The economics of gas wells in the Horn River Shale of northeastern British Columbia, Canada must be excellent. Why? Imagine the cost of bringing in rigs and equipment to this remote area, with its harsh climate and lack of supporting infrastructure. Gas produced from shale, via horizontal drilling and constantly improving hydraulic fracturing technology are key elements to this success.
Peter
Horn River drilling, gas plant take shape
By OGJ editors HOUSTON, Apr. 22 -- (source)
EnCana Corp., Calgary, and its partner Apache Corp., Houston, have adopted a more efficient way to develop gas in the Horn River basin shales of Northeast British Columbia, EnCana said.
The companies hope to be able to drill fewer wells by increasing the number of fracs per horizontal leg to as many as 14 from the eight initially planned.
The companies will drill 12 wells in 2009, down from 20 originally planned.
EnCana is to build the Cabin gas processing plant 60 km northeast of Fort Nelson, BC, on behalf of industry co-owners that are major landholders in the basin. Its first phase is due in service in the third quarter of 2011. Initial capacity is 400 MMcfd, and the plant will be expanded in stages as the basin's gas production grows.
Friday, April 24, 2009
The Haynesville Shale Gas Play Continues Hot...
It seems the Haynesville Shale Gas Play is showing no signs of slowing down, in spite of lower gas prices. As they say, "follow the money" and EnCana is investing some big dollars. This is the kind of economic stimulus America needs!
Peter
EnCana boosts Haynesville shale activity
By OGJ editors HOUSTON, Apr. 22 -- (source)
EnCana Corp., Calgary, has a $580 million program to drill 50 Haynesville shale gas wells in East Texas and North Louisiana in 2009.
The company has seen encouraging results from its own drilling and those of other producers, and the 2009 program will enable it to improve its understanding of the play, further evaluate its lands, and retain prospective acreage.
To facilitate unrestrained market access for its gas, the company has committed to supply 150 MMcfd on the proposed Gulf South pipeline expansion and 500 MMcfd on the proposed ETC Tiger pipeline.
Meanwhile, EnCana chalked up a 50% production increase in the Deep Bossier play in East Texas, where it averaged 409 MMcfd of production in the first quarter of 2009 compared with an average of 334 MMcfd for all of 2008.
EnCana drilled 15 wells in the first quarter and 78 in all of East Texas in 2008.
Initial 30-day production rates in Amoruso field averaged more than 19 MMcfd, and the Charlene-1 well completed in January flowed at more than 50 MMcfd on initial tests.
Peter
EnCana boosts Haynesville shale activity
By OGJ editors HOUSTON, Apr. 22 -- (source)
EnCana Corp., Calgary, has a $580 million program to drill 50 Haynesville shale gas wells in East Texas and North Louisiana in 2009.
The company has seen encouraging results from its own drilling and those of other producers, and the 2009 program will enable it to improve its understanding of the play, further evaluate its lands, and retain prospective acreage.
To facilitate unrestrained market access for its gas, the company has committed to supply 150 MMcfd on the proposed Gulf South pipeline expansion and 500 MMcfd on the proposed ETC Tiger pipeline.
Meanwhile, EnCana chalked up a 50% production increase in the Deep Bossier play in East Texas, where it averaged 409 MMcfd of production in the first quarter of 2009 compared with an average of 334 MMcfd for all of 2008.
EnCana drilled 15 wells in the first quarter and 78 in all of East Texas in 2008.
Initial 30-day production rates in Amoruso field averaged more than 19 MMcfd, and the Charlene-1 well completed in January flowed at more than 50 MMcfd on initial tests.
Reach Out And Touch Some Marcellus Shale....Quickly
This sounds clever, very quickly drill multiple horizontal wells, in different directions, from the same relatively small drill pad. Minimize surface disturbance, minimize cost, maximize productivity.
Peter
Custom Drilling Rigs Used In Marcellus Shale Gas Play
Pennsylvania
By OGJ editors HOUSTON, Apr. 16 --
Range Resources Corp., Fort Worth, placed in service two custom-designed drilling rigs in the Marcellus shale gas play in Pennsylvania.
The rigs are equipped with crawlers and can traverse a drill pad in a few hours versus days for conventional rigs. The rigs are expected to save time and money as Range drills multiple laterals from the same pad.
