P. 1
Talisman Energy

Talisman Energy

|Views: 118|Likes:
Published by shanexpt

More info:

Published by: shanexpt on Nov 21, 2010
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

06/14/2013

pdf

text

original

Shale Gas: An Emerging North American Reality and Its Global Implications

Dr Basim Faraj

Pareto’s 17th Annual Oil & Offshore Conference
September 1- 2, 2010
Holmenkollen Park Hotel Oslo, Norway

Outlook for Energy: A view to 2030
• Globally, about 1.5 Billion people lack access to electricity • 2.5 Billion people with no modern cooking or heating fuels • There will be 900 million more households in the World by 2030!

Source: Outlook for Energy: A view to 2030, Dec, 2009

• There exists over 300 million Chinese middle class citizens! • ~ 300 million Indians without electricity!
Source: Economist, Dec, 2009

Meeting energy demand will require trillions of dollars of investment and a commitment to innovation
Source: Outlook for Energy: A view to 2030, Dec, 2009

Worldwide Oil Production Projection in the 21st Century
40 35 30

We are already here, 2008!

2035!
(30)

Bbrl/yr

25 20 15 10 5 0 1950

2000

2050

2100

2150

Data from Salvador, 2005

2005 .Worldwide Natural Gas Production Projection in the 21st Century 180 160 140 120 We are here. 2008! (107) 2075! Tcf/yr 100 80 60 40 20 0 1950 2000 2050 2100 2150 2200 2250 2300 Data from Salvador.

XTO. 2009 . Dec 9.

December 9. 2009 XTO presentation .

The Shale Gas Resource: Stupendous! .

Gas Shales .Current Focus on North America Source: Shale Gas Outlook to 2020 (Ziff Energy. April 2009) .

6 78 Source: Corelab NA Shale Gas Consortium Annual Meeting. Calgary. August.A vast wealth of core and technical data has been acquired from North America shale reservoirs An example: # Basins # Formations # wells cored Core length (km) Member companies 22 89 275 ~13. 2009 .

2009. Questerre Energy Corporation.3 Tcf Prospective Recoverable Resource 1 Source: DOE. April.000 Tcf GIP!! . 2009 2 Encana.181 (129 Tcf) (833 K acres) 4. 1TRR*: Technically Recoverable Resource. September 1.1000 3 Utica 3 Utica OGIP 83 .Resources and Technically Recoverable Resources (Tcf) of Selected Shale Plays (one Tcf heats 15 million homes for one year!) New Albany Parameter 1 Barnett Fayetteville Haynesville Marcellus Woodford Antrim Total OGIP TRR* 327 44 Parameter 2 52 42 Horn River 500 717 251 1. OGC study.500 262 23 11 76 20 160 19 2855 1 649 Montney 250 . 2006 (unofficial numbers). modern shale gas: A primer. September 9. 3 ~ 4. 2009.

Production History By Major US Shales Total Calendar Daily Production (Bcf/d) 14 12 10 8 6 4 2 2004 2005 Antrim Barnett 2006 2007 2008 LA HB 2009 TX HB 2010 Marcellus Shale is 22 % of total lower 48 gas production! The Barnett Shale provides 40% of US shale gas production Fayetteville Woodford Source: Moorman. R. based on data from IHS/PI Dwight’s and public company records) . (Southwestern Energy.

Steep Initial Production Declines Theoretical Production Forecast (MMcf/d. starting with first 30-day average IP) 12 10 8 6 4 2 0 0 12 24 36 48 60 Months on Production Haynesville Marcellus Fayetteville Barnett Core Source: Southwestern Energy. data from public company reports .

000 new wells 22-26% decline Cost $ 50 Billion Ross Smith Energy Group.000 new wells 26-28% decline Cost $ 69 Billion 2007 Barnettonly scenario 1670 Rigs 20.Same amount of gas: Different scenarios! 2007 (Actual) 1465 Rigs 31. April 2009 .

Same amount of gas: Different scenarios! 2007 Haynesville-only scenario 924 Rigs 5.500 new wells 26-30% decline Cost $ 47 Billion Ross Smith Energy Group. April 2009 .

The Reserves: The Challenge! .

000.000.000.000 Darcy (one billionth of a Darcy) Darcy’s lower limit is ~1/10th of a µDarcy! .µDarcy: 1/1.000 Darcy (one millionth of a Darcy) nDarcy:1/1.

001 0. 2005 .0 Granite Montney Permeability (mD) 0 % porosity Limestone Sidewalk Cement General oilfield rocks Good Shale Barnett Source: modified after US DOE Study.Permeability Terminology (We are dealing with extraordinary geological reservoirs!) Tighter than Tight Tight Conventional Extremely Tight Very Tight Tight Low Moderate High 0.0 10.0001 0.1 1.01 0.

5 Calcitefilled fracture .Barnett Shale Core: The Reservoir! TOC ~4% %Ro ~1.

Barnett Shale: Newark East. (Shale texture using SEM (Basim Faraj. Bosque Co. Talisman Energy) Sponge Spicules .

000 Seconds! or 11 hours! 1 Second Concept by Basim Faraj.02 m2 800 m2 (50 m2/gm) Caffeine Diffusion Time 40. Talisman Energy measurements from Arizona State University.Coffee Making and Shale Gas! Parameter # Coffee Beans 200 Whole Beans 16 gm Ground Beans 16 gm Surface Area (1 coffee bean/1 cm2) 0. 2007 .

2006 .Dendritic fractures Basim Faraj.

