1

INTRODUCTION

1.1 DEVELOPMENT OF NATURAL GAS

Natural gas, which was once an almost embarrassing and unwanted

by-product or more correctly a co-product of crude oil production, now
provides about one-fourth of all the world's primary energy
requirements. This remarkable development has taken place in only a
few years with the increased availability of the gas resources of many
countries, and the construction of long-distance, large-diameter steel
pipelines which, have brought these ample supplies of gaseous fuel to
domestic, commercial, and industrial users many miles away from the
fields themselves.
Since its discovery in the United States at Fredonia, New York, in 1821,
natural gas has been used as fuel in areas immediately surrounding the
gas fields. In the 1920s and 1930s, a few long-distance pipelines from 22
to 24 in. in diameter, operating at 400 to 600 psi, were installed to
transport gas to industrial areas remote from the fields. In the early years
of the natural gas industry, when gas accompanied crude oil, it had to
find-a market or is flared; in the absence of effective conservation
 2 Introduction

practices, oil well gas was often flared in huge quantities. Consequently,
gas production at that time was often short-lived, and gas could be
purchased for as little as 1 or 2 cents per 1000 cu ft in the field.
The natural gas industry of today did not emerge until after World War
II. The consumption of natural gas in all end-use classifications
(residential, commercial, industrial, and power generation) has
increased rapidly since then. This growth has resulted form several
factors, including development of new markets, replacement of coal as
a fuel for providing space and industrial process heat, use of natural gas
in making petrochemicals and fertilizers and strong demand for low-
sulphur fuels, which emerged in the middle 1960s. The resultant
expansion of natural gas service has been remarkable.
The rapidly growing energy demands of Western Europe, Japan,
and the United States could not be satisfied without importing gas from
far afield. Natural gas, liquefied by a refrigeration cycle, can now be
transported efficiently and rapidly across the oceans of the world by
insulated tankers. The use of refrigeration to liquefy dry natural gas, and
hence reduce its volume to the point where it becomes economically
attractive to transport across oceans by tanker, was first attempted on a
small scale in Hungary in 1934 and later used in the United States for
moving gas in liquid form from the gas fields in Louisiana up the
Mississippi River to Chicago in 1951.
The first use of a similar process on a large scale outside the United
States was the liquefaction by a refrigerative cycle of some of the gas
from the Hassi R'Mel gas field in Algeria and the export from 1964 onward
of the resultant liquefied natural gas (LNG) by specially designed
insulated tankers to Britain and France. Natural gas is in this way reduced
to about one six-hundredth of its original volume and the nonmethane
components are largely eliminated.
At the receiving terminals, the LNG is reconverted into a gaseous
state by passage through a regasifying plant, whence it can be fed as
required into the normal gas distribution grid of the importing country.
Alternatively, it can be stored for future use in insulated tanks or
subsurface storages. Apart from its obvious applications as a storable
and transportable form of natural gas, LNG has many applications in its
own right -particularly as a nonpolluting fuel for aircraft and ground
vehicles.
Current production from conventional sources is not sufficient to
satisfy all demands for natural gas; however, there has been lack of
agreement as to the extent of the gas shortage. With the exception of
past production, all resource base parameters are subject to some
 Development of Natural Gas 3

uncertainty. Standardized definitions for natural gas supply indicators are

not always used, estimation procedures differ, and professional
Undiscovered
or
Identified speculative

Proved Probable Possible

or or or
measured indicated inferred

Recoverable
Reserves Feasibility of
economic
recovery

Paramarginal
Resources

Submarginal

Degree of certainty
Fig.1.1 Classification of mineral reserves and resources. (After McKelvey.)
judgement must be exercised in making resource estimates. Estimates
of the undiscovered natural gas reserves that may eventually be found
also differ greatly. McKelvey's system of nomenclature and definitions
provides an excellent guide (Fig. 1.1).
The following definitions will help distinguish between the terms
proved reserves and potential resources:
Proved reserves are those quantities of gas that have been found by
the drill. They can be proved by known reservoir characteristics such as
production data, pressure relationships, and other data, so that
volumes of gas can be determined with reasonable accuracy.
Potential resources constitute those quantities of natural gas that are
believed to exist in various rocks of the earth's crust but have not yet
been found by the drill. They are future supplies beyond the proved
reserves.
Different methodologies have been used in arriving at estimates of
the future potential of natural gas. Some estimates were based on
growth curves, extrapolations of past production, exploratory footage
drilled, and discovery rates. Empirical models of gas discoveries and
production have also been developed and converted to
mathematical models. Future gas supplies as a ratio of the amount of oil
 4 Introduction

