The Equipment: From Rig to Producing Well Hydraulic Fracturing - - PowerPoint PPT Presentation

the equipment from rig to producing well
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The Equipment: From Rig to Producing Well Hydraulic Fracturing - - PowerPoint PPT Presentation

www.anadarko.com | NYSE: APC The Equipment: From Rig to Producing Well Hydraulic Fracturing Producing Well: 20+ Years Producing Well: 20+ Years Drilling Rig 1 3 Anadarko Petroleum Corporation www.anadarko.com | NYSE: APC Horizontal Drilling


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www.anadarko.com | NYSE: APC

The Equipment: From Rig to Producing Well

Hydraulic Fracturing Producing Well: 20+ Years Producing Well: 20+ Years Drilling Rig

Anadarko Petroleum Corporation

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SLIDE 2

www.anadarko.com | NYSE: APC

Horizontal Drilling

  • Commences with Common Rotary

Vertical Drilling

  • Wellbore then Reaches a “Kickoff
  • Wellbore then Reaches a “Kickoff

Point”

  • Drill Bit Angles Diagonally Until

Kickoff Point ~6,300 feet Entry Point ~7,000 feet

g g y the “Entry Point”

  • Wellbore Becomes Fully

Horizontal to Maximize Contact

Lateral Length

Horizontal to Maximize Contact with Productive Zones

Lateral Length

Anadarko Petroleum Corporation 14

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SLIDE 3

www.anadarko.com | NYSE: APC

Horizontal Drilling – Significant Surface‐Space Reduction

Traditional Vertical Wells Horizontal Drilling

Anadarko Petroleum Corporation

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SLIDE 4

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Hydraulic Fracturing

  • Essential Technology in

Oil and Natural Gas Production from Tight Production from Tight Sands and Shales

  • Involves Injecting a
  • Involves Injecting a

Mixture of Water, Sand and a Relatively Small Amount of Additives Under Pressure into

1+ Mile 1+ Mile Separa Separates Aquif s Aquifer er from F from Fractured F ractured Formation rmation Multiple Layers of Protective Steel and Cement

Under Pressure into Targeted Formations

  • Pressure Creates Pathways

Steel and Cement

  • Pressure Creates Pathways,

Propped Open by Sand, for Oil or Natural Gas to Flow to the Wellbore

Anadarko Petroleum Corporation 16

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SLIDE 5

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Hydraulic Fracturing Equipment

Water tanks Water tanks

Blender Blender

F V F V S d t k S d t k Wellhead Wellhead Frac Van Frac Van Sand tanks Sand tanks Pump trucks Pump trucks Wellhead Wellhead

Anadarko Petroleum Corporation

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SLIDE 6

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Hydraulic Fracturing Technology

Equipment

Water Tanks Pump Trucks p Sand Movers Blenders

Frac Design

Primarily Water and Sand Additives Include:

  • Gel (ice cream)
  • Biocide (bleach)
  • Friction reducer (polymer used in

make‐up, nail and skin products)

Anadarko Publicly Shares the Ingredients of All Hydraulic Fracturing Operations at

Anadarko Petroleum Corporation

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www.FracFocus.org

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SLIDE 7

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Hydraulic Fracturing is Transparent

  • Anadarko was Instrumental in Creating the

Ground Water Protection Council’s Online Public Registry that Enhances Transparency b bli l h i h di d i by Publicly Sharing the Ingredients Used in Hydraulic Fracturing on a Per‐Well Basis.

