Showing posts with label geo-steering. Show all posts
Showing posts with label geo-steering. Show all posts

Friday, May 18, 2012

Mainstream Media Ignores Domestic Oil Production Success

Here is another example of the great success of a combination of excellent science, (geology), and engineering (horizontal drilling, hydraulic fracturing).  Outside of the relatively small oil and gas industry, few know of this boom and great accomplishment.  This is virtually ignored by the mainstream media.  Why is that?
Peter

Experts deliver another round of Eagle Ford bullishness

SAN ANTONIO – The development of the Eagle Ford shale continues to prompt dazzling assessments and predictions from experts, who said at an energy symposium Wednesday that in four years, the oil-rich formation could become the nation’s second-most productive shale play.
Production in the Eagle Ford could reach 1 million barrels a day by 2016, said Trevor Sloan, director of energy research at ITG Investment Research in Calgary, Alberta.
“So the growth rate out of there would be pretty spectacular,” he said.
But before production can reach that level, some problems have to be solved.
About 1,400 Eagle Ford wells are waiting to be completed or to be tied into pipelines, ITG research shows. There are also shortages of crews and water and too few pipelines.
Once the problems of getting the oil and natural gas to market are gone, production from the Eagle Ford could double, and “the Eagle Ford would be the second-largest producing area if you could bring all those to market,” Sloan said.
The Bakken shale in the western U.S. is No. 1.
His remarks were addressed to a crowd of more than 100 at the seventh annual Energy Symposium, sponsored by South Texas Money Management Ltd. The event focused on natural gas, oil and the effect of geopolitics on oil and gas development.
There are about 240 rigs now in the shale, a tenfold increase from January 2010, according to ITG research.
The Eagle Ford produced 30.5 million barrels of oil in 2011, up from 4.4 million barrels in 2010, Texas Railroad Commission figures show. Natural gas production rose to 243 billion cubic feet in 2011, compared with 108 billion cubic feet in 2010.
“It’s truly historic what’s happened,” said Jeanie Wyatt, CEO of South Texas Money Management.
By mid-2013, pipeline expansions will relieve most of the bottlenecks in the Eagle Ford, and more crews are being hired to complete wells. There’s still a shortage of water for fracturing, but some operators are treating brackish water, said Manuj Nikhanj, managing director and head of energy research at ITG.
The nation faces a glut of natural gas, so companies are moving into the oil-rich parts of the Eagle Ford, Nikhanj said. But the Eagle Ford is blessed because, in contrast to many other U.S. shale plays, it is richer in oil and oil-rich liquids.
“Natural gas is a victim of its own success,” Nikhanj said.
Natural gas closed at $2.618 per million British thermal units on Wednesday. Peter Zeihan, vice president of analysis at Strategic Forecasting, doesn’t expect the price of natural gas to exceed $6 per million British thermal units over the next decade.
Amy Myers Jaffe, fellow in energy studies at the Baker Institute at Rice University and an expert on the geopolitics of oil, titled her talk “Adios OPEC,” saying that the U.S. is headed toward an energy renaissance.
“The center of the energy world is moving back to the Americas,” she said, in part because she doesn’t foresee a big increase in production from the Middle East that many have expected.
With increasing oil production in this nation, the price of oil might come down somewhat, Jaffe said, but it isn’t likely to go below $70 a barrel. That’s because of jitters over the uprisings and unrest in the Arab world. In addition, hostilities between Israel and Iran aren’t going away.
Still, the price of oil continues to decline amid expectations that world markets will be flush with extra supplies this year.
Prices fell Wednesday as a report showed that U.S. crude supplies had climbed to the highest level in 22 years. Supplies grew last week by 2.1 million barrels, according to the Energy Information Administration. That’s a bigger increase than analysts expected, and more could be on the way.
Benchmark U.S. crude on Wednesday fell $1.17 to finish at a seven-month low of $92.81 per barrel in New York. Oil is down nearly 13 percent since the beginning of May.
Brent crude, which helps set the price of oil imported into the U.S., fell by $1.70 to finish at $109.75 per barrel in London.
Japan’s Kyodo news agency reported that the U.S. will ask other countries to release spare oil reserves when the Group of Eight meets this Friday. The report follows rumors earlier this year that Western nations were planning a coordinated release of spare supplies.
White House officials wouldn’t comment about the report.
“Shale has given us the upper hand,” Jaffe said, but it’s important to extract the oil and gas in an environmentally responsible way, or bans on hydraulic fracturing could result.
The Associated Press contributed to this report.
vvaughan@express-news.net

