History of Hydraulic Fracturing - Bama At...

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History of Hydraulic Fracturing Mark Parker Halliburton Mid-Continent Area Technology Manager

Transcript of History of Hydraulic Fracturing - Bama At...

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History of Hydraulic Fracturing

Mark Parker Halliburton

Mid-Continent Area Technology Manager

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Safety Moment – Driving Safety

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Distracted Driving

The only thing you should do when Driving is Driving Focus on the task at hand – Driving Safely

– No interfacing with GPS/Navigation systems – No calls – No texts – No eating

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The Oil & Gas Industry Activity Today

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Transition to Unconventional Reservoirs

The Shale Revolution – Sandstones and carbonates to source rock reservoirs

Horizontal Drilling

– Increased reservoir contact

Hydraulic Fracturing – What it is and is not

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Resource Triangle Conventional Reservoirs Small Volumes Easy to Develop

Unconventional Reservoirs Large Volumes Difficult to Develop

Improved Technology

Increased Cost

Gas Hydrates Oil Shale

Gas Shales Heavy Oil

Coalbed Methane

Low Perm Oil Tight Gas Sands

High – Medium Quality

Reference: OTC 20267 Stimulation of Tight Gas Reservoirs Worldwide Stephen A. Holditch, Texas A&M University

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Benefits - Horizontal Wells and Reservoir Contact

Increase contact area of formation

Improve efficiency and economic viability

Reduce surface footprint

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Hydraulic Fracturing What it is …

Hydraulic Fracture Mechanics

Fracture Design Treatment Schedule

[ ] Tec R R z P P σ α α ν

ν σ + + −

− = 2 1 min 1

σ

σv > 1psi/ft

σmin

σmax

σ

Stage #

Flow Path

Fluid System

Prop Type Stage Time (min)

1 – 1 Shut-In 0 1 – 2 In 20# Water Frac G 39.3 1 – 3 In 20# Water Frac G SAND – PREMIUM – 20/40,

BULK, SK (100003678) 17.82

1 – 4 In 20# Water Frac G 6.39 1 – 5 In 15% Hydrochloric Acid 1.06 1 – 6 In 20# Water Frac G 16.46 1 – 7 In 20# Water Frac G SAND-CRC PREMIUM-20/40,

BULK (101357961) 7.02

1 – 8 In 20# Water Frac G SAND-CRC PREMIUM-20/40, BULK (101357961)

10.32

1 – 9 In 20# Water Frac G SAND-CRC PREMIUM-20/40, BULK (101357961)

8.96

1 – 10 In 20# Water Frac G SAND-CRC PREMIUM-20/40, BULK (101357961)

6.31

1 – 11 In 20# Water Frac G 10.37 1 – 12 Shut-In 0

Total 124.01

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Well Construction

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Why do we need to cement wells? •Protect fresh water and other formations from well fluids

•Protect the well casing from damaging formation conditions

•Ensure a durable and competent casing string throughout the life of the well

•Possibly the most critical phase in well construction or completion

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Typical casing strings

Cement

Surface Casing

Intermediate Casing

Production Casing

Cement

Cement

Cement

Fresh Water Aquifer

Lost Circulation Zone or High Pressure Zone

High Pressure Reservoir

Conductor Casing

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How Did We Get Here?

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How Did We Get Here

Concept development and understanding

Chemical system development

Equipment development

Engineering understanding

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Velma, Oklahoma

The First Commercial Hydraulic Fracturing Treatment

March 17, 1949

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The “Hydraulic Fracturing” Process •The Use of Fluids To Apply Hydraulic Pressure to Create A Fracture in a Rock Formation

• The Continued Injection of Fluids Into The Created Fracture To Develop the Geometry

• The Placement of Small Granular Solids Into The Fracture To Insure It Remains Open After The Hydraulic Pressure Is No Longer Being Applied

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The Objective of The “Hydraulic Fracturing” Process

• Increase The Rate At Which The Well Is Capable of

Producing Oil or Gas

• Increase The Economically Recoverable Reserves For A Well

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Principal Stress And Fracture Orientation