to be discovered is a method that has been used also. Another

approach is a volumetric appraisal of the potential of undrilled areas.
Different limiting assumptions have been made, such as drilling depths,
water depths in offshore areas, economics, and technological factors.
The Potential Gas Committee of USA is working toward
standardization of reserve estimates. It compares the geological factors
that control known occurrences of gas with geological conditions that
are present in areas believed to be prospective for gas occurrence. The
figures submitted by the Potential Gas Committee are believed to be
the "most likely" or mean values. Limitations on the estimates are to a
drilling depth of 30,000 ft and, for offshore areas, out to 1000m (3281 ft)
of water depth.
Three separate categories are used to express the estimates of the
Potential Gas Committee. The probable potential future supply is that
gas expected to be found in close proximity to or associated with known
producing fields in known producing formations and with similar
geological conditions. The possible potential future supply is that gas
expected to be found in provinces or basins that are productive but in
more remote portions of those areas, further away from the producing
fields. The speculative future potential supply is that gas expected to be
found in frontier areas that have been completely unexplored or
inadequately tested.
Supplements to natural gas produced from conventional sources
may provide portions of the world's future energy. Such supplements
may include gas production resulting from stimulation of tight gas
reservoirs in the western United States, methane gas occluded in coal,
and natural gas contained in geopressured reservoirs. Artificial or
substitute natural gas may include gas generated by gasifying coal, oil
shale, or hydrocarbon liquids. In addition, gas generated from organic
wastes and plant material and hydrogen gas produced from either
water or other hydrogen compounds are potential substitute gaseous
fuels.
A study by the American Gas Association (AGA) indicates that
worldwide capability exists for substantially increasing conventional
natural gas production in the coming decade and for sustaining
production well above today's level until at least the year 2020. This study
estimates the level of production that could be achieved, rather than a
projected "actual" production volume, since it is not possible to predict
the economic and political factors that will influence future production
decisions within a region.
 Types of Natural Gas Accumulations 5

1.2 TYPES OF NATURAL GAS ACCUMULATIONS

1.2.1 Conventional Natural Gas

Dry natural gas is composed primarily of hydrocarbons (compounds
containing only hydrogen and carbon). Methane (CH4), the simplest
and most basic compound of the hydrocarbon series, is the major
component. Others, fractionally small but important, include ethane
(C2H6), propane (C3H8), butane (C4H10) and heavier, more complex

Fig 1.2 Types of gas resrvior (after Panocean oil co.)

hydrocarbons. In processing, most of the butane and heavier
hydrocarbons, as well as a portion of the ethane and propane, are
frequently removed from the gas in the form of liquids. Most of the water,
gaseous sulphur compounds, nitrogen, carbon dioxide, and other
impurities found in natural gas are also removed in various processing
stages. The composition and the Btu content of unprocessed natural
gas produced from different reservoirs vary widely.
Figure 1.2 illustrates the three common types of reservoir in which
conventional natural gas is found. In the first case gas is discovered in
association with oil in an oil reservoir, hence the name "associated gas".
In the next case gas is discovered without oil. This type of gas is therefore
termed “non-associated gas". The third case is a particular form of non-
associated gas reservoir known as the gas/condensate reservoir. The
common feature of these reservoirs is that the hydrocarbon mixture in
 6 Introduction

the reservoir initially exists as a gas at both high temperature and

pressures (in the range of 200°F to 400°F and 3,000 psia to 6,000 psia).
Under such conditions the hydrocarbon mixture behaves differently than
is normally expected. As the pressure is reduced, some of the heavier
hydrocarbons condense out as liquids. This type of condensation is
known as "retrograde condensation" since its occurs with declining
pressure, opposite to the normal situation. This phenomenon
significantly complicates field development. Some of the recent
discoveries in Nigeria are of this type.

