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Shale Gas: A Global Resource

Producing commercial quantities of natural gas from organic-rich shales was


uncommon a decade ago. Success in the Barnett Shale of central Texas, USA,
launched a new way of thinking about shale source rocks. The techniques used there
were applied to other North American basins where conditions were favorable for
coaxing natural gas from source rocks. Successful gas production from shales soon
followed in numerous locations in the US and Canada, generating exploration interest
on a global scale as companies now attempt to replicate that achievement.

Chuck Boyer Shales are the most abundant form of sedimen- interest is not limited to North America and
Pittsburgh, Pennsylvania, USA tary rock on Earth. They serve as the source Europe; sites across the globe are attracting
rocks for hydrocarbons migrating into perme- investment capital. This article reviews the
Bill Clark able reservoirs and act as seals for trapping oil current state of worldwide gas shale exploration
Oklahoma City, Oklahoma, USA and gas in underlying sediments. Until recently, and development.
the oil and gas industry generally regarded them
Valerie Jochen
as nuisances to be tolerated while drilling to Unconventional Resources
College Station, Texas, USA
target sandstone and limestone reservoirs. But Organic-rich shale deposits with potential for
Rick Lewis geologists and engineers have begun to view a hydrocarbon production are referred to as both
Camron K. Miller specific type of shaleorganic-rich shalewith unconventional reservoirs and resource plays.
Dallas, Texas a newfound appreciation. If endowed with the Unconventional gas reservoirs refer to low- to
right characteristics, organic-rich shales have ultralow-permeability sediments that produce
Oilfield Review Autumn 2011: 23, no. 3. the potential to serve not only as sources of mainly dry gas. Reservoirs with permeability
Copyright 2011 Schlumberger.
hydrocarbons but also as reservoirs to be pro- greater than 0.1 mD are considered conventional,
duced. Finding and producing gas from shale and those with permeability below that cutoff
formations, initially a North American phenom- are called unconventional, although there is no
enon, has become a global pursuit for many scientific basis for such a designation.
exploration companies. According to a more recent definition, uncon-
The catalyst for the recent boom in shale ventional gas reservoirs are those that can be pro-
exploration is the Barnett Shale in Texas. It took duced neither at economic flow rates nor in
20years of experimenting before the play was economic volumes unless the well is stimulated by
considered economically viable. Two technolo- hydraulic fracture treatment or accessed by a hori-
giesfracture stimulation and horizontal drill- zontal wellbore, multilateral wellbores or some
ingwere developed and applied at the right other technique to expose more of the reservoir to
time to enable this success. the wellbore.1 This definition includes formations
While the most interest and greatest financial composed of tight gas sands and carbonates, as
investment have been directed at basins in North well as resource plays such as coal and shale.2 The
America, operators are seeking to replicate the term resource play refers to sediments that act as
success in other parts of the world. In countries both the reservoir and the source for hydrocar-
that have little current hydrocarbon production bons. Unlike conventional plays, resource plays
of their own, such as those in Europe, shale cover a wide areal extent and are not typically con-
exploration takes on great importance. However, fined to geologic structure.

28 Oilfield Review
Producing hydrocarbons from shale deposits was no instant gratification; 20 years of drilling By applying these two technologies together,
is nothing new; the practice predates the modern and completion innovation, along with increases companies operating in the Barnett Shale proved
oil industry. In 1821, decades before the first oil in commodity pricing, created the environment that economic volumes of hydrocarbons could be
well was drilled, a commercial shale gas well was that brought the play commercial viability. liberated from the shale source rocks. Following
drilled in Fredonia, New York, USA.3 By the 1920s, Hydraulic fracture stimulation was the first this success, operators rushed to similar basins
the worlds most prolific natural gas production technology to unlock the gas trapped in shales. in search of shales that could become the next
came from similar shale deposits in the nearby This practice creates permeability in rocks where Barnett. Rocks that had been largely ignored by
Appalachian basin. The methods used then for very little exists naturally. Fracturing shale from the E&P industry were suddenly the subject of
exploiting gas shales little resemble current prac- vertical wells produced high initial production great interest.
tices. Operators drilled vertical wells that pro- flow rates, followed by rapid falloff. Operators As evidence of the success in producing gas
duced low flow rates. However, successful realized that more contact with the reservoir was from shales, in 2008, the Barnett Shale became the
production of natural gas from the Appalachian needed to avoid these rapid declines. Thus, along largest gas-producing play or formation in the US,
basin proffered hope for those who later sought to with hydraulic fracturing, the second enabling contributing 7% of all the natural gas produced in
tap the Barnett Shale and similar resource plays. technologythe ability to drill extended-reach the contiguous 48 states for that year.4 Success in
Development of the Barnett Shale traces horizontal wellsallowed contact with signifi- other gas shale plays followed. In March 2011,
its roots to 1981 when Mitchell Energy & cantly more reservoir rock than is possible from after just three years of development, the prolific
Development Corporation drilled a well exclu- vertical wellbores. Haynesville-Bossier Shale in Louisiana and east
sively for the production of gas from shale. There Texas produced 159.1 million m3/d [5.62 Bcf/d] of

1. US National Petroleum Council (NPC): Unconventional For more on coalbed methane: Al-Jubori A, Johnston S, http://www.netl.doe.gov/technologies/oil-gas/
Gas ReservoirsTight Gas, Coal Seams, and Shales, Boyer C, Lambert SW, Bustos OA, Pashin JC and Wray A: publications/brochures/Shale_Gas_March_2011.pdf
Washington, DC, working document of the NPC Global Oil Coalbed Methane: Clean Energy for the World, (accessed August 22, 2011).
& Gas Study, Topic Paper no. 29, July 18, 2007. Oilfield Review 21, no. 2 (Summer 2009): 413. 4. Warlick D: A Current View of the Top 5 US Gas Shales,
2. Ground Water Protection Council and ALL Consulting: 3. US Department of Energy (DOE) and National Energy Oil & Gas Financial Journal, (February 1, 2010), http://
Modern Shale Gas Development in the United States: Technology Laboratory (NETL): Shale Gas: Applying warlickenergy.com/oil-gas-articles/a-current-view-of-
A Primer, Washington, DC, US Department of Energy Technology to Solve Americas Energy Challenges, the-top-5-us-gas-shales/ (accessed October 17, 2011).
Office and Fossil Energy and National Energy Technology Washington, DC, US DOE and NETL (March 2011),
Laboratory, 2009.

