Hydraulic Fracturing: 2012 and Beyond
It is a good time to be in the oil industry. The rig count, drilling activity, and oil prices are high, and shale plays are a significant reason for each. And, because it is shale, it is an especially good time to be a completion engineer!
Even though we have been able to make these unconventional reservoirs economic by drilling horizontal wells and by multistage fracturing, it is important for us to realize (especially with low gas prices) that there is still plenty to learn about shale fracing (not spelled “fracking”). Buzz words fly around the industry: complex fractures, brittle vs. ductile shale, proppant transport in slickwater, and more. Each is a start, but what I challenge everyone to do is to ask the questions: What is really happening when we are fracturing the various shale plays; and how do we model it so that
we can predict and optimize performance?
Economic and political implications of shale are enormous. The USA recently, for the first time in many years, became a net exporter of energy. The USA has clear shale development advantages compared with other countries at this time because it has the rigs, hydraulic horsepower, personnel, and a long history of hydraulic fracturing.
But truth be told, there are disadvantages that must be dealt with. The USA is dealing with an oversupply of gas, which is reducing prices and making shale-gas plays marginally economical. To date, despite industry efforts, there still is no political will to substitute fuel sources on a large scale, create a widespread gas-fueling infrastructure, or increase automobile shale-gas usage appreciably.
So even though it is a good time to be in the oil field, remember that as completion engineers it is our job/duty to understand what is happening downhole when we are fracturing—Do we really have complexity? Does complexity occur in every shale interval or just the brittle ones? Does proppant “turn the corner” and go into the natural fractures? Knowing the answers to these and other questions can make the economics of shale plays become even better.
Read the paper synopses in the March 2012 issue of JPT.
Karen Olson, SPE, is the Completion Expert for Southwestern Energy. She has worked in the oil industry for 28 years, including positions with the Western Company of North America; Mobil E&P, working in west Texas, the Gulf of Mexico, and Norway; and most recently with BP as a Deepwater Completion Engineering Team Leader. Olson has written and presented many SPE papers and has been a discussion leader at SPE workshops and forums. She has served on several SPE committees and serves on the JPT Editorial Committee. Olson earned a BS degree in petroleum engineering from Louisiana State University and an MS degree in petroleum engineering from Texas A&M University.
If you are here then, like me, you must be curious on what is the P&O community is up to? Well that is the idea of this place (page) and its linked websites. As the Production and Operations Technical Director, it pleases me to welcome you to your window on the production and operation world of activities. The P&O Discipline Page, as we will refer to this website, belongs to you, the P&O members and is administered by the SPE staff. We hope you will make it your gateway to explore and discover what is new in technology, where the upcoming events are and who authored the latest papers on your favorite subjects.
We encourage you to make it an active and viable website so as to spread the knowledge and share the benefits. I hope to be able to update this blog every month and whenever new or important happenings take place. I expect and solicit your input, and look forward to your feedback; please keep your contributions coming.
Finally, please watch this space as work is underway to update and roll the new P&O Technical Section community site with its attempt to provide a more focused technical feed to you, our members, on several main work tracks of the P&O community. We intend to link the technical section seamlessly to your P&O Discipline Page. Happy web-surfing everyone.
153117-PA – Decision Criteria for Climate Projects
P. Osmundsen, University of Stavanger, and M. Emhjellen, Petoro A/S
139716-PA – Perspectives on CCS Cost and Economics
H.S. Kheshgi, SPE, and H. Thomann, ExxonMobil Research and Engineering Company; N.A. Bhore, Exxon Mobil Corporation; R.B. Hirsch, ExxonMobil Gas and Power Marketing Company; M.E. Parker, ExxonMobil Production Company; and G.F. Teletzke, SPE, ExxonMobil Upstream Research Company
158241-PA – Geologic Heterogeneity and Economic Uncertainty of Subsurface Carbon Dioxide Storage
J.E. Heath, SPE, P.H. Kobos, J.D. Roach, T.A. Dewers, SPE, and S.A. McKenna, Sandia National Laboratories
139616-PA – Unique CO2-Injection Experience in the Bati Raman Field May Lead to a Proposal of EOR/Sequestration CO2 Network in the Middle East
S. Sahin, U. Kalfa, and D. Celebioglu, Turkish Petroleum Corporation
133246-PA – How Significant Is the P90 Value as a Measure of the Reserves’ Downside?
