Hydraulic Fracturing in Nevada J. Berton Fisher, Ph. D., CPG, RPG (TX #0201)
University of Tulsa & Lithochimeia, LLC
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U. S. Crude Oil Reserves Increasing
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
1981 1986 1991 1996 2001 2006 2011
U. S. Crude Reserves (MMBbl) 1981-2011
Crude Reserves (MMBbl)
Source: U. S. Department of Energy, Energy Information Agency, Crude Oil Proved Reserves, Reserves Changes, and Production, available at http://www.eia.gov/dnav/pet/pet_crd_pres_dcu_NUS_a.htm
U. S. Crude Oil Production Closes Gap on Imports
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
1981 1986 1991 1996 2001 2006 2011
U. S. Crude Production and Imports (MMBbl) 1981-2013
Crude Production (MMBbl)
Crude Imports (MMBbl)
Source: U. S. Department of Energy, Energy Information Agency, Crude Oil and Other Liquids, U. S. Imports of Crude Oil, available at http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=mcrimus1&f=m U. S. Department of Energy, Energy Information Agency, Crude Oil and Other Liquids, Crude Oil Proved Reserves, Reserves Changes, and Production, available at http://www.eia.gov/dnav/pet/pet_crd_pres_dcu_NUS_a.htm
Goodbye and Hello
Energy Security means minimizing vulnerability to energy supply disruptions and the resulting volatile and disruptive energy pricing.
Sources: compiled from Hess, R.H., Henson, M.A., Davis, D.A., Limerick, S.H., Siewe, S.S., and Niles, M., 2011, Oil and gas well information for Nevada - 2011 update: Nevada Bureau of Mines and Geology Open-File Report 11-6, portable hard drive, 105 GB.
Nevada Produces Oil and Gas TODAY • Wells
~ 740 drilled ~100 producing 11 water injection
• Recent Oil Production July-Aug 2013: 57,225 bbl July-Aug 2012: 61,371 bbl Water : Oil ~ 17:1
• Cumulative Production Oil 39,998,902 bbl Water 135,561,809 bbl Water : Oil ~ 3.4:1
Sources: compiled from Hess, R.H., Henson, M.A., Davis, D.A., Limerick, S.H., Siewe, S.S., and Niles, M., 2011, Oil and gas well information for Nevada - 2011 update: Nevada Bureau of Mines and Geology Open-File Report 11-6, portable hard drive, 105 GB.
Nevada Oil Production 1960-2013
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
BB
Ls
– 1
,00
0s
Source: U. S. Department of Energy, Energy Information Administration, State Energy Data System (SEDS): 1960-2011 (Complete), Released: June 28, 2013, Available at: http://www.eia.gov/state/seds/seds-data-complete.cfm?sid=NV#CompleteDataFile and Nevada Commission of Mineral Resources, Division of Minerals, Nevada Oil Patch - bi-monthly production reports, Nov/Dec 2013; Nov/Dec 201212, available at http://minerals.state.nv.us/formspubs_ogg.htm#Nevada_Oil_Patch
Recent Nevada Production
2,000
7,000
12,000
17,000
22,000
27,000
32,000 Nevada Oil Production (bbls/month)
Nevada Commission of Mineral Resources, Division of Minerals, Nevada Oil Patch - bi-monthly production reports, Nov/Dec 2013; Sep/Oct 2013; Jul/Aug 2013; May/Jun 2013; Mar/Apr 2013; Jan/Feb 2013; Nov/Dec 2012; Sep/Oct 2012, available at http://minerals.state.nv.us/formspubs_ogg.htm#Nevada_Oil_Patch
Elko County Oil and Gas Wells 2001
• ~70 drilled; oil and gas shows • No current producers • Two historic fields
Deadman Creek (May 1997 – 387 bbl / 0 bbl H2O)
Toano Draw (Jan 2007 – 1,964 bbl / 29,121 bbl H2O)
Sources: Nevada Bureau of Mines and Geology, University of Nevada at Reno, Production and Injection Data for Oil, Gas, and Geothermal Wells in Nevada, Oil and Gas Production Data by Field, available at http://www.nbmg.unr.edu/lists/Production/Oil/oil_production/dead_man_creek/ and http://www.nbmg.unr.edu/lists/Production/Oil/oil_production/toana_draw/
Nevada and Oil and Gas TOMORROW
• Nobel Energy, Inc (Wilson Play/Tabor Flats) Vertical exploration wells Elko Formation (Eocene-Oligocene) 350,000 acres (66% private land) Oil found Flow test planned 2014 Project ~50,000 bbls/day by year end 2014 Current Nevada production ~30,000 bbls/month
$130,000,000 invested over next four years Acreage might hold 1 billion barrels or more.
