Industry, Government, and R&D - Their Roles in ...hydrates/MikeSmithPresentation.pdf · Gulf of...

26
Minerals Management Service Minerals Management Service Industry, Government, and R&D Industry, Government, and R&D - - Their Roles in Commercializing Gas Their Roles in Commercializing Gas Hydrate Hydrate Michael A. Smith (504) 736-2500 Gulf of Mexico OCS Region New Orleans, LA

Transcript of Industry, Government, and R&D - Their Roles in ...hydrates/MikeSmithPresentation.pdf · Gulf of...

Page 1: Industry, Government, and R&D - Their Roles in ...hydrates/MikeSmithPresentation.pdf · Gulf of Mexico Gas Hydrates ¾Occur as hydrate mounds, usually at active gas vents, and disseminated

Minerals Management ServiceMinerals Management Service

Industry, Government, and R&D Industry, Government, and R&D --Their Roles in Commercializing Gas Their Roles in Commercializing Gas

HydrateHydrate

Michael A. Smith(504) 736-2500

Gulf of Mexico OCS RegionNew Orleans, LA

Page 2: Industry, Government, and R&D - Their Roles in ...hydrates/MikeSmithPresentation.pdf · Gulf of Mexico Gas Hydrates ¾Occur as hydrate mounds, usually at active gas vents, and disseminated

Minerals Management ServiceMinerals Management Service

Bringing Natural Gas from Hydrate Bringing Natural Gas from Hydrate Accumulations to the MarketAccumulations to the Market

Use knowledge gained from hydrate drilling programs to define the marine hydrate petroleum systemDefine methane flux (source, migration, trap) and lithology (reservoir)The deepwater Gulf of Mexico is an attractive province because of current E&P activity, existing infrastructure, and its effective petroleum system

Page 3: Industry, Government, and R&D - Their Roles in ...hydrates/MikeSmithPresentation.pdf · Gulf of Mexico Gas Hydrates ¾Occur as hydrate mounds, usually at active gas vents, and disseminated

Minerals Management ServiceMinerals Management Service

Page 4: Industry, Government, and R&D - Their Roles in ...hydrates/MikeSmithPresentation.pdf · Gulf of Mexico Gas Hydrates ¾Occur as hydrate mounds, usually at active gas vents, and disseminated

Minerals Management ServiceMinerals Management Service

Page 5: Industry, Government, and R&D - Their Roles in ...hydrates/MikeSmithPresentation.pdf · Gulf of Mexico Gas Hydrates ¾Occur as hydrate mounds, usually at active gas vents, and disseminated

Minerals Management ServiceMinerals Management Service

Gulf of Mexico Gas HydratesGulf of Mexico Gas HydratesOccur as hydrate mounds, usually at active gas vents, and disseminated in sediment (hydrate sands?) below the seafloorSeafloor hydrates are not static and may pose a hazard to offshore pipelines and structuresMMS has mapped seafloor 3-D seismic amplitude anomalies associated with hydrates, chemosynthetic communities, and carbonate hardgrounds and sampled the hydrate mounds from a submersibleCurrent MMS assessment delineates areas with subsurface hydrate potential

Page 6: Industry, Government, and R&D - Their Roles in ...hydrates/MikeSmithPresentation.pdf · Gulf of Mexico Gas Hydrates ¾Occur as hydrate mounds, usually at active gas vents, and disseminated

Minerals Management ServiceMinerals Management Service

KnownKnown Seafloor Occurrences of HydratesSeafloor Occurrences of Hydrates

Page 7: Industry, Government, and R&D - Their Roles in ...hydrates/MikeSmithPresentation.pdf · Gulf of Mexico Gas Hydrates ¾Occur as hydrate mounds, usually at active gas vents, and disseminated

Minerals Management ServiceMinerals Management Service

Thanks for your attention.