Associated Gas
In the case of associated gas, gas occurs in reservoir in conjunction with
oil. Figure 1.2 shows a common type of formation where there is a gas
cap overlying the oil layer. Often there is also a water layer underneath.
Because gas exists with oil in the reservoir, some gas will be in solution in
the oil at high pressure. When the oil is produced and brought to the
surface its pressure and the solubility of gas in the oil will be reduced. As a
result the gas separates from the oil and may be removed in a wellhead
separator as shown and sent to collection pipelines or to further
processing. The ratio of gas per unit of oil produced is the known as gas
to oil ratio (GOR). In the case of an oil reservoir GOR can typically range
700 70

600 60

OIL
500 50
ASSOCIATED GAS PRODUCTION (BCM/YR)

400 40
OIL PRODUCTION MBPD

300 30

GAS
200 20

100 10

0
0 5 10 15 20 25 30 35 40 YEAR

REINJECTION PLATEAU DECLINE

Fig. 1.3 Associated gas field development. (After Panocean Oil Co.)
 Types of Natural Gas Accumulations 7

from virtually zero to 5,000 standard cubic feet (scf) of gas per barrel of
oil. When finally all the recoverable oil is produced (or before then in
some cases depending on the particular reservoir) the gas cap can
sometimes be produced. Whether or not this is worthwhile economically
depends on individual reservoir characteristics and of course the
amount of gas cap gas, if any. In some reservoirs there is insufficient gas
to maintain reservoir pressure and gas re-injection into the gas cap is
required. Since the gas cap has been overlying the oil in the reservoir for
millions of years, it is typically saturated with natural gas liquids, and
therefore the gas is termed "wet gas". "Wet" in this sense means that it is
rich in heavier hydrocarbons such as LPG, not wet with water.
The production of associated gas is influenced mainly by decisions
concerning crude oil production from the reservoir. In low gas to oil ratio
reservoirs, recovery of gas is often uneconomical. In cases where it is
economical due to the size of the reservoir or its proximity to markets,
little flexibility on supply volumes of gas is possible because of its
dependence on the rate of crude oil production. Producers of
associated gas have to be primarily interested in oil production.
Figure 1.3 shows how oil production can influence the production of
gas from an associated reservoir. In this example production starts with
oil only. During this phase gas is sometimes re-injected to maintain
reservoir pressure. After the necessary gas recovery and processing
facilities have been installed, natural gas production for sale can then
occur in parallel with oil production. Due to the high capital cost of gas
processing and transportation equipment it is quite common for gas to
be produced only up to a plateau level, even during peak oil
production. This is because it would not be economic to build extra gas
transportation capacity to handle a peak, which might only last for a few
years. As oil production passes its peak and begins to decline, gas cap
gas may also be produced. This would increase the gas to oil ratio and
extend the gas production profile.

Non-Associated Gas
In non-associated gas reservoir, gas is discovered without oil. Figure 1.2
shows a typical producing well in a non-associated gas field. After it is
brought to the surface the gas must be dried and probably also
processed to remove natural gas liquids. Because the volume of these
liquids is relatively small, the gas to oil ratio of a non-associated gas field
is typically in excess of 100,000 scf/Barrel.
The economics of gas production from non-associated fields is
 8 Introduction

800

600

400

200

BUILD UP PLATEAU DECLINE

Fig. 1.4 Non-associated gas field development. (After Panocean Oil Co.)

dependent entirely on the size of the reservoir, gas quality, its proximity to
markets, and of course the price received for the gas relative to costs
and taxes involved in its production. Since oil production is not a
consideration, the rate of production of gas will be an economic trade-
off between maximizing revenue early by producing at a high rate, and
the extra cost of providing higher productive capacity. Figure 1.4
illustrates a typical production profile for gas from a non-associated
field. From first production there would typically be a rapid build-up to
plateau levels which are set by the capacity of the gas processing plant
and transportation system. As production of gas continues the pressure
in the reservoir gradually falls so that eventually gas production can no
longer be sustained at plateau levels. Production will then enter the
decline phase until it falls to a level that is no longer economically
justified. One important feature of non-associated gas fields is the ability
to alter production rates significantly at short notice to meet fluctuations
in consumer demand, because oil production is not a consideration.
This frequently results in greater supply flexibility being included in the
contract terms for sales from non-associated fields.

