Unconventional Resources Workshop - Colegio Oficial … Resources Works… · HBRSS vs Conventional...
Transcript of Unconventional Resources Workshop - Colegio Oficial … Resources Works… · HBRSS vs Conventional...
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© 2014 BAKER HUGHES INCORPORATED. ALL RIGHTS RESERVED. TERMS AND CONDIT IONS OF USE: BY ACCEPTING THIS DOCUMENT, THE RECIPIENT AGREES THAT THE DOCUMENT TOGETHER W ITH ALL INFORMATION INCLUDED THEREIN IS THECONFIDENTIAL AND PROPRIETARY PROPERTY OF BAKER HUGHES INCORPORATED AND INCLUDES VALUABLE TRADE SECRETS AND/OR PROPRIETARY INFORMATION OF BAKER HUGHES ( COLLECTIVELY " INFORMATION") . BAKER HUGHES RETAINS ALL RIGHTSUNDER COPYRIGHT LAW S AND TRADE SECRET LAW S OF THE UNITED STATES OF AMERICA AND OTHER COUNTRIES. THE RECIPIENT FURTHER AGREES THAT THE DOCUMENT MAY NOT BE DISTRIBUTED, TRANSMITTED, COPIED OR REPRODUCED IN W HOLE ORIN PART BY ANY MEANS, ELECTRONIC, MECHANICAL , OR OTHERW ISE, W ITHOUT THE EXPRESS PRIOR W RITTEN CONSENT OF BAKER HUGHES, AND MAY NOT BE USED DIRECTLY OR INDIRECTLY IN ANY W AY DETRIMENTAL TO BAKER HUGHES’ INTEREST.
Unconventional Resources Workshop
Alfredo Mendez
Business Development Director
Unconventional Resources-Eastern Hemisphere
Madrid, Spain
May 26, 2014
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Objective
Unconventional plays are very rewarding but also risky. Wemust do it right the first time as we cannot afford to experimentand trial and error. An integrated multi-disciplinary approachshould be key from surface to subsurface.
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Agenda
■ 09:45h-10:15h BHI Introduction to Unconventional Resources (Alfredo Mendez)
■ 10:15h-11:00 Seismic (Robert Porjesz)
– Unconventional Reservoir rock physics.
– Seismic Data for Sweet Spots
– Sample Case Histories
■ 11:00- 11:45 Seismic acquisition (Eric Gillot)
– Feasibility surveys and CGG seismic experience in Spain
– Seismic Data acquisition with wireless recorder – benefits for unconventionalexploration in Spain
– Case history of TIGF Lussagnet (SW France) 3D wireless seismic survey
■ 11:45h-12:15h BREAK
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Agenda
■ 12:15h–13:00h Hydraulic Fracturing (Alfredo Mendez)
– Design Criteria
– Latest and Greatest on Frac Fluids for Unconventionals
– Completions for Unconventionals
– Microseismic/SRV
– Water Management/Environment Update\
■ 13:00h–13:45h Complete Lessons learned
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Rock Strength:• Will it fracture?• Where to fracture?• How to fracture?
GeomechanicalVolume Value
Fractures:• Porosity• How to complete• Hazard avoidance
Fracture Volumes
Lithofacies:• Sweet spots• Completion information• Reserve estimations
Rock Property Volumes
Pre-Stack Seismic InversionPre-Stack Seismic Inversion
Azimuthal SeismicAnalysisAzimuthal SeismicAnalysis
Multi-attributeAnalysisMulti-attributeAnalysis
Core Calibrated Geomechanical LogsCore Calibrated Geomechanical Logs
Downhole Fracture &Stress MeasurementsDownhole Fracture &
Stress Measurements
Mineral %Logs
Mineral %Logs
The Power of Two: Baker Hughes and CGG
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What do we need?
Evaluate Vertical Wells For: Gain Insight To:
Lithology and mineralogy Quantify the amount of TOC
Porosity and fluid saturationDetermine the formation’s ability to produce;Validate hydrocarbons in place
Rock mechanical propertiesand stress regimes
Detect vertical fractures; Determine optimal wellboreplacement, trajectory and fracture strike direction
Geomechanical characteristicsDetermine in-situ stress, fracture gradient and fractureclosure pressures
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Advanced Integrated Engineering for Shales
Regional Detailed Scenarios FDP
Seismic Data
StructuralModel
GeologicalModel
LithofaciesModel
GeomechanicalModel
Fracture Model andMicroseismic
Detailed Model
Fracture OptimizationModel
Flow Simulation
Economics
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Software Design Tools for Unconventionals
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Average Cost % Distribution Tight/shale gas
HydraulicFracturing, 55
Completion Fluid, 2
Water, 3Perforation, 3
Flowback , 2
Coiled Tubing, 2
Tubulars , 3
Drilling Bitsand DRT, 7
Directional Drilling, 5
DF and extras, 4
Drilling ServicesMob/Demob, 5
Site and Accom, 2
Casings, 4 P&A, 3
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Unconventional Oil & Gas Production-Major US Plays
Shale Gas:– Production in US 10 years old– From 2 Bcf/d 2004 to 27 Bcf/d
(2013)– From 36,000 wells (2004) to
>120,000 wells (2013)– 15,000 wells drilled p.a.
