cuttings recycling options Array of products at various depths Key challenges
A Brief Introduction to the EERC
State-of-the-Art Facilities More than 254,000 square feet of state-of-the-art laboratory, demonstration, and office space.
The International Center for Applied Energy Technology Worldwide Clients Since 1983
EERC Centers of Excellence The EERC s Centers of Excellence are leading the world in providing expertise in scientifically advanced energy systems and the prevention and cleanup of air, water, and soil pollution. Coal Utilization Technologies Center Emission Control Technologies Center The National Center for Hydrogen Technology Center for Climate Change & Carbon Capture and Storage Centers for Renewable Energy and Biomass Utilization Water Management Center National Alternative Fuels Center Center for Oil and Gas Center for Environmental Chemistry and Reclamation
Center for Oil and Gas Oil- and gas-related research programs at the EERC embrace an array of issues relevant to the industry. The EERC provides the following services and activities: Decades of practical field and laboratory experience Development of specialized value-added products from energy production Petroleum engineering Geological characterization Resource assessment Enhanced Oil Recovery reservoir surveillance Geologic modeling Reservoir simulation
Introduction to the Bakken Production Optimization Program
How Much Bigger Can Bakken Get? Currently only 4% 6% recovery factor. Enhanced oil recovery technologies may improve ultimate recovery. Can CO 2 be a game changer in the Bakken?
EERC s Current Bakken Consortia
Bakken Production Optimization Program Goals Maximize oil production from Bakken and Three Forks wells by employing an all-of-the-above approach Advanced reservoir characterization Improve drilling/stimulation/completion/production techniques and sequences Optimize wellsite surface operations Reduce costs Reduce development and operation impacts to surrounding landowners Reduce demands on surrounding infrastructure and water sources
$8M $112M Program Description Pilot hole logs, core data, other data gathering from multiple wells to create a 3-D picture of what happens during and after the hydraulic fracture treatments in a multistage horizontal well. Continental will analyze this data set to: Assess total resource available in the second and third benches of the Three Forks Formation (separate and unique?). Confirm whether these benches are distinct and independent of the existing Middle Bakken. Predict areas of future sweet spots. On-site hydrocarbon utilization, waste management, water management, site logistics, process optimization and systems failure analysis, spill remediation, and land reclamation with an eye on decreased environmental impact. Phase I Drilling 11 New Wells Phase II Completions Phase III Reservoir Engineering Phase IV Expansion Applications via 3-D Seismic Phase V Optimization of Wellsite Operations
Bakken Production Optimization Program Membership
Phase V Optimization of Wellsite Operations Consortium-driven to help industry partners optimize oil and gas production activities Program scope of work: Hydrocarbon utilization (flare mitigation, crude volatility, enhanced oil recovery) Waste management (drill cuttings and NORM) Water management Site logistics Process optimization and systems analysis Spill remediation Land reclamation
2015 Headlines Predictions Harvest phase well density and EOR Waste management and minimization Produced and flow-back water Drill cuttings Filter socks TENORM Illegal dumping Spill reclamation Pipeline and PA reclamation Flaring reduction Pipeline Regulation DMR > gathering PSC > transmission Operators > right of way Lynn Helms, Director of Mineral Resources, North Dakota
Phase 3 Harvest 6-28 or more wells per spacing unit Vern Whitten Photography 6 wells producing - drilling 7-12 - and 11-18 coming soon
Bakken Petroleum System Redefined Lodgepole Upper Shale Charlotte 1-22H core photos (UV light) 308 with 154 of oil fluorescence Middle Bakken Lower Shale Three Forks 1 TF2 TF3 TF4 Nisku Slide Courtesy Continental Resources
Well Density Is the Big Question Source: Continental Resources
State Harnessing Gas Flaring
What might the flaring picture look like as multiwell pad and infill drilling increases?
Summary of Flared Gas Statistics December 2013 Nonconfidential Locations TOTAL LOCATIONS <1 Mcfd 1 299 Mcfd 300 599 Mcfd 600 1199 Mcfd 1200+ Mcfd Locations 1640 (35%) 2737 (59%) 137 (3%) 89 (2%) 48 (1%) Monthly Gas Flared, Mcf 4201 (<1%) 3,615,724 (40%) 1,402,126 (15%) 1,823,098 (20%) 2,271,499 (25%) 274 locations flaring 60% of total flared gas at rates of >300 Mcfd.
Scenario 1 Hypothetical Six-Well, 1-month Interval Initial well producing for 6 months, followed by five additional wells coming online at 1-month intervals. Hypothetical decline curve used.
Scenario 2 Hypothetical Six-Well, 6-month Interval Six wells coming online at 6-month intervals. Hypothetical decline curve used.
Utilization of Associated Gas for Power Drilling Rigs
Project Sponsors and Participants
A Use for Flared Natural Gas Power production for drilling rigs using a mixture of associated gas and diesel provides a near-term opportunity for gas use. Drill rigs are typically powered by three large diesel generators. Diesel engines, properly outfitted with bifuel systems, can utilize a mixture of diesel and natural gas. Significant fuel savings can be achieved because of the price differential between diesel and natural gas: 30% 60% reduced fuel costs. Reduced fuel delivery and associated traffic, engine emissions, and fugitive dust.