Thursday, March 1, 2012

New Oil Play In Denver Basin, Eastern Colorado

The Oil and Gas Journal just reported that Southwestern Energy is planning on testing what is to me, a new play in the Eastern Colorado's Denver Basin.  I interpret this as being notable for at least several reasons that probably will not be discussed much outside of boardrooms, conference rooms, and maybe bar-rooms.

First, the stratigraphic zones to be targeted  are not prolific, (if at all) producers in the Denver Basin, meaning the "carbonates and shales of middle and late Pennsylvanian to Permian age."  Importantly, Southwestern says these rocks are in the "oil window", meaning the organic matter in the rocks is at the right time and temperature environment for creating and containing oil. 

Other important factors are that Southwestern is first going to drill a vertical hole, called a "pilot hole", probably core it and log it in detail to get a handle on the petrophysical characteristics of the rocks and their hydrocarbon content.  Then they will probably back up the hole and drill a "horizontal lateral" hole a few thousand feet long into the best reservoir zone.  Then they will probably hydraulically fracture it and finally test it.  That all sounds very abitious and expensive.  It is, and that is why this interests the explorationist in me.  In addition, I think Southwestern knows what they are doing.  I'm just reading between the lines of course and have no real insider's knowledge.

Southwestern is very experienced in drilling and geosteering horizontal wells, fracing and then producing them in the Fayetteville Shale in northern  Arkansas.  Now they are drilling for oil in the Smackover of southern Arkansas and northern Louisiana.  As I said, I am very sure Southwestern knows what they're doing, they have a large acreage position in this part of the Denver Basin and they are making a fairly large commitment there.  I think this is a new play very much worth watching.  I think there are many more plays like this in sedimentary rocks passed over during previous exploration eras becasue of low permeability, not a lack of hydrocarbons.

The following is the article from the Oil and Gas Journal.  Good hunting.
Peter



02/28/2012
By OGJ editors
Southwestern Energy Co., Houston, said it has leased 238,057 net acres in the Denver-Julesburg basin in eastern Colorado where the company will begin testing a new unconventional oil play targeting carbonates and shales of middle and late Pennsylvanian to Permian age.

Common strata names include the Atoka, Desmoinesian-Cherokee-Excello-Tebo-Marmaton, Missourian, Virgilian, and Wolfcamp, Southwestern Energy said.
The play objectives range in vertical depth from 8,000 to 10,500 feet and are within the oil window. The combined Wolfcamp-Atoka interval is more than 1,500 ft thick.

The primary objectives are alternating low-permeability, 20-100 ft thick carbonates separated by 10-75 ft thick organic-rich, carbonate mudstones with total organic carbon estimates ranging from 2% to 27%. Total thickness of the objective section is 300-750 ft.

Southwestern Energy obtained the acreage for $42 million, and its leases currently have an 85% average net revenue interest and an average 5-year primary lease term that may be extended 3 years.

The company submitted a drilling plan to the Colorado Oil & Gas Conservation Commission earlier this month for approval to spud its first well in the second quarter. This well will be drilled vertically to 9,500 ft and cored and then drilled 2,000 ft laterally.

Southwestern Energy said it could greatly increase activity in the area in the next few years if results are positive.



Surface geologic map of Colorado.  The Denver Basin is just north and east of the Rocky Mountain Front, depicted as the north-south trending purple colored outcrops on the map.

Tuesday, February 28, 2012

Natural Gas, A Real "Alternative" Fuel For Vehicles

Natural gas, because of its clean burning characteristics, has long been used to power vehicles such as fork lift trucks inside warehouses.  Consider how clean burning natural gas is, many of us cook our food over natural gas stoves in our enclosed kitchens.  Now that we have an abundance of gas, thanks to the combined technologies of horizontal drilling and hydraulic fracturing, why not use this gas to power our cars and trucks, in addition to generating electricity and heating our homes as is already being done.  It makes sense to me and many others.

