Willis Energy Conference Dan Gunderson Stimulation specialist Statoil - Development and Production North America
Agenda Environmental Myths Cementing Fracture Height into Ground Water Fracturing Creates Earthquakes Federal Government EPA BLM Fracturing Fluids Proppants 2
Protecting the fresh water aquifer Generalized casing design - Marcellus Aquifer 200-500 350-1,200 2,500 4,000 Freshwater aquifers protected by multiple layers of protective steel casing surrounded by cement Design administered and enforced under state regulations Shallow gas migration caused by disturbance of natural gas already present in shallow formations during drilling Chesapeake has implemented improved well design to address gas migration risk To total depth Statoil will utilize its experience in other geographical locations and engage the best industry practices and technologies to minimize the risk of gas migration Illustration - not to scale
Willis Energy Conference SPE 145949 4
Willis Energy Conference SPE 145949 5
Willis Energy Conference SPE 145949 6
Willis Energy Conference SPE 151597 7
Willis Energy Conference SPE 151597 8
Willis Energy Conference SPE 151597 9
10
EPA http://water.epa.gov/type/groundwater/uic/class2/hydraulicfracturing/wells_hydroreg.cfm#safehyfr Under the Terms Underground Injection Hit website during the first half of 2008 Excludes hydraulic fracturing from the regulation Not diesel Need approval to pump diesel Pumping diesel without approval will reclassify the well to a Class II UIC (storage) Service companies response Remove diesel (BTEX) from all chemical additives Commences the start to Environmental Friendly or Green chemical additives What about drilling mud Statoil intends to use a synthetic based drilling mud Bakken changing from diesel to synthetic 11
BLM 43 CFR Part 3160 BLM Properties 700 million subsurface acres of Federal mineral estate 56 million subsurface acres of and tribal mineral estate across the United States. Proposed section 3162.3-3(b) - Prior approval would be required for well stimulation activities Detailed description Detailed fracture geometry Before the operator begins stimulation activity Who has this experience Proposed section 3162.3 3(c)(2) - Cement bond logs required on surface casing currently optional would now be required for new wells 12
BLM 43 CFR Part 3160 (con t.) Stimulation modifies the permeability of the reservoir rock No, Never BLM would determine if well stimulation operation was conducted as approved Proposed section 3162.3-3(g)(6) Operator to verify fracture geometry to BLM Insure hydraulic fracture(s) remained within petroleum-bearing rock layer With a fracturing model With micro-seismec Remains out of aquifers 13
What is Slickwater? Friction Reducer: +/- 1.0 gals/1000 gals. Municipal water well <1000 ft. Private well Polyacrylamide Yields 2-3 cp Creates Filter Cake Bacteria Control Surfactant Scale Inhibitor Breaker Additional steel casing to protect aquifers Protective steel casing Approx 6,000 ft. from surface Classification: Internal (Restricted Distribution) 2011-08-15Classification: Internal (Restricted Distribution) 2011-06-09
What is Waterfrac? Linear Gel: +/- 20 lbs./1000 gals Guar Gum, or Carboxylmethyl Guar, or Carboxylmethyl hydroxypropyl guar Yields 14-18 cp. Creates a heavier Filter Cake Bacteria Control Surfactant Buffering Agent (ph control for hydration) Scale Inhibitor Breaker Municipal water well <1000 ft. Private well Additional steel casing to protect aquifers Protective steel casing Approx 6,000 ft. from surface Classification: Internal (Restricted Distribution) 2011-08-15Classification: Internal (Restricted Distribution) 2011-06-09
What is a Crosslinked fluid? Linear Gel: +/- 20 lbs./1000 gals Bacteria Control Surfactant 2 - Buffering Agent (ph control for hydration) Crosslinker Borate Zirconate Yields 400-600 cp. Scale Inhibitor (If compatible) Breakers Municipal water well <1000 ft. Private well Additional steel casing to protect aquifers Protective steel casing Approx 6,000 ft. from surface Classification: Internal (Restricted Distribution) 2011-08-15Classification: Internal (Restricted Distribution) 2011-06-09
Proppant Proppant test at 2 lbs/ft 2 and 250 0 F Type Proppant Good to what Pressure (psi) Specifit Gravity Brown Sand 4,000 2.65 White Sand 6,000 2.65 Resin Coated White Sand 8,000 2.55 Light Weight Ceramics 8,000 2.55-2.85 Resin Coated Light Weight Ceramics 10,000 2.55-2.85 Ceramics or Intermediate Srength Proppants 10,000 2.85-3.35 Resin Coated Ceramics or ISP 12,000 2.85-3.35 Bauxite 14,000 3.35-3.65 Resin Coated Bauxite 14,000 3.35-3.65 17
Hydraulic fracturing fluid content Statoil supports disclosure Water and sand: ~99% Aquifer Other: ~1% Acid Corrosion Inhibitor Antibacterial Agent Scale Inhibitor Friction Reducer Gelling Agent Breaker Surfactant Approx 5,300 feet from surface Additives used include compounds common in many consumer products Fluid separated from aquifer by many thousands of feet of rock Freshwater aquifers are protected by multiple layers of protective steel casing and cement 18 - Classification: Internal (Restricted Distribution)
Statoil is committed to excellence Industry has a moral obligation to protect our people and run safe operations. I believe our obligations go beyond that and includes our impact on society and the local communities in which we operate, Helge Lund CERA Week 2012 19 -
Willis Energy Conference Dan Gunderson Stimulation Specialist E-mail address dagun@statoil.com Tel: 713-485-2566 www.statoil.com