Log Analysis Using Microsoft Excel® Focus on the Marcellus Tim Carr West Virginia University My Observations West Virginia University, November 17, 2010 Background Costs Are Becoming More Significant High Land Costs More Moderate Commodity Price High Capital Costs Horizontal Wells & Large Multi-Stage Fracture Stimulations Key Reservoir Parameters Thickness Unit Definitions (Formation Bed) Lithology Thermal Maturity Total Organic Carbon (TOC) Gas Fraction (Adsorbed and Free) Permeability West Virginia University, November 17, 2010 AVERAGE WELL HEAD PRICE $2.95 per MMBtu 2002 $6.25 per MMBtu 2007 $7.96 per MMBtu 2008 $3.71 per MMBtu 2009 $4.33 per MMBtu 2010 $4.04 per MM Btu on 11/16/2010 EIA (http://www.eia.gov ) West Virginia University, November 17, 2010 Recent Growth in Natural Gas Production, Lower 48 States, Attributed Largely to Unconventional Gas 65 Billion Cubic Feet per Day 9 % Growth Rate 60 55 50 45 0 % Growth Rate Katrina & Rita 40 Date (EIA, 2010) West Virginia University, November 17, 2010 Natural Gas Supply by source, 1990-2030 (trillion cubic feet) 30 History 25 Projection 20 15 Unconventional 10 Net imports Alaska Non-associated offshore 5 Non-associated conventional 0 1990 1995 2000 2005 2010 Source: Energy Information Administration, Annual Energy Outlook 2009 2015 2020 2025 2030 West Virginia University, November 17, 2010 Marcellus Shale Resource 600 Marcellus Resource 500 500 U.S. Resources 2,080 Tcf 100 220 Range Resources 200 256 Potential Gas Committee 300 Chesapeake Energy Tcf 400 0 1 Potential Gas Committee, June 18, 2009 U.S. Energy Information Administration 3 Marcellus Proved Reserves < 1 Tcf 2 1 U.S. Proved Reserves 244 Tcf 2 Marcellus Shale Resource 256 Tcf 3 Annual U.S. Consumption 23 Tcf West Virginia University, November 17, 2010 Marcellus Shale Production Forecasts 5.0 4.5 4.5 Wood Mackenzie 3.9 4.0 Penn State 3.5 2.9 Bcf/d 3.0 2.5 2.1 2.0 1.5 1.0 0.5 0.5 0.5 0.0 2010 2015 2020 Sources: “An Emerging Giant: Prospects and Economic Impacts of Developing the Marcellus Shale Natural Gas Play.” T. Considine, R. Watson, R. Entler, J. Sparks, The Pennsylvania State University, College of Earth & Mineral Sciences, Department of Energy and Mineral Engineering. July 24, 2009. Integrated Resource Plan for Connecticut. The Brattle Group. January 1, 2010. (Wood Mackenzie) West Virginia University, November 17, 2010 Marcellus Shale Production Outlook 18 16 14 Bcf / d 12 10 8 6 4 2 Source: Williams Partners L.P. 2038 2036 2034 2032 2030 2028 2026 2024 2022 2020 2018 2016 2014 2012 2010 0 West Virginia University, November 17, 2010 Unconventional Resource Production Technology, Economies of Scale, Integration West Virginia University, November 17, 2010 Unconventional Resource Production Technology, Economies of Scale, Integration West Virginia University, November 17, 2010 Gas Shale Characteristics Very High Gamma Ray Activity (Kerogen Content) High Uranium High Resistivity – Low Water Saturation Relatively Low Clay Content Smectite to Illite Transition Low Bulk Density (Kerogen Content) Kerogen - Petrophysical Characteristics Bulk Density 1.0 to 1.2 g/cm3 U 0.18 to 0.24 Neutron Porosity 50 to 65 p.u. Gamma Ray Activity 500 to 4000 API Sonic Slowness 160 µs/ft West Virginia University, November 17, 2010 Three Approaches Logs to be used Bulk Density g/cm3 Density Porosity Percent or Decimal Neutron Porosity Percent or Decimal Photo-Electric Barns Gamma Ray API Units Clay Typing – Related to Deposition & Diagensis Spectral Gamma Ray Logs Uranium (PPM), Thorium (PPM) and Potassium (Percent) Compositional Lithology Logs Rhomaa-Umaa Computational Analysis (Linear) West Virginia University, November 17, 2010 Spreadsheets Ubiquitous and Low Cost Provide Some Hands-On Understanding of the Process Allow Easy Export to Higher End Packages Use Basic Logs Clay Typing Estimate Uranium Content from Full Spectrum Gamma-Ray Logs Compositional Lithology Logs Rhomaa-Umaa Computational Analysis (Linear) Organic Content (Next