Autumn 2011 29
5.0

4.5 Eagle Ford Shale

4.0 Marcellus Shale


Annual shale gas production, Tcf

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 2006 2007 2008 2009 2010
Year
> 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.)

natural gas, eclipsing the Barnett Shales 152.9 there were no commercial operations producing companies. Companies with substantial acreage
million m3/d [5.40 Bcf/d].5 In 2010, 137.9 billion m3 gas from shales outside North America. That situ- positionsinEuropeincludeExxonMobil
[4.87 Tcf] of dry gas was produced from the various ation may change rapidly. Gas shale exploration Corporation, Total S.A., ConocoPhillips Company
US shale resource plays (above). This amounted to is ongoing in South America, Africa, Australia, and Marathon Company. With limited experience
23% of the annual production in the US.6 And the Europe and Asia. Around the world, E&P compa- in shale exploration and development, these com-
future for producing gas from shales appears nies are acquiring and analyzing seismic data, panies are partnering with companies that devel-
bright. The Marcellus Shale in the Appalachian drilling exploratory wells and evaluating forma- oped the North American gas shale industry. For
region of the eastern US, which is only now being tions for gas production capabilities. As assess- example, Total has acquired a large stake in
explored and developed, has been projected to ment of global shale resources has continued, Chesapeake Energy Corporation, an active player
have the potential to surpass production of both estimates for resource potential have gone up in several US shale developments. ExxonMobil
the Barnett and Haynesville-Bossier shales.7 dramatically (next page, top). A recent study esti- recently acquired XTO Energy Inc, a move seen by
Exploration companies are now turning their focus mated that the global natural gas resource poten- many energy analysts as an attempt to acquire
to other regions with the hope of developing tial from shales was 25,300 Tcf [716 trillion m3]. expertise in developing shale resources.9
untapped shale resources. However, in many cases, significant challenges lie Beyond the lack of existing technical experi-
in the path of development. ence, several other factors impede development
Global Perspectives Unlike shale development in the US, where of shale resources in Europe, Asia and South
E&P companies have routinely produced hydro- smaller operators were instrumental in much of America. Sourcing large quantities of water for
carbons from shale. For instance, operators in the activity, European gas shale exploration and drilling and stimulation operations is a major
Brazil, Estonia, Germany and China produce oil development tend to be dominated by large concern, as is the limited availability of oilfield
from shales by retorting.8 However, as of 2011, multinational energy companies and national oil service equipmentprimarily the type used for

5. US Energy Information Administration (EIA): Haynesville 7. Monteith G: Ohio Shales Energy Potential: It Could Be 10. Kuuskraa et al, reference 6.
Surpasses Barnett as the Nations Leading Shale Play, Big, hiVelocity (May 5, 2011), http://www. 11. Arthur JD, Langhus B and Alleman D: An Overview of
Washington, DC, US EIA (March 18, 2011), http://www.eia. hivelocitymedia.com/features/Shale5_5_11.aspx Modern Shale Gas Development in the United States,
gov/todayinenergy/detail.cfm?id=570 (accessed (accessed October 16, 2011). ALL Consulting (2008), http://www.all-llc.com/
October6, 2011). 8. Allix P, Burnham A, Fowler T, Herron M, Kleinberg R publicdownloads/ALLShaleOverviewFINAL.pdf
6. Kuuskraa V, Stevens S, Van Leeuwen T and Moodhe K: and Symington B: Coaxing Oil from Shale, Oilfield (accessed September 28, 2011).
World Shale Gas Resources: An Initial Assessment of Review 22, no. 4 (Winter 2010/2011): 415.
14 Regions Outside the United States, Washington, DC, 9. Durham LS: Poland Silurian Shale Ready for Action,
US DOE EIA, April 2011. AAPG Explorer 31, no. 2 (February 2010): 14, 18.

30 Oilfield Review
hydraulic fracturing. Also, there are potential Region 1997 Rogner Study, Tcf 2011 EIA Study, Tcf
land use issues in densely populated areas of
North America 3,842 7,140
western Europe. Whereas the mineral rights for
South America 2,117 4,569
much of the land in the US are controlled by land-
owners, this is not the case in other countries, Europe 549 2,587
where the state owns below-ground resources. Africa 1,548 3,962
The potential conflicts between surface owners Asia 3,528 5,661
and resource developers pose perhaps the most Australia 2,313 1,381
daunting challenge to development in Europe.
Other 2,215 Not available
In the rush to develop, it is difficult to ignore
Total 16,112 25,300
nontechnical issues, which include geopolitics,
public perception and a host of other concerns. > Shale gas estimates. A 1997 study estimated global shale gas reserves at 16,112Tcf [456 trillion m3].
Despite these factors, and because of the game- The 2011 US EIA study increased that estimate by almost 60% to 25,300 Tcf [716 trillion m3]. [Adapted
changing nature of gas shale plays in the US, from Rogner H-H: An Assessment of World Hydrocarbon Resources, Victoria, British Columbia,
global interest has heightened. A comprehensive Canada: Institute for Integrated Energy Systems, University of Victoria (IESVic, 1997) and Kuuskraa et
al, reference 6.]
report published by the US Energy Information
Administration (EIA) in 2011 assessed 48 gas
shale basins in 32 countries and reviewed the
current state of shale development (below).10
Based on this report, the world appears poised Shale Gas Assessments Marcellus Shale in northeastern US is by far the
for a shale gas revolution. United StatesCurrently, the only commercial largest play, with an estimated areal extent of
shale resource plays are located in North 246,000 km2 [95,000 mi2]. This is followed by the
America, with the majority in the US. The New Albany Shale at about half that size.11 Other