S. Gupta, SPE, University of Western Australia; R. Gupta and J.F. van Elk, Curtin University of Technology; and K. Vijayan, University of Western Australia
143950-PA – Implementing i-field-Integrated Solutions for Reservoir Management: A San Joaquin Valley Case Study
A. Popa, SPE, K. Horner, SPE, S. Cassidy, SPE, and S. Opsal, SPE, Chevron Corporation
The value of information has a ubiquitous and sometimes pervasive role in modern well testing. From exploration to field management to surveillance, well-test practitioners deal with a wide array of measurements (e.g., pressure, flow rates, temperature, and fluid analysis) that, more often than not, encompass large amounts of data. This is particularly true for long-term-production-data analysis of established fields, and one can argue the same for any current pressure-transient analysis that also has benefited from improved and more-robust data-acquisition available today. Likewise, dynamic information through downhole testing equipment can be acquired in real time—wirelessly and at sampling frequencies that were not possible only a decade ago.
Yet what seems to be a relative abundance of data often is challenged by the complex environments in which we operate and by our need to assess its value against associated costs and business risks. One way to look at this is under the premise that, while “perfect” information is beneficial to have, it also is costly to acquire and economically inefficient. Is there a unique answer in our choice of type curves, material balance, or specialized graphs? Should we account for multiphase flow or rock compaction? More importantly, what is the value of the next-best substitute for the information we require? And can this substitute information still allow us to meet our testing objectives? Herein lies the delicate balance between our choices of risk and uncertainty, which brings us to the message of this feature: We should not look for data-rich, but information-rich, content that meets our testing needs.
The papers selected for this feature describe exciting advances and opportunities in well testing. They also show that the proper use of advanced techniques can lead to maximizing the value of the information at hand, even in hostile and unconventional situations.
Read the synopses in the February 2012 issue of JPT.
Renzo Angeles, SPE, is a Senior Engineering Specialist with ExxonMobil Upstream Research Company. His 12 years’ experience includes technical consulting in North and South America, the Middle East, Europe, and Asia. Angeles works with the unconventional-resources integrated project, and his areas of interest include well testing, formation testing, hydraulic fracturing, and near-wellbore modeling. Angeles holds MS and PhD degrees in petroleum engineering from the University of Texas at Austin, and has published 16 papers. He serves on the JPT Editorial Committee.
Since the first downhole electric measurement was made in 1927 by the Schlumberger brothers (first electrical-resistivity well log), the oil/gas industry has been striving to develop and improve new tools and sensors for downhole measurements. Indeed, these sensors aim at measuring many parameters, such as physical properties of rocks and fluids (formation evaluation), wellbore position (inclination and azimuth), or downhole drilling-mechanics conditions. Over the last 12 months, I have been impressed by the number of papers and news articles dealing with drilling mechanics and with vibration-data measurement, transmission, processing, and interpretation. Dynamics and vibration events still are responsible for high nonproductive time (NPT) (e.g., tool failures in many cases) and suboptimal drilling performances. With advances in electronics components, tool reliability, battery technology, and sensors, many companies have begun to develop their own memory-based drilling-measurement tools and to offer the associated service (data processing and interpretation) to operators to maximize drilling efficiency and, thus, reduce NPT.
These downhole drilling-mechanics-measurement tools, rated up to 150°C, generally integrate the following sensors: bending moment, vibration (three-axis accelerometers), weight on bit, torque on bit, annular pressure, temperature, and magnetometers (downhole rotational speed). Data are stored in a memory-based subassembly powered by a lithium-based battery (capacity up to 200 hours), or are transmitted to the surface (by use of mud-pulse, electromagnetic, or wired-pipe telemetry). The latest developments include ingenious sensors placed in the pin of the drill bit (avoiding an extra subassembly in the bottomhole assembly). Though measurements originally were captured close to the bit in the bottom portion of the drillstring, the industry has identified the need to have multiple sensors deployed all along the string (from the bit to the topdrive) to monitor continuously and anticipate any drilling event.
This outbreak of downhole-sensor technology is good news for the industry because it will probably accelerate the understanding of what is happening downhole even more, thus improving the overall drilling efficiency. Downhole drilling measurements should not be limited to only high-cost environments, but should be used in the early stage of the field development to accelerate the learning curve and, thus, optimize the drilling process for the next wells. Even though some downhole drilling and dynamics tools were developed in the 1980s, the industry now has more-accurate sensors, better physical models, and more computational power to process and analyze this huge amount of drilling data.
Read the synopses in the February 2012 issue of JPT.
Stéphane Menand, SPE, is Managing Director of DrillScan US. Previously, he held a research position at Mines ParisTech University. Menand has 14 years of experience as an R&D project manager in drilling engineering–more specifically in directional drilling, drillstring mechanics (torque, drag, and buckling), drilling dynamics, and drill-bit performance. He has authored several SPE and other technical papers and holds several patents. Menand earned a PhD degree in drilling engineering from Mines ParisTech University. He serves on the JPT Editorial Committee, the SPE Books Development Committee, and the SPE Drilling and Completions Advisory Committee.
