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Oilfield Review-Shale Gas PDF
Oilfield Review-Shale Gas PDF
Chuck Boyer
Pittsburgh, Pennsylvania, USA
Bill Clark
Oklahoma City, Oklahoma, USA
Valerie Jochen
College Station, Texas, USA
Rick Lewis
Camron K. Miller
Dallas, Texas
Oilfield Review Autumn 2011: 23, no. 3.
Copyright 2011 Schlumberger.
28
Shales are the most abundant form of sedimentary rock on Earth. They serve as the source
rocks for hydrocarbons migrating into permeable reservoirs and act as seals for trapping oil
and gas in underlying sediments. Until recently,
the oil and gas industry generally regarded them
as nuisances to be tolerated while drilling to
target sandstone and limestone reservoirs. But
geologists and engineers have begun to view a
specific type of shaleorganic-rich shalewith
a newfound appreciation. If endowed with the
right characteristics, organic-rich shales have
the potential to serve not only as sources of
hydrocarbons but also as reservoirs to be produced. Finding and producing gas from shale
formations, initially a North American phenomenon, has become a global pursuit for many
exploration companies.
The catalyst for the recent boom in shale
exploration is the Barnett Shale in Texas. It took
20years of experimenting before the play was
considered economically viable. Two technologiesfracture stimulation and horizontal drillingwere developed and applied at the right
time to enable this success.
While the most interest and greatest financial
investment have been directed at basins in North
America, operators are seeking to replicate the
success in other parts of the world. In countries
that have little current hydrocarbon production
of their own, such as those in Europe, shale
exploration takes on great importance. However,
Oilfield Review
http://www.netl.doe.gov/technologies/oil-gas/
publications/brochures/Shale_Gas_March_2011.pdf
(accessed August 22, 2011).
4. Warlick D: A Current View of the Top 5 US Gas Shales,
Oil & Gas Financial Journal, (February 1, 2010), http://
warlickenergy.com/oil-gas-articles/a-current-view-ofthe-top-5-us-gas-shales/ (accessed October 17, 2011).
Autumn 2011
29
5.0
4.5
4.0
Marcellus Shale
Haynesville-Bossier Shale
3.5
Woodford Shale
3.0
Fayetteville Shale
2.5
Barnett Shale
2.0
Antrim Shale
1.5
1.0
0.5
0.0
2000
2001
2002
2003
2004
2005
Year
2006
2007
2008
2009
2010
> A rapid increase in gas production from shales in the US. Since 2000, annual production of gas from shales in
the US has risen from an almost insignificant amount to nearly a quarter of the total gas produced. The seven
plays shown produced an estimated 4.5 Tcf [127.4 billion m3] of natural gas in 2010. The total produced from
all US shale resource plays was 4.87 Tcf [137.9 billion m3] of dry gas. (Adapted from US DOE and NETL,
reference 3.)
Global Perspectives
E&P companies have routinely produced hydrocarbons from shale. For instance, operators in
Brazil, Estonia, Germany and China produce oil
from shales by retorting.8 However, as of 2011,
30
Oilfield Review
North America
Region
3,842
7,140
South America
2,117
4,569
549
2,587
Africa
1,548
3,962
Asia
3,528
5,661
Australia
2,313
1,381
Other
2,215
Not available
Total
16,112
Europe
25,300
> Shale gas estimates. A 1997 study estimated global shale gas reserves at 16,112Tcf [456 trillion m3].
The 2011 US EIA study increased that estimate by almost 60% to 25,300 Tcf [716 trillion m3]. [Adapted
from Rogner H-H: An Assessment of World Hydrocarbon Resources, Victoria, British Columbia,
Canada: Institute for Integrated Energy Systems, University of Victoria (IESVic, 1997) and Kuuskraa et
al, reference 6.]
> Global shale gas resources. The US EIA studied 14 regions for shale gas potential. Vast land masses in Russia, the Middle East and Africa were not
included in the report (gray shade). Reasons cited for not including these regions in the report were scarcity of exploration data or the presence of
abundant reserves in conventional reservoirs, which make shale gas unattractivefor the present. (Adapted from Kuuskraa et al, reference 6.)