GWPC’s Online Public Registry

Fracfocus.org

g y Publicly Shares All Fracing Ingredients on a “Per‐Well” Basis Available to Anyone at Any Time

Anadarko Petroleum Corporation 19

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www.anadarko.com | NYSE: APC

Protecting Water Quality in Colorado

  • Anadarko is a Participant in

Colorado’s Water‐Quality Sampling Program

  • Independent Third‐Party Experts

Collect Water Samples Prior to Drilling …

  • And Again After Drilling
  • To Ensure Water Quality is Protected

All Water‐Quality Data is Maintained All Water Quality Data is Maintained by the Colorado Oil and Gas Conservation Commission

Anadarko Petroleum Corporation

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SLIDE 9

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Coexist with agricultural operations…

Wellhead Wellhead Wellhead Wellhead Wellhead Wellhead Wellhead Wellhead Wellhead Wellhead

Anadarko Petroleum Corporation

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SLIDE 10

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Existing COGCC Hydraulic Fracturing Rules

Rule 317 ‐‐ Surface casing and cementing requirements and cement bond log Rule 317B ‐‐ Setbacks and precautions near surface water Rule 906 – Spill containment and reporting Rule 341 – Monitor pressures and reporting requirements Rule 907 Management of produced water Rule 907 – Management of produced water

Injection – COGCC permit process Commercial Facilities – CDPHE permit process Land Treatment – COGCC permit process Centralized E&P Water Facility – COGCC permit process Reuse and Recycle – COGCC permit process

Anadarko Petroleum Corporation

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SLIDE 11

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New COGCC Hydraulic Fracturing Rules

Publicly share ALL fluid additives Publicly share both additives and ingredients Protection of proprietary information allowed with the Protection of proprietary information allowed with the submission of a certification signed under the “penalty of perjury” by service providers Emergency professionals have access to proprietary information Emergency professionals have access to proprietary information Publicly share information via FracFocus within 60 days of hydraulic fracturing being completed S f l d i f i h Surface landowner information sheet Provide 48‐hour notification to COGCC prior to commencing hydraulic fracturing applications

COGCC will then notify LGD

Anadarko Petroleum Corporation

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SLIDE 12

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How Much Is 5 Million Gallons Of Water?

  • A Typical Wattenberg HZ Well Uses 3 - 5 MM Gallons

750 704

A Typical Wattenberg HZ Well Uses 3 5 MM Gallons

  • The Same Amount Is Consumed By:

472 204 364

1,000 MWh coal-fired 1,000 MWh nuclear Corn Field

  • ver
  • Avg. golf course

every

14 34 52 114

power plant in 11 HOURS power plant in 6 HOURS 5 ACRES per SEASON y 37 DAYS

Anadarko Petroleum Corporation

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SLIDE 13

www.anadarko.com | NYSE: APC

Water Usage – Additional Information

Anadarko Petroleum Corporation

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Environmental Protections & Best Management Practices

  • Pad Drilling:

Reduces Surface Space

  • Closed-Loop System:

No Open Pits

  • Water Recycling:

Conserves Water Usage

  • Green Completions:

Reduces Emissions

  • FLIR Cameras:

Identifies and Addresses Potential Leaks

  • Flowline Testing:

Ensures System Integrity

  • Stuffing Box Shutoff:

Enhances Safety Stuffing Box Shutoff: Enhances Safety

  • Drip Catch Pan:

Protects the Surface

  • Oil Polishing Facility:

Reduces Truck Traffic & Emissions

  • Automatation:

Reduces Truck Traffic & Emissions Ob ti R t E C li

  • Observation Reports:

Ensures Compliance

  • Emission-Control Devices:

Reduces Emissions

Anadarko Petroleum Corporation

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Recognition for Environmental Protection

  • Awarded as 2011 Outstanding Operator in the State of Colorado for:

Environmental Protection Water-Quality Protection Community Relations y

Anadarko Petroleum Corporation

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Giving Back to the Community & Environment

  • Community Involvement

Weld Food Bank Weld County Special Olympics Weld County Fair and Junior Auction Habitat for Humanity – 4th home under way Greeley Stampede National Western Stock Show and Junior National Western Stock Show and Junior Auction American Cancer Society Cattle Baron’s Ball Dearfield Monument Weld Community Foundation Weld Community Foundation Historic Ft. Lupton Support numerous Denver‐based charities and civic organizations

Addi i l E i l

  • Additional Environmental

Awards

IOGCC Chairman’s Stewardship Award

Anadarko Petroleum Corporation

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