Gas/Condensate
The third type of reservoir is the particular form of natural reservoir known
as the gas/condensate reservoir. The gas to oil ratio of gas/condensate
reservoirs is typically about 5,000 to 100,000 scf/Bbl. The hydrocarbon
mixture in these reservoirs initially exists in a gaseous state. When it is
 Types of Natural Gas Accumulations 9

brought to the surface and the pressure is reduced the heavier

hydrocarbons condense as liquids. Having liquids at the surface
improves the profitability of the project as they represent a valuable
product. However, liquid condensation can also occur in the reservoir as

CYCLING NATURAL GAS

CONDENSATE

0 5 YEAR 10 15
DEPLETION
NATURAL GAS

CONDENSATE

0 5 YEAR 10 15

Fig. 1.5 Gas / condensate field development. (After Panocean Oil Co.)

reservoir pressure declines. Because of flow restrictions within the

reservoir much of these potentially valuable liquids will be trapped in the
reservoir and never brought to the surface. To combat this phenomenon
dry gas (after liquids removal) is sometimes re-injected or "cycled" back
to the reservoir to maintain pressure and prevent liquid separation in the
reservoir. This cycling operation would continue for a number of years
until a good proportion of the liquids had been recovered after which
the gas would be produced.
As shown in Fig. 1.5, there are therefore two alternative methods
employed for gas production from gas/condensate reservoirs. The first
method would involve cycling the reservoir as just outlined. In this case
there is no gas production for many years as condensate is produced
and the gas re-injected to maintain reservoir pressure and prevent
retrograde condensation. After condensate production falls to
uneconomic levels cycling is ceased and gas is produced as if from
any other non-associated reservoir. The second production method is
called depletion where both gas and condensate are produced
simultaneously without gas re-injection. Under this method the field
 10 Introduction

pressure declines slowly. With this approach the gas production

timetable is greatly accelerated but the amount of total liquids
produced is less because of the liquids trapped in the reservoir. The
choice of production method depends on the circumstances involved
with each specific case. Cycling recovers more liquids but involves a
prolonged period without gas sales. Hence unless condensate volumes
are significant in relation to gas this method is sometimes uneconomic.
It is particularly difficult to justify in offshore or remote locations where the
cost of installing separation and recompression equipment for cycling is
high.
After processing the gas the next step is to transport it to markets. The
first means used for transporting gas was by pipeline and this still
accounts for most of the gas moved internationally today.
Transcontinental pipelines in the USA and across the Soviet Union into W.
Europe carry gas for up to 3,000 miles. Subsequently the shipment of
natural gas by sea also became a possibility with the development of
liquefaction technology and specialized LNG carriers. International

PRESSURE
PRODUCING GAS RECOMPRESSION REGULATION/
WELLS PROCESSING COMPRESSION STATION METERING

TRANSMISSION TRANSMISSION TO DISTRIBUTION

NGL PIPELINE PIPELINE GRID

WET DRY
GAS GAS

Fig. 1.6 Pipeline transportation. (After Panocean Oil Co.)

trade in LNG commenced in 1964 with its shipment from Algeria to the
U.K. Figure 1.6 is an illustration of pipeline transmission. The gas is first
collected and processed to pipeline quality. It is then compressed to
pipeline inlet pressure, typically at least 1,000 psig. It is desirable to have
a high pressure since gas takes up less volume at high pressure and the
 Types of Natural Gas Accumulations 11

pipeline can be kept smaller in diameter. However there are economic

limits to how high pressure can be increased because higher pressures
demand more expensive thicker walled pipelines and more expensive

Fig. 1.7 LNG Transportation. (After Panocean Oil Co.)

