Introduction

Mohan Kelkar

Introduction - 0 Evaluation of Shale Gas

Reservoirs
 Conventional Reservoirs

These are reservoirs that can be produced

at economic flow rates and that will produce
economic volumes of oil and gas without
massive stimulation treatments, special
recovery processes or leading-edge
technology.

Introduction - 1 Evaluation of Shale Gas

Reservoirs
 Unconventional Reservoirs (UCR)

These are the reservoirs that cannot be

produced at economic flow rates or that
do not produce economic volumes of oil
and gas without assistance from
massive stimulation treatments or
special recovery processes and
technologies, such as steam injection.

Introduction - 2 Evaluation of Shale Gas

Reservoirs
 Resource Triangle

Introduction - 3 Evaluation of Shale Gas

Reservoirs
 What are the examples of
Unconventional Resources?

Tight sandstones (low permeability)

Shale Gas and Shale Oil
Coal Bed Methane
Heavy Oil/Tar Sands
Oil Shale Resources
Gas Hydrates

Introduction - 4 Evaluation of Shale Gas

Reservoirs
 What this course will cover?

Tight sandstones (low permeability)

Shale Gas
Coal Bed Methane
Heavy Oil/Tar Sands
Oil Shale Resources
Gas Hydrates

Introduction - 5 Evaluation of Shale Gas

Reservoirs
 Coal Bed Methane

Gas is adsorbed on coal surface and

water is present in fissures
Significant water production needed
before gas is produced
Quality of coal can determine the quality
of well

Introduction - 6 Evaluation of Shale Gas

Reservoirs
 Coal Bed Methane

Introduction - 7 Evaluation of Shale Gas

Reservoirs
 Coal Bed Methane

First well drilled in 1984

Current production in the U.S. is 1.3
TCF (37 Bm3) (substantial reduction in
the last five years)
Proven reserves are 12 TCF in the U.S.
(340 Bm3) (substantially decreased over
the last five years)
Colorado, Wyoming and New Mexico
are major producers
Introduction - 8 Evaluation of Shale Gas
Reservoirs
 Coal Bed Methane - Worldwide

After Harrison et al., SPE 102061

Introduction - 9 Evaluation of Shale Gas
Reservoirs
 Tar Sands/Heavy Oil

Low gravity crude

(TR: 431 BBbl)
Bituman mixed
with sands (TR:
651BBbl)
Major producers:
Canada and
Venezuela

Introduction - 10 Evaluation of Shale Gas

Reservoirs
 Tar Sands/Heavy Crude
Production

Cold flow: PCP pumps used to produce

oil using conventional methods
Surface Mining
SAGD (Steam Assisted Gravity
Drainage)

Introduction - 11 Evaluation of Shale Gas

Reservoirs
 Surface Mining and Processing

After Suncor Energy

Introduction - 12 Evaluation of Shale Gas
Reservoirs
 SAGD

After Devon
Introduction - 13 Evaluation of Shale Gas
Reservoirs
 Oil Shale

Deposits of kerogens in shallow

formations
More than 3 Trillion barrels of deposits
in US alone
Vey difficult to produce by extraction

Introduction - 14 Evaluation of Shale Gas

Reservoirs
 Oil Shale Production

Chevron In-Situ Technology Shell In-Situ Technology

Introduction - 15 Evaluation of Shale Gas

Reservoirs
 Gas Hydrates

Gas trapped in a ring

of water molecules
No chemical bond
Stable at low
temperature and
high pressure
Mostly methane gas

Introduction - 16 Evaluation of Shale Gas

Reservoirs
 Gas Hydrates

Introduction - 17 Evaluation of Shale Gas

Reservoirs
 Gas Hydrates

More than 100 times the conventional

gas resource
Difficult to produce because
» Heat transfer problems
» Joule-Thompson effects
» Low permeability
» Potential subsidence

Introduction - 18 Evaluation of Shale Gas

Reservoirs
 Why Tight Gas/Shale Gas/Shale Oil?

Abundant Resource
Increasing fraction of overall production
Feasible technology
Fast Improvements in technology
Large on-shore resources

Introduction - 19 Evaluation of Shale Gas

Reservoirs
 World Demand for Energy
900

800

700 World
600
Demand, Q BTU

500

400

300

200
U.S.
100

0
2005 2010 2015 2020 2025 2030 2035 2040 2045
Year

After EIA
Introduction - 20 Evaluation of Shale Gas
Reservoirs
 % of Energy Source (World)

Oil Coal Natural Gas Renewables Nuclear

1 Quadrillion
45%
BTU = 0.97
40%

35%
TCF of gas =
30% 172.4 MMSTB
% Satisfied

25% of oil
20%

15%
=36.2 MM
10%
Metric ton of
5% Coal
0%
1980 1990 2000 2010
Year 2020 2030 2040 2050

After EIA
Introduction - 21 Evaluation of Shale Gas
Reservoirs
 US Production

Introduction - 22 Evaluation of Shale Gas

Reservoirs
 Natural Gas

Can become even more important part

of energy mix in the future because of
» Power Generation (replacing coal and
nuclear)
» Emission of CO2
» Transportation (replacing oil)
» GTL technology

Introduction - 23 Evaluation of Shale Gas

Reservoirs
 U.S. Projections (TCF of Gas)

After EIA
Introduction - 24 Evaluation of Shale Gas
Reservoirs
 U.S. Projections (MM STB of Oil)

After EIA
Introduction - 25 Evaluation of Shale Gas
Reservoirs
 Electric Generation in U.S.
(By Fuel)

After EIA
Introduction - 26 Evaluation of Shale Gas
Reservoirs
 CO2 Emission in U.S.
(Billion Metric Tons)

After EIA
Introduction - 27 Evaluation of Shale Gas
Reservoirs
 Distribution of Unconventional
Resources

After Dong et al., SPE 148365 (2011)

Introduction - 28 Evaluation of Shale Gas

Reservoirs
 Shale Production in the U.S.

Introduction - 29 Evaluation of Shale Gas

Reservoirs
 Why U.S.?

Mature basin and need to explore for

difficult resources
Private ownership entices development
of resources
Better infrastructure
Fracturing – crews and power available
Fresh water – relatively abundant
Introduction - 30 Evaluation of Shale Gas
Reservoirs
 Summary

Gas can become increasingly important

source of energy
Unconventional gas (and perhaps oil)
will contribute significant portion of the
world’s energy
Recovery methods are unique and will
require significant technological
advances to make them even more cost
effective
Introduction - 31 Evaluation of Shale Gas
Reservoirs