11/19/2012 U.S. Natural Gas Production, 1990 ‐ 2035 Geology Basics of the Shale Gas and Shale Oil Revolution 30 BCF/D? TCF per year >15 BCF/day Eric Potter Bureau of Economic Geology Jackson School of Geosciences, UT USAEE Workshop Austin, November 2012 2010 Modified after U.S. EIA 2011 Millions of barrels/month North Dakota Historical Monthly Oil Production Aug 2012 Conventional Petroleum Geology cross-section Earth’s surface Bakken shale oil play 600,000 barrels per day and still increasing seal Oil is trapped where reservoir rocks occur in trapping configuration seal Reservoir rock Oil migrates upward About 1.5 to 3 miles down… North Dakota Industrial Commission Source rocks generate oil and gas Tens of miles 1 11/19/2012 Conventional reservoir rock (sandstone) Unconventional Petroleum Geology cross-section Earth’s surface Porosity=blue 1 mm A microscopic view of a conventional reservoir rock Blue is porosity Porosity 35%; permeability >1 darcy Unconventional resources – poor reservoir rocks, in or near source rocks. About 1.5 to 3 miles down… Source rocks generate oil and gas And they go nowhere! Eagle Ford roadcut near Del Rio, Texas Outcrop areas 2 11/19/2012 Eagle Ford Pores 1,000 X to 20,000 X smaller than sandstone pores Diameter of a human hair at this scale would be…. Core of Eagle Ford Shale, South Texas Hydraulic Fracturing of Shales • Water and sand pumped into target zones in shale • Water pressure creates new cracks; sand packs these cracks to prevent them from closing • 3‐5 million gals of water per well (<2% of overall water use in Barnett shale area) • Hydraulic fracture makeup = 99.5% water and sand • 10% to 50% of water recovered in flowback period (first few weeks) Hay #1 well, 13818’, Eagle Ford Fm., DeWitt Co. Texas, Ro ~ 1.5% Hydraulic fracturing job in progress From Devon Energy, 2006 Sand storage Pumping trucks Wellhead and blending 3 11/19/2012 Hydraulic fracturing of a horizontal well in shale 1000 feet Cross-section view Microseismic monitoring Acoustic events generated during fracing 3,000 to 11,000 feet Surface location Map view, cartoon of hydraulic fracture stimulation of horizontal well – 5 frac stages Shale 3,000 – 11,000 feet Shale Geology Economics Map view of multiple frac stages in Barnett horizontal well (Actual Data) 1000 ft Factor Must‐ have Micro earthquakes mapped with passive microseismic detectors Organic carbon X Why are the frac jobs so wide in the Barnett shale? Brittle‐ ness X Thermal maturity X Resource NPV amount ROR Payout time Oil vs Gas x x X X x Porosity, thickness X Pressure X X x X x 1000 ft Diagram from EOG Resources Barnett Shale Overview, 2005 4