Lowest

σV

σH1

σH2

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Propping Agents

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Chemical Development

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Reservoir Characterization

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Engineering and Testing Fluid Mechanics/Rheology

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Performance Testing – Fracture Conductivity

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Reservoir Understanding - Rock Mechanics

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Software Development

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History of Halliburton Frac Fluids - 1

The Industry

– 1949 Oil Frac

– 1950’s Viscosified Water

– 1960’s Crosslinked Fluids

– 1970’s Foamed Fluids

Halliburton

– 1969 HyGel™/LoGel™

– 1972 VersaGel™

– 1974 Kleer-Gel™ II

– 1977 AcidGel Frac II™

– 1982 VersaGel™ HT

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Massive Hydraulic Fracturing – late 1970’s through the 1980’s

Targets – Low permeability reservoirs – Natural gas production – Deeper – Hotter – Higher pressure

Technology – Complex chemical fluid systems – Long pump times – Computer designs

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Where Are We Now?

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The Rise of Unconventional Reservoirs

Source Rock Reservoirs – Shale Gas – Shale Oil

Horizontal Wells and Hydraulic Fracturing

– Accelerated development – Increased productivity

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Evolution of Fracturing – 1990’s to Today

Engineering understanding of the fracturing process – Ultra-low permeability reservoirs – Coal Bed Methane (CBM) – Source Rock Reservoirs

Alteration of design based on the reservoir – Computational improvements

• Fracture Design Simulators • Reservoir Simulators

– Hybrid treatment designs

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Equipment

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Equipment

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History of Halliburton Frac Fluids - 2

The Industry

– 1980 Improved Breakers – 1990 Reduced Polymer Fluids

– 2000 Reduced Residue Fluids

– 2010 Guar-Free, Green Fluids

– 2012 High TDS Crosslink Fluids

Halliburton – 1986 Pur-Gel™ – 1986 Thermagel™ – 1987 BoraGel™ – 1991 HyborGel™ – 1997 Delta Frac® – 2001 HMP – 2002 SilverStim® LT – 2002 Sirocco® – 2003 SeaQuest® – 2004 DeepQuest® – 2005 pHaserFrac® – 2008 OmegaFrac®

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Concerns for the Industry

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Concerns for the Industry

Water resources

Environmental pollution

Sustainability

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Federal

EPA Study EPA HF study to include water withdrawals, storage, treatment, disposal and recycling

State State regulators seeking to maintain primacy over oil & gas regulation

Federal Lands BLM reviewing operations and revising oil and gas regulations on federal lands

Diesel Regulation Waxman inquiry prompts EPA to expand regulatory guidance on diesel use in frac fluids

SEAB Natural Gas Subcommittee recommendations on improved safety & environment in shale development

Overarching US Debate - Federal Versus State Oversight

Legislators and regulators vie to regulate oil and gas industry at the federal level

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New York De facto moratorium awaiting final SGEIS ruling in 2014?

Wyoming Chapter 3 regulations address well construction and completions – Lawsuit over disclosure

Colorado Rule 205-A ruling sets new standards for HF chemical disclosure – April 1st

California SB 4 proposes new legislation on upstream activities including HF disclosure

Texas HB 3328 regulation sets new standards for HF chemical disclosure – Feb. 1st

Pennsylvania Chapter 78 regulations address well construction and completions

State Regulation - Under Review

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Water Use Comparison Shale Gas Development < 1%

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Kevin Fisher, “Data Confirm Safety of Well Fracturing,” The American Oil & Gas Reporter – July 2010

Fracture Location Determination - Barnett Study

Top of fractures

Bottom of deepest aquifers

Thousands of feet of separation

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Frac Fluid Composition

*Image: EnergyinDepth.org 2009 Source: Compiled from Data collected at a Fayetteville Shale Fracture Stimulation by ALL Consulting 2008.

