Tight Gas: New Technologies, New Solutions
While the definition of what constitutes a “tight” gas resource continues to evolve, the
Image of tight gas sandstone showing
little or no resolvable porosity
difficulty associated with recovering this unconventional resource has remained a constant
theme.
Development of tight gas assets hinges on two central issues: location and recovery.
Location is a concern for “stranded” assets, where there is no local market infrastructure
and transportation costs result in non-commercial economics. Recovery depends on the
technology available to maximize production volumes.
As natural gas continues to be recognized as an abundant, cleaner-burning fuel that com-
plements renewables, greater attention will be focused on tight gas resources. However, as
local market demand and infrastructure address the issue of location, improving recovery
methods remains a challenge to the development of any tight gas play.
Recovery Challenges
Tight Gas assets are those where permeability is so low that commercial recovery is limited
by existing technology. Today, that limit corresponds to micro-Darcy (10-3 mD) rock, which is
tighter than concrete (0.1-1 mD). In our shale gas assets, permeability drops to nano-Darcy
(10-6 mD) levels, where connected pore throats may be as small as a few methane (CH4)
molecules in width.
As the definition of “tight” has evolved, so has the definition of what is recoverable. As an
example, ExxonMobil holds over 300,000 acres in the Piceance basin in western Colorado.
The commercial development of this asset is challenged by water production and comple-
tion costs in a stacked, multi-sand system. It includes more than 50 reservoir targets
distributed across approximately 5,000 ft of formation. To meet this challenge, ExxonMobil
developed and commercialized our Multi-Zone Stimulation Technology (MZSTTM).
Multi-Zone Stimulation Technology and the Fast Drill Process
Recognized in 2005 with the Platts Global Energy Award for Most Innovative Commercial
Technology of the Year, MZST enables ExxonMobil to optimize our simultaneous operations
by unifying deployment of perforating and fracturing
Multi-Zone Stimulation Technology
operations. In addition to reducing wireline trips,
we are able to fracture more zones in a single day
compared with conventional operations.
Just as our completions technology allows for
greater efficiency, so does our physics-based
Fast Drill Process (FDPTM). Uniquely tailored to
ExxonMobil’s operations, FDP encapsulates the
complex mechanics of drilling into a mechanical
specific energy parameter that is analyzed and
optimized in real time. This has resulted in improve-
ments in rates-of-penetration of up to 100 percent.
 Play Analysis and Reservoir Modeling
In addition to creating new technologies to develop existing assets, ExxonMobil’s long-
term approach calls for identification of new, high-quality commercial opportunities. Our
disciplined pursuit of these opportunities is aided by assessment technologies like our
Reservoir Quality Forward Modeling (RQFMTM), which helps quantify volumetrics and play
extent for our tight gas assets in Germany. Additionally, in some of our acreage, we use
Fluid Inclusion Volatiles (FIVTM), which are also more broadly used to discern migration
pathways. The knowledge gained from these technologies is integrated into static geologic
and dynamic simulation models using our in-house reservoir simulator, EMpowerTM. This pro-
prietary simulator is continually updated with state-of-the-art gridding and complex wellbore
flow simulation capabilities, allowing for enhanced play analysis.

Leveraging Collaboration
Integration of multiple technical disciplines, including geoscience and engineering, is a
challenge for all projects. It is especially critical for tight gas, as operational efficiency is
the key to reducing costs. At ExxonMobil, we accelerate the exchange of ideas by linking
dedicated research staff to our operations while they are maintaining their day-to-day
functional activities at our laboratories. This combination not only facilitates the advance-
ment of technology, but allows us to rapidly learn, adapt, and re-deploy learnings to our
asset teams across the globe.

In Piceance, this has resulted in proprietary workflows to better identify

sweet spots in the field and enhance interval selection for well completions
to delay the onset of water production. The issue of water production has
also resulted in our development of high frequency plunger lift technology
and prompted fundamental studies on water compatibility. These studies
enabled ExxonMobil’s development of a system that reuses the water
recovered from production for other processes – reducing fresh water
use in Piceance by approximately 80 percent. The project’s use of a single
pad to drill up to nine to 10 wells further reduces environmental impact by
minimizing surface footprint and vehicle traffic. These high-impact outcomes
are the unique product of the collaborative union between world-class
research capability and operational excellence.

The current landscape of unconventional resource developers is a mix of many companies.

ExxonMobil operates all of its projects using a set of core principles, which frame our deci-
sions and processes. The robustness of our systems drives our operational excellence
and distinguishes us as a partner of choice. We leverage our diverse portfolio of assets to
enhance the capabilities of our partners and ourselves, while maintaining an unwavering
commitment to the safety of our people and the protection of the environment.

The Way Forward

Tight gas continues to be an operational challenge, but ExxonMobil’s science-based,
technology-driven approach has allowed us to continue to redefine what is recoverable.
Our integrated, cross-disciplinary and collaborative team approach enables successful
creation of proprietary technologies. ExxonMobil has a rich history of innovation, and will
continue to address the challenges posed by unconventional resources with these tools.

exxonmobil.com 5/2010