HiWAY: The Quest For Infinite Conductivity Innovation for a step-change in Hydraulic Fracturing

Transcription

1 HiWAY: The Quest For Infinite Conductivity Innovation for a step-change in Hydraulic Fracturing Presentation prepared for Jornada De Maxi-Fracturas May 2012

2 HiWAY: A Paradigm Shift in Hydraulic Fracturing First hydraulic fracturing job 1950 Fracturing using gelled oil Water-based, non crosslinked fluids Borate crosslinked fluids 1973 Crosslinked derivatized guars (HPG, CMHPG, etc) 1977 High-strength ceramic proppants 1980 Foamed fracturing 1988 Encapsulated breakers 1990 Fiber based flowback control 1994 Low polymer loadings 1997 Viscoelastic surfactants (VES) 2001 Micro-seismic used to monitor frac jobs 2003 Horizontal well, multistage fractures 2005 Fiber based proppant transport 2010 HiWAY* Flow-Channel Fracturing 2011 Complex fracture modeling

3 The Four Components That Deliver HiWAY Reliability Delivering Channel Structure Ensuring Structure Stability Completion Technique Engineering Design 1 ft

4 HiWAY is Applicable in a Broad Range of Reservoirs Oil, condensate-rich and gas wells Competent rock Sandstone/carbonate/shale (E/σ MIN > 275) Requires the use of viscous fluids Cased hole, open hole, vertical and horizontal wells BHST < 345 o F (< o C)

5 Reliable Design and Execution Engineered candidate selection Design via FracCADE* HiWAY module Thorough peer reviews and design certification Optimized process control using SLB standard fracturing equipment 7

6 Reliable Design and Execution Engineered candidate selection Design via FracCADE* HiWAY module Thorough peer reviews and design certification Optimized process control using SLB standard fracturing equipment 8

7 Reliable Design and Execution Engineered candidate selection Design via FracCADE* HiWAY module Thorough peer reviews and design certification Optimized process control using SLB standard fracturing equipment 9

8 Reservoir-Focused HiWAY Design Workflow Build Geomechanical and Reservoir Models Design perforation strategy and pumping schedule for optimum channel distribution Evaluate channel profile and fracture conductivity

9 HiWAY Execution From Concept To Reality Schematic pump schedule Conventional HiWAY Sand Concentration Pad Proppant (dirty) pulse Clean Fluid (clean) pulse Cycle Time Tail-in stage

10 HiWAY Execution From Concept To Reality Actual pump schedule in typical HiWAY job Sand Concentration, PPA Sand Concentration, kg added/m :39:43 11:46:23 11:53:03 11:59:43

11 HiWAY: Extensive Worldwide Experience >5000 jobs, >99.95% jobs with proppant placed without screen-outs HiWAY activity New fields under discussion

12 HiWAY Activity Stages per Quarter Cumulative stages Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 0

13 HiWAY Activity Treatment (Stage) Count Reservoir Lithology Reservoir Fluid Sandstone Lance/Pinedale (USA) Wamsutter (USA) Granite wash (USA) Yegua (Burgos basin, Mexico) Eocene (Chicontepec, Mexico) Sierras Blancas (Argentina) AS & BS (Russia) Abrar, West Qarum (Egypt) Gazhal (Saudi Arabia) Others Shale Barnett (USA) Haynesville (USA) Utica (USA) Marcellus (USA) Bossier (USA) Avalon (USA) Carbonate Eagle Ford (USA) Bakken (USA) Clear Fork (USA) Condensate + Gas Oil 1397 Dry Gas Well Orientation Completion type Vertical 392 Open hole 1203 Horizontal 4259 Cased hole 5070

14 Case Study: Encana, Rocky Mountains HiWAY Delivers 24% More Production from Tight Gas Formation Challenge Improve production in multi-stage wells Solution Improve fracture conductivity with HiWAY flowchanne fracturing technique (13-well campaign) Results 24% increase in gas production 17% increase in expected recovery after 2 years Reduction in screen-out rate from 5% to 0% +700 fracturing treatments performed to date with significant footprint reduction SPE Paper Formation type Sandstone/shale TVD m 11,000 13,500 ft Permeability 0.5 to 10 µd Porosity 6% to 9% Young s modulus 24x - 41x10 3 MPa million psi BHP Mpa 4,000 10,000 psi BHST ºC ºF Proppant/stage (Klbm) Fluid/stage (Kgal) HiWAY Conventional HiWAY Conventional % %

