Shale Gas KangHee Lee 26 Luglio, 2013 1. Summary Shale Gas −What is Shale Gas? −History of Shale...

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Shale Gas KangHee Lee 26 Luglio, 2013 1

Transcript of Shale Gas KangHee Lee 26 Luglio, 2013 1. Summary Shale Gas −What is Shale Gas? −History of Shale...

Shale Gas

KangHee Lee26 Luglio,

2013

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Summary

Shale Gas− What is Shale Gas?− History of Shale Gas− Why is it important?

Techniques− Horizontal Drilling− Pad Drilling and Multilateral Drilling− Hydraulic Fracturing

Analysis

Opportunities in Poland

Consequences of shale gas market

Conclusion

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Summary

Shale Gas− What is Shale Gas?− History of Shale Gas− Why is it important?

Techniques− Horizontal Drilling− Pad Drilling and Multilateral Drilling− Hydraulic Fracturing

Analysis

Opportunities in Poland

Consequences of shale gas market

Conclusion

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• Natural Gas that is trapped within the shale formations• Unconventional way of extracting the gas• It is the next generation energy source of Oil• Contains 70~90% of Methane, 5% of Ethane, and 5~25% of

Condensate

Shale Gas

What is Shale Gas?

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• First founded in the 1800’s.• In 1821, it was first extracted in Fredonia, New York• Horizontal drilling began in the 1930s• However, due to lack of technique and production potential, exploitation of shale gas was abandoned

Shale Gas

History of Shale Gas

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Shale Gas

Why is it important?

• Shale oil and shale gas resources are globally abundant• Approximately 187 Trillion m³ of shale gas are deposit

underground in 31 countries

http://www.eia.gov/naturalgas/

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Shale Gas

Rank

CountryShale gas

trillion cubic meter

1 China 31.57

2 Argentina 22.7

3 Algeria 20.02

4 USA 18.83

5 Canada 16.23

6 Mexico 15.43

7 Australia 12.37

8South Africa

11.04

9 Russia 8.07

10 Brazil 6.94

Top 10 countries with technically recoverable shale gas re-sources

Why is it important?

http://www.eia.gov/naturalgas/

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Shale Gas

Top 10 Europe countries with technically recoverable shale gas re-sources

Why is it important?

http://www.eia.gov/naturalgas/

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Rank CountryShale Gas

trillion cubic meter

1 Poland 5.30

2 France 5.10

3 Norway 2.35

4 Ukraine 1.19

5 Sweden 1.16

6 Denmark 0.65

7 U.K. 0.57

8 Netherlands 0.48

9 Turkey 0.42

10 Germany 0.23

2009 Natural Gas Market

Shale Gas

Why is it impor-tant?

• One of the most rapidly expanding trends in onshore domestic oil and gas exploration and production today

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Shale Gas

Why is it impor-tant?

• Oil: slowest-growing fuel over the next 20 years • Gas: fastest growing fossil fuel globally to 2030.

Shares of World primary energy productionWorld primary energy demand by fuel

EIA World Energy Outlook 2011 BP Energy Outlook 2030

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Summary

Shale Gas− What is Shale Gas?− History of Shale Gas− Why is it important?

Techniques− Horizontal Drilling− Pad Drilling and Multilateral Drilling− Hydraulic Fracturing

Analysis

Opportunities in Poland

Consequences of shale gas market

Conclusion

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Techniques

• The two Horizontal drilling and Hydraulic Fracturing are the

most crucial techniques in the development of the shale gas

industry.

• In advance, Multilateral Drilling and Pad Drilling are used to

increase the operational efficiency of gas production and

reduces infrastructure costs.

Briefly,

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Techniques

Techniques

• Allows the wellbore to come into contact with significantly larger areas of hydrocarbon bearing rock than in vertical well

Horizontal Drilling

Depth range: 1000m to 5000m

Shale zone thickness: approximately 100m

Horizontal range: 1000m to 5000m

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Techniques

Horizontal Drilling

• How Does it work? - Kick Off Point - Entry Point

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Techniques

• Strong Point of Horizontal Drilling

−Drilling without harming what’s above

−Multiple horizontal wells can be drilled from a single site

−One road, one pipeline to serve multiple wells on one site

−Production of previously untapped resources keeps utility

costs low

Horizontal Drilling

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Techniques

Pad Drilling and Multilateral DrillingMultilateral Drilling

Pad Drilling

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Techniques

• Fracturing the rocks by pumping large amount of fracturing fluids

Hydraulic Fracturing

9,000 m³ – 29,000 m³ of water is used per well!

