HiWAY: The Quest For Infinite Conductivity Innovation for a step-change in Hydraulic Fracturing Presentation prepared for Jornada De Maxi-Fracturas May 2012 HiWAY: A Paradigm Shift in Hydraulic Fracturing 1950 1960 1970 1947 First hydraulic fracturing job 1950 Fracturing using gelled oil 1960 Water-based, non crosslinked fluids 1968 Borate crosslinked fluids 1973 Crosslinked derivatized guars (HPG, CMHPG, etc) 1980 1977 High-strength ceramic proppants 1980 Foamed fracturing 1990 1988 Encapsulated breakers 1990 Fiber based flowback control 1994 Low polymer loadings 1997 Viscoelastic surfactants (VES) 2000 2001 Micro-seismic used to monitor frac jobs 2003 Horizontal well, multistage fractures 2005 Fiber based proppant transport 2010 2010 HiWAY* Flow-Channel Fracturing 2011 Complex fracture modeling The Four Components That Deliver HiWAY Reliability Delivering Channel Structure Ensuring Structure Stability Completion Technique Engineering Design 1 ft HiWAY is Applicable in a Broad Range of Reservoirs Oil, condensate-rich and gas wells Competent rock – Sandstone/carbonate/shale (E/σMIN > 275) Requires the use of viscous fluids Cased hole, open hole, vertical and horizontal wells BHST < 345 oF (< 174+ oC) Reliable Design and Execution Engineered candidate selection Design via FracCADE* HiWAY module Thorough peer reviews and design certification Optimized process control using SLB standard fracturing equipment 7 Reliable Design and Execution Engineered candidate selection Design via FracCADE* HiWAY module Thorough peer reviews and design certification Optimized process control using SLB standard fracturing equipment 8 Reliable Design and Execution Engineered candidate selection Design via FracCADE* HiWAY module Thorough peer reviews and design certification Optimized process control using SLB standard fracturing equipment 9 Reservoir-Focused HiWAY Design Workflow Build Geomechanical and Reservoir Models Design perforation strategy and pumping schedule for optimum channel distribution Evaluate channel profile and fracture conductivity HiWAY Execution – From Concept To Reality Schematic pump schedule Sand Concentration Conventional HiWAY Pad Time Proppant (dirty) pulse Clean Fluid (clean) pulse Cycle Tail-in stage HiWAY Execution – From Concept To Reality Actual pump schedule in typical HiWAY job 4 3 2 1 0 600 Sand Concentration, kg added/m3 Sand Concentration, PPA 5 480 360 240 120 0 11:39:43 11:46:23 11:53:03 11:59:43 HiWAY: Extensive Worldwide Experience >5000 jobs, >99.95% jobs with proppant placed without screen-outs HiWAY activity New fields under discussion 2010-2012 HiWAY Activity 6000 1800 1600 5000 4000 1200 1000 3000 800 600 2000 400 1000 200 0 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 0 Cumulative stages Stages per Quarter 1400 2010 – 2012 HiWAY Activity – Treatment (Stage) Count Reservoir Lithology Sandstone Lance/Pinedale (USA) Wamsutter (USA) Granite wash (USA) Yegua (Burgos basin, Mexico) Eocene (Chicontepec, Mexico) Sierras Blancas (Argentina) AS & BS – (Russia) Abrar, West Qarum (Egypt) Gazhal (Saudi Arabia) Others Reservoir Fluid Shale 229 Barnett (USA) Haynesville (USA) Utica (USA) Marcellus (USA) Bossier (USA) Avalon (USA) 1606 3627 Carbonate Condensate + Gas 583 1397 3482 Eagle Ford (USA) Bakken (USA) Clear Fork (USA) Well Orientation Completion type Vertical 392 1203 Horizontal Oil 4259 Cased hole 5070 Open hole Dry Gas Case Study: Encana, Rocky Mountains HiWAY Delivers 24% More Production from Tight Gas Formation Challenge Improve production in multi-stage wells Solution Improve