Shale Plays The New Paradigms on Exploring, Risking and Special Skill Sets Required to Evaluate Them Lynn Strickland Vice President Asia Pacific, Russia Caspian Exploration
Discussion Topics No two shale plays are alike Not every shale play is going to work Those that work have well defined sweet-spots Exploration includes extended and expensive appraisal Special skill sets needed for evaluating…
An Abundance of Plays But Not All Plays are Created Equal 3
U.S. Oil Production Growth: Driven by the Big Three Shale Oil Plays U.S. Oil Production (thousands of barrels per day) 14,000 History Prediction Bakken 1970: U.S. Peak Oil 4-24 BBOE 12,000 10,000 8,000 6,000 4,000…
ConocoPhillips Shale Plays ConocoPhillips is an industry leader in shale exploration & development in North America Big position in big three liquid rich plays (Eagle Ford, Bakken and Permian Basin) Canol Also have acreage in the…
Identifying the Risk Source Rock (TOC, Kerogen Type, Maturity, Rock Eval) + Reservoir Rock = storage capacity (Facies, GRI Porosity, Saturation, Permeability) + Brittle Fracable Rock (Mineralogy, Contiguous Thickness, Depth,…
Source Quality Risk Kerogen Type I, II Hydrogen Index 300+ S2 Remaining potential 3 TOC 2% 7
Reservoir Mineralogy Risk Quartz They may all look the same Ohio but they behave differently Muskwa Barnett 2 Marcellus Montney Woodford SWS Caney High Risk Haynesville Huron Barnett 3 Posidonia Normal Shale Seal…
Fracability Risk Andrews 2009 Grieser USGS Can you break the rock and will the proppant keep the fracture open 9
Bottom Seal Containment Risk Need 3D Seismic Potential Collapse Area 40ms = 250 karst Ellenberger Below Barnett Shale feature Possible Source of Water 10
Eagleford -- The Perfect Storm Source Characteristics High TOC 3-6 Type II Kerogen Perfect maturity Range Oil-Condensate Window High HI Reservoir Characteristics Restricted Marine Setting GRI Porosity 8-10% GRI Saturation 70-85%…
Eagleford Sweet-spot Identification Rock properties can vary rapidly laterally and vertically Fluid properties can change appreciably over short distances Fluid properties can change over a wells productive life Frac fluids may or may…
Barnett Sweet-spot Identification thin Gas Window Ro = 1.1 thin Pollastro , 2003 Jarvie 2004 Not all Barnett wells are successful, relatively small sweet-spot 13
Montney Sweet-spot Identification Regional Water line ConventionalWater Source: Dahl and Lefebvre 2012 Depth Not the typical parameters exploration Pressure geologists think about Youngs Modulus 14
Typical Shale Lifecycle Exploration 2 to 4 years 2 to 5 years 10 to 20 years Acreage Exploration Appraisal Initial Manufacturi Acquisition Development Produce Phase Phase ng Phase Phase Phase Accumulate land Drill vertical wells…
Securing the Best Acreage within the Best Plays Eagle Ford is amongst the best Eagle Ford Play Area liquids-rich plays NW Not all parts of the Eagle Ford are equally valuable Factors controlling value: Hydrocarbon type SE…
Optimizing the Development Plan Eagle Ford Well Spacing Pilot Design Critical decisions include: Well length Completion design Well spacing Gathering & processing Commercial arrangements Controlled experiments can vastly…
Managing the Field Focus on safety and efficiency It helps if you are already good at managing large operations: ConocoPhillips San Juan Basin 10,000 operated wells 2,200 compressors 950 miles of gathering lines 17 salt water…
Keys to Shale Exploration Success Be an operator in multiple shale plays in North America Understand critical subsurface elements to successful shale plays Comprehensive petroleum system analysis Detailed petrophysical evaluation and…
Petrophysics The Integration of Logs and Core NW SE - 8000 - 10400 - 12800 Must calibrate logs to core, need GRI porosity , saturation and permeability data to define pay 20
Micro-Seismic A Different Type of Geophysics Buried Array Courtesy of Microseismic Surface Array Courtesy of Microseismic Understanding where the frac treatments go is paramount Wellbore Array 21
Understanding of Reservoir Engineering Stimulated Rock Volume Horizontal Multi-Stage Vertical Frac = Single Frac Frac Horizontal Multiwell Multi-Stage Frac Need to understand which drilling method and fracture treatment opens…