Lifecycle of an Onshore Well Final script: 1.23.2013 Total time: 5:50 Timing :00 :11 Visual The Lifecycle of an Onshore Well: Finding and Producing Tight and Shale Gas & Oil City in distance, subsurface view of shale layers deep below surface, pad location on grassy area :26 Tractor/building pad :47 Drill rig on pad :56 Drilling 1:01 Casing 1:09 Aquifer 1:16 Drilling deeper 1:24 Drilling horizontally 1:41 Close up 1:45 Withdrawing drill Voiceover At Shell, we believe natural gas is an important resource for our energy future. We also believe it must be produced safely and responsibly. Technology has made it possible to access gas and oil trapped in tiny spaces in shale or sand formations deep under the earth. This short video explains how we explore, drill and produce from a well. We consider the geology and local environment to carefully select the well location. This might include gathering seismic data or information about air, wildlife or nearby water sources. We work with the regulators to plan the site. Then we begin by building a well pad for our operations. During exploration, we may drill a single well or several wells to understand the gas or oil in an area. When we drill, we are careful to protect the surrounding area, including groundwater. We install multiple layers of steel pipe, also called casing, and cement around each layer of pipe. This is designed to isolate the gas and fluids in the well from the potable water table, or drinkable water. We typically drill several kilometers or more than a mile deep beneath the earth to reach the trapped hydrocarbon formation. Then to access gas or oil locked in shale rock we drill horizontally. We may use different well designs depending on the local underground conditions. The entire drilling process can take several weeks or even months for each well drilled from a pad. Sensors in the drilling equipment feed us continuous data as we drill. Once we reach the bottom of the well, we remove the drill and install steel pipe to the necessary depth based on our engineer’s design of the well. 1:54 Casing in place 2:05 Depth overview 2:15 Remove rig structure 2:23 Lower perf gun 2:42 Close-up of wellhead 2:48 Feed to bottom reach of wellbore 2:58 Perf process 3:09 View of pad 3:26 Fluid 3:40 Plug 3:56 Repeat multiple stages This step typically takes only days, with many safety checks along the way to be sure we have a good cement job and the well and casing integrity are secure. This advanced drilling technology is one of the keys that make it possible to reach more of the gas or oil trapped far below the surface within the shale or sand layer. After the well is drilled, we remove the rig and prepare the well to begin the completions and hydraulic fracturing process. This is the second key to extracting gas or oil trapped in tight sand or shale rock. Hydraulic fracturing is a very carefully controlled process that releases the hydrocarbon from the tiny pockets in which it is trapped. We do not hydraulically fracture wells unless we have successfully pressure tested for wellbore integrity. We lower a tool called a perforating gun into the wellbore. We feed it down to the target location in the well. A well log, which gives us data about the well, helps us know just where to position the tool. Once the perforating tool is in position, we fire carefully calibrated charges that perforate the well casing and connect the well to the tight sand or shale rock layer. We inject a mix of fluids under pressure – mostly water, with sand and chemicals – to create fractures in the surrounding shale rock or tight sand layer. The sand props open the cracks and allows the gas or oil to better flow into the well. When possible, we treat and reuse the fluid we recover during fracturing to minimize the amount of water we use. We support the release of information about chemicals used in fracturing fluids. We fracture the well in segments or stages. After each stage, we put in a temporary plug to separate the fracture stages and prevent gas or oil from flowing too soon. The number of stages will depend on the local geology. We repeat this process until we have finished fracturing the length of the target area. Hydraulic fracturing and completing the well 4:07 4:11 4:15 Drill out plug Gas begins to flow (magnified) Separators 4:49 Pad sequence of four wells, multiple horizontal wells reaching in different directions 5:01 Pad with facilities 5:09 Overview of wellpad 5:16 5:20 Producing well site with city emerging in distance and lighting up. Inspect well 5:25 Plug and abandon 5:38 Marker on well site typically lasts only a few days for each well. When we are ready, we drill out the plugs. This allows the gas or oil to flow into the well. At the well pad, the flow is separated into gas and liquids. The liquids might include oil, or water that was also locked in the rock deep below ground. We collect the water to be reused, re-injected or disposed of according to local regulations. The gas or oil continues to a pipeline to provide energy. During exploration, if no pipeline is nearby, we may need to temporarily flare or capture the gas in shortterm facilities or store the oil in short-term tanks on the location. If we decide to develop the area, we typically put multiple wells on a single pad reaching in different directions deep underground to minimize disturbance to the surface. All our wells and site operations meet government rules and our own rigorous standards for safety and protecting the environment. Once drilling and completions are done, we remove most of our equipment and reduce the size of the well pad. A well typically can produce needed energy for decades. We inspect and maintain well sites regularly during their productive life. When the well is no longer producing, we comply with regulations to cement it closed, test that it is sealed, remove all equipment and structures, and reclaim the site to blend back in to its surroundings. A permanent marker is installed to mark the well location.