fracture conductivity with HiWAY flow- channe fracturing technique (13-well campaign) Results 24% increase in gas production 17% increase in expected recovery after 2 years Reduction in screen-out rate from 5% to 0% +700 fracturing treatments performed to date with significant footprint reduction SPE Paper 140549 Formation type TVD Sandstone/shale 3400 – 4100 m 11,000 – 13,500 ft Permeability 0.5 to 10 µD Porosity 6% to 9% Young’s modulus 24x - 41x103 MPa 3.5 - 6 million psi BHP 28 – 69 Mpa 4,000 – 10,000 psi BHST 79 - 118 ºC 175 – 245 ºF Proppant/stage (Klbm) Fluid/stage (Kgal) HiWAY Conventional ∆ HiWAY Conventional ∆ 162 297 -45% 94 104 -10% Case Study: BHP-Petrohawk, Eagle Ford Shale HiWAY Increases Production from Horizontal Well by 37% Challenge Improve production in multi-stage horizontal wells Formation type TVD Solution Improve fracture conductivity with HiWAY flow-channel fracturing technique (2 HiWAY vs. 8 conventional wells) SPE Paper 145403 3300 – 3500 m 200 to 600 nD Porosity 6% to 8% Young’s modulus 17x - 34x103 MPa 2.5 - 5 million psi BHP 55 – 69 Mpa 8,000 – 10,000 psi BHST 121 - 168 ºC 250 – 335 ºF Gas Area 1.2 1.0 0.8 0.6 0.4 0.2 HiWAY Conventional (best offset) 0 30 60 90 120 Time, days 150 Cumulative Oil Production (bbl) 120,000 1.4 0 10,900 – 11,500 ft Permeability 1.6 Cumulative Gas Production (Bcf) Results Heim #2H: +4 MMcfd (37%) increase in initial gas production rate (gas window) Dilworth #1H: +200 BOPD (32%) increase in initial oil production rate (oil window) 2000+ stages, 100+ wells pumped to date with significant footprint reduction Carbonate/shale 180 100,000 Oil Area 80,000 60,000 40,000 20,000 0 HiWAY Conventional (best offset) 0 Proppant/stage (Klbm) 30 60 90 120 Time, days 150 Fluid/stage (Kgal) HiWAY Conventional ∆ HiWAY Conventional ∆ 203 340 -40% 207 273 -24% 180 Eagle Ford Completion History 2008 – 2009, Slickwater treatments 2009 – 2010, Frac cost elevated rapidly 2010 (July), Hybrid treatments 2010 and 2011, Channel fracturing treatments Past Direction: Future Direction: Lower rate, Lower pressure, Higher Viscosity Smaller stage lengths Sand (4 to 5 PPA) (85% -20/40 & 15% 40/70) Reduce acid and supply water footprint Increase viscosity Increase contact area while minimizing cost Lower rate, lower treating pressure Reduce supply water footprint Hawkville Field - Eagle Ford Shale Formation • Eagle Ford Characteristics • 100 – 300 ft gross thickness • High calcite (60 - 70%) Texas, United States • Low quartz (< 20%) • Closure stress: 9,500 - 11,000 psi • Young’s modulus: 2.7 - 4.3 Mpsi • BHST: 275 - 335 degF • Upper Eagle Ford • 1 – 2.5% TOC, 4 - 7% porosity • 150 - 300 nD permeability • Lower Eagle Ford • 3 – 6.5% TOC, 6 - 12% porosity • 350 – 700 nD permeability Mexico Gulf of Mexico Hawkville Well Completions • Well Type: Horizontal, cased hole (5½” and 4 ½” OD) • Depth (TVD): 10,000 - 12,000 ft • Depth (MD): 15,000 - 20,000 ft • Horizontal Section: 4,000 - 7,000 ft • Staging: Plug & Perf, 12 - 22 stages • Perforation Strategy: • • • • SPF: 4 - 6; Phasing: 60º Cluster length: 1 - 2 ft Clusters per stage: 4 - 8 Cluster spacing: 30 - 100 ft Channel Fracturing (Hybrid) Treatment Plot Distribution of Wells in the Hawkville Field McMullen County LaSalle County HiWAY Channel Fracturing Conventional – Hybrid Conventional - Slickwater Hawkville Field Production Data 1.6 2 Offset C 10 20 30 40 50 60 70 80 Offset B Heim 2H Offset A Dilwortth1H Offset D 90 95 98 0.1 Fracturing technique Range (Bcfe) Average (Bcfe) Channel fracturing (12 wells) 0.43 – 1.10 0.66 Hybrid (8 wells) 