Established basins with


resource estimate
Potential basins without
resource estimate
Countries with
unknown potential

> 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
major gas shales in the US range from 13,000 to leads all others. Although the Marcellus Shale CanadaNumerous basins in Canada have
30,000 km2 [5,000 to 12,000 mi2], some of which appears to have the greatest potential, operators significant shale gas potential. The largest are
have proved to be prolific producers (below). in the region have only recently begun to explore located in western Canada and include the
Based on 2011 estimates, the production and develop the play. Of the shales that are Horn River basin, Cordova embayment, the
leaders with the highest combined daily rates actively being produced today, the largest is the Laird basin, the Deep basin and the Colorado
are the Barnett and Haynesville-Bossier shales. Haynesville-Bossier Shale with an estimated group. These five basins contain a combined
Ranking by production, although a significant original GIP of 20.3 trillion m3 [717 Tcf]. estimate of 37.6 trillion m3 [1,326 Tcf] GIP, of
indicator, may be misleading because different The Barnett Shale comes next at 9.3 trillion m3 which 10 trillion m3 [355 Tcf] is considered
plays have experienced varying levels of develop- [327 Tcf].12 But several shale resources are cur- technically recoverable.13
ment. When US plays are ranked instead by esti- rently in production. Some of the more notable The target sediments in the Horn River,
mates of original gas in place (GIP), the are the Fayetteville, Woodford, Antrim, Eagle Cordova and Laird basins are of Devonian age,
Marcellus Shale at 42.5 trillion m3 [1,500 Tcf] Ford and New Albany shales. and the main formations of interest are the

Lower Besa
River Horn River, Cordova
and Laird basins
Montney
Deep basin Muskwa, Otter Park,
Evie and Klua shales
Doig
Phosphate

CANADA

Colorado Group

Niobrara* Frederick
Brook
Bakken Horton Bluff
Heath** Utica
***
Cody

Gammon
Mowry
Hilliard-Baxter- Utica
Antrim
Mancos-Niobrara
Niobrara*

Mancos USA
New Marcellus
Albany
Monterey-
Hermosa Pierre-
Temblor Excello-Mulky
Niobrara
Lewis Woodford
Chattanooga
Monterey
Fayetteville
Bend
New Caney
Avalon Conasauga
Floyd-Neal
Barnett Current shale plays
Barnett- Tuscaloosa Prospective shale plays
Woodford Basins
Haynesville-Bossier
Stacked plays
Eagle Ford
Eagle Ford, Shallowest or youngest
La Casita Pearsall
Intermediate depth or age
Sabinas basin
Deepest or oldest
Burgos basin
MEXICO Eagle Ford, * Mixed shale and chalk play
Tampico basin
Tithonian ** Mixed shale and limestone play
*** Mixed shale and tight dolostone-
siltstone-sandstone play
Pimienta,
Tuxpan basin Tamaulipas
0 600 1,200 km

0 400 800 mi Maltrata


Veracruz basin

> North America shale plays. (Adapted from Kuuskraa et al, reference 6.)

32 Oilfield Review
Muskwa, Otter Park, Evie, Klua and lower Besa
River shales. Several operators have been active PERU
in these areas with positive results. The Triassic-
BOLIVIA BRAZIL
age Montney Shale and the Doig Phosphate are
located in the Deep basin. As of July 2009, 234
horizontal wells had been drilled into the
Montney Shale and were producing 10.7 million
m3/d [376 MMcf/d] of natural gas.14 PARAGUAY Paran basin
Eastern Canada has several potential shale
plays, although they have not been as extensively
studied as those in the west. Prospective areas
Chaco basin
include the Canadian portion of the upper
Ordovician-age Utica Shale in the Appalachian
fold belt, which straddles the border with the US
and has an estimated 4.4 trillion m3 [155 Tcf] of URUGUAY
ARGENTINA
GIP, of which 877 billion m3 [31 Tcf] is techni- CHILE SOUTH AMERICA
cally recoverable. Few wells have been drilled in
the Utica formation, and gas has been recovered Neuqun
during testing but at low rates. basin
The lacustrine Horton Bluff Shale in the
Windsor basin is much smaller, with
San Jorge
255 million m3 [9 Tcf] of GIP, of which an esti- basin
mated 56.6 billion m3 [2 Tcf] is technically recov-
erable. Farther west, the Frederick Brook Shale
in the Maritimes basin of New Brunswick is in
preliminary stages of exploration and evaluation. Austral-
Magallanes Prospective basin
MexicoOrganic-rich and thermally mature basin 0 500 1,000 km
Jurassic- and Cretaceous-age shales are found in
0 300 600 mi
Mexico. (For more information on characteristics
of organic shales, see Shale Gas Revolution,
page40.) They are similar to productive gas > South America shale basins. (Adapted from Kuuskraa et al, reference 6.)
shales of relative age in the US, such as the Eagle
Ford, Haynesville-Bossier and Pearsall shales.15
Potential shale resources are located in north-
east and east-central Mexico, along the Gulf of
Mexico basin. The shales targeted for exploration 67 trillion m3 [2,366 Tcf] of GIP, of which border into the Burgos and Sabinas basins of
also served as the source rock for some of 19.3 trillion m3 [681 Tcf] is judged to be techni- Mexico, successful production on the US side of
Mexicos largest conventional reservoirs. cally recoverable.16 The five basins of interest for the border holds promise for similar results on
Although little gas shale exploration activity shale development are the Burgos (which the Mexican side.
has been reported in the five basins in Mexico includes the Eagle Ford and Tithonian shales), In its first exploratory shale gas well, Mexicos
studied by the US EIA, there is an estimated Sabinas (which includes the Eagle Ford and national oil company Petrleos Mexicanos
Tithonian La Casita shales), Tampico (Pimienta (Pemex) Exploration and Production recently
12. Arthur et al, reference 11.
Shale), Tuxpan (Pimienta and Tamaulipas shales) reported a successful gas test from the Eagle
13. Kuuskraa et al, reference 6.
14. National Energy Board, Canada: A Primer for and Veracruz (Maltrata Shale). Although there is Ford Shale in the Burgos basin. Production com-
Understanding Canadian Shale GasEnergy Briefing considerable interest in developing shale reser- menced in May of 2011 with a rate of approxi-
Note, Calgary: National Energy Board, Canada
(November 2009), http://www.neb-one.gc.ca/clf-nsi/ voirs in Mexico, many of the organic-rich shales mately 84,000 m3/d [3.0 MMcf/d]. Pemex plans to
rnrgynfmtn/nrgyrprt/ntrlgs/prmrndrstndngshlgs2009/ are structurally complex from overthrusting, or drill 20 additional wells in the near future to fur-
prmrndrstndngshlgs2009-eng.html (accessed
October10, 2011). they are more than 5,000 m [16,400 ft] deep, ther evaluate the resource potential of the five
15. Salvador A and Quezada-Mueton JM: Stratigraphic which is too deep for development using current listed basins.17
Correlation Chart, Gulf of Mexico Basin, in Salvador A technology. The greatest potential targets are in South AmericaSeveral potential gas shale
(ed): The Geology of North America, Volume J, The Gulf
of Mexico Basin. Boulder, Colorado, USA: The the norththe Eagle Ford and Tithonian shales basins are located in South America (above).
Geological Society of America (1991): 131180. of the Burgos and Sabinas basins. Argentina has, by far, the largest resource poten-
16. Kuuskraa et al, reference 6.
Across the Rio Grande River in south Texas, tial, with an estimated 77 trillion m3 [2,732 Tcf] of
17. Weeden S: Mexico Aims to Tap Worlds Fourth Largest
Shale Gas Reserves, Hart Energy E&P, (August 26, 2011), the Eagle Ford Shale has produced both gas and GIP, of which 21.9 trillion m3 [774 Tcf] is consid-
http://www.epmag.com/2011/August/item87574.php oil. Because this formation extends across the ered technically recoverable.18 Brazil follows with
(accessed September 20, 2011).
18. Kuuskraa et al, reference 6.

