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Coalbed Methane Coalbed Methane in in Kansas Kansas Presented to: Senate Utilities Committee March 4, 2004 Presented by: Timothy R. Carr tcarr@kgs.ku.edu The Chanute Publishing Co, 07/10/2002
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Coalbed Methane in Kansas - Kansas Geological Survey · Coalbed Methane in Kansas Presented to: Senate Utilities Committee March 4, 2004 Presented by: Timothy R. Carr tcarr@kgs.ku.edu

Aug 27, 2018

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  • Coalbed Methane Coalbed Methane inin

    KansasKansasPresented to:

    Senate Utilities CommitteeMarch 4, 2004

    Presented by:Timothy R. Carrtcarr@kgs.ku.edu

    The Chanute Publishing Co, 07/10/2002

  • OutlineOutline Background on the Natural Gas Markets Background on Coalbed Methane (CBM) Overview of Kansas CBM Activity

    Role of Geological Survey Impact on Kansas

    Economy Potential Issues

    Supply Problems Severed Minerals vs. Surface Enhanced Coalbed Methane Recovery Carbon Sequestration

  • Kansas national population and energy use rankings:Kansas national population and energy use rankings:

    Population 32th (2002)

    Total per capita energy 18th (2000)

    Natural Gas Consumption (2002)Natural Gas Consumption (2002)

    Residential 71,002 MMcf

    Commercial 38,812 MMcf

    Industrial 105,400*

    Electric Power 23,126 MMcf

    Natural Gas Production (2002) 453,417 MMcf

    *Estimated.

    Kansas ProfileKansas Profile

  • Natural Gas Prices Natural Gas Prices Continue to Be VolatileContinue to Be Volatile

    $1

    $3

    $5

    $7

    $9

    Jan-9

    0Ja

    n-91

    Jan-9

    2Ja

    n-93

    Jan-9

    4Ja

    n-95

    Jan-9

    6Ja

    n-97

    Jan-9

    8Ja

    n-99

    Jan-0

    0Ja

    n-01

    Jan-0

    2Ja

    n-03

    $/M

    CF

    Industrial PriceCity Gate PriceWellhead Price

  • Recent Energy PricesRecent Energy Prices

  • Coalbed Methane Production Coalbed Methane Production from U.S. Basinsfrom U.S. Basins

    0

    200

    400

    600

    800

    1000

    1200

    1400

    1600

    1800

    1984

    1985

    1986

    1987

    1988

    1989

    1990

    1991

    1992

    1993

    1994

    1995

    1996

    1997

    1998

    1999

    2000

    2001

    2002

    Emerging BasinsAppalachian BasinWarrior BasinSan Juan & Raton Basins

    Year

    CB

    M P

    rodu

    ctio

    n (B

    illio

    n C

    ubic

    Fee

    t)

    EIA 2001 Annual Report, September 2002U.S. Crude Oil, Natural Gas, and Natural Gas Liquids

    CBM representsapproximately 10%of US gas reserves

  • Coalbed Methane ActivityCoalbed Methane Activity

  • Kansas Coalbed Methane ActivityKansas Coalbed Methane Activity

    OIL &GAS FIELDSand

    major gas pipelines(8")

    oil oil &gas gas gaspipeline

    Bourbon ArchCherokee Basin

    Fore

    st C

    ity B

    asinknowncoal bedgasprojects

    Wyandotte

    24

    9

    1

    0

    1

    0

    59

    9

    12314

    0

    13

    116

    0288328

    86568110

    180

    7

    0

    0

    14142

    07

    8

    0

    7

    12

    NUMBERof WELLSDRILLEDfor

    COALBEDGAS bycounty

    (through mid-2003)

    25mi 25km

    N

    Douglas

    Franklin

    Johnson

    LeavenworthJefferson

    AtchisonDoniphan

    BrownNemaha

    Jackson

    Pottawatomie

    Wabaunsee

    Shawnee

    Osage

    Miami

    Linn

    Bourbon

    Crawford

    CherokeeLabette

    Neosho

    Allen

    AndersonCoffey

    Woodson

    Wilson

    MontgomeryChautauqua

    Elk

    Cowley

    GreenwoodButler

    Lyon

    ChaseMorris

    0

    24

  • Unconventional ReservoirUnconventional Reservoir

    FracturedReservoir

    Micropores

  • Methane Production fromMethane Production fromMicroporesMicropores

    Desorption

    Replacement

  • Time

    Conventional Gas andConventional Gas andCoal Bed GasCoal Bed Gas

    Vol

    ume

    per d

    ay

    PRODUCTION DECLINE

    coalbed gas

    conventional gas

    Adapted from Rice, 1997

  • .