15 Case Study: BHP-Petrohawk, Eagle Ford Shale HiWAY Increases Production from Horizontal Well by 37% Challenge Improve production in multi-stage horizontal wells Solution Improve fracture conductivity with HiWAY flow-channel fracturing technique (2 HiWAY vs. 8 conventional wells) Results Heim #2H: +4 MMcfd (37%) increase in initial gas production rate (gas window) Dilworth #1H: +200 BOPD (32%) increase in initial oil production rate (oil window) stages, 100+ wells pumped to date with significant footprint reduction SPE Paper Cumulative Gas Production (Bcf) Formation type Carbonate/shale TVD m 10,900 11,500 ft Permeability 200 to 600 nd Porosity 6% to 8% Young s modulus 17x - 34x10 3 MPa million psi BHP Mpa 8,000 10,000 psi BHST ºC ºF Gas Area HiWAY Conventional (best offset) Time, days Proppant/stage (Klbm) Cumulative Oil Production (bbl) 120, ,000 80,000 60,000 40,000 Oil Area 20,000 HiWAY Conventional (best offset) Time, days Fluid/stage (Kgal) HiWAY Conventional HiWAY Conventional % %

16 Eagle Ford Completion History , Slickwater treatments , Frac cost elevated rapidly 2010 (July), Hybrid treatments 2010 and 2011, Channel fracturing treatments Past Direction: Lower rate, Lower pressure, Higher Viscosity Smaller stage lengths Sand (4 to 5 PPA) (85% -20/40 & 15% 40/70) Reduce acid and supply water footprint Future Direction: Increase viscosity Increase contact area while minimizing cost Lower rate, lower treating pressure Reduce supply water footprint

17 Hawkville Field - Eagle Ford Shale Formation Eagle Ford Characteristics ft gross thickness High calcite (60-70%) Low quartz (< 20%) Closure stress: 9,500-11,000 psi Young s modulus: Mpsi BHST: degf Texas, United States Upper Eagle Ford 1 2.5% TOC, 4-7% porosity nd permeability Lower Eagle Ford 3 6.5% TOC, 6-12% porosity nd permeability Mexico Gulf of Mexico

18 Hawkville Well Completions Well Type: Horizontal, cased hole (5½ and 4 ½ OD) Depth (TVD): 10,000-12,000 ft Depth (MD): 15,000-20,000 ft Horizontal Section: 4,000-7,000 ft Staging: Plug & Perf, stages Perforation Strategy: SPF: 4-6; Phasing: 60º Cluster length: 1-2 ft Clusters per stage: 4-8 Cluster spacing: ft

19 Channel Fracturing (Hybrid) Treatment Plot

20 Distribution of Wells in the Hawkville Field LaSalle County McMullen County HiWAY Channel Fracturing Conventional Hybrid Conventional - Slickwater

21 Hawkville Field Production Data Cumulative Probability Offset C Offset B Offset A Offset D Fracturing technique Channel fracturing (12wells) Hybrid (8 wells) Slickwater (30 wells) Range (Bcfe) Heim 2H Dilwortth1H Average (Bcfe) day cumulative production (Bcfe) P 50 Cumulative production (Bcfe) HiWAY XL (Hybrid) Slickwater 90 days 250 days Fracturing technique Lateral length (ft) Basic completion data (Average per well) Frac fluid (Mbbl) Proppant (Mlbm) Average cum. production (MMcfe) KPIs - 90 days Production / 1000 ft Lateral Production / Mbbl Frac Fluid Production / Mlbm proppant Average cum. production (MMcfe) KPIs days Production / 1000 ft Lateral Production / Mbbl Frac Fluid Production / Mlbm proppant HiWAY (12 wells) , Hybrid (8 wells) Slickwater (30 wells)

22 Productivity Normalization via Reservoir Simulations Completion & Stimulation Parameters* 3D Formation Simulator Calibrated Model Normalized production at equivalent BHP L N + L C 2X F H X F L N L C L N 180-day normalized cumulative gas production (MMscf/1000 ft) Heim 2H (Channel Fracturing) Offset A Offset B Offset C *Fan, L., Thompson, J., Robinson, J.R., 2010 Understanding Gas Production Mechanism and Effectiveness of Well Stimulation in the Haynesville Shale Through Reservoir Simulation. Paper SPE presented at the Canadian Society for Unconventional Gas, Calgary October

23 Dry Gas Area Heim 2H Offset A Offset B Offset C 6.6 mi Cumulative production (Mscf) 180-day Cumulative Gas Production 1,600,000 Heim 2H (Channel fracturing) 1,400,000 Offset A Offset B 1,200,000 Offset C 1,000, , , , , Time, days 180-day Wellhead Flowing Pressure and Choke Size Wellhead flowing pressure (psi) 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Heim 2H (Channel fracturing) Offset A Offset B Offset C Time, days Choke size Heim 2H (Channel fracturing) Offset A Offset B Offset C Time, days

24 Dry Gas Area History Matches Heim 2H Water Gas BHP

25 Dry Gas Area 180-day Normalized Gas Production at Equivalent BHP day normalized cumulative gas production (MMscf/1000 ft) = 51% 0 Heim 2H (Channel Fracturing) Offset A Offset B Offset C