Autumn 2011 33
25.7trillionm3 [906Tcf], of which 6.4trillionm3 maturity. The best prospects for gas shale devel- A number of exploration companies are
[226Tcf] is considered recoverable. Chile, opments are in the central and northern parts of active in Poland, and the first shale exploration
Paraguay and Bolivia also have sizable resources. the basin because of the oil-prone nature in the well was drilled in the Baltic basin in 2010. The
Uruguay, Colombia and Venezuela have some lim- southern portions. vertical evaluation well was a joint venture
ited potential for shale development. The Austral-Magallanes basin in southern between 3Legs Resources plc and ConocoPhillips
The Neuqun basin, in west-central Patagonia straddles the Argentina-Chile border. Company. BNK Petroleum Inc has drilled and
Argentina, appears to have some of the greatest The Chile portion of the basin, Magallanes, tested wells in the Baltic basin, targeting
potential for gas shale development. The region accounts for essentially all of the countrys oil pro- Silurian- and Ordovician-age formations.27
is already a major oil and gas producer from con- duction. The main source rock for the basin is the With an estimated 20.4 trillion m3 [720 Tcf] of
ventional and tight sandstones. The middle lower Cretaceous lower Inoceramus Formation, GIP and 5.1 trillion m3 [180 Tcf] recoverable,
Jurassic Los Molles Formation and the Early which contains organic-rich shale deposits. France closely follows Poland in estimated gas
Cretaceous Vaca Muerta Formation contain This formation is approximately 200 m [656 ft] shale resources.28 These resources are located
organic-rich sediments. These two deepwater thick, found at depths of 2,000 to 3,000 m principally in the Paris basin and Southeast
marine shales sourced most of the oil and gas [6,562 to 9,842 ft] and has low to medium basin. The Paris basin contains two organic-rich
fields in the Neuqun basin. TOC values.23 shales, the Toarcian black shale formation and
The Vaca Muerta Formation has some of the The Chaco-Paran basin is immense, encom- Permian-Carboniferous shales. Portions of the
best characteristics for development with high passing an area in excess of 1,294,994 km2 Toarcian shales are thermally immature and
average total organic carbon (TOC) levels (4.0%), [500,000 mi2]. The basin covers most of Paraguay high in oil content, thus limiting their gas poten-
moderate depth2,440 m [8,000 ft]and over- and parts of Brazil, Uruguay, Argentina and tial. The more mature Permian-Carboniferous
pressured conditions.19 The Los Molles Formation Bolivia. It has not been extensively explored; shalesranging in age from Pennsylvanian to
is more mature than the Vaca Muerta and is there are fewer than 150 wells drilled across the Late Permianare deeper and less explored
found at an average depth of 3,810 m [12,500 ft]. entire basin. The Devonian-age Los Monos than those in the northern Paris basin. Average
Although covering a larger geographic area, Formation contains several marine shale depos- shale thickness is around 350 m [1,150 ft]
lower TOCs (1.5% average) in the Los Molles its. The most promising is the San Alfredo Shale, although at the basins eastern margin, thick-
Formation provide less net GIP than in the Vaca which is found as a thick, monotonous layer of nesses of more than 2,200 m [7,200 ft] can be
Muerta Formation. However, there are richer sec- black shale overlying a sandy unit. Although it found in isolated sections. Minimal data are
tions in the Los Molles Formation with TOCs can be as much as 3,658 m [12,000 ft] thick, only available from well logs, so gas estimates are
averaging 2% to 3%. Repsol YPF, S.A., recently about 600 m [2,000 ft] are thought to have based on extrapolated assumptions.
began drilling, completing, fracture stimulating organic richness.24 The little information that is Most of the exploration in the Paris basin has
and testing wells in the Neuqun basin and available indicates a shale matrix that has good been directed at shale oil, rather than gas.
successfully completed an oil producer in the characteristics for fracture stimulation. Recently, however, E&P companies have been
Vaca Muerta Formation.20 Apache Corporation, Based on assumed thickness, thermal matu- targeting the deeper resource plays lying in the
Argentina, recently completed a Los Molles shale rity and gas saturations, and using data from the gas window. The most promising shale formations
well that yielded significant quantities of gas.21 few wells drilled across the basin, engineers in the Southeast basin are the upper Jurassic
Central Patagonias San Jorge basin accounts have estimated a conservative 59 trillion m3 Terres Noires black shales and lower Jurassic
for 30% of Argentinas conventional oil and gas [2,083 Tcf] of GIP, with 14.8 trillion m3 [521 Tcf] Liassic black shales. The eastern portion of the
production. The Late Jurassic and Early technically recoverable.25 Terres Noires Shale is in the gas window, while
Cretaceous Aguada Bandera Shale was the pre- EuropeEurope has many basins with shale the western edges are still in the wet gasoil win-
dominant source rock for these accumulations. gas prospects (next page). Because it appears to dow. Because it was once deeper but uplifted
With good thermal maturity across most of the have some of the greatest potential, Poland is one along its western margin, the Liassic shale is gen-
basin and middle to high TOCs, the Aguada of the most active countries for gas shale explora- erally more thermally mature than the Terres
Bandera Shale has potential for shale gas pro- tion in Europe. The Silurian-age Baltic and Noires Shale. Although the resource potential of
duction. It is found at depths between 3,487 Lublin basins run north-central to southeast the Liassic shale is considered greater than that
and 3,706m [11,440 and 12,160ft]. The lacus- across the country and are bounded by the Trans- of the Terres Noires Shale, its higher clay content
trine depositional environment of these sedi- European fault zone. The Podlasie basin is makes it more difficult to fracture stimulate.
ments poses a potential risk for development located to the east of these two basins. The Currently, there is a moratorium on research
because lacustrine shales are viewed as gener- Lublin and Podlasie basins are similar to each and drilling for shale oil and gas in France, pend-
ally worse targets than marine shales.22 other and are differentiated from the Baltic basin ing environmental impact studies.29 Of even
Another lacustrine shale, the Early by geologic features and regional tectonic fault- greater consequence is a government ban on all
Cretaceous Pozo D-129 shale formation, is also ing. Estimated gas in place for these three basins hydraulic fracturing in France, which was
located in the San Jorge basin. It is consistently is 22.4 trillion m3 [792 Tcf] GIP, of which 5.3 tril- enacted in June of 2011.30 Shale gas extraction is
915 m [3,000 ft] thick in the central part of the lion m3 [187 Tcf] is considered technically recov- not expressly prohibited, but without the ability
basin, and early analysis of the sediments indi- erable.26 Although the Podlasie basin has some of to apply fracturing technology, commercial via-
cates moderate TOC values and good thermal the best reservoir properties, the Baltic basin is bility of resource plays is difficult to realize.
by far the largest in areal extent and total GIP.

