OVERCOMING CHALLENGES WITH E&P TECHNOLOGY MIKE BAHORICH 29 JAN 2014 OVERCOMING CHALLENGES THROUGH TECHNOLOGY Australia Seismic Fracwater treatment Natural Gas Fuel 2 APACHE FZB PATENT SAVING $250MM/YR 3 Half of seismic boats now use technology Other half has not figured this out yet Savings to industry should be about $500MM/year Apache patented invention IT STARTED WITH THIS 4 STEERABLE STREAMER SYSTEMS 5 FANNING EVERY LINE REDUCES POTENTIAL INFILL 6 CONVENTIONAL 7 BROADBAND 8 APA WORLD’S FIRST SIM SOURCE ACQUISITION SimSource 6000m 75m 18.75m Conventional 37.5m CONVENTIONAL SIM SOURCE AUTONOMOUS NODES – THE FUTURE ? WesternGeco Liquid Robotics WaveGlider 12 13 WATER TYPES – Treatment and Value FRESH < 1000 ppm TDS FRESH BRACKISH >1000 -5000 even 10,000 ppm SALINE > 10, 000 ppm PRODUCED 14 TDS = Total Dissolved Solids mg/liter =Salinity Usually shallow Not necessarily drinking water from Oil & Gas wells, may have hydrocarbons Often 60,000 to > 100,000 ppm Sea water ~ 35,000 TDS Regulated surface handling and disposal FRESH BRACKISH PRODUCED SALINE FRAC CHEMISTRY -- DICTATES WATER QUALITY Low quality water works Gels X-Linker Metal Cations Friction Reducer Synthetic Polymers 15 WATER TYPES: Mixing Challenges Chemical Reactions Reactive Components 16 pH change Precipitation Scaling Colloid interactions Iron (Fe) H2S Suspended solids Barium, Magnesium, Calcite etc. Biocide NEED BASED TREATMENT 3 2 1 4 5 17 6 1. Chemicals 2. Ozone oxidation 3. Nano-filtration 4. Hydrocyclones 5. Deionization 6. UV MVR Evaporator, RO, EC…and many more PERMIAN BASIN ALTERNATIVE WATER SOURCES SANTA ROSA >2500 ft Triassic sandstone 0 to 300 feet thick Typically 50+ Up to 2400 feet deep Flow rate ~1500 to 2500 BWPD 2 wells/section TDS up to 100K <10K eastern areas Irion County CAPITAN REEF Permian Carbonate Dolomite Up to 900 feet thick Fresh at surface 50K TDS deep High flow rate ~10,000 BWPD 18 PRODUCED WATER STORAGE / TREATMENT 19 180,000 Barrel water capacity Graded pad, berm Gravity flow, 3ft drop /bin Dual lined steel on felt-like base. Fill from top, or from below Cable mesh bird protection Monitored daily with radar probes and manual gauges Buried pipes Treatment trailers –Chlorine Dioxide (vendor) FRAC WATER BY COUNTY 20 Fresh water Produced water Brackish water Source : Apache Internal Reports 2013 Operations NEW TECHNOLOGY: APA, CAT, HAL, SLB 21 21 Caterpillar bi-fuel kits: feed methane into the air intake which reduces diesel useage by up to 70%. Apache made a deal with Caterpillar, Halliburton and Schlumberger to introduce these kits to fracture stimulation while in the Caterpillar R&D stage. Third party bi-fuel kits have been available but they may void the Caterpillar warranty. Granite Wash. ENGINE TECHNOLOGY 22 22 NATURAL GAS SUBSTITUTION – COST SAVINGS Potential cost savings at 70/30 natural gas : diesel ratio Granite Wash Stiles Ranch Example 23 Diesel only 36,290 gal @$3.60/gal $130,644 Diesel and Natural Gas 10,887 gal + 3,528 MCF @ $10/MCF $39,193 + $35,280 = $74,473 APACHE WIKI PROJECT: SPE, SEG, AAPG Apache is creating an industry Wiki Apache has made a deal with the SPE, SEG and AAPG to create three industry Wikis SEG has finished the prototype based on the “Dictionary of Geophysics” SPE is working on content based on the “Petroleum Engineering Handbook” AAPG is behind but is developing plans BENEFITS: Quick search tool to find information Links to technical papers Updated by industry people with available time Superior to Wikis internal to competitors