    Time

    Production Stages of aProduction Stages of aCoalbed Gas WellCoalbed Gas Well

    Gas

    Water

    Vol

    ume

    StableProduction

    Stage

    DewateringStage

    DeclineStage

    Adapted from Rice, 1997

  • Kansas Coalbed Methane Kansas Coalbed Methane Monthly ProductionMonthly Production

  • Neosho County CBM ProductionNeosho County CBM Production

    3,585

    0

    500

    1000

    1500

    2000

    2500

    3000

    3500

    4000

    1995 1996 1997 1998 1999 2000 2001 2002 2003

    Year

    Prod

    uctio

    n M

    illio

    n C

    ubic

    Fee

    t

    $0

    $2

    $4

    $6

    $8

    $10

    $12

    $14

    $16

    $18

    $20

    Dol

    lars

    Mill

    ions

    at W

    ellh

    ead

    Production (mmcf)Estimated Annual ProductionValueEstimated Annual Value

    Estimated Annual Value Assumes Constant Production and Price for Remainder of Year

    2003 Production Through November2003 Value through September

  • SE Kansas CBM ProductionSE Kansas CBM Production9.06

    0

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    1995 1996 1997 1998 1999 2000 2001 2002 2003

    Year

    Bill

    ion

    Cub

    ic F

    eet

    $0

    $5

    $10

    $15

    $20

    $25

    $30

    $35

    $40

    $45

    $50

    Dol

    lars

    Mill

    ions

    Wel

    lhea

    d

    Production (Bcf)Value

    Estimated 2003 Annual Value Assumes Constant Production and Price for Remainder of Year

    Includes Gas Production for Labette, Montgomery, Neosho and Wilson counties

    2003 Production Through November2003 Prices through September

  • Kansas Gas ProductionKansas Gas Production

    30.000

    35.000

    40.000

    45.000

    50.000

    55.000

    60.000

    65.000

    70.000

    75.000

    Jan-9

    0Ja

    n-91

    Jan-9

    2Ja

    n-93

    Jan-9

    4Ja

    n-95

    Jan-9

    6Ja

    n-97

    Jan-9

    8Ja

    n-99

    Jan-0

    0Ja

    n-01

    Jan-0

    2Ja

    n-03

    Gas

    Pro

    duct

    ion

    (BC

    F/M

    onth

    )

    $0.00

    $1.00

    $2.00

    $3.00

    $4.00

    $5.00

    $6.00

    $7.00

    $8.00

    $9.00

    Avg.

    Wel

    lhea

    d Pr

    ice

    ($ P

    er M

    CF)

    Production Through November 2003Wellhead Prices through September 2003

    Production Through November 2003Wellhead Prices through September 2003

  • Coalbed Methane ProgramCoalbed Methane Program

  • Coalbed Methane ProgramCoalbed Methane Program

  • Coalbed Methane ProgramCoalbed Methane Program

  • WeirWeir--Pitt CoalPitt Coal

  • United States Carbon Dioxide United States Carbon Dioxide EmissionsEmissions

    By Source & Sector)

    Commercial16%

    Commercial16%

    Oil42%Oil

    42%

    Coal37%Coal37%

    Transportation33%

    Transportation33%

    Residential20%

    Industry31%

    Industry31%

    Natural Gas21%

    Other29%

    Other29%

    Transportation33%

    Transportation33%

    Electricity38%

    Electricity38%

    EIA AEO2002

  • Southeast KansasSoutheast Kansas

    214 m tons/yr

    1,095

    380

    552

    249

    163

    CBM

    25 Miles

    Greenwood Co.

    El Dorado Field

    Gol

    den

    Lane

    s

    Salya

    rds T

    rend

    Partially miscible and immiscible CO2 EOR El Dorado

    Salyards Trend,

    Enhanced Coalbed Methane (N2 and CO2)Cement plant gas stream may be best suited for ECBM

    Lafarge

    Industry

    G as

    O il & G as

    O il

    C B M EthanolOil and Gas Fields

    RefineryAmmonia

    Power

    Cement

  • Cement ProductionCement Production

    Dry Kiln Portland Cement ProcessCalcination ProcessCaCO3 > CaO + CO20.51 tons CO2 / ton cement

    CO2 and N2 kiln gas mix may be suitable for ECBM with little processing

  • Landfill GasLandfill Gas

    Landfill Gas (LFG) CH4, CO2, NMOC Pipeline

  • Kansas CBM SummaryKansas CBM Summary Expect CBM Production Increase to Continue Continued Exploration Expected

    Extent Dependent on Outcome of Pilots Geological Survey Working to Provide Information

    Northward Spread Significant Impact on SE Kansas Economy Potential Significant Impact on Kansas Economy

    A Substantial Boost in US Supplies will take Time US Market Controls Kansas Gas Price Kansas is Vulnerable to Energy Price Spikes

    Coalbed Methane inKansasOutlineKansas ProfileNatural Gas Prices Continue to Be VolatileRecent Energy PricesCoalbed Methane Production from U.S. BasinsCoalbed Methane ActivityKansas Coalbed Methane ActivityUnconventional ReservoirMethane Production from MicroporesKansas Coalbed Methane Monthly ProductionNeosho County CBM ProductionSE Kansas CBM ProductionKansas Gas ProductionCoalbed Methane ProgramCoalbed Methane ProgramCoalbed Methane ProgramWeir-Pitt CoalUnited States Carbon Dioxide EmissionsSoutheast KansasCement ProductionLandfill GasKansas CBM Summary