The company's 2009 program calls for drilling more than 60 Marcellus wells.
Peter
Custom Drilling Rigs Used In Marcellus Shale Gas Play
Pennsylvania
By OGJ editors HOUSTON, Apr. 16 --
Range Resources Corp., Fort Worth, placed in service two custom-designed drilling rigs in the Marcellus shale gas play in Pennsylvania.
The rigs are equipped with crawlers and can traverse a drill pad in a few hours versus days for conventional rigs. The rigs are expected to save time and money as Range drills multiple laterals from the same pad.
The company's 2009 program calls for drilling more than 60 Marcellus wells.
Barnett Shale: Best Well Yet?
The Barnett Shale still has a lot of life in it, to say the least. It looks like these shale gas plays are unlike conventional oil and gas fields which exhibit steady and predictable decline. It seems technology and production rates just keep improving.
Peter
Best Barnett Shale well ever?
Texas-North
By OGJ editors HOUSTON, Apr. 21 -- (source)
Range Resources Corp., Fort Worth, completed a well at what it believes to be the highest 30-day average reported to date from any Barnett shale well.
The well, in southern Tarrant County in the Fort Worth basin play, averaged 9.6 MMcfd of dry gas in its first 30 days on line.
The well went to 7,350 ft true vertical depth and has a 2,100-ft lateral. Range Resources was still leasing around the well in mid-April.
Peter
Best Barnett Shale well ever?
Texas-North
By OGJ editors HOUSTON, Apr. 21 -- (source)
Range Resources Corp., Fort Worth, completed a well at what it believes to be the highest 30-day average reported to date from any Barnett shale well.
The well, in southern Tarrant County in the Fort Worth basin play, averaged 9.6 MMcfd of dry gas in its first 30 days on line.
The well went to 7,350 ft true vertical depth and has a 2,100-ft lateral. Range Resources was still leasing around the well in mid-April.
Thursday, April 23, 2009
The Eagle Ford Shale: A Major New Gas Play?
If true, these results indicate a major new shale gas play. Not much is said, but the implication is it involves horizontal drilling and hydraulic fracturing. Of course there is always the need for accurate steering of the drill bit to make sure the well stays in the preferred "zone", or the stratigraphic interval with the highest productivity.
Peter
Petrohawk calls Eagle Ford a top shale play
By OGJ editors HOUSTON, Apr. 21 --
Formation characteristics from two of its first five wells indicate that the Cretaceous Eagle Ford shale in LaSalle and McMullen counties of South Texas "is one of the highest quality shale reservoirs discovered in the US," said Petrohawk Energy Corp., Houston.
Petrohawk raised its internally estimated ultimate recovery assumption for wells in the play to a midpoint of 5.5 bcfe/well, with a range of 4-7 bcfe/well, based on gas in place data derived from the core analysis from the two wells and performance of wells completed to date.
Petrohawk cited encouraging parameters from the two wells 30 miles apart: the Dora Martin-1H in LaSalle County and the Donnell-1H in McMullen County.
Core analysis from the two wells indicates 180-210 bcf/sq mile of free gas in place, 83-85% gas saturation, 9.4-10.7% porosity, 1,110-1,280 nanodarcies of permeability, and 4.4-4.7% total organic carbon.
Petrohawk recognizes a trend across the field from southwest to northeast of increasing condensate yield, from no condensate production from the Dora Martin-1H to a yield of 110 bbl/MMcf of gas from the Donnell-1H.
The Eagle Ford shale has been encountered in all five wells from 11,000 ft to 11,700 ft true vertical depth. Petrohawk has leased 160,000 contiguous net acres prospective for the formation in LaSalle and McMullen counties. The Texas Railroad Commission has named the area Hawkville field.
Petrohawk operated one horizontal rig in the play in the quarter ended Mar. 31 and has added a second rig.
Three wells were drilled and two were completed in the quarter. The Donnell-1H was completed on Feb. 20 at 3.6 MMcfd and 395 b/d of condensate on a 19/64-in. choke with 3,585 psi flowing casing pressure. The Brown Trust-1H was completed on Mar. 26 at a rate of 8.1 MMcfd and 200 b/d of condensate on a 24/64 in. choke with 4,210 psi flowing casing pressure.