0.36 – 0.65 0.50 Slickwater (30 wells) 0.11 – 0.68 0.39 0.5 1.0 1.2 HiWAY XL (Hybrid) Slickwater 1 0.8 0.6 0.4 0.2 2.0 90-day cumulative production (Bcfe) Basic completion data (Average per well) P50 Cumulative production (Bcfe) Cumulative Probability 5 1.4 0 KPIs - 90 days 90 days 250 days KPIs - 250 days Average Average Production Production Production Production Production Production cum. cum. Proppant / 1000 ft / Mbbl / Mlbm / 1000 ft / Mbbl / Mlbm production (Mlbm) production Lateral Frac Fluid proppant Lateral Frac Fluid proppant (MMcfe) (MMcfe) Fracturing technique Lateral length (ft) Frac fluid (Mbbl) HiWAY (12 wells) 5755 87 3668 659 115 7.6 0.18 1,341 233 15.4 0.37 Hybrid (8 wells) 5382 99 5470 497 92 5.0 0.09 979 182 9.9 0.18 4403 176 3890 392 89 2.2 0.10 717 163 4.1 0.18 23 Slickwater (30 wells) Productivity Normalization via Reservoir Simulations Completion & Stimulation Parameters* 3D Formation Simulator Normalized production at equivalent BHP Calibrated Model 400 XF H 2X F 2L N + L C LN LC LN 180-day normalized cumulative gas production (MMscf/1000 ft) 350 341 300 250 200 225 175 150 160 100 50 0 Heim 2H Offset A (Channel Fracturing) *Fan, L., Thompson, J., Robinson, J.R., 2010 Understanding Gas Production Mechanism and Effectiveness of Well Stimulation in the Haynesville Shale Through Reservoir Simulation. Paper SPE 136696 presented at the Canadian Society for Unconventional Gas, Calgary 19 – 21 October Offset B Offset C Dry Gas Area 180-day Cumulative Gas Production 1,600,000 Offset A 1,400,000 Heim 2H Offset A Cumulative production (Mscf) Offset B Offset B Offset C Heim 2H (Channel fracturing) 6.6 mi 1,200,000 Offset C 1,000,000 800,000 600,000 400,000 200,000 0 0 30 60 90 120 150 180 Time, days 180-day Wellhead Flowing Pressure and Choke Size 7,000 5,000 4,000 Choke size Wellhead flowing pressure (psi) 6,000 3,000 2,000 Heim 2H (Channel fracturing) Offset A Offset B Offset C 1,000 0 0 30 60 90 Time, days 120 150 180 26 24 22 20 18 16 14 12 10 8 6 4 2 0 Heim 2H (Channel fracturing) Offset A Offset B Offset C 0 30 60 90 Time, days 120 150 180 Dry Gas Area History Matches Heim 2H Water Gas BHP Dry Gas Area 180-day Normalized Gas Production at Equivalent BHP 400 180-day normalized cumulative gas production (MMscf/1000 ft) 350 341 300 ∆ = 51% 250 200 225 175 150 160 100 50 0 Heim 2H Offset A (Channel Fracturing) Offset B Offset C Condensate-Rich Area 180-day Cumulative Oil Production 120,000 Dilworth 1H (Channel fracturing) Offset D 100,000 Cumulative oil production (BBL) Dilworth 1H Offset D 80,000 60,000 40,000 20,000 4.4 mi 0 0 30 60 90 120 150 180 150 180 Time, days 180-day Wellhead Flowing Pressure and Choke Size 6,000 Dilworth 1H (Channel fracturing) Offset D 4,000 Choke size Wellhead flowing pressure (psi) 5,000 3,000 2,000 1,000 0 0 20 40 60 80 100 Time, days 120 140 160 180 24 22 20 18 16 14 12 10 8 6 4 2 0 Dilworth 1H (Channel fracturing) Offset D 0 30 60 90 120 Time, days Condensate-Rich Area 180-day Normalized Condensate Production at Equivalent BHP 180-day normalized cumulative oil production (Mbbl/1000 ft) 30 27.1 25 ∆ = 46% 20 17.6 15 10 5 0 Dilworth 1H (Channel Fracturing) Offset D Effective Stimulated Index Comparison Condensate-Rich Area 120.00 3.00 ESI 100.00 2.50 80.00 2.00 60.00 1.50 40.00 1.00 20.00 0.50 0.00 0.00 Offset A Offset B Channel Frac 4.00 Prop 45.00 Fluid and Proppant Volume per Cluster (mgals, mlbs) Fluid Effective Stimulation Index per Cluster (ft^3.mD) Fluid and Proppant Volume per Cluster (mgals,mlbs) Proppant 50.00 ESI 3.60 40.00 3.20 35.00 2.80 30.00 