Now this gas is being used to power vehicles in Louisiana, by EnCana, ironically, a Canadian company.  They produce a lot of gas in Louisiana from horizontal wells drilled in the Haynesville Shale.  (Some of which I proudly helped steer while drilling.)  The following article comes from "The Shreveport Times" and shows and describes what EnCana has going.  This was not done because of Federal government subsidies, or even encouragement for that matter, just intelligent free market enterprise.  Do you hear that Mr. Obama?  This is economic activity, job creation, and wealth building you can count on.  Fire all your current advisers, they don't have any idea what they are doing.
Peter



source: http://www.shreveporttimes.com/article/20120225/NEWS01/202250325/DeSoto-LNG-station-first-Louisiana

DeSoto LNG station first in Louisiana

NEAR FRIERSON — A liquefied natural gas fueling station formally opened Friday by EnCana Natural Gas Inc. at the Relay Station holds the distinction of many "firsts." It's the first:
  • LNG station open in Louisiana.
  • Public LNG station in the U.S.
  • Location for Heckmann Water Resources to use LNG trucks.
And when the Relay Station in a couple of months opens its compressed natural gas pumps, the facility will be the first in the state to offer four fueling options: LNG, compressed natural gas, or CNG, gasoline and diesel.

(continued)

Friday, February 6, 2009

In The Early Days........

Horizontal drilling once was guesswork, especially from the geologist's perspective. The drillers might know how deep they were, and what direction they were drilling, but there was no way they could know what stratigraphic layer, and thus "pay zone" they were in. When spending millions of drilling dollars, "guess-work" is not enough. In comes what I am saying, geologic interpretation of horizontally drilled wells. Following is an article from the "early days".....we've come a long way since then. Now we can drill through layers of rock like those imaged in the seismic line shown below, and stay within the "blue" layer. Could you?
Peter



Two Geologists = Three Interpretations
Geosteering: Like Landing In Fog
By DAVID BROWN EXPLORER Correspondent (source) December, 2000

(The following is a tongue-in-cheek description of the difficulties of horizontal drilling. Now we have much more control. Peter)

Ed Stockhausen knows the strains, the pains and the gains that come from guiding a drill bit through a zone with geosteering.
"First there is the 'landing the well in the reservoir,' then there is the drilling of the lateral section," he said. "It's kind of like landing a plane on a runway in the fog, when the runway is moving up and down."
Officially, Stockhausen is a senior research scientist at the Drilling Technology Center of Chevron Petroleum Technology in Houston. More to the point, he serves as geosteering advisor for Chevron operating units worldwide.
He defines geosteering simply as "the use of real-time geological and directional data to help guide or place a well."
So where does the pain come in?
Try geosteering the bit on a 1,000-foot lateral, with a drill rate of 30 feet an hour, and you've been awake for 24 hours assessing continuous downhole information, with more than nine hours left to go.

Hello, coffee. Hello, mental overload.
Horizontal wells have become an important production tool in the Middle East, according to Walid Kholeif, operations geologist for Abu Dhabi Marine Operating Co. (ADMA-OPCO). The company is 60 percent owned by Abu Dhabi National Oil Co. (ADNOC) and 40 percent by minority partners, he said.
An internal survey brought out requests for information on well placement and steering, Kholeif recalled.
"The feedback was mainly directed toward horizontal well activity," he said, "and, also, directed toward the drilling techniques instead of the geology."

In response, AAPG helped arrange and sponsored the Abu Dhabi Geosteering Workshop, which was held in April. Kholeif coordinated the workshop and called it "perfect" for the company's needs.
"It was really practical information," he noted, "not just academic, or only a few papers you could get into."
Thinking in a Real (Time) Way
Geosteering involves "a different kind of thinking from what a geologist normally gets into," Stockhausen said. "We're used to taking weeks and months to think about the data and adjust our maps."
In geosteering, the geologist gets real-time data from downhole tools and gives the driller feedback to direct the bit.
"You're trying to predict the geology just ahead of the bit, particularly the dip of the beds," Stockhausen said. "You're making decisions on the spot, continuously, and you do the best you can.
"Many times you get lost in these wells," he continued. "You don't know if you're going out the top of the zone, or the bottom of the zone. You're looking for a marker bed."
Some horizontal laterals may drill at a rate of only 15 feet per hour, and Stockhausen described those wells as "cruel, because you're getting data so slowly, there is too much time for second-guessing yourself."

