Coalbed Methane Coalbed Methane in in Kansas Kansas Presented - - PowerPoint PPT Presentation

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Coalbed Methane Coalbed Methane in in Kansas Kansas Presented - - PowerPoint PPT Presentation

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Coalbed Methane Coalbed Methane in in Kansas Kansas Presented to: Senate Utilities Committee March 4, 2004 Presented by: Timothy R. Carr tcarr@kgs.ku.edu The Chanute Publishing Co, 07/10/2002 Outline Outline Background on the

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SLIDE 1

Coalbed Methane Coalbed Methane in in Kansas Kansas

Presented to:

Senate Utilities Committee

March 4, 2004 Presented by: Timothy R. Carr tcarr@kgs.ku.edu

The Chanute Publishing Co, 07/10/2002

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SLIDE 2

Outline Outline

  • Background on the Natural Gas Markets
  • Background on Coalbed Methane (CBM)
  • Overview of Kansas CBM Activity

– Role of Geological Survey

  • Impact on Kansas

– Economy

  • Potential Issues

– Supply Problems – Severed Minerals vs. Surface – Enhanced Coalbed Methane Recovery – Carbon Sequestration

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SLIDE 3

Kansas national population and energy use rankings: Kansas national population and energy use rankings: Population – 32th (2002) Total per capita energy – 18th (2000)

  • Natural Gas Consumption (2002)

Natural Gas Consumption (2002) Residential – 71,002 MMcf Commercial – 38,812 MMcf Industrial – 105,400* Electric Power – 23,126 MMcf Natural Gas Production (2002) – 453,417 MMcf

*Estimated.

Kansas Profile Kansas Profile

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SLIDE 4

Natural Gas Prices Natural Gas Prices Continue to Be Volatile Continue to Be Volatile

$1 $3 $5 $7 $9

J a n

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$/MCF

Industrial Price City Gate Price Wellhead Price

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SLIDE 5

Recent Energy Prices Recent Energy Prices

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SLIDE 6

Coalbed Methane Production Coalbed Methane Production from U.S. Basins from U.S. Basins

200 400 600 800 1000 1200 1400 1600 1800

1 9 8 4 1 9 8 5 1 9 8 6 1 9 8 7 1 9 8 8 1 9 8 9 1 9 9 1 9 9 1 1 9 9 2 1 9 9 3 1 9 9 4 1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 2 1 2 2

Emerging Basins Appalachian Basin Warrior Basin San Juan & Raton Basins

Year CBM Production (Billion Cubic Feet)

EIA 2001 Annual Report, September 2002 U.S. Crude Oil, Natural Gas, and Natural Gas Liquids

CBM represents approximately 10%

  • f US gas reserves
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SLIDE 7

Coalbed Methane Activity Coalbed Methane Activity

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SLIDE 8

Kansas Coalbed Methane Activity Kansas Coalbed Methane Activity

OIL&GAS FIELDS and major gas pipelines ( 8")

  • il
  • il &gas

gas gaspipeline

Bourbon Arch C h e r

  • k

e e B a s i n F

  • r

e s t C i t y B a s i n

know ncoalbed gasprojects

W yandotte

24 9 1 1 59 9 123 14 13 11 6 288 328 86 568 110 18 7 14 14 2 7 8 7 12

NUMBERofWELLS DRILLEDfor COA LBEDGAS by county (through mid-2003)

25mi 25km

N

Douglas Franklin Johnson Leavenworth Jefferson Atchison Doniphan Brown Nem aha Jackson Pottawatom ie W abaunsee Shawnee Osage Miam i Linn Bourbon Crawford Cherokee Labette Neosho Allen Anderson Coffey W

  • odson

W ilson M

  • ntgom

ery Chautauqua Elk Cow ley Greenwood Butler Lyon Chase M

  • rris

24

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SLIDE 9

Unconventional Reservoir Unconventional Reservoir

Fractured Reservoir Micropores

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SLIDE 10

Methane Production from Methane Production from Micropores Micropores

Desorption Replacement

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SLIDE 11

Time

Conventional Gas and Conventional Gas and Coal Bed Gas Coal Bed Gas

Volume per day PRODUCTION DECLINE –coalbed gas –conventional gas

Adapted from Rice, 1997

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SLIDE 12 –.