"Production data from the four wells completed to date indicates lower initial annual decline rates, and a flatter hyperbolic decline, than those observed in other shale plays," Petrohawk said.
The company's first three wells, which had pilot holes, averaged 53 days from spud to rig release. The fourth had intermediate casing but no pilot hole and took 32 days. The fifth well was drilled in 22 days without intermediate pipe or a pilot hole.
Drilling and completion costs range from $4.5 million to $5.5 million/well.
Peter
Petrohawk calls Eagle Ford a top shale play
By OGJ editors HOUSTON, Apr. 21 --
Formation characteristics from two of its first five wells indicate that the Cretaceous Eagle Ford shale in LaSalle and McMullen counties of South Texas "is one of the highest quality shale reservoirs discovered in the US," said Petrohawk Energy Corp., Houston.
Petrohawk raised its internally estimated ultimate recovery assumption for wells in the play to a midpoint of 5.5 bcfe/well, with a range of 4-7 bcfe/well, based on gas in place data derived from the core analysis from the two wells and performance of wells completed to date.
Petrohawk cited encouraging parameters from the two wells 30 miles apart: the Dora Martin-1H in LaSalle County and the Donnell-1H in McMullen County.
Core analysis from the two wells indicates 180-210 bcf/sq mile of free gas in place, 83-85% gas saturation, 9.4-10.7% porosity, 1,110-1,280 nanodarcies of permeability, and 4.4-4.7% total organic carbon.
Petrohawk recognizes a trend across the field from southwest to northeast of increasing condensate yield, from no condensate production from the Dora Martin-1H to a yield of 110 bbl/MMcf of gas from the Donnell-1H.
The Eagle Ford shale has been encountered in all five wells from 11,000 ft to 11,700 ft true vertical depth. Petrohawk has leased 160,000 contiguous net acres prospective for the formation in LaSalle and McMullen counties. The Texas Railroad Commission has named the area Hawkville field.
Petrohawk operated one horizontal rig in the play in the quarter ended Mar. 31 and has added a second rig.
Three wells were drilled and two were completed in the quarter. The Donnell-1H was completed on Feb. 20 at 3.6 MMcfd and 395 b/d of condensate on a 19/64-in. choke with 3,585 psi flowing casing pressure. The Brown Trust-1H was completed on Mar. 26 at a rate of 8.1 MMcfd and 200 b/d of condensate on a 24/64 in. choke with 4,210 psi flowing casing pressure.
"Production data from the four wells completed to date indicates lower initial annual decline rates, and a flatter hyperbolic decline, than those observed in other shale plays," Petrohawk said.
The company's first three wells, which had pilot holes, averaged 53 days from spud to rig release. The fourth had intermediate casing but no pilot hole and took 32 days. The fifth well was drilled in 22 days without intermediate pipe or a pilot hole.
Drilling and completion costs range from $4.5 million to $5.5 million/well.
Wednesday, April 22, 2009
Shale Gas Development In U.S. --- Table of Contents
The following summarizes what is covered in the recent publication by The Department of Energy (DOE). (source)
For our purposes here, we are most interested in the geological, engineering and economic aspects of shale gas development, but comments on any of the following subjects are welcome.
(As an aside, do any of our political lawmakers and decision-makers read and understand the significance of extracting this abundant natural gas? It is used to heat and cool our homes, power our industry, and can even be easily used to power our vehicles when it is compressed. If we really want to reduce our dependence on "foreign oil" we should be aggressively producing this gas! The DOE estimates we have enough to last 100 years! What are we waiting for? Windmills, solar panels and nuclear power plants? That's crazy! We have this natural gas here and now, with established infrastructure and known technology; let's go get it!)