Helman, C. 2013. Far-Flung Noble Energy Believes In Oil And Gas 'Diversification‘. Forbes 12/18/2013 http://www.forbes.com/sites/christopherhelman/2013/12/18/far-flung-noble-energy-believes-in-oil-and-gas-diversification/ Personal communication, Lee Hinman, Noble Energy, 2014
Sources: Compiled from Hess, R.H., Henson, M.A., Davis, D.A., Limerick, S.H., Siewe, S.S., and Niles, M., 2011, Oil and gas well information for Nevada - 2011 update: Nevada Bureau of Mines and Geology Open-File Report 11-6, portable hard drive, 105 GB; Las Vegas Review Journal, January 8, 2013 Available at http://www.reviewjournal.com/business/energy/oilgas-search-fracking-comes-nevad
Nevada Oil and Gas Tomorrow
Las Vegas Review Journal, January 8, 2013 Available at http://www.reviewjournal.com/business/energy/oilgas-search-fracking-comes-nevada
Noble’s Play
Elko Daily Free Press, January 23, 2013 Noble Energy plans extensive test drilling in Elko County Available at: http://elkodaily.com/news/local/noble-energy-plans-extensive-test-drilling-in-elko-county/article_04d1b8e0-6506-11e2-b38a-001a4bcf887a.html
SOURCE: Anna, L. O., et al. 2007. Geologic Assessment of Undiscovered Oil and Gas Resources of the Eastern Great Basin Province, Nevada, Utah, Idaho, and Arizona. Chapter 2: Geologic Assessment of Undiscovered Oil and Gas in the Paleozoic–Tertiary Composite Total Petroleum System of the Eastern Great Basin, Nevada and Utah . U.S. Geological Survey Digital Data Series DDS–69–L
Elko Fm.
Terms of Engagement
• The author Henry Brean’s words “The Silver State is about to get fracked.” “… use of pressurized fluid to smash oil and gas
from previously untapped shale deposits…”
Las Vegas Review Journal, January 8, 2013 Available at http://www.reviewjournal.com/business/energy/oilgas-search-fracking-comes-nevada
Las Vegas Review Journal, January 8, 2013
Terms of Engagement
• Brean Quoting Ron Mrowka, Center for Biological Diversity: “poison groundwater, foul the air and lead to
chemical spills and other contamination near drill sites”
“would include wells 6,000 to 14,000 feet deep, putting them thousands of feet below the groundwater table”
"Fracking is not a good thing," he said. "We don't feel there is a safe way to do it."
Las Vegas Review Journal, January 8, 2013 Available at http://www.reviewjournal.com/business/energy/oilgas-search-fracking-comes-nevada
The facts about fracturing • One Million Hydraulic Fractures: Hydraulic
fracturing was first used in 1947 in an oil well in Grant County, Kansas, and by 2002, the practice had already been used approximately a million times in the United States.
• Nearly all wells are hydraulically fractured: Up
to 95% of wells drilled today are hydraulically fractured, accounting for more than 43% of total U.S. oil production and 67% of natural gas production.
National Petroleum Council, 2011. PRUDENT DEVELOPMENT: Realizing the Potential of North America’s Abundant Natural Gas and Oil Resources, available at http://www.npc.org/reports/NARD-ExecSummVol.pdf
Environmental Issues
• Water Requirements • Surface Releases • Subsurface Releases • Chemicals Used • Induced Seismicity • Disposal of Flowback Water • Air Emissions
1
2
3
Environmental Concerns Related to Hydraulic Fracturing Fluid and Brine
Potential Pathways for Exposure to Fluids:
• Upward from deep, hydraulically
fractured target formation to shallow groundwater
• Migration of a surface spill to groundwater
• Migration of a surface spill to a stream or river
Source: Gradient. 2013. National Human Health Risk Evaluation for
Hydraulic Fracturing Additives. Report to Halliburton Energy Services, Inc. 169p., available at http://www.energy.senate.gov/public/index.cfm/files/serve?File_id=53a41a78-c06c-4695-a7be-84225aa7230f
Water Requirements
• Water and sand 99.5 percent of fracturing fluid • Water is primary carrier fluid
Play Drilling
Fracturing Total
Water Used -Millions of Gallons /well
Barnett 0.3 3.8 4.1
Fayetteville 0.1 4.0 4.1
Haynesville 0.6 5.0 5.6
Marcellus 0.1 5.5 5.6
Source: Chesapeake Energy, (2010), “Chesapeake energy - shale gas information,” Oklahoma City, Oklahoma, cited by Mielke, E. et. al, 2010. Water Consumption of Energy Resource Extraction, Processing and Conversion Avaliable at: http://belfercenter.ksg.harvard.edu/files/ETIP-DP-2010-15-final-4.pdf Accessed 02/19/2014 http://www.chk.com/Media/CorpMediaKits/Water_Use_Fact_Sheet.pdf, http://www.chk.com/Media/MarcellusMediaKits/Marcellus_Water_Use_Fact_Sheet.pdf, http://www.chk.com/Media/BarnettMediaKits/Barnett_Water_Use_Fact_Sheet.pdf, http://www.chk.com/Media/HaynesvilleMediaKits/Haynesville_Water_Use_Fact_Sheet.pdf, http://www.chk.com/Media/FayettevilleMediaKits/Fayetteville_Water_Use_Fact_Sheet.pdf.