Time

Production Stages of a Production Stages of a Coalbed Gas Well Coalbed Gas Well

–Gas –Water Volume Stable Production Stage Dewatering Stage Decline Stage

Adapted from Rice, 1997

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SLIDE 13

Kansas Coalbed Methane Kansas Coalbed Methane Monthly Production Monthly Production

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SLIDE 14

Neosho County CBM Production Neosho County CBM Production

3,585 500 1000 1500 2000 2500 3000 3500 4000 1995 1996 1997 1998 1999 2000 2001 2002 2003

Year Production Million Cubic Feet

$0 $2 $4 $6 $8 $10 $12 $14 $16 $18 $20

Dollars Millions at Wellhead Production (mmcf) Estimated Annual Production Value Estimated Annual Value

Estimated Annual Value Assumes Constant Production and Price for Remainder of Year

2003 Production Through November 2003 Value through September

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SLIDE 15

SE Kansas CBM Production SE Kansas CBM Production

9.06

1 2 3 4 5 6 7 8 9 10 1995 1996 1997 1998 1999 2000 2001 2002 2003

Year Billion Cubic Feet

$0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50

Dollars Millions Wellhead Production (Bcf) Value

Estimated 2003 Annual Value Assumes Constant Production and Price for Remainder of Year Includes Gas Production for Labette, Montgomery, Neosho and Wilson counties

2003 Production Through November 2003 Prices through September

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SLIDE 16

Kansas Gas Production Kansas Gas Production

30.000 35.000 40.000 45.000 50.000 55.000 60.000 65.000 70.000 75.000 J a n

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Gas Production (BCF/Month)

$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00

  • Avg. Wellhead Price ($ Per MCF)

Production Through November 2003 Wellhead Prices through September 2003 Production Through November 2003 Wellhead Prices through September 2003

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SLIDE 17

Coalbed Methane Program Coalbed Methane Program

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SLIDE 18

Coalbed Methane Program Coalbed Methane Program

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SLIDE 19

Coalbed Methane Program Coalbed Methane Program

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SLIDE 20

Weir Weir-

  • Pitt Coal

Pitt Coal

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SLIDE 21

United States Carbon Dioxide United States Carbon Dioxide Emissions Emissions

By Source & Sector)

Commercial 16% Commercial 16% Oil 42% Oil 42% Coal 37% Coal 37% Transportation 33% Transportation 33% Residential 20% Industry 31% Industry 31% Natural Gas 21% Other 29% Other 29% Transportation 33% Transportation 33% Electricity 38% Electricity 38% EIA AEO2002

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SLIDE 22

Southeast Kansas Southeast Kansas

214 m tons/yr 1,095 380 552 249 163

CBM

25 Miles

Greenwood Co. El Dorado Field “ G

  • l

d e n L a n e s ” S a l y a r d s T r e n d

Partially miscible and immiscible CO2 EOR

  • El Dorado
  • Salyards Trend,

Enhanced Coalbed Methane (N2 and CO2)

Cement plant gas stream may be best suited for ECBM Lafarge

Industry

G as O il & G as O il C B M

Ethanol

Oil and Gas Fields

Refinery Ammonia Power Cement

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SLIDE 23

Cement Production Cement Production

Dry Kiln Portland Cement Process

Calcination Process CaCO3 > CaO + CO2 0.51 tons CO2 / ton cement CO2 and N2 kiln gas mix may be suitable for ECBM with little processing

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SLIDE 24

Landfill Gas Landfill Gas

Landfill Gas (LFG) CH4, CO2, NMOC

Pipeline

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SLIDE 25

Kansas CBM Summary Kansas CBM Summary

  • Expect CBM Production Increase to Continue
  • Continued Exploration Expected

– Extent Dependent on Outcome of Pilots

› Geological Survey Working to Provide Information

– Northward Spread – Significant Impact on SE Kansas Economy – Potential Significant Impact on Kansas Economy

  • A Substantial Boost in US Supplies will take

Time

– US Market Controls Kansas Gas Price – Kansas is Vulnerable to Energy Price Spikes