Comparison of North American and International Risks in Unconventional Plays

Fig. 1—Example of shale-optimization work flow.

Unconventional resources include coalbed methane, tight gas, and source-rock-based (often shale-based) reservoirs. In this paper, a consistent method for gathering data is proposed to minimize excess costs and maximize net present value. Approaches to optimize development are applied to shale plays with synthetic properties established on observed heterogeneities but with reservoir characteristics for some international shale prospects.

Introduction

The commercialization and widespread development of shale resources in North America is dramatic and substantial, reversing longstanding declines in oil production and reserves and yielding sharp increases in natural-gas production. However, massive risks are associated with commercializing international resources; approximately three million new wells must be drilled to translate the level of technically recoverable resources (TRR) into producing reserves. If every active onshore drilling rig in the world were converted to drilling shale oil and gas wells, it would take nearly 40 years to develop the TRR as identified by the US Energy Information Administration.

This article, written by JPT Technology Editor Chris Carpenter, contains highlights of paper IPTC 17739, “A Comparison of North American and International Risks in Unconventional Resource Plays,” by D. Nathan Meehan, SPE, Baker Hughes, prepared for the 2014 International Petroleum Technology Conference, Kuala Lumpur, 10–12 December. The paper has not been peer reviewed. Copyright 2014 International Petroleum Technology Conference. Reproduced by permission.
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Comparison of North American and International Risks in Unconventional Plays

01 July 2015

Volume: 67 | Issue: 7

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