34 Oilfield Review
To the north of France, the North Sea 736 billion m3 [26 Tcf] of GIP and 198 billion m3 [589 Tcf] with 4.2 trillion m3 [147 Tcf] considered
German basin extends along the North Sea from [7 Tcf] recoverable in the Posidonia Shale and technically recoverable.
Belgium, across the Netherlands to Germanys 254 billion m3 [9 Tcf] of GIP and 56.6 billion m3 The Pannonian-Transylvanian basin covers
eastern border. Within this basin are a number of [2 Tcf] recoverable in the Wealden Shale. The most of Hungary, Romania and Slovakia. Marine
formations with shale gas potential, including deeper and very mature Carboniferous Namurian sediments deposited in this basin during the
the Posidonia (located in isolated portions of the Shale contains an estimated 1.8 trillion m3 Oligocene are believed to be the source for most of
Netherlands and Germany), the Wealden [64 Tcf] GIP with 453 billion m3 [16 Tcf] recover- Hungarys conventional hydrocarbons. Although
(Germany) and the Carboniferous Namurian (the able.32 Several companies are currently exploring the shales have been exposed to a very high geo-
Netherlands) shales.31 in both Germany and the Netherlands. thermal gradient, which has accelerated matura-
Significant volumes of the Posidonia and Farther north, the Alum Shale extends tion of the organic material, the clay-rich rocks are
Wealden shales are thermally immature and only through Norway, Sweden and Denmark. The areas of poor quality for production of shale gas.
isolated sections have gas potential. Potential is that are in the gas window offer promise for pro- Exploration is in the early speculative stage; some
low in both these shales with estimates of duction; however, data are sparse. Based on avail- initial testing has been discouraging.
able data, the estimated GIP is 16.7 trillion m3

NORWAY

SWEDEN ESTONIA
Alum Shale
Northern RUSSIA
petroleum LATVIA
system DENMARK
IRELAND Baltic LITHUANIA
North Sea basin
German basin
Southern THE BELARUS
UK
petroleum NETHERLANDS
Podlasie
system POLAND basin
Weald basin Trans-European
BELGIUM GERMANY fault
Paris
basin CZECH Lublin
basin UKRAINE
REP.
Molasse SLOVAKIA
basin Vienna basin
FRANCE
MOLDAVIA
AUSTRIA HUNGARY
Aquitane
basin Pannonian Carpathian-
Southeast Transylvanian Balkanian
basin Po basin basin basin
ROMANIA
CROATIA BOSNIA
Lusitanian-
Peniche & HER. SERBIA
Ebro ITALY
basin SPAIN basin
BULGARIA
PORTUGAL MACEDONIA
ALBANIA

Prospective basin Prospective area TURKEY


GREECE
0 750 1,500 km

0 500 1,000 mi

> Europe shale basins. (Adapted from Kuuskraa et al, reference 6.)

