The Unconventional Oil & Gas Industry Natural Gas Exploration & Development in New Brunswick Sheri Somerville Natural Gas Advisor, CAPP Canadian Bar Association ? NB Forum February 8, 2014
Presented By The Canadian Association of Petroleum Producers (CAPP) The New Brunswick Oil & Natural Gas Association (NBO&NGA) ? Represents large and small producers who explore for, develop and produce natural gas, natural gas…
The Global Energy Spotlight on Canada World-Class Capability Social License -> Performance -> Communication World-Class Resource Competitiveness -> Market Diversification -> Workforce 3
Advancing the 3Es the 3Es ? Generating Economic Benefits ? Jobs and revenues across North America ? Providing Energy Security ? Safe, secure and reliable energy ? Large energy resource potential ? Providing Environmental…
Global Primary Energy Demand Source: International Energy Agency ? New Policies Scenario World Energy Outlook 2011 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 2010 2015 2020 2025 2030 2035 million…
Wood stove 0.825 New wood stove 0.434 Pellet stove 0.127 Oil furnace 0.001 N. Gas furnace 0 .00005 Home Heating Pollution in Pounds Per 24 Hours Natural Gas 6 ? Natural gas is the cleanest burning hydrocarbon ? Natural gas is a…
How Will Demand Be Met? Technological advances have unlocked vast unconventional gas resources. Resource assessments are ongoing (GSC, NEB and others) in many new areas, and new opportunities continue to emerge (Eastern Canadian shale…
North American Shale Gas Plays
How Will Demand Be Met?
What does this mean for Canada? ? Jobs (Upstream from Western Canada Natural Gas) Natural Gas industry employment: ?317,000 ? jobs (direct, indirect and induced) across Canada by 2035 ?9,693,000 ? person years of employment between…
The Atlantic Canada Opportunity
Economic Benefits of Oil and Gas Activity in Atlantic Canada ? Employs over 5,600 people (thousands more indirectly) ? Supports over 800 local supply/service companies ? Cumulative expenditures since 1996: ? Over $31 billion in…
Source: DNR NB NB Opportunity: Proven and Potential Resources
Natural Gas and Oil Industry in New Brunswick: ? First oil well drilled at Dover in 1859 ? 300 oil and gas wells were drilled in NB by 2010 ? Since 1990, 40 oil wells drilled and 40 Natural Gas wells ? 29 natural gas and 18 oil…
Why Is This Important To NB? ? Location, location, location ? Domestic energy supply ? Relationship to energy consumers ? Energy corridor ? Employment opportunities ? Education and employment diversity ? Long term & largely in…
NB Business Council/Future NB Deloitte: Economic Benefits
? Construction, manufacturing and transportation ? Drilling, completion and production ? Geological and geophysical ? Pipeline and associated infrastructure ? Environmental & other consulting services ? Legal & land ? Natural…
Geology of Natural Gas Resources Source: U.S. Energy Information Administration
Stages of Exploration and Production for Unconventional Resources Nova Scotia New Duvernay Horn River Marcellus Brunswick
Technology Makes it Work ? Drilling technology improvements ? Longer horizontal laterals ? Multiple-stage hydraulic fractures per lateral ? Horizontal drilling and hydraulic fracturing result in gas wells with long stable…
How does hydraulic fracturing stimulation work? ? Approximately 4,000 cubic metres (4 million litres) of water used to fracture each stage of a well ? Water amounts may vary depending on type and location of reservoir. ? Total…
Fracture Fluid Use & Disclosure 1.5 % Additives Gelling Agents Cross Linkers Clay Control Breakers Surfactants Biocides Energizers www.fracfocus.ca 98.5% Water & Sand The water, sand, and additives used to convey pressure from…
Fracture Fluids TYPE Source Purpose Common Use Gelling Agent Guar Gum Polyacrylamide Increase viscosity, helps support and carry proppant better than straight water Food grade product (ice cream, condiments, canned soup, etc.)…
Migration ? Rocks naturally purify water ? Chemical and physical filtering ? Sandstones ?sieve? migrating waters ? Clays most effective in ionic bonding ? Most chemicals begin to decompose shortly after use Stoney Creek ?pore…
Multi-Well Pads Vertical Well Pad Horizontal Well Pad Advantages of Multi-Well Pads: ?Reduction of land use for the pad, access roads & pipelines. ?Easier monitoring of site and enforcement of regulations. ?Conducive to establishing…
Who Regulates Oil & Natural Gas Sector ? Federal & Provincial Departments ? Environment (Environment & Local Government) ? Energy (Energy & Mines) ? Natural Resources ? Transportation ? Fisheries and Oceans (Agriculture,…
Regulatory Considerations: The New Rules We Support Strong Regulations ?Consistent and Stable Operating Environment ?Responsible Environmental Management of Oil &Natural Gas Activities
Public Opinion Polling ? Natural Gas & Oil Sands ?For each of the following types of energy, please indicate if your overall feelings are very negative, negative, neutral, positive, or very positive.?
Guiding Principles for Hydraulic Fracturing 1 2 3 4 5 Safeguard the quality and quantity of regional surface and groundwater resources, through sound wellbore construction practices, sourcing fresh water alternatives where…
Being Part of the Discussion - Fact vs. Fiction @oilgascanada www.facebook.com/OilGasCanada
The Way Forward: Sustainability & Growth ? Opportunities ? Market demand ? Competitive supply ? NA self-sufficiency? ? Build on strong foundation ? Industry Competitiveness ? Market growth & diversification ? Skilled workforce…
Responsible Energy Development ? Canadians want to know that shale gas can and will be developed safely ? Strong regulation that has worked successfully in Canada can provide framework for emerging provinces ? Companies are…
THANK YOU QUESTIONS? Sheri Somerville Natural Gas Advisor, NB Sheri.somerville@capp.ca www.capp.ca
Loading...