Time) Saturation (Next Time) Heavily Modified Archie West Virginia University, November 17, 2010 Gamma-Ray Log Analysis U Th K West Virginia University, November 17, 2010 Gamma-Ray Spectrum Uranium Thorium West Virginia University, November 17, 2010 Gamma-Ray Spectrum Schlumberger Log Interpretation Principles 1989, Page 3-7 West Virginia University, November 17, 2010 Geochemists’ concept of typical shale and black shale North American Shale Composite (NASC) Gromet et al. (1984) Th 12.3 ppm, U 2.66 ppm, K 3.2% GR = 121.7 API units Black Shale Composite (BSC) Quinby-Hunt et al. (1989) Th 11.6 ppm, U 15.2 ppm, K 2.99% GR = 215.8 API units API unit multipliers: Th ppm 4 : U ppm 8 : K% 16 West Virginia University, November 17, 2010 Typical Spectral Gamma-Ray Log Presentation Format West Virginia University, November 17, 2010 Potassium-Thorium Crossplot with Generalized Mineral Fields (after Schlumberger) West Virginia University, November 17, 2010 Potassium-Thorium Crossplot with Generalized Mineral Fields (after Schlumberger) West Virginia University, November 17, 2010 Thorium and Uranium Concentration and Redox Potential Adams and Weaver (1958) West Virginia University, November 17, 2010 Gamma-Ray and Spectral Ratio Logs Permian – Cretaceous Central Kansas West Virginia University, November 17, 2010 Photo-Electric and Spectral Gamma Ray Schlumberger, Log Interpretation Principles 1989, Page 6-4 West Virginia University, November 17, 2010 Photo-Electric and Spectral Gamma Ray Schlumberger, Log Interpretation Principles 1989, Page 6-4 West Virginia University, November 17, 2010 Idealized Kansas Pennsylvanian Cyclothem West Virginia University, November 17, 2010 Spectral Gamma-Ray Log Lansing Group, Wabaunsee County, Kansas West Virginia University, November 17, 2010 Chestnut Drive Section Spectral Gamma Ray Response West Virginia University, November 17, 2010 Devonian Shale Analysis Track 2 Track 1 Gamma Ray 200 Log Depth(ft) 6685 0 API Gamma Ray API 400 0 Uranium PPM 80 200 3 Bulk Density G/CC 0 Log Depth(ft) 6685 Harrell Tully HARRELL 6700 67 05 6700 6715 6720 6715 6730 6735 6730 TULLY 6745 6750 6745 6760 6765 6760 Mahantango MAHANTANGO 6780 6775 6790 6795 6790 6775 6805 6810 6805 6820 68 2 5 6820 6835 6840 6835 6850 6855 6850 6865 6870 6865 6880 6885 6880 MARCELLUS Marcellus 6895 6900 6895 6910 69 15 6910 6925 6930 6925 6940 6945 6940 Onondaga ONONDAGA 6960 6955 6970 69 7 5 6970 HS=1 ONONDAGA_BASE 6985 6990 6985 PETRA 10/20/2009 12:03:52 AM (Type log Template.CSP) 6955 West Virginia University, November 17, 2010 Devonian Shale: Oxidizing and Reducing Conditions Oxidizing • Reducing Vs. Oxidizing conditions determined by Th/U West Virginia University, November 17, 2010 Devonian Shale: Clay Type • Clay type can be determined from Th/K •Illite-Pink Smectite-Green •Illite can increase porosity by 4% West Virginia University, November 17, 2010 Wells 1 & 3 West Virginia University, November 17, 2010 Wells 1 & 3 West Virginia University, November 17, 2010 Well 2 West Virginia University, November 17, 2010 Project 1 http://www.geo.wvu.edu/~tcarr/PTTC_11_2010 Make sure you open an LAS File with Notepad Import a LAS File to EXCEL Well 3.LAS Open Spectral Gamma Ray Template Well 1.LAS • Marcellus (7375’-7562’) Well 2.LAS • Marcellus (7359’-7501’) Create & Examine Plots What is the difference in the two wells West Virginia University, November 17, 2010 Open with Notepad West Virginia University, November 17, 2010 Importing a LAS File to EXCEL West Virginia University, November 17, 2010 Importing a LAS File to EXCEL West Virginia University, November 17, 2010 Importing a LAS File to EXCEL West Virginia University, November 17, 2010 West Virginia University, November 17, 2010 Introduction to Porosity Logs Porosity Logs DO NOT Directly Measure Porosity Acoustic (Sonic) Logs Measure Wave Travel Time Density Logs Measure Formation Bulk Density Neutron Logs Measure Formation Hydrogen Content West Virginia University, November 17, 2010 Neutron Log