Peter
MODERN SHALE GAS DEVELOPMENT IN THE UNITED STATES: A PRIMER
TABLE OF CONTENTS
Table of Contents ---i
List of Exhibits---iii
INTRODUCTION---1
THE IMPORTANCE OF SHALE GAS --- 3
The Role of Natural Gas in the United States’ Energy Portfolio ---3
The Advantages of Natural Gas --- 5
Natural Gas Basics ---6
Unconventional Gas--- 7
The Role of Shale Gas in Unconventional Gas---8
Looking Forward ---10
SHALE GAS DEVELOPMENT IN THE UNITED STATES ---13
Shale Gas – Geology ---14
Sources of Natural Gas---16
Shale Gas in the United States ---16
The Barnett Shale ---18
The Fayetteville Shale---19
The Haynesville Shale ---20
The Marcellus Shale ---21
The Woodford Shale ---22
The Antrim Shale ---23
The New Albany Shale ---24
REGULATORY FRAMEWORK--- 25
Federal Environmental Laws Governing Shale Gas Development--- 25
State Regulation ---25
Local Regulation ---27
Regulation of Impacts on Water Quality ---29
Clean Water Act---29
Safe Drinking Water Act --- 32
Oil Pollution Act of 1990 – Spill Prevention Control and Countermeasure---33
State Regulations and Regional Cooperation --- 35
Regulation of Impacts on Air Quality---35
Clean Air Act ---35
Air Quality Regulations ---36
Air Permits ---36
Regulation of Impacts to Land ---37
Resource Conservation and Recovery Act (RCRA) ---37
Endangered Species Act---38
State Endangered Species Protections ---39
Oil and Gas Operations on Public Lands ---39
Federal Lands ---39
State Lands ---40
Other Federal Laws and Requirements that Protect the Environment---40
Comprehensive Environmental Response, Compensation, and Liability Act ---40
Emergency Planning and Community Right-to-Know Act---41
Occupational Safety and Health Act ---42
Summary ---42
ENVIRONMENTAL CONSIDERATIONS --- 43
Horizontal Wells ---46
Reducing Surface Disturbance ---47
Reducing Wildlife Impacts --- 48
Reducing Community Impacts --- 49
Protecting Groundwater: Casing and Cementing Programs ---51
Hydraulic Fracturing ---56
Fracture Design ---56
Fracturing Process---58
Fracturing Fluids and Additives ---61
Water Availability ---64
Water Management ---66
Naturally Occurring Radioactive Material (NORM) ---70
Air Quality ---71
Sources of Air Emissions --- 72
Composition of Air Emissions --- 72
Technological Controls and Practices---74
Summary ---76
Acronyms and Abbreviations ---79
DEFINITIONS --- 81
END NOTES---83
For our purposes here, we are most interested in the geological, engineering and economic aspects of shale gas development, but comments on any of the following subjects are welcome.
(As an aside, do any of our political lawmakers and decision-makers read and understand the significance of extracting this abundant natural gas? It is used to heat and cool our homes, power our industry, and can even be easily used to power our vehicles when it is compressed. If we really want to reduce our dependence on "foreign oil" we should be aggressively producing this gas! The DOE estimates we have enough to last 100 years! What are we waiting for? Windmills, solar panels and nuclear power plants? That's crazy! We have this natural gas here and now, with established infrastructure and known technology; let's go get it!)
