Hydraulic Fracturing in Nevada
- J. Berton Fisher, Ph. D., CPG, RPG (TX #0201)
University of Tulsa & Lithochimeia, LLC
Source: U. S. Department of Energy, Energy Information Agency, - - PowerPoint PPT Presentation
Hydraulic Fracturing in Nevada J. Berton Fisher, Ph. D., CPG, RPG (TX #0201) University of Tulsa & Lithochimeia, LLC Source: U. S. Department of Energy, Energy Information Agency, Crude Oil Proved Reserves, Reserves Changes, and
University of Tulsa & Lithochimeia, LLC
. Crude Oil Reserves Increasing
5,000 10,000 15,000 20,000 25,000 30,000 35,000 1981 1986 1991 1996 2001 2006 2011
Crude Reserves (MMBbl)
Source: U. S. Department of Energy, Energy Information Agency, Crude Oil Proved Reserves, Reserves Changes, and Production, available at http:/ / www.eia.gov/ dnav/ pet/ pet_ crd_ pres_ dcu_ NUS_ a.htm
. Crude Oil Production Closes Gap on Imports
500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 1981 1986 1991 1996 2001 2006 2011
198 1-20 13
Crude Production (MMBbl) Crude Imports (MMBbl)
Source: U. S. Department of Energy, Energy Information Agency, Crude Oil and Other Liquids, U. S. Imports of Crude Oil, available at http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=mcrimus1&f=m
Oil Proved Reserves, Reserves Changes, and Production, available at http://www.eia.gov/dnav/pet/pet_crd_pres_dcu_NUS_a.htm
Energy S ecurity means minimizing vulnerability to energy supply disruptions and the resulting volatile and disruptive energy pricing.
Sources: compiled from Hess, R.H., Henson, M.A., Davis, D.A., Limerick, S.H., Siewe, S.S., and Niles, M., 2011, Oil and gas well information for Nevada
and Geology Open-File Report 11-6, portable hard drive, 105 GB.
▫ ~ 740 drilled ▫ ~100 producing ▫ 11 water injection
▫ July-Aug 2013: 57,225 bbl ▫ July-Aug 2012: 61,371 bbl ▫ Water : Oil ~ 17:1
▫ Oil 39,998 ,90 2 bbl ▫ Water 135,561,8 0 9 bbl ▫ Water : Oil ~ 3.4:1
Sources: compiled from Hess, R.H., Henson, M.A., Davis, D.A., Limerick, S.H., Siewe, S.S., and Niles, M., 2011, Oil and gas well information for Nevada - 2011 update: Nevada Bureau of Mines and Geology Open-File Report 11-6, portable hard drive, 105 GB.
500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 BBLs – 1,0 0 0 s
Source: U. S. Department of Energy, Energy Information Administration, State Energy Data System (SEDS): 1960-2011 (Complete), Released: June 28, 2013, Available at: http://www.eia.gov/state/seds/seds-data-complete.cfm?sid=NV#CompleteDataFile and Nevada Commission of Mineral Resources, Division of Minerals, Nevada Oil Patch - bi- monthly production reports, Nov/Dec 2013; Nov/Dec 201212, available at http://minerals.state.nv.us/formspubs_ogg.htm#Nevada_Oil_Patch
2,000 7,000 12,000 17,000 22,000 27,000 32,000
Nevada Oil Production (bbls/ m onth)
Nevada Commission of Mineral Resources, Division of Minerals, Nevada Oil Patch - bi- monthly production reports, Nov/Dec 2013; Sep/Oct 2013; Jul/Aug 2013; May/Jun 2013; Mar/Apr 2013; Jan/Feb 2013; Nov/Dec 2012; Sep/Oct 2012, available at http://minerals.state.nv.us/formspubs_ogg.htm#Nevada_Oil_Patch
▫ Deadman Creek
(May 1997 – 387 bbl / 0 bbl H2O)
▫ Toano Draw
(Jan 2007 – 1,964 bbl / 29,121 bbl H2O)
Sources: Nevada Bureau of Mines and Geology, University of Nevada at Reno, Production and Injection Data for Oil, Gas, and Geothermal Wells in Nevada, Oil and Gas Production Data by Field, available at http://www.nbmg.unr.edu/lists/Production/Oil/oil_production/dead_man_creek/ and http://www.nbmg.unr.edu/lists/Production/Oil/oil_production/toana_draw/
▫ Vertical exploration wells ▫ Elko Formation (Eocene-Oligocene) ▫ 350,000 acres (66% private land) ▫ Oil found ▫ Flow test planned 2014 ▫ Project ~50,000 bbls/day by year end 2014 Current Nevada production ~30,000 bbls/month ▫ $130,000,000 invested over next four years ▫ Acreage might hold 1 billion barrels or more.