Autumn 2011
31
Lower Besa
River
Montney
Doig
Phosphate
CANADA
Colorado Group
Frederick
Brook
Niobrara*
Heath**
Cody
Bakken
***
Utica
Horton Bluff
Gammon
Mowry
Hilliard-BaxterMancos-Niobrara
Antrim
Niobrara*
USA
Mancos
MontereyTemblor
Hermosa
PierreNiobrara
Lewis
New
Albany
Chattanooga
Fayetteville
Bend
New Caney
Floyd-Neal
Avalon
Barnett
Eagle Ford,
La Casita
Sabinas basin
MEXICO
600
400
1,200 km
800 mi
Tuscaloosa
Haynesville-Bossier
Basins
Shallowest or youngest
Pearsall
Tuxpan basin
Eagle Ford
Eagle Ford,
Tithonian
Conasauga
Current shale plays
BarnettWoodford
Marcellus
Excello-Mulky
Woodford
Monterey
Utica
Tampico basin
Pimienta,
Tamaulipas
Deepest or oldest
* Mixed shale and chalk play
** Mixed shale and limestone play
*** Mixed shale and tight dolostonesiltstone-sandstone play
Maltrata
Veracruz basin
> North America shale plays. (Adapted from Kuuskraa et al, reference 6.)
32
Oilfield Review
Autumn 2011
PERU
BOLIVIA
BRAZIL
PARAGUAY
Paran basin
Chaco basin
CHILE
ARGENTINA
URUGUAY
SOUTH AMERICA
Neuqun
basin
San Jorge
basin
AustralMagallanes
basin
0
0
Prospective basin
500
1,000 km
300
600 mi
> South America shale basins. (Adapted from Kuuskraa et al, reference 6.)
33
34
maturity. The best prospects for gas shale developments are in the central and northern parts of
the basin because of the oil-prone nature in the
southern portions.
The Austral-Magallanes basin in southern
Patagonia straddles the Argentina-Chile border.
The Chile portion of the basin, Magallanes,
accounts for essentially all of the countrys oil production. The main source rock for the basin is the
lower Cretaceous lower Inoceramus Formation,
which contains organic-rich shale deposits.
This formation is approximately 200 m [656 ft]
thick, found at depths of 2,000 to 3,000 m
[6,562 to 9,842 ft] and has low to medium
TOC values.23
The Chaco-Paran basin is immense, encompassing an area in excess of 1,294,994 km2
[500,000 mi2]. The basin covers most of Paraguay
and parts of Brazil, Uruguay, Argentina and
Bolivia. It has not been extensively explored;
there are fewer than 150 wells drilled across the
entire basin. The Devonian-age Los Monos
Formation contains several marine shale deposits. The most promising is the San Alfredo Shale,
which is found as a thick, monotonous layer of
black shale overlying a sandy unit. Although it
can be as much as 3,658 m [12,000 ft] thick, only
about 600 m [2,000 ft] are thought to have
organic richness.24 The little information that is
available indicates a shale matrix that has good
characteristics for fracture stimulation.
Based on assumed thickness, thermal maturity and gas saturations, and using data from the
few wells drilled across the basin, engineers
have estimated a conservative 59 trillion m3
[2,083 Tcf] of GIP, with 14.8 trillion m3 [521 Tcf]
technically recoverable.25
EuropeEurope has many basins with shale
gas prospects (next page). Because it appears to
have some of the greatest potential, Poland is one
of the most active countries for gas shale exploration in Europe. The Silurian-age Baltic and
Lublin basins run north-central to southeast
across the country and are bounded by the TransEuropean fault zone. The Podlasie basin is
located to the east of these two basins. The
Lublin and Podlasie basins are similar to each
other and are differentiated from the Baltic basin
by geologic features and regional tectonic faulting. Estimated gas in place for these three basins
is 22.4 trillion m3 [792 Tcf] GIP, of which 5.3 trillion m3 [187 Tcf] is considered technically recoverable.26 Although the Podlasie basin has some of
the best reservoir properties, the Baltic basin is
by far the largest in areal extent and total GIP.
Oilfield Review
NORWAY
SWEDEN
Northern
petroleum
system
IRELAND
Southern
petroleum
system
UK
Weald basin
GERMANY
AUSTRIA
Po basin
CROATIA
Ebro
basin
SPAIN
ITALY
PORTUGAL
Podlasie
basin
POLAND
Trans-European
fault
Lublin
basin
Molasse
basin
Vienna basin
Aquitane
basin
Southeast
basin
LITHUANIA
BELARUS
CZECH
REP.
FRANCE
Prospective basin
Baltic
basin
North Sea
German basin
THE
NETHERLANDS
BELGIUM
0
0
500
UKRAINE
SLOVAKIA
MOLDAVIA
HUNGARY
Pannonian
Transylvanian
basin
BOSNIA
& HER.