compression equipment. Inlet pressures in the range of 1,000- 1,200

psig represent typical economic compromise.
The gas then flows along the underground transmission line. As it
flows the pressure gradually falls due to frictional losses in the line and the
gas will have to be recompressed to enable further transmission along
the pipeline. The selection of pipe diameter and the number of
recompression stations in a transmission system is a matter of economic
balance. When the gas reaches the market it is introduced into the local
- transmission/distribution grid through a metering and pressure
regulating station where volumes are measured and the pressure is
adjusted to match the local network.
The alternative is transporting gas as Liquefied Natural Gas (LNG) as
illustrated in Fig. 1.7. The first stages of gas recovery and processing are
essentially the same as for pipeline transmission. After this the dry gas is
transformed into LNG by refrigerating it down to -162°C in a liquefaction
plant. Liquefied, natural gas takes up only one six hundredth part of the
volume it occupied as gas thus making it possible to store or ship large
amounts. Liquefaction processes are expensive in terms of capital costs
and the energy required to run them. After liquefaction the LNG is stored
 12 Introduction

in insulated tanks awaiting shipment.

LNG ships must contain the LNG while maintaining it in a liquid state
at - 162°C under atmospheric pressure. They employ extensive
insulation. Despite the insulation some heat from the atmosphere

Fig. 1.8 Comparative Transportation costs. (After Panocean oil Co.)

passes through the walls of the LNG tanks on board ship causing some of
the LNG to boil off. This boil-off gas is collected and provides up to 90%
of the ship' s fuel on a loaded voyage. Depending on the length of the
voyage somewhere between 3% and 6% of the LNG cargo is typically
used in this way. When the ship reaches its destination the LNG is
pumped through refrigerated unloading lines to insulated storage tanks.
Finally, the LNG is regasified for entr y into the local
transmission/distribution grid. This is done by heating up the LNG by either
passing it through heat exchangers warned by sea water or by passing it
through a gas fired heater. Thus the regasification step also requires
capital investment and can involve some further energy requirements.
Overall it can be seen that transportation as LNG requires several
steps, each of which involves capital and operating costs as well as the
consumption of fuel. A large proportion of these costs (liquefaction and
regasification) are incurred whatever the distance that the LNG is
transported. Hence it might be expected that LNG will be
uneconomical over short distances but more economical over long
 Types of Natural Gas Accumulations 13

distances. This phenomenon is illustrated in Fig. 1.8 which shows

comparative transportation costs for onshore natural gas transmission
and LNG for the transportation of about 10 billion cubic metres per year
of natural gas. As the distance increases the liquefaction and
regasification costs represent a smaller proportion of the total costs. By
contrast, pipeline transmission costs are almost directly proportional to
the distance covered. In this case there is no need for liquefaction and
regasification, so nearly all the costs are involved with the length of the
pipelines. It is evident therefore that over relatively short distances
pipeline transportation is likely to be the economic choice. In this
illustration LNG becomes more economical at distances greater than
about 2,700 nautical miles. The exact breakeven point for any particular
case will depend on many factors including the volume of gas to be
transported, the desired return on capital, and the cost of the gas used
as fuel. Furthermore in many cases the choice will be dictated not by
economics but by geographical or political factors concerning the
location of the gas reserves relative to the market. One important factor
to be borne in mind is that transportation as LNG can allow more
flexibility in market selection compared to a pipeline which remains
dedicated to the initial destination.
By way of comparison, representative costs are also shown for
transporting crude oil and LPG. As can be seen the costs are only a
fraction of those for either form of natural gas transportation because oil
is hundreds of times more dense than gas and thus permits a greater
amount of energy to be transported per unit of volume.
Even when the gas is liquefied as LNG to make it denser and its
transportation more effective, crude oil remains much cheaper
because it already naturally exists as a liquid at ambient temperatures
and requires no expensive liquefaction process or expensive
refrigerated ships. Liquefied Petroleum Gas (LPG) transportation costs fall
between those of crude oil and LNG. For effective transportation in large
vessels LPG is transported as a refrigerated liquid at atmospheric
pressures. Hence these ships have some of the expensive features of
LNG ships but to a lesser degree since the temperature required to
maintain LPG as a liquid is only -50°C compared to -162°C for LNG.
Furthermore, although LPG must be chilled down to be loaded onto a
refrigerated ship the cost is much less than for the liquefaction of LNG
since the LPG is already stored as a liquid before being shipped.

