20th Williston Basin Petroleum
Conference
Manitoba
2011-12 Oil Activity
Review
Bismarck, ND
May 22, 2012
Record Breaking Year
• Manitoba 2011-12 Oil Activity
• Bakken – Three Forks Play
• Lower Amaranth (Spearfish) Play
• Public Concerns
Manitoba Drilling Activity
Manitoba Completion Activity
% of Total
Completions
100
Wells Completed
600
500
400
300
200
100
0
80
60
40
20
0
05
06
07
Bakken-3 Forks
08
L. Amaranth
09
10
11
% of Total Completions
MANITOBA OIL FIELD MAP
>6 wells drilled per Township
0 wells drilled per Township
1-5 wells drilled per Township
Oil Field Boundaries
Producing oil wells (colour corresponds to Period in Strat. column)
Oil shows (colour corresponds to Period in Strat. column)
(Where Devonian oil show occurs in Devonian producing area, show is
deeper than surrounding producing wells).
Manitoba’s Top Drillers – 2011
578 wells drilled by 28 different companies
Manitoba Daily Oil Production
Annual Production
16,000,000
14,000,000
12,000,000
Bakken
8,000,000
Mississipian
6,000,000
Triassic
4,000,000
2,000,000
Year
2010
2005
2000
0
1995
BBL
10,000,000
Initial Oil Production
(Oil per Hour (m3))
Data presented in NAD 83 Zone 14 co-ordinates.
BAKKEN -THREE FORKS PRODUCERS
Bakken
TVD
(m)
400
600
800
Subcrop edge of the
Bakken Formation
1000
1200
1300
BAKKEN -THREE FORKS
PRODUCERS
Bakken
TVD
(m)
Subcrop edge of the
Bakken Formation
Legend
Bakken Producing Wells
Oil Field Boundaries
Daly Sinclair Field
Bakken- Three Forks
Completions
• Daily Production
17,325 BOPD Avg
• Waterflood Projects
12
LOWER AMARANTH DEVELOPMENT
Pierson Field
Waskada Field
Triassic Lower Amaranth Wells
Lower Amaranth / Mississippian Wells
Mississippian Mission Canyon Wells
Pool Boundaries
Field Boundary
WASKADA FIELD DEVELOPMENT
Plotted on the Dominion Land Survey System Grid
Triassic Lower Amaranth Wells
Mississippian Mission Canyon Wells
Pool Boundaries
Field Boundary
Common Public Concerns about
Fracing
•
•
•
•
•
Fracing can contaminate groundwater
Fracing uses a lot of water
Frac fluids are not properly managed
Fracing causes earthquakes
Frac fluid additives are toxic
Fracing in Manitoba
• Fracing in Manitoba is regulated under
The Oil & Gas Act
• Fracing has been used to increase oil production from
Manitoba wells for over 60 years
• There is currently no shale gas development in
Manitoba
• Manitoba has shale gas potential
• Natural gas prices and other economic factors make
near-term shale gas development in Manitoba unlikely
Protection of Groundwater
• There has never been a known case where fracing has
resulted in groundwater contamination in Manitoba.
• In Manitoba, oil reservoirs are located 400 – 1000
metres below groundwater aquifers.
• This separation distance coupled with the regulatory
requirements for the drilling, construction and operation
of oil wells minimizes the risk of groundwater
contamination from fracing.
Frac Fluid Management
• Frac fluids in Manitoba are managed from cradle to
grave
• Frac fluids are stored in tankage before being injected
into a well
• Frac fluids produced back from a well are disposed of
into an approved underground disposal zone using a
disposal well permitted for that purpose
• Closed loop approach minimizes potential adverse
environment impacts associated with fracing
Fracing - Water Use
• Oil industry water use in Manitoba is regulated
• Fracing operations in Manitoba use significantly less
water than shale gas fracing in other jurisdictions.
• Average frac job in Manitoba uses 400 -700 cubic
metres of water
• The average family of 4 uses 500 cubic metres of water
a year
Fracing - Earthquakes
• Seismic activity potentially resulting from fracturing
measures less than 3.5 on the Richter scale
Richter Scale (worldwide):
2 or less
8,000 / day Not felt
2 – 2.9
1,000 / day Not felt, recorded
3 – 3.9
49,000 / year Often felt, rarely causes damage
Note: Each level on scale is 10 x stronger than the previous level
• Damaging earthquakes reported in the news have 10,000
times more energy than earthquakes linked to fracing
Fracing – What’s Next
• Oil industry has been proactive in adopting new policies
and procedures for fracing to address public concerns
• Petroleum Branch is reviewing adoption of new
guidelines and regulations in Manitoba to ensure that
fracing remains safe and public concerns are addressed
• Initiatives under review
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–
–
–
Enhanced submissions requirements
Disclosure of frac fuid contents
Baseline water well testing
Collection of water source and usage date