Applications Porosity Lithology with Density and/or Sonic Gas Indicator Clay Content Correlation Cased Hole West Virginia University, November 17, 2010 Neutron Tool Background Outgrowth of Work by Italian Physicists (1935) Slowing down and stopping of neutrons by a hydrogen rich material (e.g., water). Radioactive Source of High Energy Neutrons Americium and Beryllium Fairly Shallow Zone of Investigation ~ 6 inches (Flushed Zone (Rxo) in most cases) Neutrons lose energy each time they collide with nuclei as they travel through the formation Greatest loss in energy when neutrons collide with nuclei of a similar mass • Hydrogen atoms As the neutrons slow they can be captured and emit a gamma ray. Reduction in Neutron Flux (Increased Gamma Rays) is largely controlled by concentration of hydrogen in the formation. Water (Oil) Filled Porosity in Flushed Zone of Clean Units Clays Lithology Effect Hydrocarbon Gas Effect Depress apparent neutron porosity West Virginia University, November 17, 2010 The Neutron Porosity Tool West Virginia University, November 17, 2010 Historical Development of Neutron Logging Common Curve Mnemonics ΦN, PHIN, NPHI Usually Tracks 2 or 3 and dashed line. Units Counts %, Decimal Fraction West Virginia University, November 17, 2010 Neutron Energy Loses West Virginia University, November 17, 2010 Density Log Applications Porosity Lithology with PE, Neutron and/or Sonic Gas Indicator Synthetic Seismograms with Sonic Rock Properties with Sonic Poisson’s Ratio, Young’s Modulus Clay Content Borehole Conditions (Size and Rugosity) West Virginia University, November 17, 2010 Density Tool Background Source of High Energy Gamma Rays Cesium 137 Shallow Zone of Investigation <2 inches Gamma rays interact with the electron clouds of the atoms they encounter, with a reduction in the gamma ray flux, which is measured by both a near and far detector. Higher Energy Range Affected by Compton Scattering Reduction is a function of the electron density of the formation Number of Electrons Matched by the Number of Protons In Most Cases Z/A = 0.5 • Z - Atomic Number • A – Atomic Mass Two Density Values Bulk Density (RhoB or ρb) – Measured by Logging Tool – Solid + Fluid • DEN, ZDEN Matrix Density (ρma) – Density of the Rock that has no Porosity Hydrocarbon Gas Effect Enhances apparent density porosity West Virginia University, November 17, 2010 The Formation Density Tool West Virginia University, November 17, 2010 Density Porosity ΦD = (ρma – ρb) / (ρma – ρfluid) DPHI, PHID, DPOR Sandstone 2.644 gm/cm3 Limestone 2.710 gm/cm3 Dolomite 2.877 gm/cm3 Anhydrite 2.960 gm/cm3 Halite 2.040 gm/cm3 Freshwater 1.0 gm/cm3 Saltwater ~1.15 gm/cm3 West Virginia University, November 17, 2010 Question Why does ΦN read much higher Than ΦD in the red boxed area? What are the general lithologies in this well? West Virginia University, November 17, 2010 Photo Electric Pe Tool Lithology with Density, Neutron and/or Sonic Supplementary Measurement of the Density Tool 1970’s Onward Lower Energy Range Gamma Rays Affected by Photoelectric Effect Logged Value is a function of Z - Atomic Number • Pe = (Z/10)3.6 • Barns per electron Only mild affect of Pore Volume and Fluid/Gas Content Quartz = 1.81 Barns Dolomite = 3.14 Barns Calcite = 5.08 Barns Pe, PE, PEF West Virginia University, November 17, 2010 Photoelectric factor log qu artz dolomi te cal cite 30% porosi ty 20% 10% 0 coal k aoli n ite i ll ite s me cti te 5 ch lorite an h ydrite barn s /e l ectron Pe 10 West Virginia University, November 17, 2010 Compositional Analysis Combing More Than Two Logs West Virginia University, November 17, 2010 Compositional Analysis Determine Lithology Graphic Plots Computation Identification and Semi-Quantitative Estimates West Virginia University, November 17, 2010 Porosity Log Combinations Single Porosity Measurement Lithology is Specified for Correct Porosity • Choice of Matrix Value Two Porosity Measurements Two Lithologies can be Predicted along with Porosity Three