Last year, we reviewed some of the more-prominent examples of how the industry continues to respond to the need for safe and cost-effective production facilities in ever-more-challenging environments. We also highlighted the increasingly important role that constructive collaboration can play in facilitating the desired outcomes for all parties.
This year, we illustrate how this same theme of constructive collaboration has been applied effectively at the other end of an offshore facility’s life span, in the major decommissioning program for the Frigg field. Most of us are very familiar with the term offshore hookup, but soon we may become equally familiar with what offshore “hookdown” really involves.
We also take a look at an approach for safely extending the useful life of aging offshore- production infrastructure, in locations where the subsea tieback of new fields warrants the associated investment.
Our focus is not entirely on end-of-life scenarios though. New offshore-platform concepts continue to evolve to suit the changing needs of operators. Some of these aim to offer the reduced well cost of fixed structures with the redeployment advantages offered by floating structures.
One of the most challenging new frontiers for the offshore industry and for society at large is the Arctic region. More specifically, it is development of underwater hydrocarbons where the presence of ice affects the nature of the development. Moving into any new frontier first requires gathering sufficient environmental data to be able to predict quantitatively the character and envelope of conditions at that location throughout the field’s production lifetime. We take a look at how these issues are being addressed in the specific case of the proposed Shtokman-field floating production facility.
As we return for this annual JPT Focus on the technology associated with offshore oil/gas facilities, it is timely to mention the launch of the new SPE magazine Oil and Gas Facilities, primarily geared toward the whole offshore-facilities sector. This effort represents a significant initiative to broaden the appeal and relevance of SPE to the wider oil/gas community, and any feedback that you may have in this regard would be welcomed warmly.
Read the synopses in the February 2012 issue of JPT.
Ian G. Ball, SPE, is Technology Director with Intecsea (UK) Ltd. Previously, he was retained by Reliance Industries Ltd Bombay, and was with Shell with assignments in Norway, the UK, and the US Gulf of Mexico. Ball earned a BS degree in electrical engineering from the University of Manchester Institute of Science and Technology. He serves on the JPT Editorial Committee and chairs the Editorial Committee of SPE’s new Oil and Gas Facilities magazine, the inaugural edition of which is available this month.
As SPE Technical Director for Projects, Facilities, and Construction (PFC), I invite you to take a look at Oil and Gas Facilities, SPE’s magazine dedicated to our discipline. Oil and Gas Facilities focuses on the projects, systems, and technologies of facilities engineering. Feature articles give timely reports on PFC-related news, technical advances, and people, and each issue of the magazine includes several peer-reviewed technical papers.
The idea for this magazine was born in a 2011 meeting of our PFC Advisory Committee, made up of industry volunteers and SPE staff. We recognized that SPE is providing many good programs in our discipline—workshops, Distinguished Lecturers, conference sessions, study groups, and so on—but many PFC specialists don’t view SPE as their professional home. This magazine, launched in February 2012, helped change that perception.
We also recognized the dramatic increase in complexity and technical challenges facing our discipline. Several years ago, developments such as major offshore projects, deepwater, and subsea tie-backs provided the justification for the PF&C discipline within SPE. Today, new developments have dramatically increased the demands of our discipline—intense IOR/EOR activity, ultra deep water, subsea processing, unconventional gas (fracturing), stranded gas (gas to liquids, floating LNG), sour hydrocarbons, remote locations, harsh environments, water handling issues, etc. SPE, with guidance from industry leaders, is responding to this greater need for technical information and knowledge sharing in our discipline.
I am delighted to be serving alongside some of the most distinguished professionals in our discipline on the Oil and Gas Facilities Editorial Board: Ian Ball, Technology Director, INTECSEA, UK, chairman; Paul Jones, Subsea Manager, Chevron; Kenneth E. Arnold, Senior Technical Advisor, WorleyParsons; Joseph Lee, Director, Process Solutions Group, Process System Division, Cameron; Howard Duhon, Systems Engineering Manager, GATE LLC; Simon Richards, Supervisory Engineer, Wood Group Frontier; and Jim Collins, Principal Development Engineer, ConocoPhillips (Peer-Review Editor)
SPE members can subscribe to this bimonthly magazine at a special introductory price of USD 39. Subscribe on your 2013 dues statement or, if you have already paid your dues, by ordering a subscription at http://www.spe.org/publications/subscribe.php.
Oil and Gas Facilities is the industry’s most important periodical serving production, facilities, and construction professionals. Subscribe now so that you don’t miss a single issue.
John M. Walsh