Trican’s largest Slickwater frac in Canada. 2007 .

2008 -4400 -4200 -4000 -3800 -3600 -3400 -3200 -3000 -2800 -2600 -2400 -2200 -2000 -1800 -1600 -1400 -1200 -1000 -800 -600 -400 -200 0 200 400 600 West-East (ft) . 2 stage stimulation N44oE 2200’ •450’ between stages. Antero Resources. ~ 350’ between perf clusters •Both stages show very similar fracture networks •Fracture direction: N44oE •Fracture longitudinal and lateral growth ~ 2200’ South-North (ft) L&S #C1 Observation well 2200’ L&S #C Stage 2 Perforations Treatment well •Only marginal overlapping between stages Tim Clawson.L&S C3H Microseismic – Map View: Barnett Shale 3000 2800 2600 2400 2200 2000 1800 1600 1400 1200 1000 800 600 400 200 0 -200 -400 -600 -800 -1000 -1200 -1400 -1600 -1800 -2000 Stage 1 Perforations •2048’ lateral.

6-month Average All Wells 4000 3500 SRV= Stimulated Area x Net Pay 6-Month Average (MCFD) 3000 2500 2000 1500 1000 500 0 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 y = 0.11 2 R = 0. 2008 . Pinnacle Technologies.5486 SRV (106 ft3) Michael Mayerhofer.5569x + 356.Horizontal Drilling & Multi-stage Slickwater Frac Technology Barnett SRV vs.

2009 .Within 4 years production tripled! Bcf/yr Rapid development of horizontal and slickwater fraccing Texas Railroad Commission.

Advances in frac Technology = EUR increase 2.3 Bcf/well 54 %! An area of 2.5 fold! 6.5 bcf/well .

Basim Faraj Chesapeake Rigs . 2008.Landing at Dallas Fort Worth Airport. April 21.

2008).Shooting 3D seismic operation at DFW International Airport (Chesapeake website. The Can-Do-Spirit! .

.

1 $3.0 $2.1 500 0 Total Well Cost ($ MM) Average IP Rate (Mcf/d) Average Lateral Length (ft) Source: Southwestern Energy. Average Lateral Length.343 3.763 3500 3000 3000 2.347 3.788 1.9 $2.6 $2.104 2500 2000 2. Average IP vs Time 4000 3.850 3.028 1.0 $3.000 2500 2.882 2.512 2.0 $3.193 3500 Average IP (Mcf/d) .8 $3.622 2.874 4000 3.301 3.261 1500 1000 $2.An example of Shale Gas Project Performance: Fayetteville Shale Total Well Cost.736 3.497 2000 1500 1000 500 0 1st Qtr 2007 2nd Qtr 2007 3rd Qtr 2007 4th Qtr 2007 1st Qtr 2008 2nd Qtr 2008 3rd Qtr 2008 4th Qtr 2008 1st Qtr 2009 Apr-09 1. 2009 Average Lateral Length (ft) 3.9 $3.562 3.541 2.

• Currently drilling horizontal wells. • Long term growth opportunity. • Early results are very encouraging. 000 net acres*). 150 km Saint Edouard # 1 Industry Perspective Early Success (Vertical Wells) Earning Well / Partner Name Gentilly / Questerre La Visitation / Questerre Saint-David / Questerre Leclercville / Intragaz Saint-Edouard / Questerre Test Rate (mcfe/d) >800 >300 >400 900 700 * May 2009 Disclosure .The Quebec Opportunity Key points • Talisman has a very large prospective land base within the Utica fairway (771. • Excellent proximity to premium markets.

Why Shales Look Promising! IGIP (Incredible Gas-In-Place)  From 50 to 500 Bcfe per square mile High rates of return  From 30% to over 100% Longevity  Drilling inventories measured in decades Continuous improvement  Techniques evolve and costs go down .

saturations. horizontals-spacing • Completion: Greatest impact on reserves recovery Logistics and economies of scale in all phases of the play execution: Efficiency Plays! . advanced logging) • Geochemistry: Great advances on viability of plays • Microseismic: The best diagnostic tool .Still in need of shale gas modeling• Drilling: Super pads.Advances in Shale Plays Learning Curve • Reservoir characterization: Specialized Analyses (permeability.replaced the conventional inadequate reservoir modeling . mechanical.

This Knowledge is transferable with commitment! . • Shale plays require significant lead times and sizeable investments that do not necessarily fit well within the risk tolerance and time horizon of most financiers. job creation and investment in the production of clean-burning natural gas.Summary • Shale gas changes the equation in North America from “we are running out of gas in the 70s” to “we we are having about 90 years of proven and potential supply”. • Shale gas potential exists in many basins around the World. • Shale gas is good news for North America economy. North American geoscientist and engineers de-risked and utilized the best technologies for exploration & exploitation of these plays. energy security.

Five Giant gas fields discovered in NA since 2007!!!! . finding costs will start high and will come down over time. Overtime. DO NOT QUIT TOO SOON if the trends are moving the right direction. In other words.Summary 2 • Developing shale gas resources is a progressive process: initially costs are high and EUR’s may be lower than desired. the costs will come down and the EUR’s will increase as learning progresses.

the most exciting accomplishment of geosciences & petroleum engineering integration in the last several decades.Geoscientist. 2009 .” Dr Basim Faraj.“The revolutionary concept of hydrocarbon production from shale is without a doubt. This revolutionary concept is a bright chapter of innovation from the oil and gas industry that is providing the most needed commodity to the world: Energy.

May The Shale be with you! .

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->