Helman, C. 2013. Far-Flung Noble Energy Believes In Oil And Gas 'Diversification‘. Forbes 12/18/2013 http://www.forbes.com/sites/christopherhelman/2013/12/18/far-flung-noble-energy-believes-in-oil-and-gas-diversification/ Personal communication, Lee Hinman, Noble Energy, 2014
Sources: Compiled from Hess, R.H., Henson, M.A., Davis, D.A., Limerick, S.H., Siewe, S.S., and Niles, M., 2011, Oil and gas well information for Nevada
and Geology Open-File Report 11-6, portable hard drive, 105 GB; Las Vegas Review Journal, January 8, 2013 Available at http://www.reviewjournal.com/busines s/energy/oilgas-search-fracking-comes- nevad
Las Vegas Review Journal, January 8, 2013 Available at http://www.reviewjournal.com/business/energy/oilgas-search-fracking-comes-nevada
Elko Daily Free Press, January 23, 2013 Noble Energy plans extensive test drilling in Elko County Available at: http://elkodaily.com/news/local/noble-energy-plans-extensive-test-drilling-in-elko- county/article_04d1b8e0-6506-11e2-b38a-001a4bcf887a.html
SOURCE: Anna, L. O., et al.
Undiscovered Oil and Gas Resources
the Eastern Great Basin Province, Nevada, Utah, Idaho, and Arizona. Chapter 2: Geologic Assessment of Undiscovered Oil and Gas in the Paleozoic– Tertiary Composite Total Petroleum System
the Eastern Great Basin, Nevada and Utah . U.S. Geological Survey Digital Data Series DDS–69–L
Elko Fm.
▫ “The Silver State is about to get fracked.” ▫ “… use of pressurized fluid to smash oil and gas from previously untapped shale deposits…”
Las Vegas Review Journal, January 8, 2013 Available at http://www.reviewjournal.com/business/energy/oilgas-search-fracking-comes-nevada
Las Vegas Review Journal, January 8, 2013
Biological Diversity:
▫ “poison groundwater, foul the air and lead to chemical spills and other contamination near drill sites” ▫ “would include wells 6,000 to 14,000 feet deep, putting them thousands of feet below the groundwater table” ▫ "Fracking is not a good thing," he said. "We don't feel there is a safe way to do it."
Las Vegas Review Journal, January 8, 2013 Available at http://www.reviewjournal.com/business/energy/oilgas-search-fracking-comes-nevada
fracturing was first used in 1947 in an oil well in Grant County, Kansas, and by 2002, the practice had already been used approximately a million times in the United States.
to 95% of wells drilled today are hydraulically fractured, accounting for more than 43% of total U.S. oil production and 67% of natural gas production.
National Petroleum Council, 20 11. PRUDENT DEVELOPMENT: Realizing the Potential of North Am erica’s Abundant Natural Gas and Oil Resources, available at http://www.npc.org/reports/NARD-ExecSummVol.pdf
1 2 3
Environmental Concerns Related to Hydraulic Fracturing Fluid and Brine
Potential Pathways for Exposure to Fluids:
fractured target formation to shallow groundwater
groundwater
stream or river
Source: Gradient. 2013. National Human Health Risk Evaluation for Hydraulic Fracturing Additives. Report to Halliburton Energy Services, Inc. 169p., available at http:/ / www.energy.senat e.gov/ public/ index.cfm/ files/ serve? File_id=53a41a7 8-c06c-4695-a7be-84225aa7230f
Play Drilling Fracturing Total Water Used -Millions of Gallons /well Barnett 0.3 3.8 4.1 Fayetteville 0.1 4.0 4.1 Haynesville 0.6 5.0 5.6 Marcellus 0.1 5.5 5.6
Source: Chesapeake Energy, (2010), “Chesapeake energy - shale gas information,” Oklahoma City, Oklahoma, cited by Mielke, E. et. al, 2010. Water Consumption of Energy Resource Extraction, Processing and Conversion Avaliable at: http://belfercenter.ksg.harvard.edu/files/ETIP-DP-2010-15-final-4.pdf Accessed 02/19/2014 http://www.chk.com/Media/CorpMediaKits/Water_Use_Fact_Sheet.pdf, http://www.chk.com/Media/MarcellusMediaKits/Marcellus_Water_Use_Fact_Sheet.pdf, http://www.chk.com/Media/BarnettMediaKits/Barnett_Water_Use_Fact_Sheet.pdf, http://www.chk.com/Media/HaynesvilleMediaKits/Haynesville_Water_Use_Fact_Sheet.pdf, http://www.chk.com/Media/FayettevilleMediaKits/Fayetteville_Water_Use_Fact_Sheet.pdf.