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Techniques

Fracturing Fluid : 90% of Water + 9.5% of Sand + 0.5% of Chemical• Increase the pressure of the water• Protect the reservoir from contamination

Hydraulic Fracturing

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Techniques

• USA

Hydraulic Fracturing

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Summary

Shale Gas− What is Shale Gas?− History of Shale Gas− Why is it important?

Techniques− Horizontal Drilling− Pad Drilling and Multilateral Drilling− Hydraulic Fracturing

Analysis

Opportunities in Poland

Consequences of shale gas market

Conclusion

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Analysis

What can Artes can do forWaste Water Treatment?

• Effluent Water Treatment

• Deaerators

• Produced and Injection Water Treatment

• Filtration

Analysis

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Analysis

Detail inforamtion about injected/flowback water

• Where is the injected water from: Well water, Produced water, River, or Sea

• Quality of the injected water: 500 ~ 30,000ppm (Amount of TDS)• Volume of the injected water: 9,000 m³ ~ 29,000 m³ of water per

well• Pressure of the injected water: 8000 ~ 9000 psi• Flow rate: 15m³/h ~ 25m³/h for the first two weeks

suddenly declines to 0.5m³/h ~ 2m³/h in a few months 0.05m³/h ~ 0.1m³/h

• Flowback rate: 10~40% of the fluid returns to the surface• Quality of the flowback water: 90,000 ~ 300,000 ppm (Amount of

TDS)

Analysis

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Analysis

Analysis

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Typical Produced Water TDS Levels – Selected Areas in USA

• Powder River CBM – 1,200 ppm• San Juan CBM – 4,500 ppm• Greater Green River – 8,000 ppm• Eagle Ford Shale – 20,000 ppm• Fayetteville Shale – 25,000 ppm• Barnett Shale – 60,000 ppm• Woodford Shale – 110,000 ppm• Haynesville Shale – 120,000 ppm• Permian Basin – 140,000 ppm• Marcellus Shale – 180,000 ppm

Analysis

Analysis

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Dealing with the flowback water.

What’s now on the current market

• 1st Option: Reuse it without treatment

• 2nd Option: Deep well injection

• 3rd Option: On-site treatment for reuse

• 4th Option: On- or off-site treatment for discharge as fresh

water

Analysis

Analysis

Our Competitors – Companies involved in the shale gas water treatment

1)

2)

3)

4)

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Analysis

Analysis

About Halliburton

CleanWave ServiceTo remove TSS, oil, otherinsoluble organics and bacteria from the water.

CleanStream® ServiceUtilizes multiple ultraviolet lightchambers to effectively controlbacteria at real-time rates.

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Analysis

Analysis

About Veolia Water

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Compact process that incorporates chemicalprecipitation with sludge thickening, producing an effluent with low con-centrations of scale-formers and a highly concentrated sludgethat can be easily dewatered

This truck combines proven tech-nologies from Veolia WaterSolutions & Technlogies to meet the unique needs of the shale gas indus-try.

Analysis

Analysis

About Aquatech

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MoTreat: To remove TSS MoVap: To remove TDS

Summary

Shale Gas− What is Shale Gas?− History of Shale Gas− Why is it important?

Techniques− Horizontal Drilling− Pad Drilling and Multilateral Drilling− Hydraulic Fracturing

Analysis

Opportunities in Poland

Consequences of shale gas market

Conclusion

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Opportunities

Shale Gas in Poland

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Opportunities

Shale Gas in Poland

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• Chevron & ENI & Total: 4

• PGNiG & FX Energy: 15

• ConocoPhillips: 6• 3Legs Resources

Lane Energy: 6

• San Leon Energy & Halliburton: 11

• BNK Petroleum: 13

• Orlen Upstream: 7

• Petrolinvest & Silurian & ECO Energy & Silurian Energy:

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Companies involved in Poland Shale gas field

• Wisent Oil and Gas: 4

• Cuadrilla Polska: 2

• DPV Service: 5

• Dart Energy Poland: 3

• Strzelecki Energia: 6

# indicates the number of licenses

Opportunities

Shale Gas in PolandBNK petroleum

• The development of shale resources in Poland is expected to occur

at depths between 3,500 and 4,500 meters.

• It is estimated that the average quantity of water required for one

stimulation treatment for a single horizontal well is between

11,000 m3 to 19,000 m3

• Water will come from a variety of sources including well water,

surface water, brine water and reuse of water from previ-

ous fracture stimulation activities.

