On the Impact of Oil Extraction in North Orange County: Overview of Hydraulic Fracturing

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1 On the Impact of Oil Extraction in North Orange County: Overview of Hydraulic Fracturing California State University Fullerton, September 23, 2014 Steve Bohlen, Senior Scientist, Lawrence Berkeley National Laboratory and State Oil and Gas Supervisor, California Division of Oil, Gas, and Geothermal Resources

2 California s Oil and Gas Fields

3 WHAT IS HYDRAULIC FRACTURING? WHAT IT IS NOT: A drilling process. Continuous injection of water and chemicals. WHAT IT IS: A mechanical process to increase permeability in rocks. Used to maximize the extraction of underground resources; including oil, natural gas, geothermal energy, and even water. Fluids, commonly made up of water (~99%) and chemical additives (~1%), are pumped into a geologic formation at high pressure during hydraulic fracturing. When the pressure exceeds the rock strength, the fluids open or enlarge fractures that can extend several hundred feet away from the well. (US EPA) Highly engineered, short-term, stimulation procedure. Gradual increase of pressure until fracture pressure of reservoir is exceeded.

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5 FracFocus Data

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7 AU Dept. of Mines and Energy

8 AU Dept. of Mines and Energy

9 Fracturing Fluids AU Dept. of Mines and Energy

10 Statewide Data FracFocus data for Jan 30, 2011 Dec 31, Disclosures received voluntarily Average water usage = 88,311 gallons per job Average Depth of Well = 1817 TVD 2014 Division Well Stimulation Data (Most HF) notices posted to website for 2014 Average water usage = 63,000 gallons per job 98% of Well Stimulation treatments occur in Kern County

11 Water Use in Hydraulic Fracturing California

12 Joint set 1 Frac stage 1 Frac stage 2 σ HMin Frac stage 3 σ HMax Horizontal well Engelder et al., (2009) doi: / Lawrence Livermore National Laboratory Anticipate, Innovate, and Deliver

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14 On the Impact of Oil Extraction in North Orange County: Overview of Senate Bill 4 California State University Fullerton, September 23, 2014 Steve Bohlen, State Oil and Gas Supervisor, California Division of Oil, Gas, and Geothermal Resources

15

16 Senate Bill 4 (SB 4) (2013) Creates: Article 3. Well Stimulation in state law Purpose: To increase transparency of CA well stimulation techniques Provides framework for a comprehensive study, environmental review and regulation of well stimulation

17 SB 4 Summary REQUIRES: A study of well stimulation [Public Resources Code Section ( ) 3160] A Statewide Environmental Impact Report [ 3161(b)] The Division to adopt well stimulation regulations [ 3160 (b) (1) (A)] Permits for well stimulation [ 3160 (d) (2) (A)]

18 REQUIRES: Groundwater monitoring plans Public disclosure Seismic Monitoring and Evaluation ESTABLISHES: Notification requirements Trade secret procedures PROVIDES: Amendments to the oil and gas fee structure [ 3401 (a)] SB 4 Summary

19 How to keep it safe- Proposed regulations include Nearby Geologic Review Pre-Fracturing Well Testing Advance Notification Division Neighbors Allow for Water Well Testing

20 How to keep it safe- Proposed Regulations Include Monitoring During & After Fracturing Operations Disclosure of Materials Used in Fracturing Fluid Trade Secrets Storage of Hydraulic Fracturing Fluids On-site Division Witnessing

21 References

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23 Oil Field Cross Section Production Sandstone Formation Non-Productive Formation

24 Where are microseismic events occurring?(size of cloud) Locations What is the failure mechanism? (fractures opening, closing, or shearing?) Focal mechanisms Why is failure occurring in some places but not others? Geomechanical modeling What is the possibility of induced seismicity? Stress field Use geomechanical model to predict and test; compare with observations. Double-couple representation of GEOS fracture events. - Constant strain - Seeded with faults - Deformable media Lawrence Livermore National Laboratory Anticipate, Innovate, and Deliver

25 Fluid flow Soil migration Lawrence Livermore National Laboratory Anticipate, Innovate, and Deliver

26 The Future? A physical model of the facture network Access to smart and energetic proppants A location and moment tensor for microseismic events Fracture network creation without water A fracture network optimized for resource The Future? Optimize resource extraction Minimize environmental impact Lawrence Livermore National Laboratory Anticipate, Innovate, and Deliver

27 Dally et al., (1975) Swift & Kusubov (1982) Lawrence Livermore National Laboratory

28 Division Mandates supervisor shall so supervise the drilling, operation, maintenance, and abandonment of wells and the operation, maintenance, and removal or abandonment of tanks and facilities...so as to prevent, as far as possible, damage to life, health, property, and natural resources; damage to underground oil and gas deposits from infiltrating water prevent damage and waste to underground and surface waters

29 Division Mandates supervisor shall also supervise to permit the owners to utilize all methods and practices known to the industry for the purpose of increasing the ultimate recovery. To best meet oil and gas needs in this state, the supervisor shall administer this division so as to encourage the wise development of oil and gas resources.

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