Department for Manufacturing, Innovation, Trade, Resources ... Manufacturing/paul... · 1...
Transcript of Department for Manufacturing, Innovation, Trade, Resources ... Manufacturing/paul... · 1...
1
Department for Manufacturing,
Innovation, Trade, Resources and Energy
Opportunities in Unconventional Gas
www.dmitre.sa.gov.au
By Paul Goiak
Director,Industry Participation
DMITRE
2
Industry Participation Office
PACE
Manufacturing DEVELOP
ICNSA CONNECT
MIPO FORECAST
Review results of
procurement packages
Improve industry
awareness
Pre-qualification
Match local suppliers
to project packages
Identify companies
to be developed
Capability development
programs
Promote
clustering
National Water
Sector Manager
Supply chain Gap
Analysis
Policy Development
Centres of
Excellence
Research &
Development
Attract new
competencies
Strategic Capability Development
MIPO Industry Development Process
Strategic interaction with Industry
Review of International/Developed Supply chains
South Australian scenario and opportunity identification
Prioritisation :- Barriers to entry, ease of execution, value
Project Execution
3
4
Why Shale Gas ?
• Global demand
increasing
• Export market
• Australian deposits
• Existing infrastructure
6
Differences between Australia and the USA
• Road, rail and
pipeline network
• Service companies
• Geology
• Cost
7
Unconventional Gas Lifecycle
Exploration & Appraisal
Drilling Program
Completion
Production / Processing
Decommissioning
Seismic surveys
Pilot well program
Rig count increases
Wells drilled, logged, cased and cemented
Wells perforated
Hydraulic fracturing
$$$$
Well management
Processing plant
Plugging and sealing
of wells
8
Unconventional Gas Lifecycle
Appraisal to Development
Rapid increase in number of wells being drilled
• Seismic survey
• Data analysis
• Pilot drilling
• Reservoir
characterisation
• Development
Program
9
Unconventional Gas Supply Chain Opportunities
Appraisal & Development
Rig count increases
Wells drilled, logged, cased and cemented
• Lined ponds
• Land clearing
• Road construction
• Accommodation
• Water, gas & oil pipelines
• Rig maintenance services
10
Completion
Wells perforated
Hydraulic fracturing
$$$$
• Proppant and
water
• Fraccing fleets
• Produced water
• Chemicals
Unconventional Gas Supply Chain Opportunities
13
Completion
Wells perforated
Hydraulic fracturing
$$$$
• Proppant types
Unconventional Gas Supply Chain Opportunities
Completion
Wells perforated
Hydraulic fracturing
$$$$
Unconventional Gas Supply Chain Opportunities
• Sand Processing Facility
Completion
Wells perforated
Hydraulic fracturing
$$$$
• Essential equipment
Mixing tanks Storage Silos
Unconventional Gas Supply Chain Opportunities
Completion
Wells perforated
Hydraulic fracturing
$$$$
• Essential equipment
Mixing rigs Fraccing Rigs
Unconventional Gas Supply Chain Opportunities
Production/Processing
Well management
Processing plant
• Separation units
• Storage tanks
• Flare units
• Flow lines
• Well maintenance.
Unconventional Gas Supply Chain Opportunities
Production/Processing
Well management
Processing plant
• Gas compression
• Vertical separators
Unconventional Gas Supply Chain Opportunities
Well Decommissioning
Plugging and sealing
of wells
• Dismantle well
head
• Plug well
• Seal well
Unconventional Gas Supply Chain Opportunities
Unconventional Gas – A key industry target
Opportunities identified and progressing
Five key opportunities identified as potentials for SA industry to develop
Two progressed through to business cases for project management
• Growing of the guar plant
- produces fracturing gel to release oil and
gas in wells
• The supply of proppants
- either frac sand or ceramics to ‘prop’ open
fractures to provide pathways for oil and
gas to flow
Unconventional Gas – A key industry target
Guar Trials – being developed
• Business case demonstrated potential
feasibility
• Committee established, SARDI, Uni of
Adelaide, SANTFA DMITRE
• $50k committed by DMITRE for trials
• Interest by petroleum producers to further
develop
• 4 trial crops planted across SA
• Positive growth rates with heat tolerance
recorded
• Harvest & scientific assessment in March
Unconventional Gas – A key industry target (cont)
Proppant supply in South Australia - developing
Investigations into two types of proppant;
1.Frac sand to supply Cooper Basin & eastern Australian CSG
2.Manufactured proppant alternative supplied from South Australia
Enormous quantities will be required for a fully developed unconventional gas scenario
in the Cooper Basin & other basins in Australia
- Business cases being developed
- Potential for industry partnerships
to develop opportunities
- Research and Development
collaboration with SA R&D
providers
- Opportunity for a new industry
Summary
Cost reduction and higher drilling success rates will be key
• Watch the rig count - leading indicator
• Get to know the supply chain - tier 1's
• Differences - USA / Australia
• Cost reduction - key driver in Australia
• Appraisal to development - increasing local content
• Familiar with standards (safety)
• Use government resources
• Industry/University collaboration importance
Unconventional Gas Supply Chain Opportunities
Department for Manufacturing,
Innovation, Trade, Resources and Energy
Industry Participation Office
Office of Manufacturing and Innovation, DMITRE:
Paul Goiak
Director, Industry Participation
Phone: 8303 2465
Email: [email protected]
www.dmitre.sa.gov.au