▫ Elko County Largest water user in Nevada
933,041 acre feet/yr (24% of State’s Use)
▫ Noble’s 20 well project
Assume 5,600,000 gallons water/well (17.1 acre-ft) 20 wells @ 17.1 acre-feet/well 343.6 acre-feet
▫ Even at 5.6 million gallons/well, drilling and completing 543 wells/year would only be 1% of Elko County’s current water use. ▫ Noble is not competing with farmers and ranchers for water – unallocated deeper groundwater to be used ▫ Noble’s actual water use < 1 million gallons/well (3.06 acre-ft)
Source: Elko County Nevada Water Resource Management Plan 2007Available at http://www.leg.state.nv.us/74th/Interim_Agendas_Minutes_Exhibits/Exhibits/Lands/E060608F
use is a major issue
▫ Recycle/re-use water is the direction the industry is taking ▫ Industry increasingly using saltier water
regulations require that during hydraulic fracturing all liquids be contained in steel tanks
environment
noticed and addressed immediately
place 1,000s of feet below freshwater aquifers
S ubsurface Releases - Reality
Theoretical Upper Limit to Hydraulic Fracture Height Growth
3 / 1 2
n
shape factor driving stress Poisson’s ratio (how much the sides of a block of rock bulge in response to being compressed) elastic modulus of rock (how much the rock squishes in response to an applied pressure) volume of HF fluid
S
.A., Tymchak, M.P ., Warpinski, N.E. 2013. " Hydraulic Fract ure Height Limit s and Fault Int eractions in Tight Oil and Gas Format ions." Geophysical Research Let t ers, 40, 3602– 3606, doi:10.1002/ grl.50707 Available at ht t p:/ / onlinelibrary.wiley.com/ doi/ 10.1002/ grl.50707/ pdf .
fracture aspect ratio
Volume of Fluid Used = Volume of Hydraulic Fracture Produced
UD-1 UD-2 UD-5 MW-1 MW-2 MH 1-6
Source: Hammack, R. et al., Use of Perfluorocarbon Tracers to Detect the Migration of Gas from Hydraulically Fractured Marcellus Shale Wells. IPEC, San Antonio, TX November 13, 2013, Available at http://ipec.utulsa.edu/Conf2013/Manuscripts_pdfs/GreeneCountySite.pdf
Vertical Extent of Microseismicity above Well Perforations
Source: Flewelling, S.A., Tymchak, M.P., Warpinski, N.E. 2013. " Hydraulic Fracture Height Limits and Fault Interactions in Tight Oil and Gas Formations." Geophysical Research Let t ers, 40, 3602– 3606, doi:10.1002/ grl.50707. Source: Sheorey, P. R. 1994. A theory for in situ stresses in isotropic and transverseley isotropic rock. International Journal of Rock Mechanics and Mining Sciences 31, no. 1: 23-34.
Horizontal Fractures Vertical Fractures
Fractures extend only about 400-500 feet from wellbore
The Real Threat to Groundwater
▫ Casing ▫ Cementing
fracturing
Source: Shale Gas Prim er, GWPC and ALL
Source: Shale Gas Prim er, GWPC and ALL
Source: Shale Gas Prim er, GWPC and ALL
to be used for hydraulic fracturing are only those chemicals listed on the division’s web page.
the division for approval at least 30 days before hydraulic fracturing if there are any chemicals proposed to be used that are not listed.