2.40 25.00 2.00 20.00 1.60 15.00 1.20 10.00 0.80 5.00 0.40 0.00 0.00 Offset A ESI = ESV x Enhanced Permeability SPE Paper 149390 Fluid ESV = 2 x PEA half-length x PEA width x thickness Channel Frac Effective Stimulation Index per Cluster (ft^3.mD) Dry Gas Area What Is The End Result? Better production: 90-day non-normalized cumulative production increased by: 180-day normalized cumulative production: 32% (channel fracturing vs. hybrid) 68% (channel fracturing vs. slickwater). > 51% in dry gas area; > 46% in condensate-rich area. Gains in efficiency: Reduction in proppant and fluid volumes, allowing reductions in pumping time. Over 2300 treatments (140 wells) pumped to date. Zero screenouts. • Channel fracturing improved well performance in the Hawkville field beyond conventional means. • Additional completions continue to show channel fracturing treatments outperform slickwater and hybrid in the Hawkville Field. Public Client Endorsements for HiWAY • BHP -Petrohawk • Chesapeake • Petrohunt • Encana • YPF, S.A. • TNK-BP • Rosneft • PEMEX • ENI • SOG USA - Eagle Ford shale USA - Barnett shale USA - Bakken shale USA - Jonah field Argentina Russia Russia Mexico Algeria Egypt HiWAY-Related Publications Client-Endorsed SPE Activity SPE 135034 (with YPF, S.A.) – A New Approach to Generating Fracture Conductivity (ATCE’10. Florence, Italy) SPE 140549 (with Encana Oil and Gas USA) - Channel Fracturing - A Paradigm Shift in Tight Gas Stimulation (HFTC’11, The Woodlands, USA) SPE 145403 (with PetroHawk) - Channel Fracturing in Horizontal Wellbores: the New Edge of Stimulation Techniques in the Eagle Ford Formation (ATCE’11. Denver, USA. Oct. 2011) SPE 147587 (with Encana Oil and Gas USA) - Raising the bar in completion practices in Jonah Field: Channel fracturing increases gas production and improves operational efficiency (SPE UGC. Calgary, Canada. November 2011) SPE 149390 (with Petrohawk) - Completion Evaluation of the Eagle Ford Formation with Heterogeneous Proppant Placement (SPE UGC. Calgary, Canada. November 2011) SPE 152112 (with PEMEX) - Field Development Study: Channel fracturing increases gas production and improves polymer recovery in Burgos Basin, Mexico North (HFTC’12. The Woodlands, February 2012) SPE ATW Presentation (with Rosneft)- Channel Fracturing: Experience and Applicability in Russia (Sep’10. Nizhnevartovsk, Russia) Industry Articles Journal of Petroleum Technology Hart's E&P Magazine Petroleum (Spanish) New Technology (Canada) Several others www.slb.com/hiway 2012: Integration of HiWAY modeling with Mangrove Structure Lithology HiWAY DFN Stress legend High Selectively placed perforation clusters Rock quality Low Stress StimMAP Staging & Perforating Rock quality legend Geomechanical Model Microseismic Mapping Complex Hydraulic Fracture Models with HiWAY Automated Gridding Reservoir Simulation HiWAY Channel Fracturing: More value, Less Resources • Fastest-growing new technology in the history of Schlumberger • > 5000 stages pumped (10 countries, 5 Areas) • Significant impact on production – Typically > 20% increase • Smaller footprint: Reductions in – water and proppant consumption per job of 25% and 42%, respectively; – > 6 million barrels of water and 340,000 tons of proppant saved so far; – > 33,000 proppant and water hauling road journeys; – > 4 million pounds CO2 emissions • Unprecedented proppant placement rate: – 99.96% placement success; – > 200 screen-outs prevented HiWAY: The Quest For Infinite Conductivity Innovation for a step-change in Hydraulic Fracturing Thank you for your attention