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US Shale Gas Production: Natural Gas Shale Deposits in The United States
US Shale Gas Production: Natural Gas Shale Deposits in The United States
US shale gas production has grown rapidly in recent years as the natural gas industry has
improved drilling and extraction methods while increasing exploration efforts. US shale
production was 2.02 cubic feet in 2008, a jump of 71% over the previous year. In 2009, US
shale gas production grew 54% to 3.11 cubic feet, while remaining proven US shale
reserves at year-end 2009 increased 76% to 60.6 cubic feet.[8] In its Annual Energy Outlook
for 2011, the US Energy Information Administration (EIA) more than doubled its estimate of
technically recoverable shale gas reserves in the US, to 827 cubic feet from 353 cubic feet,
by including data from drilling results in new shale fields, such as the Marcellus, Haynesville,
and Eagle Ford shales. Shale production is projected to increase from 23% of total US gas
production in 2010 to 49% by 2035.
The availability of large shale gas reserves in the US has led some to propose natural gas-
fired power plants as lower-carbon emission replacements for coal plants, and as backup
power sources for wind energy.
In 2011, though, a news report found that "not everyone in the Energy Information
Administration agrees" with the optimistic projections of reserves, and questioned the
impartiality of some of the reports issued by the agency. Two of the primary contractors,
Intek and Advanced Resources International, which provided information for the reports also
have major clients in the oil and gas industry. "The president of Advanced Resources, Vello
A. Kuuskraa, is also a stockholder and board member of Southwestern Energy, an energy
company heavily involved in drilling for gas" in the Fayetteville Shale, according to the report
in The New York Times. The current EIA administrator, Richard G. Newell, a vocal supporter
of the industry prospects, announced in June his plans to resign to take a job at Duke
University. The news report and one from the previous day on the same general subject by
the same journalist attracted critiques from bloggers at Forbes and the Council on Foreign
Relations, to name two. Diane Rehm had Urbina; Seamus McGraw, writer and author of
"The End of Country"; Tony Ingraffea, a professor of engineering at Cornell; and John
Hanger, former secretary of Pennsylvania Department of Environmental Protection; on a
radio call-in show about Urbino's articles and the broader subject. The associations
representing the natural gas industry, such as America's Natural Gas Alliance, were invited
to be on the program but declined.
Tight gas
Tight gas is commonly used to refer to natural gas produced from reservoir rocks with such
low permeability that massive hydraulic fracturing is necessary to produce the well at
economic rates. The gas is sealed in very impermeable and hard rocks, making their
formation "tight". These impermeable reservoirs which produce dry natural gas are also
called "Tight Sand".
In reality the term "tight" refers to reservoirs where wells are unable to be commercially
exploited at current economic conditions in the absence of artificial stimulation or changes in
well geometry. It is economic criteria (gas price, opex , capex, royalties and fiscal regime)
which define this status and in many cases, as gas/oil prices rise then, projects that have
been previously shelved become viable; improvements in technology or changes in available
infrastructure may also rehabilitate otherwise stranded gas.
Tight gas reservoirs historically were generally defined as having less than 0.1
millidarcy (mD) matrix permeability and less than ten percent matrix porosity. Although
shales have low permeability and low effective porosity, shale gas is usually considered
separate from tight gas, which is contained most commonly in sandstone, but sometimes in
limestone. Tight gas is considered an unconventional source of natural gas.
Much tight gas was formed 248 million years ago in Paleozoic formations. Cementation and
recrystallization changed a conventional gas reserve which reduced the permeability of the
rock and natural gas was trapped within these rock formations. Horizontal and directional
drilling is used to extract tight gas deposits as they run along the formation which in turn
allows more natural gas to enter the well that was dug.
Numerous wells can be drilled to access the gas. Hydraulic fracturing is one of the main
methods to access the gas which requires breaking apart the rocks in the formation by
pumping fracking fluids in to the wells. This increases permeability and allows gas to flow
easily, freeing it from the trap. After that deliquifaction is used to help in the extraction.
USA Oil and Gas Basins
The United States is one of the largest oil and gas producers in the world thanks to advancements
in technologies, such as hydraulic fracturing, which has unlocked vast reserves of shale oil.
According to the U.S. Energy Information Administration, the U.S. produced 12.29 million
barrels of crude oil per day in 2019. This figure was 11.28, 11.18, and 11.85 million barrels per
day for 2020, 2021, and 2022, respectively. So, where does is the oil and gas produced in the
United States?