FracFocus (www.fracfocus.org)
Energy Technology Num ber
Projects Induced Events Felt Felt Events Maxim um Magnitude Num ber with M > 4 .0 Mechanism Location
M > 2.0 Events
Waterflooding ~ 108,000 (wells) One or more @ 18 sites 4.9 3 Pore pressure increase AL, CA, CO, MS, OK, TX EOR ~13,000 (wells) None known None known Pore pressure increase None known Hydraulic Fracturing ~35,000 (wells) 1 2.8 Pore pressure increase OK Production ~ 6,000 (fields) 20 sites 6.5 5 Pore pressure increase CA, IL, NB, OK, TX Water Disposal ~30,000 (wells) 9 4.8 7 Pore pressure increase AR, CO, OH
Hitzman, M. W., et al. 2013. Induced Seismicity Potential in Energy Technologies, The National Academies Press, Available at http://www.nap.edu/catalog.php?record_id=13355
Energy Released
Seismic Moment = µ * (Rupture Area) * (Fault Offset) Mw = 2 / 3 * log(Seismic Moment) - 10.73
Las Vegas S t rip Home Plat e t o 1st Base
500 foot fracture (152.4 meters) Rock Strength Displacement
Maximum seismic moment and magnitude as functions
fluid from the start
injection until the time of the largest induced earthquake. The equation along the solid line relates the upper bound seismic moment to the product of the modulus of rigidity and the total volume
Source: McGarr, A. 2014. Maximum magnitude earthquakes induced by fluid injection, J. Geophys. Res. Solid Earth, 119, doi:10.1002/2013JB010597. 5.6 million gallons 1.6 million gallons
In the U.S . 3 reported earthquakes induced by permeability-enhancing treatments in unconventional oil and gas fields that were large enough to be felt at the surface.
The McGarr line tells you the m axim um m agnitude you co uld get if you are very unlucky.
▫ All liquids contained in steel tanks ▫ Method and location of final disposal of returned liquids must be approved by the Division before removal from well location.
▫ Recycle/Re-use ▫ Subsurface injection ▫ Onsite vacuum distillation
▫ Oil and Natural Gas Sector: New Source Performance Standards and National Emission Standards for Hazardous Air Pollutants Reviews; Final Rule
Anticipate ~ 95 percent reduction in VOC emissions from hydraulically fractured wells.
Prevent gas/vapor escape Capture escaping gas/vapor and put into sales line
▫ Federal Register - August 16, 2012; Volume 77 No. 159 p. 49490-49600
See: http://www.gpo.gov/fdsys/pkg/FR-2012-08-16/pdf/2012-16806.pdf; also see USEPA Oil and Natural Gas Air Pollution Standards, available at http://www.epa.gov/airquality/oilandgas/
▫ New Technology Diesel Engines and Reformulated Diesel Fuel ultra-low emissions of
Sulfur Aromatics Particulates
▫ Limited time footprint
Emissions only during drilling and completion
Long, C. M. and Valberg, P. A. 2013. Recent Developments Related to the Health Effects of Diesel Exhaust (DE): Implications for Hydraulic Fracturing and Oil & Gas
http://ipec.utulsa.edu/Conf2013/Manuscripts_pdfs/CMLong.pdf
▫ Controlled burning of gas
Safety Production testing
▫ Gas only flared until it can be sold ▫ Methane and low molecular weight hydrocarbons burn cleanly
▫ Crew rotation ▫ Supply and equipment delivery
▫ Dust suppression on unpaved roads ▫ Limit speeds (15 mph) / monitor performance
Personal communication, Lee Hinman, Noble Energy, 2014; also see NAC 445B.22037 Emissions of particulate matter: Fugitive dust, available at http://www.leg.state.nv.us/nac/nac- 445b.html
Regulations
▫ Comprehensive ▫ Stringent ▫ Transparent
was first used in 1947 in an oil well in Grant County, KS
hydraulic fractures completed in the United S tates.
95%
than 43%
. oil and 67%
. natural gas production from hydraulically fractured wells
National Petroleum Council, 2011. PRUDENT DEVELOPMENT: Realizing the Potential of North America’s Abundant Nat ural Gas and Oil Resources, available at ht t p:/ / www.npc.org/ report s/ NARD-ExecS ummVol.pdf
maximized
shale resource rocks
▫ Reach shallow groundwater ▫ Induce large seismic events
▫ Stringent cementing and casing regulations ▫ Hydraulic fracturing fluids are isolated in steel tanks ▫ Flowback disposal must be pre-approved
National Petroleum Council, 2011. PRUDENT DEVELOPMENT: Realizing the Potential of North America’s Abundant Nat ural Gas and Oil Resources, available at ht t p:/ / www.npc.org/ report s/ NARD-ExecS ummVol.pdf
studies
▫ U.S
. DOE and Ground Water Protection Council - 2009
▫ U.S
.EP A – 2004
contaminat ion from hydraulic fracturing
▫ Interstate Oil and Gas Compact Commission - 2009
National Petroleum Council, 2011. PRUDENT DEVELOPMENT: Realizing the Potential of North America’ s Abundant Natural Gas and Oil Resources, available at http:/ / www.npc.org/ reports/ NARD-ExecSummVol.pdf