Peter
MODERN SHALE GAS DEVELOPMENT IN THE UNITED STATES: A PRIMER
TABLE OF CONTENTS
Table of Contents ---i
List of Exhibits---iii
INTRODUCTION---1
THE IMPORTANCE OF SHALE GAS --- 3
The Role of Natural Gas in the United States’ Energy Portfolio ---3
The Advantages of Natural Gas --- 5
Natural Gas Basics ---6
Unconventional Gas--- 7
The Role of Shale Gas in Unconventional Gas---8
Looking Forward ---10
SHALE GAS DEVELOPMENT IN THE UNITED STATES ---13
Shale Gas – Geology ---14
Sources of Natural Gas---16
Shale Gas in the United States ---16
The Barnett Shale ---18
The Fayetteville Shale---19
The Haynesville Shale ---20
The Marcellus Shale ---21
The Woodford Shale ---22
The Antrim Shale ---23
The New Albany Shale ---24
REGULATORY FRAMEWORK--- 25
Federal Environmental Laws Governing Shale Gas Development--- 25
State Regulation ---25
Local Regulation ---27
Regulation of Impacts on Water Quality ---29
Clean Water Act---29
Safe Drinking Water Act --- 32
Oil Pollution Act of 1990 – Spill Prevention Control and Countermeasure---33
State Regulations and Regional Cooperation --- 35
Regulation of Impacts on Air Quality---35
Clean Air Act ---35
Air Quality Regulations ---36
Air Permits ---36
Regulation of Impacts to Land ---37
Resource Conservation and Recovery Act (RCRA) ---37
Endangered Species Act---38
State Endangered Species Protections ---39
Oil and Gas Operations on Public Lands ---39
Federal Lands ---39
State Lands ---40
Other Federal Laws and Requirements that Protect the Environment---40
Comprehensive Environmental Response, Compensation, and Liability Act ---40
Emergency Planning and Community Right-to-Know Act---41
Occupational Safety and Health Act ---42
Summary ---42
ENVIRONMENTAL CONSIDERATIONS --- 43
Horizontal Wells ---46
Reducing Surface Disturbance ---47
Reducing Wildlife Impacts --- 48
Reducing Community Impacts --- 49
Protecting Groundwater: Casing and Cementing Programs ---51
Hydraulic Fracturing ---56
Fracture Design ---56
Fracturing Process---58
Fracturing Fluids and Additives ---61
Water Availability ---64
Water Management ---66
Naturally Occurring Radioactive Material (NORM) ---70
Air Quality ---71
Sources of Air Emissions --- 72
Composition of Air Emissions --- 72
Technological Controls and Practices---74
Summary ---76
Acronyms and Abbreviations ---79
DEFINITIONS --- 81
END NOTES---83
Sunday, April 19, 2009
Shale Gas Development And Potential In Canada
The technology (see other articles on this blog) largely developed in the United States to produce natural gas from shale formations, is attracting attention and investment in other countries. Here is a glimpse of what is happening in Canada. What has been called "unconventional gas" is now becoming accepted and actively pursued.
Peter
October 08, 2008
Horn River Basin Project (British Columbia, Canada)
Fort St John (October 8, 2008):
Geoscience BC is pleased to announce, in partnership with the Horn River Basin Shale Gas Producers Group and the B.C. Ministry of Energy, Mines and Petroleum Resources, a $5 million geoscience research program in the Horn River Basin of northeast B.C.
Unlocking the gas from the shale formations in the Horn River Basin presents significant new geological and technological challenges to the industry. To assist the industry and the Provincial Government in assuring that the maximum benefit is realized from the development of this resource, Geoscience BC is committing up to $5 million to this program. The funding will be matched with contributions from industry, academia and other project partners, and will be used for geoscience studies in the basin, focused on identifying and evaluating potential water sources for shale gas production.
"The potential of British Columbia's oil and gas resources is incredible," said Energy, Mines and Petroleum Resources Minister Richard Neufeld, "and data compiled from these projects will provide important information that will be used for the exploration and development of the oil and gas industry. The possibilities are staggering, which is why we are taking a thoughtful and ambitious approach to resource exploration and development."
A top priority for industry in the development of the shale gas resource in the Horn River Basin, is the identification and characterization of subsurface water source aquifers, both as potential sources of water for gas production, and also as sites for spent water disposal, and possibly CO2 sequestration. Use of subsurface water in gas production may significantly reduce the surface environmental footprint of development, and help to protect surface fresh water aquifers."The Horn River Basin producers group is excited about the opportunity to partner with Geoscience BC to identify potential subsurface water sources" said Rob Spitzer, Chair of the Horn River Basin Producers Group. "This is an excellent example of the kind of collaboration that will ensure the responsible development of the Horn River Basin."
In addition to the saline aquifer studies, basin-wide formation characterization studies of the gas-bearing shales, and fault and fracture identification and mapping, may be undertaken. These studies will help to unravel the complexity of the Horn River Basin reservoirs, and assist the industry in the orderly and environmentally sustainable development of the shale gas resource in the Basin.
"Geoscience BC looks forward to contributing to the priority needs of both industry and government through supporting the development of innovative solutions to the challenges presented by the exploration and development of the Horn River Basin shale gas," said Dr. 'Lyn Anglin, President and CEO of Geoscience BC. "These studies will help contribute to cost-effective and environmentally sound development of British Columbia's unconventional gas resources."
