technology to save you millions: cng, lng & multi
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TECHNOLOGY TO SAVE YOU MILLIONS:
CNG, LNG & MULTI-FRACTURED
HORIZONTAL WELLS
NAPE
FEBRUARY 5, 2014
GEORGE E. KING, P.E.
SAM GOSWICK
WHERE CAN NATURAL GAS POWER BE USED? Although most attention is paid to short term fuel savings in drilling & fracturing, massive Prod/Op savings over 5 to 50+ years may dwarf the whole segment.
Major Areas: • Truck Transport • Facilities, pipeline & compression • Fracturing • Drilling
Methane lift & unloading concentrates the recoverable gas stream – field gas preferred?
Dual fuel and dedicated fuel
Lift, processing, compression, etc.
APACHE VIEW – FRACTURING WITH DUAL FUEL PUMPERS
Timeline In 2Q12, we saw the opportunity to accelerate the use of natural gas as fuel in
upstream E&P stationary engine market with emphasis on fracturing operations. In 3Q12, executed an agreement with Halliburton to convert one frac spread in
Apache’s Central Region to utilize LNG dual-fuel natural gas/diesel engine technology. Caterpillar accelerated Dynamic Gas Blending (DGB) technology to meet our needs. In 3Q12, the first Caterpillar-outfitted Q10 frac pump was delivered. The limited field trial with two DF frac pumps started shortly thereafter and by Dec. a
full 12-pump frac spread was outfitted with DF engines. In January 2013, Apache announced that a full-scale field trial was successfully
underway with Halliburton utilizing Caterpillar OEM DF DGB engines.
Milestones
3
Source: Sam Goswick, SPE 166443
~1750 Drilling Rigs Engaged in US –majority on land. Texas: 834
Oklahoma 175
Louisiana 112
Engines – Caterpillar & GE leaders in rig engines. 20% higher cost & larger – payout depends on fuel cost spread)
Fuel Cost Reduction (Very Rough Estimations – Midwest Energy News – S. Modak) Three engine drill rig (1600 gallons or >$4500 per day)
15% to ~40% savings with LNG
30% to ~55% with CNG
50% to ~80% with field gas
GAS POWERED RIG & PUMP MARKET GROWTH
4
29 Nov 2013
Highly dependent on fuel type, cost, transport cost, reliability and quality
Straight Diesel – EPA emissions limits looming on 2015
Dual Fuel – substitutions of 50% to 60% natural gas
Difficulties in handling transient loading
Best application is where gas supply is inconsistent.
Large drilling rig uses 1600 gallons of diesel per day.
Straight Natural Gas – Spark Ignition
Turbines –All gas types – Electrical generation and compressors.
POWER METHODS
5
30 LNG mobile fueling units (2013) Zeus Intelligence
~150 LNG fueling stations added in 2012-13 Clean Energy
Apache – 19 CNG refueling stations
FUELING WITH LNG & CNG
6
Field gas – much cheaper – Can save ~$1,000,000/yr
Pipeline gas–stable supply, constant–50% fewer trucks
Emissions reductions
Sound reduction
ADVANTAGES
8 LNG World News, EQT rig
PR Newswire, Paterson Rig, Antero
Expect routine flaring to be eliminated (when?).
Convert waste gas to electricity for field grid usage.
Apache’s experience –2 cents per Kwh (turbine)
Turbine powered generators:
30kw to 5MW micro-turbines Low or high pressure gas streams
Pipeline quality gas
Alternate fuels possible
TARGETING WASTE GAS AND FLARING
9 Source: Sam Goswick, SPE 166443
Dynamic Gas Blending
Engines 3512 and 3516 series engines
Solar Turbines
Factory installed or retrofitted
Up to 70% substitution
Automatically adjusts for incoming gas quality
EXAMPLE: CATERPILLAR
10
Source: Elle Seybold, SPE 166443
Waukesha Gas Engines
VHP L7044GSI
100% natural gas fired, rich burn engines
Reduced maintenance schedule
No-derate to 8,000 ft altitudes
Non Selective Catalyst Reduction (NSCR) – cleaner
Formaldehyde emissions reduced
Easily exchanged with existing rig power generation drivers
EXAMPLE: GE
11 Source: Elle Seybold, SPE 166443
Delivery Schedules
On Site Storage
Regasification (vaporizer) capacity (60oF to engine)
Transfer stability on the pad
Rig crew training
Fit for purpose power
Altitude adjustments (air : fuel ratios)?
LNG AND CNG – PLANNING IS THE KEY
13
Storage Vessels Queen Trailers: Capacity: 16,000 LNG
Gals (9,500 DGE) Transporters: 10,000 LNG Gals (5,900
DGE)
Offloading - Vaporizers ISV Combo Unit: 300 LNG Gal/Hr (178 DGE
/Hr) Full Scale Vaporizer: 1800 LNG Gal/Hr (1070
DGE /Hr)
LNG EQUIPMENT
Source: Elle Seybold, SPE 166443
And there is very little “NEW” about it.
First horizontals in 1940’s and 50’s.
Commercial fracturing since 1950.
First multi-frac verticals in early 1950’s
First slick water fracs in 1950’s
First multi-frac deviated & horizontals in 1974
Over a million fracture treatments from horizontals
A REVOLUTION IN PROGRESS - MULTI-FRACTURED HORIZONTAL WELLS
17
EARLY PRODUCTION ESTIMATION
Reasons for rapid decline: • Flush production • Fractures closing • Liquids difficult to move Opportunities? • Evaluating areas for refracs • Insitu surface & liquid modification
COMPARISON OF IP AND MAXIMUM MONTH TO 1 YR OF PRODUCTION.
Bakken Data
In other shales a three-month cumulative is needed for good correlation to 12-month and overall EUR.
IP
Max Month
SPE 163846
MAJOR ISSUE? – WHERE TO PLACE HYDRAULIC FRACTURES? ONLY 50% MAY BE PRODUCING. REMEMBER HOW FLUIDS FLOW IN SHALES! – THROUGH NATURAL FRACTURES!
23
2 wells – first ten days Overview: Tracking Frac Stage performance
with Oil-Based Tracers Objective: Optimize Well and Frac Design Conclusion: Uncertain, but oil-based tracers
may help define frac performance and optimized stage #’s
CONVENTIONAL MAPPING;… AND SHORTFALLS?
24
Shale Economic Development follows a 1/3 : 1/3 : 1/3 Classification.
Of the shale wells drilled to date, an estimation can be made that:
1/3rd of shale wells are not economical.
1/3rd of shale wells are marginally economical.
1/3rd of wells carry economics for the project.
THE 1/3 : 1/3 : 1/3 CLASSIFICATION
25
We could possible achieve ~33% or more savings in shale development, reduce water & chemicals by half and slash emissions, if we could eliminate the bottom 1/3rd of wells and improve the marginal characteristics of the middle third of shale wells. What is your science knowledge level today?
R. Gonzales 28
Note that there are “Sweet Spots” in the Barnett shale (based on highest production rates). Some reasons behind this are natural fracture occurrence, operator skill, and chronological time of development.
The variability of production results, even corrected for operator differences, is a key proof that conventional methods cannot be used in unconventional reservoirs.
HAYNESVILLE SWEET SPOTS
?
As technology develops in an area, the sweet spots can change – technology dominates as the most critical factor in recovery.
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