19. TOC governs the resource potential of shale. 22. Kuuskraa et al, reference 6. 28. Kuuskraa et al, reference 6.
Exploration targets typically have TOC values in the 23. Kuuskraa et al, reference 6. 29. Sheehan J: Europe Gears Up for the Shale Gale,
range of 2% to 10%. Journal of Petroleum Technology 63, no. 7
24. Kuuskraa et al, reference 6.
20. OilandGasInvestor.com: Argentinas Neuqun Basin (July 2011): 3237.
25. Kuuskraa et al, reference 6.
Shales, http://www.oilandgasinvestor.com/article/ 30. Patel T: France Vote Outlaws Fracking Shale for
Argentinas-Neuquen-Basin-Shales_84718 (accessed 26. Kuuskraa et al, reference 6.
Natural Gas, Oil Extraction, Bloomberg (July 1, 2011),
September 20, 2011). 27. BNK Petroleum: BNK Petroleum Inc. Baltic Basin http://www.bloomberg.com/news/2011-07-01/
21. Natural Gas Americas: First Horizontal Shale Gas Well Update, (September 4, 2011), http://www.bnkpetroleum. france-vote-outlaws-fracking-shale-for-natural-gas-oil-
Completed in Argentina, (August 19, 2011), http:// com/newsletters/BNK%20Press%20Release%20 extraction.html (accessed September 20, 2011).
naturalgasforamerica.com/horizontal-shale-gas- Poland%20update%20Sept%204th%20final.pdf
31. Kuuskraa et al, reference 6.
completed-argentina.htm (accessed September 25, 2011). (accessed September 5, 2011).
32. Kuuskraa et al, reference 6.

Autumn 2011 35
TUNISIA
Tadla basin
MOROCCO
Ghadames
Tindouf basin
basin
LIBYA Sirte basin
ALGERIA
WESTERN
SAHARA

Prospective basin Prospective area


0 600 1,200 km

MAURITANIA 0 400 800 mi NIGER CHAD

BOTSWANA SWAZILAND AFRICA

NAMIBIA

SOUTH AFRICA

Karoo basin
LESOTHO

Prospective basin Prospective area


0 300 600 km

0 200 400 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.)

The United Kingdom and Ireland are two evaluate the resource, especially in the western of the Weald basin. This shale is thought to
additional areas for shale exploration. The regions.34 Current estimates of GIP are on the contain commercial quantities of wet gas, con-
United Kingdom has two major petroleum hori- order of 2.7 trillion m3 [95 Tcf], of which densate and oil.36
zonsthe Carboniferous northern petroleum 538 billion m3 [19 Tcf] is technically recoverable. Numerous other shale deposits in basins
system and the Mesozoic southern petroleum Recently, Cuadrilla Resources Ltd announced the across Europe may offer the potential for explora-
system.33 The two systems contain several basins discovery of 5.7 trillion m3 [200 Tcf] of shale gas tion and development. Most have not been widely
with similar depositional and tectonic history. in the Bowland Shale, which far exceeds the pub- explored or data have not been released to the
Government action to restrict shale exploration lished estimates for the region.35 public to evaluate their full potential.
activities was reversed in May 2011 and there The southern petroleum system has been AfricaAfrica has several shale basins that
has recently been an increase in exploration explored since the 1920s, although until the dis- are considered potential resource plays. Because
drilling in both systems. covery of the Wytch Farm field in 1973, there of the presence of untapped conventional
Petroleum exploration has taken place in the were few notable finds. The Liassic shale source resources, there have been few reports of gas
northern petroleum system for more than rock has limited gas potential. It is deep shale exploration activity (above). The notable
100years, and the Bowland Shale in the Cheshire averaging 4,114 m [13,500 ft]but lacks thermal exception to this is South Africa, where major
basin of this region holds a high potential for maturity. Recoverable resource potential is only and independent E&P companies have been
development. Additional data are needed to fully about 28.3 billion m3 [1 Tcf]. Celtique Energie actively pursuing shale gas production.
Petroleum Ltd holds licenses in the Liassic shale