26 Condensate-Rich Area Dilworth 1H Offset D 4.4 mi Cumulative oil production (BBL) 180-day Cumulative Oil Production 120,000 Dilworth 1H (Channel fracturing) Offset D 100,000 80,000 60,000 40,000 20, Time, days 180-day Wellhead Flowing Pressure and Choke Size Wellhead flowing pressure (psi) 6,000 5,000 4,000 3,000 2,000 1,000 0 Dilworth 1H (Channel fracturing) Offset D Time, days Choke size Dilworth 1H (Channel fracturing) Offset D Time, days

27 Condensate-Rich Area 180-day Normalized Condensate Production at Equivalent BHP day normalized cumulative oil production (Mbbl/1000 ft) = 46% 0 Dilworth 1H (Channel Fracturing) Offset D

28 Effective Stimulated Index Comparison Dry Gas Area Condensate-Rich Area Proppant Fluid ESI Prop Fluid ESI 3.60 Fluid and Proppant Volume per Cluster (mgals,mlbs) Effective Stimulation Index per Cluster (ft^3.md) Fluid and Proppant Volume per Cluster (mgals, mlbs) Effective Stimulation Index per Cluster (ft^3.md) 0.00 Offset A Offset B Channel Frac Offset A Channel Frac 0.00 ESI = ESV x Enhanced Permeability SPE Paper ESV = 2 x PEA half-length x PEA width x thickness

29 What Is The End Result? Better production: 90-day non-normalized cumulative production increased by: 32% (channel fracturing vs. hybrid) 68% (channel fracturing vs. slickwater). 180-day normalized cumulative production: > 51% in dry gas area; > 46% in condensate-rich area. Gains in efficiency: Reduction in proppant and fluid volumes, allowing reductions in pumping time. Over 2300 treatments (140 wells) pumped to date. Zero screenouts. Channel fracturing improved well performance in the Hawkville field beyond conventional means. Additional completions continue to show channel fracturing treatments outperform slickwater and hybrid in the Hawkville Field.

30 Public Client Endorsements for HiWAY BHP -Petrohawk Chesapeake Petrohunt Encana YPF, S.A. TNK-BP Rosneft PEMEX ENI SOG USA - Eagle Ford shale USA - Barnett shale USA - Bakken shale USA - Jonah field Argentina Russia Russia Mexico Algeria Egypt

31 HiWAY-Related Publications Client-Endorsed SPE Activity SPE (with YPF, S.A.) A New Approach to Generating Fracture Conductivity (ATCE 10. Florence, Italy) SPE (with Encana Oil and Gas USA) - Channel Fracturing - A Paradigm Shift in Tight Gas Stimulation (HFTC 11, The Woodlands, USA) SPE (with PetroHawk) - Channel Fracturing in Horizontal Wellbores: the New Edge of Stimulation Techniques in the Eagle Ford Formation (ATCE 11. Denver, USA. Oct. 2011) SPE (with Encana Oil and Gas USA) - Raising the bar in completion practices in Jonah Field: Channel fracturing increases gas production and improves operational efficiency (SPE UGC. Calgary, Canada. November 2011) SPE (with Petrohawk) - Completion Evaluation of the Eagle Ford Formation with Heterogeneous Proppant Placement (SPE UGC. Calgary, Canada. November 2011) SPE (with PEMEX) - Field Development Study: Channel fracturing increases gas production and improves polymer recovery in Burgos Basin, Mexico North (HFTC 12. The Woodlands, February 2012) SPE ATW Presentation (with Rosneft)- Channel Fracturing: Experience and Applicability in Russia (Sep 10. Nizhnevartovsk, Russia) Industry Articles Journal of Petroleum Technology Hart's E&P Magazine Petroleum (Spanish) New Technology (Canada) Several others

32 2012: Integration of HiWAY modeling with Mangrove Structure Lithology DFN HiWAY StimMAP Stress legend High Low Selectively placed perforation clusters Rock quality Staging & Perforating Stress Rock quality legend Geomechanical Model Complex Hydraulic Fracture Models with HiWAY Automated Gridding Microseismic Mapping Reservoir Simulation

33 HiWAY Channel Fracturing: More value, Less Resources Fastest-growing new technology in the history of Schlumberger > 5000 stages pumped (10 countries, 5 Areas) Significant impact on production Typically > 20% increase Smaller footprint: Reductions in water and proppant consumption per job of 25% and 42%, respectively; > 6 million barrels of water and 340,000 tons of proppant saved so far; > 33,000 proppant and water hauling road journeys; > 4 million pounds CO 2 emissions Unprecedented proppant placement rate: 99.96% placement success; > 200 screen-outs prevented

34 HiWAY: The Quest For Infinite Conductivity Innovation for a step-change in Hydraulic Fracturing Thank you for your attention