A A seafloorseafloor hydrate moundhydrate mound in the in the northernnorthern GulfGulf of Mexico (of Mexico (©© Ian Ian MacDonald)MacDonald)

Page 8: Industry, Government, and R&D - Their Roles in ...hydrates/MikeSmithPresentation.pdf · Gulf of Mexico Gas Hydrates ¾Occur as hydrate mounds, usually at active gas vents, and disseminated

Minerals Management ServiceMinerals Management Service

Page 9: Industry, Government, and R&D - Their Roles in ...hydrates/MikeSmithPresentation.pdf · Gulf of Mexico Gas Hydrates ¾Occur as hydrate mounds, usually at active gas vents, and disseminated

Minerals Management ServiceMinerals Management Service

Hydrate Production from Hydrate Production from Federal OCS LeasesFederal OCS Leases

Hydrate is part of the potential gas resource on deepwater leasesMMS has not published a regulatory framework for hydrate developmentMMS assessment of the offshore in-place hydrate resource will provide size limits based on existing dataThe Gulf of Mexico Gas Hydrate JIP will target hydrate-bearing sands in its next drilling leg

Page 10: Industry, Government, and R&D - Their Roles in ...hydrates/MikeSmithPresentation.pdf · Gulf of Mexico Gas Hydrates ¾Occur as hydrate mounds, usually at active gas vents, and disseminated

Minerals Management ServiceMinerals Management Service

The BSR as a Hydrate IndicatorThe BSR as a Hydrate IndicatorBottom simulating reflectors are not ubiquitous in the Gulf of MexicoIn clayey sediments, hydrate concentrations are low and fracture or vein-filling hydrate will be difficult to produceA BSR indicates a phase contrast at the base of the zone of hydrate stability but doesn’t define a viable hydrate reservoirHow do we compare the Gulf of Mexico to offshore areas with well-developed BSRs?

Page 11: Industry, Government, and R&D - Their Roles in ...hydrates/MikeSmithPresentation.pdf · Gulf of Mexico Gas Hydrates ¾Occur as hydrate mounds, usually at active gas vents, and disseminated

Minerals Management ServiceMinerals Management ServiceBSR defined by termination of bright sands

Sand

Sand

Sand

Sand

Sand

SandShale

BSR

Vertical Resolution : 8 m

Line 5554W E

Page 12: Industry, Government, and R&D - Their Roles in ...hydrates/MikeSmithPresentation.pdf · Gulf of Mexico Gas Hydrates ¾Occur as hydrate mounds, usually at active gas vents, and disseminated

Minerals Management ServiceMinerals Management Service

Salts

Faults

BSRBlanking

Free Gases

W E

Page 13: Industry, Government, and R&D - Their Roles in ...hydrates/MikeSmithPresentation.pdf · Gulf of Mexico Gas Hydrates ¾Occur as hydrate mounds, usually at active gas vents, and disseminated

Minerals Management ServiceMinerals Management Service

Keathley Canyon Inline 5593 location C

Possible BSR

Possible hydrate M ound

Page 14: Industry, Government, and R&D - Their Roles in ...hydrates/MikeSmithPresentation.pdf · Gulf of Mexico Gas Hydrates ¾Occur as hydrate mounds, usually at active gas vents, and disseminated

Minerals Management ServiceMinerals Management Service

Potential Geohazards and Potential Geohazards and HydrateHydrate--Related Safety IssuesRelated Safety Issues

To date, drilling through gas hydrates has not been considered a high-risk situationHydrate dissociation will release free gas and weaken overlying sediments, possibly resulting in slumpingProcessing hubs, like the Shell Perdido Regional Host, will be located in areas with hydrate indicatorsGeotechnical studies are needed to define the properties of hydrate-bearing sediment and the long-term thermal effects of subsea activities

Page 15: Industry, Government, and R&D - Their Roles in ...hydrates/MikeSmithPresentation.pdf · Gulf of Mexico Gas Hydrates ¾Occur as hydrate mounds, usually at active gas vents, and disseminated

Minerals Management ServiceMinerals Management Service

Page 16: Industry, Government, and R&D - Their Roles in ...hydrates/MikeSmithPresentation.pdf · Gulf of Mexico Gas Hydrates ¾Occur as hydrate mounds, usually at active gas vents, and disseminated

Minerals Management ServiceMinerals Management Service

Page 17: Industry, Government, and R&D - Their Roles in ...hydrates/MikeSmithPresentation.pdf · Gulf of Mexico Gas Hydrates ¾Occur as hydrate mounds, usually at active gas vents, and disseminated

Minerals Management ServiceMinerals Management Service

Gas Flux

Mound

BHSZ

Zone of Maximum Hydrate

Concentration

Page 18: Industry, Government, and R&D - Their Roles in ...hydrates/MikeSmithPresentation.pdf · Gulf of Mexico Gas Hydrates ¾Occur as hydrate mounds, usually at active gas vents, and disseminated

Minerals Management ServiceMinerals Management Service

BHSZ

Sulfate Reduction Zone

Page 19: Industry, Government, and R&D - Their Roles in ...hydrates/MikeSmithPresentation.pdf · Gulf of Mexico Gas Hydrates ¾Occur as hydrate mounds, usually at active gas vents, and disseminated