Other 1,500-2,000-foot laterals may drill in less than a day.
"Those wells are actually a blessing," he explained, "because you can say, 'OK, this is going to take 15 hours and I can stay awake, I will make my decisions and it will be over soon.'"
Is it possible to use two geologists taking turns on a longer project? Sure, Stockhausen said - but then you run into the traditional problem: Whenever you have two geologists, you get three interpretations.

Justifiable Costs?
In Abu Dhabi, according to Kholeif, geosteering helps to place wells - or "land" wells - in the reservoir layer to facilitate water or gas injection. It's a useful tool in efforts to maintain reservoir pressure.
"We have not yet done this for exploration," he said. "It's strictly for production."
The typical geosteering project begins with well planning, and in particular a drilling model that includes geology, resistivity and other important reservoir elements, according to Kholeif. And a good project places the geologist at the drill site "to direct the well to the best reservoir quality.
"There should be some experience in the field," Kholeif said. "If you have a geologist who is not experienced in the region, it would be a little difficult for him to begin.
"The key to the success of geosteering is really in the preplanning stage. You're trying to plan around your uncertainty."

Usually, Stockhausen said, "your targets are smaller than the accuracy of your maps.
"You try to use marker zones that are above the beds you're trying to get into," he continued. "You plan the design around those marker beds and make sure you enter them at the angle you want. This allows you to then continue forward to softly land the well in the reservoir.
"Getting too far ahead or behind on the plan leads to lost footage in the lateral section and lost reserves."

Stockhausen jokingly added that "you aren't allowed to have any of those unanticipated (geologic) faults along the well path. Little 10-foot faults can throw everything out the door."
He admits that geosteering initially earned a bad name for being too expensive - but, he added, geosteering actually involves a comparison of costs and benefits.
For instance, tools that provide inclinational measurement near the bit cost more to use than tools with these instruments further back, Stockhausen explained. The difference may be a three-foot drilling window from near-bit readings compared to a 10-foot window from other tools.

If the smaller drilling window leads to more accurate well placement, and the difference is capturing 100,000 more barrels of oil, the cost of near-bit information, he said, may be well justified.

Familiar Sights
Displays of downhole information in geosteering would be familiar to most geologists. Data is sent uphole and displayed in the normal way, said Ted Bornemann, principal geologist for Schlumberger's Center for Advanced Formation Evaluation in Houston - better known as the "SCAFE" (and pronounced as "S-Café").
"The commonly used tools are the gamma ray tools and the resistivity tools," he said. "Some new technology that's emerging now is the use of image data while drilling - real-time imaging."
Those imaging tools "show very graphically whether we are drilling up or down, or staying within the layer of the reservoir," said Bornemann, who specializes in forward modeling in drilling.
Imaging tools are located some 35 feet behind the bit, he said, while gamma ray and resistivity tools can be located right behind the bit. In every case, data is transmitted uphole by mud telemetry - pulses sent through drilling mud.
"That's why the data transmission is somewhat limited," he said. "It's not the bandwidth and the signal type you have in a wire, like you can get with wireline tools."
What might not be familiar to geologists are the downhole readings from a lateral well. Resistivity anisotropy produces anomously high resistivity readings different from those seen in a vertical well, according to Bornemann.
"In essence, the resistivity measurements look a little unusual," he said.
Where Am I?

Geologists who want to be successful in geosteering need to learn a foreign language:
Drilling.

"Drillers want target information," Stockhausen said. "This is one of the biggest challenges, how to communicate to the driller.
"I like to have the geologist on the rig site, because they can talk to the driller in person and negotiate."
To help guide the well, a geologist should know how the driller targets the hole and what information is needed to make adjustments. It's also important to understand the basics of directional drilling, Stockhausen said. Ask a driller if it's possible to lower the hole 10 feet in the next 10 feet of forward drilling, and the always-polite driller will respond:
"I don't believe so, sir."
Or words to that effect.
"Targets in horizontal wells tend to be lines - actually, moving lines - and well plans need to be flexible," he said.
"As we get information on the geology, we may have to admit that our line's in the wrong place and ask if we can please move it. But if you make too many kinks in the well you're going to stick the drill pipe," Stockhausen said.
And the geologist has to exercise restraint in making adjustments as downhole geology and measurement differ from the predrill model.

