Shale Gas KangHee Lee 26 Luglio, 2013 1. Summary Shale Gas −What is Shale Gas? −History of Shale...
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Transcript of Shale Gas KangHee Lee 26 Luglio, 2013 1. Summary Shale Gas −What is Shale Gas? −History of Shale...
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
2
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
3
• 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
11
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
• 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
• 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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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
20
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
23
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)
25
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.
26
Analysis
Analysis
About Veolia Water
27
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.
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
29
• 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:
13
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.
32
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.
32
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.
33
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
34
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.
135
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
136
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
136
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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• 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