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FracFocus – Chemical Disclosure Registry

Publicly available information on a well by well basis

Standardizes reporting for all fracturing operations

Supports multiple state disclosure efforts

Provides information on state regulations and educational material

www.FracFocus.org

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Environmentally Focused Energy Development

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Environmental Advancements In Fracturing

Assess Health, Safety and Environmental hazards of products

Considers relative hazards in formulating new products

Can be adopted by entire industry

Chemistry Scoring Index (CSI)

Environmental Safety Health

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CleanStream® Ultra-violet

light to control bacteria

CleanWaveTM Electrocoagulation to recycle water for fracturing process

ADPTM Blender Dry powder gelling agent to eliminate

carrier fluids

Treated > 860 million gallons of water

eliminating 129,000 gallons of biocide

Recycled > 31 million gallons water saving 7,400

truck loads

Eliminated > 30 million gallons of mineral oil from

fracturing operations

Comprehensive Environmental Stewardship SandCastle®

Solar energy and gravity rather than diesel power

Saved > 1.4 million gallons of diesel and

avoided 31 million pounds of CO2

Dual fuel technology Powering equipment with a blend of

diesel and natural gas 2012 Statistics

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STRONGER In-depth peer review of the regulatory programs in OH, PA, OK, LA and CO www.strongerinc.org

IOGCC/GWPC FracFocus website providing well by well hydraulic fracturing information to the public www.FracFocus.org

Sources of Information

Energy In Depth E.I.D. launches new grassroots initiatives in northeast PA, southern NY and eastern Ohio www.Energyindepth.org

Halliburton HF microsite contains detailed fluid information and educational material www.Halliburton.com/HydraulicFracturing

API Detailed guidance documents and recommended practices for industry www.API.org

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Additional Information Gradient Report – National Human Health Risk Evaluation for Hydraulic Fracturing Fluid Additives http://www.energy.senate.gov/public/index.cfm/files/serve?File_id=53a41a78-c06c-4695-a7be-84225aa7230f SPE 166142 – Environmental Risk Arising From Well Construction Failure: Difference Between Barrier and Well Failure, and Estimates of Failure Frequency Across Common Well Types, Locations and Well Age http://www.spe.org/atce/2013/pages/schedule/tech_program/documents/spe166142-page1.pdf Vicki Vaughan Article – Water for fracking is dwarfed by other usage http://fuelfix.com/blog/2011/10/11/water-for-fracking-is-dwarfed-by-other-usage/ Chesapeake Energy Overview – Water Use in Deep Shale Gas Exploration http://www.chk.com/media/educational-library/fact-sheets/corporate/water_use_fact_sheet.pdf SPE 151597 Paper – Measurements of Hydraulic-Fracture-Induced Seismicity in Gas Shales http://www.energy4me.org/hydraulicfracturing/wp-content/uploads/2013/08/SPE-151597-MS-P1.pdf University of Texas Methane Study: http://www.utexas.edu/news/2013/09/16/understanding-methane-emissions/ Kevin Fisher Article, Oil & Gas Reporter – Data Confirm Safety Of Well Fracturing http://www.halliburton.com/public/pe/contents/Papers_and_Articles/web/A_through_P/AOGR%20Article-%20Data%20Prove%20Safety%20of%20Frac.pdf Energy From Shale – Informational website:

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Where Are We Going?

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Where are we going

Frac of the Future

Subsurface Visualization

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Tomorrow’s Fracturing Location Industry leading reliability Highly efficient operations Safe and easy to the wellhead

Effective land usage Environmental responsibility Remotely operable

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CYPHER™ Earth Model Properties

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3D Framework with Lateral Wells

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Across the US, abundant natural gas and oil is being enabled by hydraulic fracturing and other technologies

Well construction and sound engineering practices are the keys to protecting ground water

Hydraulic fracturing is a safe and well understood process with a long and proven track record

Conclusions

With scientifically based and balanced regulations shales can be developed in an environmentally sensitive and cost effective manner

Technological advancements are making real impacts in reducing the industry’s overall footprint

Source: EIA Annual Energy Outlook 2011

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Thank you