It's easy to oversteer a hole.
"There's always a constant issue of losing the well," Stockhausen said. "I try to preplan my decision points around a few key marker beds: These decision points should be communicated to the entire drilling team prior to drilling.
"When these beds are encountered while drilling, then it is time to make a decision - and then I'm going to talk to the driller about how to adjust the well path," he said.
"Preplanning key geosteering decision points allows wells to be drilled without as much alarm."
"Also, you've got to do everything in a very site-specific way," he continued. "That's one of my favorite terms, site-specific. You can't use the same geosteering techniques for every well in the world."

"Drilling a well is not like playing with a joystick on the computer," Bornemann noted. "There are a lot of restrictions on drilling a well."
In geosteering, the geologist must "work out the geology as detailed as possible along the planned azimuth of the well," he said, while knowing the characteristics of each layer above and below the hole.
"The real trick in geosteering is to know where you are geologically," Bornemann continued. "Through this whole process of landing the well, we will encounter a number of these formation tops. If we can recognize this marker on this new well we are drilling, we can say, 'Now we know where we are.'

"That does not mean we know in absolute depth from the surface where we are, but we know that 15 feet below this marker we have identified is our target zone."
Awareness and Accuracy
Even with good knowledge and reliable measurements, location can be difficult to pin down. That's when the driller is waiting for instructions and instead of breaking out in a smile, the geologist breaks out in a sweat.
"Everyone on the rig knows if the geologist is lost," Bornemann said.
"The people who tried to do horizontal well drilling without geosteering techniques drilled to a line drawn on a sheet of paper. You'd give a piece of paper to a driller and say, 'Drill these XYZ coordinates' without putting any geology on there," Stockhausen said.
The problem with that approach, Bornemann noted, is that a good driller could drill a perfect hole that matched the coordinates exactly, and the well might not be in the reservoir. There's too much uncertainty in mapping.

Stockhausen recalled his frustration the first time he tried geosteering, not having the tools and techniques he needed. He said Chevron recognized the need for a company-wide approach to geosteering instruction.
"In team environments, geologists become severely isolated from other geologists. We were all making the same kind of mistakes," he said. "That's when we began to see that there was some teaching needed."
Because of their reputations and experience, Stockhausen and Bornemann were asked to conduct the Abu Dhabi Geosteering Workshop. One challenge in Abu Dhabi, Stockhausen said, is to keep a directionally drilled hole in a thin, high-porosity zone for as much as 2,000 or 3,000 feet.

"You can imagine trying to stay in a 10-foot zone for 2,000-3,000 feet, how accurate you have to be. Some of this sounds somewhat impossible, but the zone helps you. A lot of times, the zone you're drilling in is the softest zone, and the bit is very content to stay there," he said.
Bornemann said he might have changed a few things about the workshop held in April, but not very much. He rated it highly successful for a first-of-its-kind effort.

"One of the biggest things was that everybody in the class came away with the feeling that he was well aware of the problematics of geosteering," he said, "and that is, principally, that you have to be aware of the uncertainties involved and what you can do to minimize them, thus drilling a successful horizontal well."

Why Horizontal Drilling?

There are many reasons why horizontal, or directional wells are valuable and almost indispensable to modern oil and gas production. The following simplified article explains just a few. The BIG question, from a geologist's point of view is "HOW does a person at the surface know where the drill bit is and where it is going?" Remember, the drill bit and hole can be up to tens of thousands of feet below the surface of the Earth and thousands of feet away from the surface location. In order to "steer" the well you must know where it is. In order to know what layers of rock the well has drilled through a geologist must be able to recognize them.