The oil and gas is found in basins that exists underground. Large amounts of economic resources
are necessary to bring these resources to the wellhead, where the oil and gas produced is sold to
the market.
The major U.S. oil and gas basins include:
1. Permian Basin: Located in West Texas and southeastern New Mexico, the
Permian Basin has been one of the most productive oil and gas regions in the
U.S. for decades.
2. Eagle Ford Shale: Located in Texas, the Eagle Ford Shale has been a major
source of oil and gas production since the late 2000s.
3. Marcellus Shale and Utica Shale: These basins, located in the Northeast U.S.,
are primarily known for their natural gas reserves. The Marcellus Shale alone is
thought to hold about 85 trillion cubic feet of undiscovered, technically
recoverable natural gas and 3.4 billion barrels of undiscovered, technically
recoverable natural gas liquids.
4. Bakken Formation: This formation, located in North Dakota, Montana, and parts
of Canada, has been a significant source of oil in particular.
5. Anadarko Basin: Located in Oklahoma and Texas, the Anadarko Basin was
estimated to contain an additional 16.5 billion barrels of oil, 92 trillion cubic feet of
gas, and 1.1 billion barrels of natural gas liquids in undiscovered, technically
recoverable reserves.
Discovery
Rank Field State Year Billion Cubic ft/year
1 Marcellus Shale Pennsylvania and West Virginia 2008 2836
Newark East Barnett
2 Shale Texas 1981 1952
3 Haynesville Shale Louisiana and texas 2008 1426
4 Eagle Ford Formation Texas 1962 1112
5 Faytteville Shale Arkansas 2005 1025
6 San juan Basin New Mexico and Colorado 1927 1025
7 Carthage Texas 1936 653
8 pinedale Gas Field Wyoming 1955 568
9 Spraberry Texas 1949 307
10 Wattenberg Gas Field Colorado 1970 305
1) Marcellus Shale:
The Marcellus Shale is a vast geological formation that extends across several
states in the northeastern United States, including Pennsylvania, West Virginia,
Ohio, and New York. It is one of the most significant natural gas-producing regions
in the country.
Location:
The Marcellus Shale spans a large area in the Appalachian Basin, covering parts of
Pennsylvania, West Virginia, Ohio, and New York. It is an organic-rich sedimentary
rock formation that is known for its potential as a source of natural gas.
Geology:
The Marcellus Shale is a black shale formation that dates back to the Devonian
period. The shale contains high levels of organic material, primarily kerogen, which
can be converted into natural gas through the process of thermal maturation. The
shale's depth and thickness make it an attractive target for unconventional natural
gas extraction.
Development:
The development of the Marcellus Shale as a major natural gas play gained
momentum with advancements in horizontal drilling and hydraulic fracturing
(fracking) technologies. These technologies allow operators to access the gas
trapped in the shale by drilling horizontally through the rock and fracturing it to
release the gas.
Operators:
Various oil and gas companies operate in the Marcellus Shale region. Some of the
major players include Range Resources, EQT Corporation, Cabot Oil & Gas, and
others.
Production:
The Marcellus Shale has become one of the leading natural gas-producing regions
in the United States. The application of advanced drilling techniques has significantly
increased production levels, contributing to the overall growth of domestic natural
gas production.
2) Barnett Shale:
The Barnett Shale is a significant geological formation known for its contribution to
the development of the shale gas industry in the United States.
Location:
The Barnett Shale is located in the Fort Worth Basin in North Texas. It spans a large
area and underlies several counties, including Tarrant, Denton, Wise, and Johnson.
Geology:
The Barnett Shale is a sedimentary rock formation dating back to the Mississippian
period. It is primarily composed of organic-rich shale and was historically considered
uneconomical for hydrocarbon extraction. However, advancements in drilling
technologies, specifically horizontal drilling and hydraulic fracturing, made the
development of the Barnett Shale economically viable.
Development:
The Barnett Shale is often regarded as the birthplace of modern shale gas
development. In the early 2000s, operators began using horizontal drilling and
hydraulic fracturing techniques to unlock the vast natural gas reserves trapped in the
Barnett Shale. This marked a turning point in the energy industry and led to the
proliferation of shale gas exploration and production in other regions.
Operators:
Various oil and gas companies have been involved in the development of the
Barnett Shale. Some of the early and major players include Devon Energy,
Chesapeake Energy, XTO Energy (now part of ExxonMobil), and others.
