Panel Sessions

Monday, 23 January, 0900–1030 hours

Keynote Address

Ibraheem M. Assa’adan, Saudi Aramco
Graeme Smith, Shell
Musabbeh Al Kaabi, ADNOC

Monday, 23 January, 1100–1230 hours

Panel Session 1: Setting the Scene

Moderators:

George Waters, Schlumberger
Mike Hopkins, Halliburton

Panelists:

Ismail Buhidma, Saudi Aramco
Paul Day, Petrowell
Tauseef Salma, Baker Hughes
David Khemakhem, Exxon Mobile Upstream Research Company

The difference between unconventional gas–which includes shale gas, CBM, and tight gas sands–and conventional gas is not the gas itself (which is the same), but the way it is trapped in the rock. It requires different, unconventional approaches to extract it. The main emphasis in conventional gas production is on geological exploration since you need to first find the field and then start developing it. Developing unconventional gas reserves however, focuses on the ways to produce gas rather than finding where it is. When gas is trapped in tight rock, a coal bed or in shale it makes gas production difficult. Developing such resources requires extensive stimulation to improve gas flow and a large number of wells which usually produce at much lower rates than traditional ones. Such projects are lengthy and their development can sometimes takes several decades.

With less and less “easy oil and gas”, unconventional gas holds the potential to help meet the regions rapidly growing energy demand. Potentially recoverable unconventional gas volumes make the bulk of the world’s total gas reserves, and so far the largest developed volumes are located in North America and Asia. Unconventional gas is commonly regionally pervasive–widely spread throughout huge areas–so most probably you know the resources are there, but because of their low productivity you will need many wells, hundreds if not thousands of them, to develop an unconventional gas block, making doing it economically a huge challenge.

To unlock this resource base we need favourable gas prices, technologies that work, and more importantly, the know-how to apply the right technology mix to make the production of unconventional gas economically viable. Furthermore, we need to leverage expertise and proven experience from North America, to assess and unlock the potentially large unconventional gas resources that exist within our region. State support is an essential condition to attract investors to unconventional gas projects. For example, the success of unconventional gas development projects in the US was achieved through tax and price incentives created by the government. Poland is currently regarded as an attractive area because of its low corporate tax rates (19%) and royalties (<1%). Germany has created incentives for the production of unconventional gas. The MENA region would also have to move in the same direction because unconventional gas development projects, due to their lower cost-effectiveness, require a more favourable taxation environment.  At the same time, with the right approach and appropriate incentives on the part of the government, unconventional gas projects may become interesting for world-class investors with considerable technological and financial capabilities.

This session aims to set the scene for the conference by establishing the fundamentals components of a successful unconventional gas business, both technical and non-technical. We will explore the need for unconventional gas as an emerging part of the regions energy mix and address how experience from North America and elsewhere can be leveraged to reach sustainable commercial developments.

 

Tuesday, 24 January 2012, 1100–1230 hours

Panel Session 2: Unconventional Gas Development Challenges

Moderators:

Abdul Nabi Mukhtar, BAPCO
Wael El-Mofty, Packers Plus

Panelists:

Yousuf Al Ojaili, Oman Gas Company
Graeme Smith, Shell
Bernie de Hoedt, Baker Hughes
Mason Gomez, Halliburton

The development of unconventional resources such as shale and tight gas reservoirs is one of the most promising, yet highly challenging trends of our industry today and is regarded as an energy game changer that could have great potential for reducing carbon emissions and environmental impacts. It could dramatically alter the energy supply picture for the whole world going forward as we continue to develop our global unconventional gas resources and improve their economical, logistical, and environmental portfolios.

There has been a rapid evolution of technologies used to characterise unconventional gas reservoirs and hydraulic fracturing techniques required for producing and effectively draining these resources.  The reality for unconventional gas reservoirs is that fluid storage and transport mechanisms are still in the early stages of understanding. Therefore, for modern reservoir engineers, the process of unconventional gas development will include estimation of fluids-in-place and forecasting recovery factor and fluid production profile, in addition to prospect analysis, asset valuation, reserves estimation, and field development planning. Furthermore, it is mandatory for the optimum development of such unconventional plays to study and plan for induced hydraulic fracturing, which has the largest impact on well performance, yet methods for evaluating hydraulic fracture properties are also part of the learning curve.

This panel session will provide an overview of the legal, political, and environmental challenges and requirements associated with unconventional gas development in the different parts of the world in addition to the different resources, e.g. human, equipment, etc. required to develop these plays. Economic challenges of field-scale development of unconventional gas plays shall be addressed with emphases on integrated project management approach with due environmental awareness.

 

Wednesday, 25 January 2012, 1500–1630 hours

Panel Session 3: Unconventional Gas Expertise

Moderators:

Hans Christian Freitag, Baker Hughes
Saleh Rawaili, Saudi Aramco

Panelists:

Brian Gratto, Saudi Aramco
Mike Navarette, Halliburton
Khaled Nouh, Baker Hughes
Peter Richter, Schlumberger

The last few years have seen a strong growth of interest in the potential of unconventional gas in the Middle East–spurred on largely by the success of unconventional gas in North America and the domestic demand for gas in the Middle East. It is therefore important to review the reasons for the success of unconventional gas in North America as well as the lessons learnt and the expertise accumulated. The keys to unlocking tight gas and potential in North America were found over the past decade or two while the keys to unlocking shale gas potential in North America were found over the past seven or eight years. Through continued efforts by large number of UG operators, closely helped by service companies, cost-effective technologies and operational workflows were developed through series of "trial and error" approaches. The use of factory-mode shale gas operations comprising drilling and completion, large-scale hydro-fracks and efficient workflows can make the shale gas economics potentially successful. Beyond that, shale gas petrophysics, geophysics, rock mechanics, reservoir engineering, and development practices still have not been fully exploited.