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Opportunities

Shale Gas in PolandBNK petroleum

• The development of shale resources in Poland is expected to occur

at depths between 3,500 and 4,500 meters.

• It is estimated that the average quantity of water required for one

stimulation treatment for a single horizontal well is between

11,000 m3 to 19,000 m3

• Water will come from a variety of sources including well water,

surface water, brine water and reuse of water from previ-

ous fracture stimulation activities.

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Opportunities

Shale Gas in Poland

• Exxon Mobil, Canada's Talisman Energy and U.S. oil firm Marathon, have all quit their Polish shale gas operations, with some of them citing uncertainty about the regulatory environment as a factor.

• Among 109 of explored wells, about 43 test wells are in operation, though none is expected to start producing gas before 2015.

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Summary

Shale Gas− What is Shale Gas?− History of Shale Gas− Why is it important?

Techniques− Horizontal Drilling− Pad Drilling and Multilateral Drilling− Hydraulic Fracturing

Analysis

Opportunities in Poland

Consequences of shale gas market

Conclusion

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Consequences of Shale Gas Market

As USA has been able to commercialize production

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Opportunities in the Downstream Field

Petro-chemical

plant

LNGplant

Fertilizerplant

Power Genandetc.

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Consequences of Shale Gas Market

• U.S. becomes a net exporter of natural gas by 2020

• Shale gas production, which grows by 113 percent from 2011 to 2040, is the greatest contributor to natural gas pro-duction growth

• U.S. petrochemical industry is announcing significant expan-sions of petrochemical capacity

• More than $217 billion will be invested over the next six years in downstream petrochemical production in the United States as a result of the shale gas boom

• Nearly 100 chemical industry investment projects publicly an-nounced through first-quarter 2013

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Opportunities in the Downstream Field

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Consequences of Shale Gas Market

• Based on industry reports, we estimate that the US chemicals industry has invested $15 billion in ethylene production, increas-ing capacity by 33%

• U.K. government: new allowances to reduce taxes from 62% to 30% of a company’s production income.

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Opportunities in the Downstream Field

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Conclusion

Conclusion

• 60 to 80 percent of all wells drilled in the United States in the next ten years will require hydraulic fracturing to remain operat-ing (Waste Water Treatment must needed)

• Anyhow, shale gas in Poland will be definitely explored by other mid-size companies soon (we have opportunities to be involved in Poland)

• Our Competitors are the USA water treatment companies who are already involved in the shale gas field (GE Water, Veolia, Aqutech and…)

• Challenges that we face− Depends on the area, the condition of the flow back water is

not SAME at every time (different amount of TDS)− Mobile water treatment package OR

− Totally new suitable product for shale gas water treatment package

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Thank you for your attention

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• http://www.waterworld.com/articles/wwi/print/volume-27/issue-2/regional-

spotlight-europe/shale-gas-fracking.html

• http://

www.bnkpetroleum.com/en/operations/europe/poland/shale-gas-in-poland

• http://

www.reuters.com/article/2013/05/22/poland-shale-idUSL6N0E320Q2013052

2

• http://www.bbc.co.uk/news/business-22459629

• http://

www.halliburton.com/public/pe/contents/Data_Sheets/web/H/H08647.pdf

• http://

www.halliburton.com/public/pe/contents/Case_Histories/web/A_through_R/H

09855.pdf

• http://

www.veoliawaterst.com/processes/lib/pdfs/productbrochures/vws_na/2631,P

ortable-Water-Treatment.pdf

Reference list

Reference list

• http://polishshalegas.pl/en/shales-in-poland/other-licensees

• http://pazwv.org/post/Chemical-industry-reports-shale-driving-investments.

aspx

• http://news.psu.edu/story/278905/2013/06/07/impact/webinar-look-shale-g

as-role-reviving-petrochemical-industry

• http://dealbook.nytimes.com/2013/05/17/3-foreign-companies-invest-in-u-s

-project-to-export-liquid-gas/?_r=0

• http://www.eia.gov/forecasts/aeo/MT_naturalgas.cfm

• http://www.naturalgaseurope.com/

• http://www.prnewswire.com/news-releases/the-20-leading-companies-in-sh

ale-gas-2012-competitive-landscape-analysis-152981365.html

• http://www.waterworld.com/articles/wwi/print/volume-27/issue-2/regional-s

potlight-europe/shale-gas-fracking.html

San Leon EnergyLewino-1G2 well in Gdansk, Poland

San Leon EnergyLewino-1G2 well in Gdansk, Poland