36 Oilfield Review
The Karoo basin in central and southern Thermally mature marine shales of lower The Tarim basin in western China is one of
South Africa covers nearly two-thirds of the Cambrian age (Qiongzhusi Formation) and the worlds largest frontier exploration basins.
country. The Permian-age Ecca shale group con- lower Silurian age (Longmaxi Formation) are The shales of interest are of Cambrian and
tains significant volumes of gas, estimated at found in the Sichuan basin. Exploration compa- Ordovician age and served as the source rock for
51.9 trillion m3 [1,834 Tcf] of GIP, of which nies have expressed considerable interest in the 795 million m3 [5 billion bbl] of oil equivalent
13.7 trillion m3 [485 Tcf] is technically recover- these formations because of gas shows in explo- hydrocarbons in conventional carbonate reser-
able.37 The shales found in this basin are charac- ration wells. Their low clay content is also an voirs of the region. However, the arid conditions
terized as highly organically rich, thermally advantage, making them potentially good candi- in the regionit lies beneath the Taklimakan
mature and in the dry gas window. dates for fracture stimulation. There is, however, Desertmean sourcing water for fracturing will
Several organic-rich shales are located in a large degree of structural complexity with be difficult.
basins in northern Africafrom the Western extensive folding and faulting, which introduces The Cambrian-age shales in the Manjiaer and
Sahara and Morocco, across Algeria, Tunisia and risk for future development. Awati depressions are more than 1 km [3,280 ft]
Libyabut most exploration companies are con- Operators are currently evaluating and testing thick, and both deposits are in the dry-gas
centrating on discovering and developing con- in the Sichuan basin, although no commercial pro- window. The excessive depth of these deposits
ventional reservoirs in these regions. However, duction has been confirmed. However, in 2010, limits the net footage of accessible organic-rich
unlike Algeria, Tunisia and Libya, Morocco has China Petroleum and Chemical Corporation shale, but the high quality of the resourcelow
few natural gas reserves and depends heavily on (Sinopec) reportedly produced commercial quan- clay content, dry gas, moderate TOC and good
imports to meet its internal consumption needs. tities of gas from tests in two different parts of the porositymakes them prime targets for explora-
For this reason, exploration activity in shale Sichuan basinthe Yuanba district in the north- tion and evaluation.
deposits is ongoing there. east and the Fuling district in the southeast.41
The Tindouf basin (stretching across
Morocco, Western Sahara, Mauritania and west-
ern Algeria), and to a lesser extent, the Tadla
basin (in central Morocco), are targets of explo-
ration and possible development as shale
resource plays. These Silurian-age shale deposits KAZAKHSTAN MONGOLIA
contain an estimated 7.5 trillion m3 [266 Tcf] of
GIP with about 1.5 trillion m3 [53 Tcf] technically
recoverable.38 Exploration activity in Morocco, Prospective basin
including seismic acquisition and exploratory 0 600 1,200 km
drilling, recently began but is still in the early Tarim basin
0 400 800 mi
stages. San Leon Energy plc has expressed inter-
est in shale gas, but at present is pursuing oil CHINA
shale prospects in western Morocco.39
Except as noted above and along the west
coast of Africa, where E&P companies continue Sichuan
basin
to find, produce and develop conventional
resources, much of the remainder of Africa
NEPAL
remains unexplored. The dearth of existing infor-
mation, along with a lack of drilling and explora- INDIA
tion resources, provides for a poor environment
for gas shale development at present. MYANMAR
ChinaMany organic-rich shales with
> China shale basins. (Adapted from Kuuskraa et al, reference 6.)
promise as resource plays have been identified
in China (right). With an estimated 144.4 tril-
lion m3 [5,101 Tcf] of GIP and 36.1 trillion m3
[1,275 Tcf] of technically recoverable gas, the
potential is comparable to that of North 33. Kuuskraa et al, reference 6. 37. Kuuskraa et al, reference 6.
America.40 There are two large sedimentary 34. Kuuskraa et al, reference 6. 38. Kuuskraa et al, reference 6.
basins of interestthe Sichuan basin in the 35. Chazan G: U.K. Gets Big Shale Find, The Wall Street 39. Petroleum Africa: San Leon Moves Toward
Journal (September 22, 2011), http://online.wsj.com/ Moroccan Shale Oil, (June 28, 2011), http://www.
south and the Tarim basin in the west. article/SB1000142405311190456390457658490413910 petroleumafrica.com/en/newsarticle.php?NewsID=
Containing thick, organic-rich shale deposits, 0880.html (accessed September 26, 2011). 11703 (accessed September 1, 2011).
36. Celtique Energie: Central WealdFurther Data, 40. Kuuskraa et al, reference 6.
these basins cover large expanses and have good http://www.celtiqueenergie.com/operations/uk/ 41. Reuters: Sinopec Strikes Shale Gas Flow in Sichuan
reservoir characteristics for development. southern_england/central_weald_data.html Basin, (December 23, 2010), http://www.reuters.com/
(accessed September 21, 2011). article/2010/12/23/sinopec-shale-gas-idUSTOE6BM03X
20101223 (accessed September 27, 2011).

Autumn 2011 37
Resource potentials for the Ordovician-age India and PakistanSeveral basins in India The Kommugudem Shale in Indias Krishna-
shales in the Manjiaer depression are even contain organic-rich shales, although only four Godavari basin appears to have the greatest
greater than for the Cambrian shales, with a net are viewed as having priority for exploration; potential for production, followed by the Cambay
thickness of 1,600 m [5,250 ft] of organic-rich Pakistan has one basin with potential (below). Shale in the Cambay basin. Analysis of the Barren
deposits. The Ordovician-age organic-rich shales Other basins either lack thermal maturity or the Measure Shale in the Damodar Valley ranks it as
in the Awati depression are around 400 m [1,300 ft] data are too limited to perform a thorough evalu- having the lowest potential of the four in India.
thick. Unfortunately, much of the resource in ation. The five basins in these countries are the Exploration is ongoing in India with some
both of these formations is too deep for shale Cambay basin in western India, the Krishna- reported success. Although analysis indicated
development using currently available technol- Godavari basin along the east coast of India, the marginal potential for commercial production in
ogy. Shale exploration and evaluation activity Cauvery basin in southern India, the Damodar the Permian-age Barren Measure Shale in the
have not been reported for the Tarim basin.42 Valley basin in northeast India and the Southern Damodar Valley basin, it was the site of the first
There are five other sedimentary basins in Indus basin in southeast Pakistan. The five basins shale gas well drilled in India. The 2,000 m
China but they are nonmarine and lack thermal have a combined GIP estimate of 14 trillion m3 [6,562 ft] deep RNSG-1 well, drilled by Oil and
maturity, although this has not prevented explo- [496 Tcf], of which 3.2 trillion m3 [114 Tcf] is con- National Gas Corporation (ONGC) Ltd, lays claim
ration and evaluation of their potential. Based on sidered technically recoverable.43 Because of tec- to being one of the first wells outside the US and
early results, the five basins appear to be nonpro- tonic activity, basins in India and Pakistan are Canada to produce gas from shale in commercial
spective for shale gas, although data continue to geologically complex. quantities.44 Additional exploratory and evalua-
be acquired and assessed. tion 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 explora-
AFGHANISTAN tion or development for these formations are
available at present. Estimates based on data pre-
CHINA viously acquired are for a combined 5.8 trillion m3
PAKISTAN [206 Tcf] of GIP, of which 1.4 trillion m3 [51 Tcf] is
technically recoverable.45
Southern BHUTAN AustraliaOperators in Australia have a
Indus NEPAL
basin long history of developing unconventional reser-
voirs, which include tight gas and coalbed meth-
Cambay ane (CBM). Experience with CBM should be an
basin
INDIA Damodar
asset in developing gas shale resources because
Valley basin the equipment and techniques used to develop
MYANMAR shales are similar. However, the four main basins
BANGLADESH
with shale gas potential are not located in the
Krishna-Godavari same regions as the CBM fields. The main basins
basin
being considered for development are the
Canning, Cooper (location of Australias main
onshore conventional production), Perth and
Maryborough basins (next page). These basins
Cauvery
basin hold an estimated 39.1trillionm3 [1,381Tcf] of
Prospective basin GIP, of which 11.2trillionm3 [396Tcf] is
0 600 1,200 km technically recoverable.
The Ordovician-age Goldwyer Formation of
0 400 800 mi
the Canning basin has, by far, the greatest esti-
> India and Pakistan shale basins. (Adapted from Kuuskraa et al, reference 6.)
mated recoverable resource and covers the larg-
est geographical area in Australia. This region,
however, is scarcely explored and currently lacks
infrastructure for development. There is conven-
tional hydrocarbon production in the region,
although it is fairly recent; the first commercial
42. Kuuskraa et al, reference 6. 45. Kuuskraa et al, reference 6. oil discovery in this basin was made in 1981. The
43. Kuuskraa et al, reference 6. 46. Kuuskraa et al, reference 6. estimated recoverable gas is 6.5 trillion m3
44. LNG World News: India: ONGC Finds Shale Gas near 47. Tectonically stable sedimentary basins have geothermal [229 Tcf]; production awaits further exploration
Durgapur, (February 4, 2011), http://www.lngworldnews. gradients ranging typically from 0.45C to 0.92C/30 m
com/india-ongc-finds-shale-gas-near-durgapur/ [0.82F to 1.65F/100 ft]. and analysis because only 60 wells have pene-
(accessed September 11, 2011). 48. Kuuskraa et al, reference 6. trated the resource.