1.2.2 Gas in Tight Sands

 14 Introduction

Many geologic formations, located for the most part in the Rocky
Mountain states of the United States, contain large quantities of sub
marginal natural gas resources. The prospective reservoirs generally
have porosities of 5 to 15%, immobile water saturations of 50 to 70%,
and gas permeabilities of 0.001 to 1 millidarcy (md). At higher gas
permeabilities, the formations are generally amenable to conventional
fracturing and completion methods.
The formations themselves are of two general types with numerous
gradations between. One type consists of massive, more or less
homogeneous sand bodies of uniform thickness and considerable

Fig. 1.9extent.
areal Tight gas-sand basinsconsists
The other in the Rocky Mountains
of shales andof the United
clays States. (After
containing Meyer.)
sandy
zones or lenticular sandstone members. In either case, the basins
containing the tight formations should measure in the thousands of
square miles in order to provide suitable targets. In some places aquifers
included in the stratigraphic section may strongly influence hydraulic
 Types of Natural Gas Accumulations 15

fracturing possibilities.
Within the United States, many areas contain formations that meet
the definitions of tight gas sand. The largest portion of the gas resource is
found in the Green River Basin of Wyoming, the Peiceance Basin of
Colorado, and the Uinta Basin of Utah (Fig. 1.9). Table 1.2 shows the
estimates of the gas resources of these basins. These resources were
determined volumetrically on the basis of total pay interval and net pay
thickness. The estimates were also assigned levels of confidence:
Category 1, good well control; Category 2, inferred from geological
interpretation but having sparse well control; and Category 3,
speculative because of lack of testing.

Artificial Fracturing
Artificially fracturing tight formation increases the area of rock surface in
direct communication with the well bore, thereby creating a pressure
sink into which the gas in the low-permeability sand may move. Three
techniques accomplish fracturing, or enhancement of fracturing, with
varying degrees of success.
The first, nuclear stimulation, is accomplished by detonating a
 16 Introduction

nuclear device underground in a well drilled into the gas sand. The
detonation creates a "chimney" of broken rocks and a system of
fractures radiating outward from the chimney into the gas-bearing
formation. Thus, a borehole of several hundred feet rather than a few
inches is created. The locations of three nuclear-stimulation projects,
Gasbuggy, Rulison, and Rio Blanco, carried out by the U.S. Atomic
Energy Commission during the period 1964-1973, are shown in Fig. 1.9.
At present, there are no plans to continue the nuclear-stimulation
program. The reasons for this are based on the environmental effects,
availability of nuclear devices, and feasibility questions.
Chemical explosive fracturing was tried without much success on
tight sands. This technology appears to be most useful in areas with
natural fractures, which are lacking in most tight gas sands. Moreover,
this technique is quite dangerous to the operator.
Artificial hydraulic fracturing of reservoir rocks has been a useful
technique for increasing the productivity of oil and gas wells. Now the
technique is being used on a massive scale to release gas bound up in
rocks of very low permeability. Most such strata contain few if any natural
fractures to provide avenues for migration of the gas to the wellbore. In
massive hydraulic fracturing (MHF) a fracturing fluid is pumped into the
wellbore under very high pressure for many hours to induce the fracture.
The fracturing fluid is followed by a fluid containing a propping agent,
such as sand or glass beads. When pumping stops, the fluids are forced
back into the wellbore, leaving the proppant behind to hold the fracture
apart, thus providing communication over a large area to the wellbore.
Most desirable for a tight gas formation is the single propped fracture,
vertical or nearly so, extending 1000 to 2000 ft on either side of the
borehole and having a height of 100 to 500 ft. The efficacy of MHF has
been demonstrated in many areas. However, it is not likely to be widely
used in the United States until wellhead gas prices rise to as much as
$2/1000 cu ft.

1.2.3 Gas in Tight Shales

The most important black-shale -producing areas in the eastern United
States are in Kentucky, Ohio, Virginia, and West Virginia. Of these, eastern
Kentucky and western West Virginia are considered the most important.
Approximately 71,000 wells in these states have been classified as gas
producers, of which approximately 9600 or 14% are estimated to be
shale producers. Estimated 1975 production from all sources within the
four states was 299,465 × 106 cu ft. The Devonian shale of the eastern
 Types of Natural Gas Accumulations 17

Kentucky field accounted for 14% of this production (Ray).