Production:
The Barnett Shale has been a prolific natural gas-producing region, contributing
significantly to the overall natural gas production in the United States. The
application of hydraulic fracturing technology allowed for the economic extraction of
natural gas from the tight shale formation.
Infrastructure Development:
The growth of production in the Eagle Ford Shale has led to significant
investments in infrastructure, including pipelines, processing facilities, and
transportation networks to move oil and gas to market.
The San Juan Basin is a geological basin located in the Four Corners region of
the southwestern United States, encompassing portions of Colorado, New
Mexico, Arizona, and Utah. It is a prolific natural gas and oil-producing basin and
has been a significant contributor to the country's energy resources.
Geographical Extent:
The San Juan Basin covers a large area, with the majority of it located in
northwest New Mexico and southwest Colorado. Parts of the basin extend into
northeastern Arizona and southeastern Utah.
Formation and Composition:
The basin is composed of various sedimentary rock formations, including shale,
sandstone, and coal beds. These formations have been significant sources of
natural gas and oil.
Hydrocarbon Content:
The San Juan Basin is primarily known for its natural gas production. It also
produces oil and natural gas liquids (NGLs), but natural gas has historically been
the dominant hydrocarbon.
Operators and Production:
Numerous oil and gas companies have operated in the San Juan Basin over the
years. Some of the major operators in the region include BP, Chevron,
ConocoPhillips, and Hilcorp Energy, among others.
Navajo Nation Lands:
A substantial portion of the San Juan Basin is located on Navajo Nation lands.
The development of oil and gas resources in the basin has had economic
implications for the Navajo Nation, including the generation of revenue and
employment opportunities.
Coalbed Methane Production:
Coalbed methane (CBM) has been a notable focus of production in the San Juan
Basin. The basin has significant coal resources, and CBM extraction has been an
important component of natural gas production.
Technological Advances:
The development of advanced drilling and production technologies, including
horizontal drilling and hydraulic fracturing, has played a role in unlocking
unconventional resources in the San Juan Basin.
7) Carthage Field:
The Carthage Field is a natural gas field located in East Texas, USA. It is part of
the larger East Texas Basin and has been a significant contributor to natural gas
production in the region.
Geographical Location:
The Carthage Field is situated in East Texas, covering parts of Panola and
Harrison counties. It is known for its proximity to the town of Carthage.
9) Spraberry Field:
The Spraberry Field is a major oil and gas field located in West Texas, USA.
Location:
The Spraberry Field is situated in the Permian Basin, one of the most prolific oil
and gas basins in the world. It covers a vast area in West Texas, encompassing
parts of Reagan, Glasscock, Midland, and Upton counties.
Geology:
The Spraberry Field is known for its complex geological structure. The reservoir
consists of multiple stacked oil-bearing formations, including the Spraberry,
Dean, and Wolfcamp formations. These formations are characterized by tight or
low permeability rock, and advancements in drilling and completion technologies,
such as horizontal drilling and hydraulic fracturing, have enabled economic
extraction of hydrocarbons from these unconventional reservoirs.
Development:
The field has been developed using advanced drilling techniques, including
horizontal drilling and hydraulic fracturing, which have significantly increased the
productivity of oil and gas wells in the area. These technologies have allowed
operators to efficiently recover hydrocarbons from the tight rock formations.
Operators:
Various oil and gas companies operate in the Spraberry Field, and several of
them have made significant investments in the development of the area. The field
has seen increased attention and activity due to the resurgence of oil production
in the Permian Basin in recent years.
Reserves and Production:
The Spraberry Field is known for its substantial reserves of oil and gas. It has
been a key contributor to the overall production of the Permian Basin, which has
become a major driver of U.S. oil production.
Within 10 years of Drake’s discovery, well casing was routine and conventional pumping
equipment was well-established as consisting of what is now known as the “standard rig
front.”
Natural gas wells are often thought of as free flowing with no need for artificial lift.
However, many gas wells produce some liquids–condensate, water or both–at some
stage in their life cycles. If this liquid is not removed from the well, it will accumulate in
the well bore, inhibit gas production and limit the ultimate recovery of gas
from the reservoir.
The accumulation of liquid in the well bore causes increased pressure against the
producing gas formation (back pressure), which inhibits gas flow from the reservoir into
the well bore. This back pressure also inhibits gas flow up the well bore to the surface.
The liquid in the well bore also can enter the reservoir and cause a water blockage that
will further inhibit gas flow into the well.