38 Oilfield Review
marine deposit, does show promise. Recent
estimates suggest a possible 651 billion m3
[23 Tcf] of technically recoverable gas with the
possibility of adding to the estimate when the
unexplored and poorly understood southern half
of the basin is included in the evaluation.
Other exploration activities are taking place
Canning throughout the world. Some regions, such as the
basin
Middle East and Russia, have abundant gas shale
potential, but easy access to conventional reser-
AUSTRALIA voirs precludes serious development efforts of
Maryborough
basin shale. Energy-hungry and often resource-poor
countries constitute the majority of the ongoing
Cooper
basin exploration activity.
Perth
basin Moving Forward
Energy resources are the lifeblood of modern
economies. Twenty years ago, dire warnings were
issued in the US that natural gas supplies were
dwindling and alternate sources of supplies were
Prospective basin Prospective area neededquickly. An aggressive program was rec-
0 800 1,600 km ommended for importing LNG from countries
with accessible supplies. Today, the situation is
0 500 1,000 mi
remarkably different. The US has an abundance
of natural gas and the long-term supply is more
> Australia shale basins. (Adapted from Kuuskraa et al, reference 6.) secure than ever because operators have learned
to tap natural gas from unconventional resource
playsprimarily shale, but also CBM. Operators
in many regions of the world, having observed the
As Australias main onshore gas supply, the Although operators are still in the early stages success in North America, are moving to catch up.
Cooper basin produces about 14 million m3/d of exploration, they are actively evaluating and At one time, drilling and reservoir engineers
[0.5 Bcf/d] of natural gas from conventional testing in the Cooper basin. At least one explora- may have considered shales nuisances to deal
and low-permeability reservoirs. The low- tion well has been drilled in the basin and an with in the search of reservoir quality rocks, and
permeability, tight gas reservoirs are usually E&P company is analyzing the core for gas con- the thought of commercial production of natural
hydraulically fractured for production. Because tent and mechanical properties. Santos Energy gas from shale deposits was simply not realistic.
of this, the Cooper basin has personnel with Ltd and Beach Energy Ltd are two of the most But the oil and gas industry continues to develop
expertise and hydraulic fracturing equipment for active companies in gas shale exploration there. new techniques and create ways to access hydro-
developing shale resources.46 The Perth basin is relatively small. The carbons. As the global revolution in gas shale
The Permian-age Roseneath and Murteree onshore portion of the basin has marine sedi- development gains momentum, exploration com-
shales of the Cooper basin appear favorable for ments with production potential, although much panies have only just begun to uncover what
development. They vary from about 50 to 100 m of the interval of interest is too deep for gas shale organic shales have to offer. TS
[165 to 330 ft] in thickness. A third formation in development. Formations in the northern extent
the basin, the Epsilon, is primarily a mixture of of the Dandaragan trough, a large syncline of
sandstone with carbonaceous shale and coal. The Silurian to Cretaceous age, contain potential
three targets are often viewed in combination resource rock. With high geothermal gradients
and referred to as the REM formations. and moderate to high TOCs, younger marine sedi-
Although their lacustrine origin and Type III ments, such as the Permian-age Carynginia and
kerogen source material are not typically the Kockatea shales, offer promise as well.48
target of gas shale development, the REM The Maryborough basin is on the east coast of
formations have some positive attributes. Their Australia. There is no conventional hydrocarbon
low clay content results in rocks that can be more production in the region and little data for evalu-
easily hydraulically fractured. In addition, an ating its potential. With data from only five explo-
extremely high geothermal gradient1.4C/30 m ration wells, more information is needed to
[2.55F/100 ft] in general, and up to 1.9C/30 m fully characterize the shale potential. However,
[3.42F/100 ft] in some partsaccelerated mat- the Cretaceous Maryborough Formation, a thick
uration of the source rock.47

Autumn 2011 39

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