Minerals Management ServiceMinerals Management Service

Piston Cores

BHSZ

Page 20: Industry, Government, and R&D - Their Roles in ...hydrates/MikeSmithPresentation.pdf · Gulf of Mexico Gas Hydrates ¾Occur as hydrate mounds, usually at active gas vents, and disseminated

Minerals Management ServiceMinerals Management Service

Interval not Evaluated

Conventional Drilling

Page 21: Industry, Government, and R&D - Their Roles in ...hydrates/MikeSmithPresentation.pdf · Gulf of Mexico Gas Hydrates ¾Occur as hydrate mounds, usually at active gas vents, and disseminated

Minerals Management ServiceMinerals Management Service

Gulf of Mexico Gas Hydrate JIPGulf of Mexico Gas Hydrate JIPFive 1,000 to 2,000 ft, 8 1/2” diameter hydrate wells at two localities and two 100 ft coreholes were drilled in the spring of 2005 A standard LWD assembly (GR/RES/DN/MR) was used to obtain as much information as tool capabilities allowedLWD data was used to pick coring and measurement points in offset boreholesCores and electric logs from these wells provided calibration of geophysical data as well as geological and geotechnical data characterizing buried gas hydratesAdditional drilling is planned in 2007 and 2008

Page 22: Industry, Government, and R&D - Their Roles in ...hydrates/MikeSmithPresentation.pdf · Gulf of Mexico Gas Hydrates ¾Occur as hydrate mounds, usually at active gas vents, and disseminated

Minerals Management ServiceMinerals Management Service

Cal Dive DSV Cal Dive DSV Uncle JohnUncle John

Page 23: Industry, Government, and R&D - Their Roles in ...hydrates/MikeSmithPresentation.pdf · Gulf of Mexico Gas Hydrates ¾Occur as hydrate mounds, usually at active gas vents, and disseminated

Minerals Management ServiceMinerals Management Service

WesternGeco Non WesternGeco Non –– Exclusive 3D Surveys Exclusive 3D Surveys With Known GOM Gas Hydrate LocationsWith Known GOM Gas Hydrate Locations

Keathley CanyonWalker Ridge LundAlaminos Canyon

Atwater ValleyGarden Banks Green Canyon

MississippiCanyon

Shallow thermogenic gas hydrateShallow & deep biogenic gas hydrate

Oil & gas seeps with chemosynthetic communities

Deepwater natural gas, oil discoveries & fieldsAreas of gas hydrate resource estimationWesternGeco Gulf Coast 3D surveys

TEXAS

LOUISIANA

East Breaks

GC 185 (Bush Hill)GC 184

AT 14AC 856

KC 195

MC 802

Page 24: Industry, Government, and R&D - Their Roles in ...hydrates/MikeSmithPresentation.pdf · Gulf of Mexico Gas Hydrates ¾Occur as hydrate mounds, usually at active gas vents, and disseminated

Minerals Management ServiceMinerals Management Service

Page 25: Industry, Government, and R&D - Their Roles in ...hydrates/MikeSmithPresentation.pdf · Gulf of Mexico Gas Hydrates ¾Occur as hydrate mounds, usually at active gas vents, and disseminated

Minerals Management ServiceMinerals Management Service

New Technology Requirements New Technology Requirements for Hydrate Commercializationfor Hydrate Commercialization

Hydrate cannot be produced as shale gas or from tight sandsSands crossing the base of hydrate stability can be produced with existing technologyDeveloping E&P technology is the key for hydrate production“If this were gold, everyone would have a shovel. Science is important, but it is technology that drives the Japanese and Indian programs which are the most proactive.” (Ken Wright, 5th International Workshop on Methane Hydrate R&D, October 2006)

Page 26: Industry, Government, and R&D - Their Roles in ...hydrates/MikeSmithPresentation.pdf · Gulf of Mexico Gas Hydrates ¾Occur as hydrate mounds, usually at active gas vents, and disseminated

Minerals Management ServiceMinerals Management Service

Hydrates Path ForwardHydrates Path ForwardCooperation between industry operators, government agencies, and other stakeholders is needed to accelerate the path to hydrate commercializationMost new hydrate E&P technology will probably be developed at universities, government laboratories, and other organizations with financial support from industry and the federal governmentProduction tests are needed to prove the viability of hydrate as a resource