Funding mechanisms for this program and details of projects to be undertaken, will be published as they become available. The Horn River Basin shale gas producers group consists of the major industry players, which are Apache Canada Ltd., Encana, Devon Canada Corp., EOG Resources Canada, Nexen Inc., Quicksilver, Imperial Oil Resources/ExxonMobil Canada and Stone Mountain Resources. The purpose of the group is to facilitate cooperation and communication between major industry players, key stakeholders and First Nations in the area.
Geoscience BC is an industry-led, industry-focused not-for-profit society. Its mandate includes the collection, interpretation and marketing of geoscience data and expertise to promote investment in resource exploration and development in British Columbia. Geoscience BC is funded by the Provincial Government and works in partnership with industry, academia, government, First Nations and communities to attract mineral and oil & gas investment to BC.
For more information, please contact: Geoscience BC'Lyn Anglin, PhDPresident and CEO (604) 290-1194www.geosciencebc.com
Peter
October 08, 2008
Horn River Basin Project (British Columbia, Canada)
Fort St John (October 8, 2008):
Geoscience BC is pleased to announce, in partnership with the Horn River Basin Shale Gas Producers Group and the B.C. Ministry of Energy, Mines and Petroleum Resources, a $5 million geoscience research program in the Horn River Basin of northeast B.C.
Unlocking the gas from the shale formations in the Horn River Basin presents significant new geological and technological challenges to the industry. To assist the industry and the Provincial Government in assuring that the maximum benefit is realized from the development of this resource, Geoscience BC is committing up to $5 million to this program. The funding will be matched with contributions from industry, academia and other project partners, and will be used for geoscience studies in the basin, focused on identifying and evaluating potential water sources for shale gas production.
"The potential of British Columbia's oil and gas resources is incredible," said Energy, Mines and Petroleum Resources Minister Richard Neufeld, "and data compiled from these projects will provide important information that will be used for the exploration and development of the oil and gas industry. The possibilities are staggering, which is why we are taking a thoughtful and ambitious approach to resource exploration and development."
A top priority for industry in the development of the shale gas resource in the Horn River Basin, is the identification and characterization of subsurface water source aquifers, both as potential sources of water for gas production, and also as sites for spent water disposal, and possibly CO2 sequestration. Use of subsurface water in gas production may significantly reduce the surface environmental footprint of development, and help to protect surface fresh water aquifers."The Horn River Basin producers group is excited about the opportunity to partner with Geoscience BC to identify potential subsurface water sources" said Rob Spitzer, Chair of the Horn River Basin Producers Group. "This is an excellent example of the kind of collaboration that will ensure the responsible development of the Horn River Basin."
In addition to the saline aquifer studies, basin-wide formation characterization studies of the gas-bearing shales, and fault and fracture identification and mapping, may be undertaken. These studies will help to unravel the complexity of the Horn River Basin reservoirs, and assist the industry in the orderly and environmentally sustainable development of the shale gas resource in the Basin.
"Geoscience BC looks forward to contributing to the priority needs of both industry and government through supporting the development of innovative solutions to the challenges presented by the exploration and development of the Horn River Basin shale gas," said Dr. 'Lyn Anglin, President and CEO of Geoscience BC. "These studies will help contribute to cost-effective and environmentally sound development of British Columbia's unconventional gas resources."
Funding mechanisms for this program and details of projects to be undertaken, will be published as they become available. The Horn River Basin shale gas producers group consists of the major industry players, which are Apache Canada Ltd., Encana, Devon Canada Corp., EOG Resources Canada, Nexen Inc., Quicksilver, Imperial Oil Resources/ExxonMobil Canada and Stone Mountain Resources. The purpose of the group is to facilitate cooperation and communication between major industry players, key stakeholders and First Nations in the area.
Geoscience BC is an industry-led, industry-focused not-for-profit society. Its mandate includes the collection, interpretation and marketing of geoscience data and expertise to promote investment in resource exploration and development in British Columbia. Geoscience BC is funded by the Provincial Government and works in partnership with industry, academia, government, First Nations and communities to attract mineral and oil & gas investment to BC.
For more information, please contact: Geoscience BC'Lyn Anglin, PhDPresident and CEO (604) 290-1194www.geosciencebc.com
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