The Devonian shales meet the definition of organic-rich shale
because they contain 5 to 65% indigenous organic matter. The most
prevalent constituent of the shale is quartz; other components are
kaolinite, pyrite, and accessory minerals such as feldspar, calcite,
gypsum, apatite, zircon, titanite, and muscovite. The shale is generally
fissile, finely laminated, and varicoloured but predominantly black,
brown, or greenish-gray. Core analysis has determined that the shale
itself may have up to 12% porosity; however, permeability values are
commonly less than 1 md. It is thought, therefore, that the majority of
production is controlled by naturally occurring fractures and is further
influenced by bedding planes and jointing. The outstanding feature of
the eastern Kentucky shale is the long, slow declining productive life of
the gas produced from them. Many wells have produced significant
amounts of gas for more than 50 years. These production characteristics
provide a reliable energy source that can be, and has been,
augmented by shallower production with a much faster depletion rate.
An added advantage of the eastern Kentucky shale gas is the high Btu
value, as high as 1250 Btu/cu ft. The petrochemical potential of this gas
also adds to its resource value.
Much research is currently underway in the United States to test the
economic effectiveness of various stimulation techniques in shales.
Among the more promising are chemical explosive fracturing and
massive hydraulic fracturing. Chemical explosive fracturing is a process
for injecting an explosive into a formation and detonating it chemically.
Many variations in types and amounts of explosives have been
experimentally tried. Standard practice involved the shooting of the
entire section in one shot, the formation being exposed to
approximately 10 lb of 80% gelatinated nitroglycerin per foot of section.
Massive hydraulic fracturing entails injecting enormous amounts of fluid
and sand, of the magnitude of 350,000 gal of fluid and a million pounds
of sand, into a formation to artificially fracture it and prop the fractures
open. This permits the passage of fluids to the wellbore from the area of
the formation fractured.
It is estimated that approximately 20 x 106 sq mi of the earth are
underlain by sedimentary rocks and over 5% of the sedimentary rocks in
the United States are shales. Projected worldwide, organic shales could
have considerable influence on the future energy picture through both
conventional drilling and distillation methods.

1.2.4 Methane Gas Occluded in Coal

 18 Introduction

The total amount of methane gas in minable coal beds with depths less
than 3000 ft has been estimated to be 260 Tcf as compared to the total
proved gas reserves of the United States, which was 250 Tcf at year-end,
1973. Although the estimated size of the resource base seems
significant, the recovery of this type of gas may not exceed 35 to 40 Tcf,
owing to practical constraints.

1.2.5 Natural Gas from Geopressured Reservoirs

In a rapidly subsiding basin area, clays often seal underlying formations
and trap their contained fluids. After further subsidence, the pressure
and temperature of the trapped fluids exceed those normally
anticipated at reservoir depth. These reservoirs, commonly called
geopressured reservoirs, have been found in many parts of the world
during the search for oil and gas. In the United States they are located
predominantly both onshore and offshore in a band along the Gulf of
Mexico. In length, the band extends from Florida to Texas; in width, it
extends from about 100 miles inland to the edge of the continental shelf.
The high-pressure water in the geopressured reservoirs may contain
up to 40 scf of gas per barrel of water. the resource base in the Gulf
Coast area has been estimated to be 2700 Tcf. However, any prediction
of the amount of gas from geopressured reservoirs that may be
available to augment the future supply of conventional natural gas
would be extremely speculative. The adequacy of the present
description of the resource base precludes analysis of the overall
economics or timing of the exploitation of this energy source.
In some applications, hot water from geopressured reservoirs may
serve as a source of natural gas, a fresh water supply, and a means of
generating electric power. The additional benefits that could be
obtained from such multipurpose uses may be a factor in the
development of the resource.

REFERENCES

American Petroleum Institute. Basic Petroleum Data Book: Petroleum

Industry Statistics. Washington: API, 1982.
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