Therefore, to maximize gas inflow and
outflow, and to maximize ultimate
recovery from the reservoir, it is
necessary to remove any accumulated
liquid from the well bore and keep it
removed on a continuous basis.
Figure 1 illustrates increased flowing
bottom-hole pressure caused by the
presence of liquid in the well bore.
Artificial lift reverses the process of liquid
loading and the resulting back pressure
that leads to reduced reservoir inflow from
inhibited gas flow to the surface. By
lowering the bottom-hole pressure,
artificial lift encourages gas inflow and the
“drying” of the formation.
In the earlier stages of a gas well’s life cycle, liquid may be removed by the natural flow
of the gas itself (Figure 2). If the flow rate is high enough, the gas flow velocity may
exceed the “critical” velocity. When the velocity is above critical, the liquid that is present
is carried to the surface by the gas in the form of mist or small droplets.
However, as reservoir pressure declines with age, inflow performance declines with
formation blockage, or the amount of liquid increases, the natural gas flow velocity may
fall below critical so that liquids can no longer be removed from the well on a continuous
basis. At this stage, some form of artificial lift is needed to remove liquids from the well
and the near-wellbore portion of the reservoir.
Artificial Lift Screening Criteria
Methode of Lift
Operating Hydraulic
Condition SRP PCP Gas Lift Plunger Lift Pump Jet Pump ESP Form Lift
Max Operating 19000/457 15000/457
Depth(ft/m) 16000/4878 12000/3668 2 19000/5791 17000/5182 15000/4572 2 22000/6705
Max Operating
Volume(bpd) 6000 4500 50000 200 8000 20000 60000 500
Max Operating
Temperature(F/C
) 560/288 250/121 450/232 560/288 560/288 560/288 400/204 400/204
Corrosion Good to Good to
Handling Excellent Fair Excellent Excellent Good Excellent Good Excellent
Fair to
Gas handling Good Good Excellent Excellent Fair Good Fair Excellent
Fair to
Solid Handling Good Excellent Good Fair Fair Good Fair Good
Fluid Gravity(API) >6 <40 >15 >15 >6 >6 >10 >6
Wireline or Wellhead Workover
Workover Catcher or or Pulling Capillary
Servicing Workover or Pulling Rig Rig Wireline Hydraulic or Wireline Rig Unit
Well Well's
Gas to Gas to Natural Electric Natural
Prime Mover Electric Electric compressor Energy Multicylinder or Electric Motor Energy
Offshore
Application Limited Limited Excellent N/A Good Excellent Excellent Good
System Efficiency 45% - 60% 50% - 75% 10% - 30% N/A 45% - 55% 10% -30% 35% - 60% N/A
Current Trends of Artificial Lift in US
The North American artificial lift systems market is expected to register a CAGR of more
than 5.5% during the forecast period 2022-2027. North America was one of the worst
affected regions due to the COVID-19 pandemic and implemented large-scale
lockdowns and enacted bans on citizens' freedom of movement. As a result, oil and gas
companies reduced their output significantly, which further slowed down the value
chain, and resulted in a negative economic impact. Factors such as increasing demand
for energy, technological advancements, and increasing exploration activities are
expected to drive the artificial lift systems market in North America. The growing
concerns over environmental pollution and the shift toward the renewable sector for
energy generation are likely to hinder the market growth during the forecast period.
Growing investments in R&D activities by private players and government entities, along
with technological advancements like real-time data analysis and management, are set
to create new opportunities and propel the industry to new levels over the coming years.
The United States accounts for more than 60% of crude oil production and more than
90% of the wells required for artificial lift systems from the very beginning. Hence, it is
the largest market for artificial lift systems in North America.
The offshore oil and gas segment is expected to record the fastest growth rate during
the forecast period. Artificial lift methods such as hydraulic pumping, gas lift,
electric submersible pumps (ESPs), and progressive cavity pumps (PCPs) are
predominantly used in offshore oil wells.
Companies have been exploring offshore locations for oil and gas production owing to
the offshore segment having huge untapped reserves. Thus, the offshore segment is a
more capital-intensive segment compared to onshore.
According to the International Energy Agency (IEA), between 2019 and 2040, around
2,500-3,000 offshore projects are expected to undergo decommissioning as they have
attained their operational lives. The Gulf of Mexico and the North Sea have the highest
number of maturing shallow fields in the region.
Thus, offshore oil fields have created demand opportunities for artificial lift methods in
the Gulf of Mexico and the North Sea regions of North America.