Porosity Measurements Three Lithologies can be Predicted along with Porosity Greater the number of Measurements the Greater the Complexity of the Lithology that can be Estimated West Virginia University, November 17, 2010 2 Logs 2 Minerals West Virginia University, November 17, 2010 Dolomitic-Limestone System West Virginia University, November 17, 2010 Three-Measurement Cross-Plot Three Mineral Matrix Can Be Determined Usually Reduce From 3-D to 2-D Collapse the 3 measurements to two axes with common denominator M-N Plots Axis 1 – Sonic and Density Axis 2 – Neutron and Density Problem of Density and Sonic being Correlated Addition of Pe in Newer Methods West Virginia University, November 17, 2010 M-N Cross Plot West Virginia University, November 17, 2010 M – N Crossplot Remove the effect of pore fluid Usually drilling fluid Combine Sonic and Density Logs (M) M = (∆tfluid – ∆tmatrix) / (ρmatrix – ρfluid) Combine Neutron and Density N = (Φnfluid – Φn matrix) / (ρmatrix – ρfluid) West Virginia University, November 17, 2010 M-N Cross Plot West Virginia University, November 17, 2010 RHOmaa – Umaa Crossplot Mineral Identification (MID) Plots Apparent Matrix Density RHOmaa Density and Neutron Apparent Matrix Photoelectric Cross Section Umaa Density, Neutron and Photoelectric Effect West Virginia University, November 17, 2010 Apparent Matrix Density RHOmaa West Virginia University, November 17, 2010 Photoelectric (PE) Factor qu artz dolomi te cal cite 30% porosi ty 20% 10% 0 coal k aoli n ite i ll ite s me cti te 5 ch lorite an h ydrite barn s /e l ectron Pe 10 West Virginia University, November 17, 2010 Volumetric Photoelectric Absorption U/cm3 The photoelectric absorption index (Pe) is measured in units of barns per electron. In order to linearize its relation with composition, the variable must be converted to a volumetric photoelectric absorption index (U) with units of barns per cc and is approximated by: West Virginia University, November 17, 2010 Volumetric Photoelectric Absorption U of the matrix This is the volumetric photoelectric absorption coefficient of the zone (matrix plus fluid). The hypothetical volumetric photoelectric absorption coefficient of the matrix is UMAA. or approximated by West Virginia University, November 17, 2010 Umaa Values (Apparent 𝜙) West Virginia University, November 17, 2010 RHOmaa Umaa Plot Pyrite West Virginia University, November 17, 2010 Shale Characterization West Virginia University, November 17, 2010 Computational Analysis 2 Logs 2 Minerals West Virginia University, November 17, 2010 Computational Analysis CV=L V = C-1L C - matrix of the log responses of the components V - vector of the component proportions L - vector of the log readings To Solve for V need the inverse of the component matrix West Virginia University, November 17, 2010 Log response equations: Rewritten as matrices: West Virginia University, November 17, 2010 The compositional solution vector is then given by pre-multiplying the log response vector by the inverse of the coefficient matrix We are Saved - Easily computed in Excel West Virginia University, November 17, 2010 West Virginia University, November 17, 2010 Compositional Analysis West Virginia University, November 17, 2010 Project 2 http://www.geo.wvu.edu/~tcarr/PTTC_11_2010 Use Parameters From Appendix B Open Compositional Template Load in Separate Template Well 1.LAS • Marcellus (7375’-7562’) • Onondaga (7562.5’ 7578’) • Why are data points outside the Rhomaa-Umaa Triangle Load in Separate Template Well 2.LAS • Marcellus (7359’-7501’) • Onondaga (7501.5’ 7516’) • Why are data points outside the Rhomaa-Umaa Triangle Create Computational Plots What is the difference in the two wells West Virginia University, November 17, 2010 West Virginia University, November 17, 2010 My Observations West Virginia University, November 17, 2010 West Virginia University, November 17, 2010 Tim Carr Phone: 304.293.9660 Email: tim.carr@mail.wvu.edu West Virginia University, November 17, 2010