Shale Oil:– Production increased 2007– Mainly from Bakken and Eagle
Ford plays
– Currently facing Productionchallenges Keep ”feeding the beast” with new
well drilling to offset productiondeclines ‘Red Queen’ effect “have to keep
running faster to stay in the sameplace”
Oil Production in Major U.S. Shale Plays
Gas Production in Major U.S. Shale Plays
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Technology Improving Economics - Greater Recovery
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Source: Baker Hughes, IHS Source: HPDI
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Unconventional Resources Requires Lots of Wells
Giles et al. 2012, SPE 151906
■ Shale Gas development need largenumber of wells
– Typcially 200 times more wells than aconventional field development
■ Large variability in production and EURestimates for single plays
– 1 to 2 orders of magnitude difference inthe production for these shale gas plays
■ Statistical plays: lower production wellsoffset by higher production wells
■ Large depletion 50-60% in the first 12months is common – no plateau productionfor individual wells
■ Annual drilling - maintains production
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RDS: Baker Hughes’ Sub-surface expertise
RDS Global sub-surface expertise with over 400professionals with operator experience: Sub-Surface Teams established Aramco, Abu
Dhabi, Beijing (Petrochina), Linc Energy, ... Leading geomechanics specialists in the service
sector– 124 Unconventional projects in N. America
Geographically close to our customers so that wecan help them achieve their goals DRTC in Dhahran – Unconventional resource CGG Global Alliance JewelSuite – specialised for shale gas/oil (Shell)
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Technology Improving Economics – Reducing Drilling Time
■ Directional Drilling:
■ 16 HBRSS wells: >95,000’
■ Stayed in 6’ window for(97.7%).
Wells
Per
Rig
HBRSS vsConventional Motor
■ Drilling improvements;
– Pad drilling
– Bits, fluids and system optimisation
– Rotary steerable systems – High Build
■ Allowing curve and lateral to be drilled in 1 run
■ Drilling rate increased between 200-300%
■ Drilled 10,000,000+ feet since introduction
– 2011 World Oil award winner for “Best DrillingTechnology”
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REAL-TIME IMPLEMENTAITON - AutoTrak Curve ™2011 World Oil Award for best drilling technology
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5°/100 ftConventionalRSS
15°/100 ftAutoTrak Curve
Current Results:
Drilled more than 1.5 million ft in12 months
Drilled 10,000,000+ feet sinceintroduction
The Drive for efficiency
• Minimizes downtime
• Drills complex well profiles
• Drills more payzone
• Saves time on well
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Many operators
are struggling with
lower than expected
or inconsistent
production results
North American Experience
3 out of 10 shale gas wells are commerciallysuccessfull
40% of all frac stages contribute to production***
73% of operators admit they don't know enoughabout the subsurface to develop an effectivehydraulic fracture design*
Only 10% of the 15,000 horizontal wells drilledannually in the US are logged**
*Welling, 2012**SPE Workshop Prague, 2012***E&P, 2012
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Common Pitfalls
Focused on reducing costs versus reducing geologic uncertainty
Capital intensive environment discourages the use of technologies, to characterize thereservoir
Horizontal wells are typically planned to maximize wells per leasehold
At most, a gamma ray tool is used to geosteer through the reservoir with conventionalmud logging.
Leading to statistical drilling and geometric fracturing
These practices have led to many wells being placed and completedin reservoir intervals with poor rock properties and/or production potential
…which has a direct impact on production performance
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Exploration Appraisal / Development Development / Production Rejuvenation
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Data-Driven Solutions For Optimal RecoverySteps To Success
Identify Resource Potential
Evaluate Resource and Optimize Field Planning
Determine Interval to Land Lateral
Precise Navigation and Drilling Precision
Characterize Lateral To Identify Sweet Spots
Monitor Performance and Refine Frac Design
Select Effective Completion System
Optimize Frac Design and Treatment
Maintain Continuous Production Flow
Refrac For Ultimate Recovery
Build and Modify Reservoir Model
Manage the Water Cycle
Exploration Appraisal / Development Development / Production Rejuvenation
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Identifying and Evaluate Resource Potential
TOC
Porosity Permeability
Thickness
Brittleness
Depth
Value: Estimate resource potential and producibility Identify potential sweet spots to develop Initial field development plan and economics Reduce commercial risk
Solution:Compile & Analyze Historical Data Geology, geochemistry, geomechanics and petrophysicsAcquire, process and Interpret Seismic CGG Identify areas of highest TOC Estimate geomechanical properties and in-situ stress Calibrate the seismic with well control to identify core areas
for drilling and completionConstruct Reservoir Model - JewelSuite Refine model with data from pilot program
Challenges: Understanding subsurface on a regional level Identifying areas with TOC and preferred rock/mechanical
properties Determining factors that influence productivity Prioritizing exploratory/appraisal well locations
Exploration: Far Field Screening
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Evaluate Resource and Optimize Field Planning
Solution:Pilot Program to Characterize The Reservoir Lithology / Mineralogy / TOC Porosity / Permeability / Fluid Saturation Rock Mechanics / Stress Regime Vertical FracturesFormation Evaluation Suite™ GR/CN/DN/HDIL™ (Mini Slam) FLeX / RockView™ Conventional Coring/ MaxCOR™ XMAC-F1™ Micro Frac (RCI™) STAR/EI/CBIL™ imager MReX™
Value: Validate hydrocarbons in place and recoverability Identify sweet spots to develop Refine field development plan and economics
Challenges: Reservoir heterogeneity Determining hydrocarbons in place / recoverability Determining prospective development locations Determining optimal well spacing, orientation and
lateral length
Exploration: Data Acquisition
Formation’s ability toproduce?
Presence ofhydrocarbons?
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Three Critical Decisions Can Impact Recovery
Placing frac stages in optimalzones along the lateral
Designing fractures with optimalconductivity, proppant distribution
and reservoir contact
Selecting the optimal intervalfor lateral placement
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