Wellhead Gas Use in Internal Combustion Engines Powering Drilling Rig Operation Challenges: Wellhead gas contains hydrocarbons such as propane, butane, pentane, and hexane. The introduction of these gaseous fuels to compression ignition engines can lead to: Engine knock at high replacement rates. Slight increases in exhaust temperatures. Changes in stack emissions. Changes in the combustion properties in the engine. The purpose of this project was to evaluate these impacts with two tasks: Evaluate GTI Bi-Fuel system at the EERC with simulated wellhead gas Demonstrate GTI Bi-Fuel system during actual drilling operations
Gas Composition Dry Pipeline Gas Bi-Fuel System Recommended Gas Quality Bakken Gas Composition Methane, CH 4 92.2% 55% >92% Ethane, C 2 H 6 5.5% 22% <8% Propane, C 3 H 8 0.3% 13% <8% Butane, C 4 H 10 5% <2% combined total butane heptane Pentane, C 5 H 12 1% Hexane, C 6 H 14 0.25% Heptane, C 7 H 16 0.1% Nitrogen, N 2 1.6% 3% Carbon Dioxide, CO 2 0.4% 0.5% Higher Heating Value, Btu/scf 1041 1495
Findings from Testing at the EERC Using Simulated Gas Testing at the EERC using simulated Bakken gas Diesel replacement rates from 0% to 70% Engine operation at 10% 100% of full load Various amounts and combinations of natural gas liquids (NGLs) Diesel engines can run on wellhead gas, but the replacement rate is limited because of the potential for engine knock. Up to 50% diesel replacement achieved. When using rich gas at higher diesel replacement rates and heavy load conditions, there was a slight increase in ignition delay and peak cylinder pressure and associated engine vibration.
Field Demonstration Objectives Evaluate diesel engine performance using wellhead gas during actual drilling operations: Monitor engine vibration Measure emissions Document fuel savings
Summary of Results Diesel fuel consumption reduced by 18,000 gallons for two wells during a period of 47 days. Fuel-related net cost savings of nearly $60,000. Reduced delivery truck traffic. Beneficial use of wellhead gas. Reduced NO emissions and increased CO and HC (hydrocarbon) emissions compared to diesel-only operation. Mitigation achievable with exhaust gas treatment. Seamless engine operation using the GTI Bi-Fuel system.
Impact of Widespread Use Nearly 200 drilling rigs in operation at any given time 1,800,000 Mcf of wellhead gas used each year 18,000,000 gallons of diesel fuel saved each year $72,000,000 diesel fuel cost saved each year 3600 fuel deliveries avoided each year
Program Focus on Research into Improved Methods of Drill Cuttings Disposal and Recycling
Key Questions on Drill Cuttings KEY QUESTIONS How much water and total hydrocarbon content can be extracted economically from wet drill cuttings? What products can be derived from individual lithofacial zones? What are the regulatory concerns? What impacts from local winter climate can be expected on recycling processes? KEY CONCERNS NORM Salt Fugitive dust KEY OPPORTUNITIES Decreased pressures on landfills Conversion of disposal cost into new revenue stream Resolution of liability issues Public opinion Economic impact
Program Progress on Drill Cuttings The Program is currently assessing available recycling technology options for use in the Bakken: Dryvac (DCDC) Cuttings reinjection (various) Terrafficient SM (Nuverra) Others White paper summary will be available 4th Quarter 2014. Nuverra is developing deep science in association with the Program. We are currently in discussions with individual producers to focus solutions on specific local needs.
A Promising Drill Cuttings Recycling Option for the Bakken. Nuverra Environmental Solutions, a Program partner, is now offering a turnkey approach to drill cuttings disposal: Collect Transport Process Recover Recycle and reuse Includes field coordination, special collection, minimizing solids control equipment and man power, transport, documentation, advanced treatment, and beneficial reuse.
Overview Introducing Terrafficient SM An environmentally sensitive and sustainable solution that is costeffective and reliable: Advanced process that will significantly reduce environmental exposure Recovers 99.9% of hydrocarbons and produces materials that can be reused Technology has been verified by third-party science Managed to the highest regulatory and safety standards 39
Beneficial Reuse Applications Turning Waste into Resources Extensive third-party research determined Terrafficient SM produces material that can be safely reused for a variety of industrial purposes Flowable fill/controlled low-strength material (CLSM) Used for drilling pads, temporary roads, road base Trench filling for pipelines and utilities Fill material, either stand-alone or blended with commercially available fill Road salt Road base additive 40
Please visit: www.undeerc.org/bakken/
Contact Information Energy & Environmental Research Center University of North Dakota 15 North 23rd Street, Stop 9018 Grand Forks, ND 58202-9018 World Wide Web: www.undeerc.org Telephone No. (701) 777-5157 Fax No. (701) 777-5181 John Harju, Associate Director for Research jharju@undeerc.org
Thank you!