CarpathianBalkanian
basin
ROMANIA
SERBIA
BULGARIA
ALBANIA
Prospective area
750
RUSSIA
LATVIA
DENMARK
Paris
basin
LusitanianPeniche
basin
ESTONIA
Alum Shale
1,500 km
MACEDONIA
GREECE
TURKEY
1,000 mi
> Europe shale basins. (Adapted from Kuuskraa et al, reference 6.)
Autumn 2011
35
TUNISIA
Tadla basin
MOROCCO
Ghadames
basin
Tindouf
basin
LIBYA
ALGERIA
WESTERN
SAHARA
MAURITANIA
Prospective basin
600
400
Sirte basin
Prospective area
1,200 km
800 mi
NIGER
BOTSWANA
CHAD
SWAZILAND
AFRICA
NAMIBIA
SOUTH AFRICA
Karoo basin
0
0
LESOTHO
Prospective basin
300
200
Prospective area
600 km
400 mi
> Africa shale basins. Only South Africa and northern Africa are presented because of the lack of data for much of continental Africa. (Adapted from
Kuuskraa et al, reference 6.)
36
Oilfield Review
Autumn 2011
MONGOLIA
KAZAKHSTAN
Tarim basin
Prospective basin
600
400
1,200 km
800 mi
CHINA
Sichuan
basin
NEPAL
INDIA
MYANMAR
> China shale basins. (Adapted from Kuuskraa et al, reference 6.)
37
AFGHANISTAN
CHINA
PAKISTAN
Southern
Indus
basin
BHUTAN
NEPAL
Cambay
basin
INDIA
Damodar
Valley basin
BANGLADESH
MYANMAR
Krishna-Godavari
basin
Cauvery
basin
0
0
Prospective basin
600
400
1,200 km
800 mi
> India and Pakistan shale basins. (Adapted from Kuuskraa et al, reference 6.)
38
The Kommugudem Shale in Indias KrishnaGodavari basin appears to have the greatest
potential for production, followed by the Cambay
Shale in the Cambay basin. Analysis of the Barren
Measure Shale in the Damodar Valley ranks it as
having the lowest potential of the four in India.
Exploration is ongoing in India with some
reported success. Although analysis indicated
marginal potential for commercial production in
the Permian-age Barren Measure Shale in the
Damodar Valley basin, it was the site of the first
shale gas well drilled in India. The 2,000 m
[6,562 ft] deep RNSG-1 well, drilled by Oil and
National Gas Corporation (ONGC) Ltd, lays claim
to being one of the first wells outside the US and
Canada to produce gas from shale in commercial
quantities.44 Additional exploratory and evaluation wells are planned for this basin.
Two organic-rich shales in the Southern Indus
basin of Pakistan are the Sembar and the Ranikot
formations. No public data on gas shale exploration or development for these formations are
available at present. Estimates based on data previously acquired are for a combined 5.8 trillion m3
[206 Tcf] of GIP, of which 1.4 trillion m3 [51 Tcf] is
technically recoverable.45
AustraliaOperators in Australia have a
long history of developing unconventional reservoirs, which include tight gas and coalbed methane (CBM). Experience with CBM should be an
asset in developing gas shale resources because
the equipment and techniques used to develop
shales are similar. However, the four main basins
with shale gas potential are not located in the
same regions as the CBM fields. The main basins
being considered for development are the
Canning, Cooper (location of Australias main
onshore conventional production), Perth and
Maryborough basins (next page). These basins
hold an estimated 39.1trillionm3 [1,381Tcf] of
GIP, of which 11.2trillionm3 [396Tcf] is
technically recoverable.
The Ordovician-age Goldwyer Formation of
the Canning basin has, by far, the greatest estimated recoverable resource and covers the largest geographical area in Australia. This region,
however, is scarcely explored and currently lacks
infrastructure for development. There is conventional hydrocarbon production in the region,
although it is fairly recent; the first commercial
oil discovery in this basin was made in 1981. The
estimated recoverable gas is 6.5 trillion m3
[229 Tcf]; production awaits further exploration
and analysis because only 60 wells have penetrated the resource.
Oilfield Review
Canning
basin
AUSTRALIA
Maryborough
basin
Cooper
basin
Perth
basin
Prospective basin
800
Prospective area
1,600 km
500
1,000 mi
> Australia shale basins. (Adapted from Kuuskraa et al, reference 6.)
Autumn 2011
39