This is where the art and science of interpretation comes to play and I'll attempt to answer these questions in future posts.
Peter


Horizontal drilling (source)
We talk about "pools" of oil, but in fact the stuff exists between the grains of porous rock like sandstone. Oil can travel through rock, but so slowly that it would probably lose a race with a whip-tailed paramecium.
So if you're interested in oil, you gotta make house calls. Translated: You gotta drill right into the reservoir. Not only can it be a tiny target, but even if you hit a bulls-eye, the well may be unproductive. Say a vertical drill pierces 5,000 feet of rock into an oil reservoir that's 20 feet thick. Because oil moves slowly, the 20-foot exposure would not tap much oil.
Over time, of course, more oil would seep toward the well, Bergt says. "If you could wait one million years for nature to refill it, that would be great." But drillers can't wait that long, and "In the old days, you'd move 200 feet and drill another well."

Once upon a time, drillers extracted oil with this Swiss cheese routine; new techniques reduce the need for wells. (Image courtesy of the United States Department of Energy.)

Do the math.
In a big field, thatsa lotta holes. Expensive holes.
With horizontal drilling, the entire picture changes, Bergt says. "Instead of drilling 20 wells, you'd drill two or three for the same recovery." On land, the technique also reduces the "footprint," the area damaged by drilling operations. At sea, it allows drilling many wells from a single platform.
Bent pipe solution? Because the pipe that drives oil drills is surprisingly flexible, a horizontal well can snake around to reach isolated pockets or follow a reservoir that meanders across the terrain.
Horizontal drilling has evolved over the past 25 years, and even though it remains more expensive than vertical drilling, greater productivity led to rapid acceptance. Between 3,000 and 4,000 wells are drilled annually with the technology. The record hole is a long-haul monster that wanders almost 7 miles, on the coast of southern England in the Wytch Farm oil field.

This roller cone drill bit was adapted from one used by 19th -century dentist (NOT). Use it to cut hard and/or abrasive rock.
Courtesy University of California-Berkeley petroleum engineering program.

Coil tubing
Traditionally, oil bits were driven by 30-foot sections of steel pipe. Pulling a bit up for sharpening involved hours or days of yanking pipe out of the ground and unscrewing it. In the past five years, drillers have come up with an alternative -- coil tubing.
Packed in giant reels holding 4,000 feet of tubing, the stuff is simply unreeled and lowered into the hole. Instead of rotating the tubing to spin the bit, high pressure drilling mud is sent, as usual, through the tubing. At the other end, however, is a hydraulic motor that rotates in response to mud pressure.

Peter Meenan says coil tubing also lends itself to scavenger operations -- tapping pockets of petroleum that seismic techniques show are near to existing wells. Meenan, who directs the Oil and Gas Institute at the University of Aberdeen, Scotland, says coil-tubing drilling, combined with steerable drill bits, may be used when a new pocket of hydrocarbons is discovered, say, 1,000 feet from a deep well. Rather than drill from the surface, it's possible to start drilling part-way down and veer off to reach the new deposit.

Welcome To GeoPete's View

Dedicated to the prospector and explorer in all of us. Never say die. Never give up.
Welcome to my blog about the topic of horizontal drilling as it relates to oil and gas exploration. Actually, the term "horizontal drilling" is a bit of a misnomer. In reality, what we are dealing with is controlled directional drilling. The object is to create a well bore in a productive oil or gas pay zone for as long a distance as is possible. This requires navigating or steering the well as it is being drilled. Increased production rates, volumes, and profitability are the ultimate goals.

Since oil and gas is almost always found in sedimentary rocks deposited in layers, the trick is to keep the well in one or more of these preferred layers. These layers of rock can vary considerably in thickness, structure, and many other properties. This is why geological knowledge and experience is so important. However, the geologist can not work alone. Engineers and others are a vital part of the process and we must all work together.

I am an independent, consulting geologist, trained and experienced in exploration and interpretation, so my input here will be from that perspective. However, I will be posting what I consider relevant articles from geologists, engineers, geophysicists and others. I hope to generate input and discussion from those interested in this relatively new technology. Drilling, interpreting and completing these horizontal wells is expensive and challenging. It requires the coordinated effort of a team of experts.

Please add your comments, experience, and questions. If I don't have the answers, I'm sure I can find someone who does. Sharing our knowledge is the name of the game.