Unconventional oil and gas implications for global field development

Unconventional Oil and Gas:Implications for Global Field Development

Murray Roth – VP Global Consulting

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What is the greatest driver of oilfield innovation and value in the 21st Century?


Sand!


Lots of sand!


Sand – “Horses for Courses”


Current Fracking Locations


The Fracking Process


Perforating Tools Are Guided Down To Borehole


Water And Sand Mixture Is Injected Into The Borehole


The Proppant / Water Increases Size Of The Fissure


Proppant Holds Fissures Open


Open Fissures Allow Gas To Be Extracted


How much sand?

~5M lbs/well


How much sand?


How much fluid?

~100,000 bbl/well(4.2 million gallons)

(16 million litres)


How much fluid?

1 bbl

2/3 bbl

1/2 bbl

360 wells

7200 wells


Dramatic reversal of US Gas declineShale gas production may reach half of US output by 2040

trillion cubic feet

Source: EIA, Annual Energy Outlook 2014 Early Release

billion cubic feet per dayU.S. dry natural gas production


The Unconventional Myth…


The Myth dispelledReversing the US oil declineU.S. crude oil

production million barrels per day

Source: EIA, Annual Energy Outlook 2014 Early Release

U.S. maximum production level of9.6 million barrels per day in 1970

Tight oil

Lower 48 offshore

Alaska

Other lower 48 onshore

HistoryProjections

2013

Tight oil production has added 2M b/d to US production, reversing the decline since “peak oil” in 1970


US Oil and Gas Production versus Russia/Saudi Arabia


1792 Active US Drilling Rigs

ConventionalFields

Permian1921

DrillingInfo

Wattenberg1970

Bakken1957






U.S. production has rapidly increased from shale

Sources: EIA derived from state administrative data collected by DrillingInfo Inc. Data are through December 2013 and represent EIA’s official tight oil & shale gas estimates, but are not survey data. State abbreviations indicate primary state(s).

Conventional Fields


Pad-based Multi-level DevelopmentBakken/Three Forks Oil Development

Continetal


Shale Oil/Gas Myth

Only the unproven source rocks….


Putin sees the value….


Global Unconventional Opportunities

New or Mature, onshore Oil (light) and Gas Fields with low-flow (low permeability) zones

AlFin

Viking,

Cardium

Bakken

Permian

Brazhenov

Achimov

Wessex ?

Cooper

Sussex


Implications for Global Field Development

The Myth:Unconventional = Shale gas development where source rocks = reservoir = trap

The Reality:North American oil and gas development is returning to older, lower risk fields including the Canadian Pembina (1953), the Texas Permian (discovered 1921) and the North Dakota Bakken/Three Forks (discovered 1957) - in the form of multi-zone, horizontal well drilling and hydraulic fracturing.

The Opportunity:Previously uneconomic zones or peripheries of existing onshore fields in Europe, North Africa, the Middle East and beyond may now be developed as low-risk and high-value projects, applying proven horizontal drilling and completions technology


Global Unconventional Opportunities

>345 billion barrels of recoverable shale oil and 7.3 quadrillion cubic feet of recoverable shale gas (EIA 2013).


Want To Learn More?

More Analysis on our Blog:

Tracking The Drilling Rig Feeding Frenzy

The Modern Landman: How to Leverage Today’s Technology

Well Interpretation: Structure and Stratigraphic Mapping

http://info.drillinginfo.com/drilling_rig_feeding_frenzy/

http://info.drillinginfo.com/modern-landman/



http://info.drillinginfo.com/well-interpretation-structural-stratigraphic/

Unconventional oil and gas implications for global field development

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