Water Use • Noble’s Project < 0.4% of Elko County’s Current Water Use
Elko County Largest water user in Nevada 933,041 acre feet/yr (24% of State’s Use)
Noble’s 20 well project Assume 5,600,000 gallons water/well (17.1 acre-ft) 20 wells @ 17.1 acre-feet/well 343.6 acre-feet
Even at 5.6 million gallons/well, drilling and completing 543 wells/year would only be 1% of Elko County’s current water use.
Noble is not competing with farmers and ranchers for water – unallocated deeper groundwater to be used
Noble’s actual water use < 1 million gallons/well (3.06 acre-ft)
Source: Elko County Nevada Water Resource Management Plan 2007Available at http://www.leg.state.nv.us/74th/Interim_Agendas_Minutes_Exhibits/Exhibits/Lands/E060608F-1.pdf ; Personal communication, Lee Hinman, Noble Energy, 2014
Water Use
• Industry recognizes that competition for water use is a major issue Recycle/re-use water is the direction the industry
is taking Industry increasingly using saltier water
Environmental Issues
• Water Requirements • Surface Releases • Subsurface Releases • Chemicals Used • Induced Seismicity • Disposal of Flowback Water • Air Emissions
Surface Releases
• Nevada proposed hydraulic fracturing regulations require that during hydraulic fracturing all liquids be contained in steel tanks
• Industry practice is to isolate fluids from the environment
• Surface releases from equipment failures are noticed and addressed immediately
Environmental Issues
• Water Requirements • Surface Releases • Subsurface Releases • Chemicals Used • Induced Seismicity • Disposal of Flowback Water • Air Emissions
Theoretical Upper Limit to Hydraulic Fracture Height Growth
( )3/1
213
−
Ω=
υπ nPaEVHeight
shape factor
driving stress
Poisson’s ratio (how much the sides of a block of rock bulge in response to being compressed)
elastic modulus of rock (how much the rock squishes in response to an applied pressure)
volume of HF fluid
Source: Flewelling, S.A., Tymchak, M.P., Warpinski, N.E. 2013. " Hydraulic Fracture Height Limits and Fault Interactions in Tight Oil and Gas Formations." Geophysical Research Letters, 40, 3602–3606, doi:10.1002/grl.50707 Available at http://onlinelibrary.wiley.com/doi/10.1002/grl.50707/pdf .
fracture aspect ratio
Volume of Fluid Used = Volume of Hydraulic Fracture Produced
Greene County Pennsylvania Site
UD-1 UD-2 UD-5 MW-1 MW-2 MH 1-6
Source: Hammack, R. et al., Use of Perfluorocarbon Tracers to Detect the Migration of Gas from Hydraulically Fractured Marcellus Shale Wells. IPEC, San Antonio, TX November 13, 2013, Available at http://ipec.utulsa.edu/Conf2013/Manuscripts_pdfs/GreeneCountySite.pdf
Vertical Extent of Microseismicity above Well Perforations
Source: Flewelling, S.A., Tymchak, M.P., Warpinski, N.E. 2013. " Hydraulic Fracture Height Limits and Fault Interactions in Tight Oil and Gas Formations." Geophysical Research Letters, 40, 3602–3606, doi:10.1002/grl.50707.
Source: Sheorey, P. R. 1994. A theory for in situ stresses in isotropic and transverseley isotropic rock. International Journal of Rock Mechanics and Mining Sciences 31, no. 1: 23-34.
Horizontal Fractures
Vertical Fractures
Fractures extend only about 400-500 feet from wellbore
Nevada Regulations
• Extensive and specific requirements for Casing Cementing
• 14 day notice to landowners/lessors of hydraulic fracturing
• Cement bond log must be certified by operator
Environmental Issues
• Water Requirements • Surface Releases • Subsurface Releases • Chemicals Used • Induced Seismicity • Disposal of Flowback Water • Air Emissions
Nevada Regulations
• Operator must insure that chemicals proposed to be used for hydraulic fracturing are only those chemicals listed on the division’s web page.
• A sundry notice (Form 4) must be submitted to the division for approval at least 30 days before hydraulic fracturing if there are any chemicals proposed to be used that are not listed.
• Report amount and type of chemicals used to FracFocus (www.fracfocus.org)
Environmental Issues
• Water Requirements • Surface Releases • Subsurface Releases • Chemicals Used • Induced Seismicity • Disposal of Flowback Water • Air Emissions
Induced Seismicity Energy
Technology Number
of Projects
Induced Events
Felt
Felt Events
Maximum Magnitude
Number with
M > 4.0
Mechanism Location of
M > 2.0 Events
Waterflooding ~ 108,000 (wells)
One or more @ 18 sites
4.9 3 Pore pressure increase
AL, CA, CO, MS, OK, TX
EOR ~13,000 (wells)
None known None known 0 Pore pressure increase
None known
Hydraulic Fracturing ~35,000 (wells)
1 2.8 0 Pore pressure increase
OK
Production ~ 6,000 (fields)
20 sites 6.5 5 Pore pressure increase
CA, IL, NB, OK, TX
Water Disposal ~30,000 (wells)
9 4.8 7 Pore pressure increase
AR, CO, OH
Hitzman, M. W., et al. 2013. Induced Seismicity Potential in Energy Technologies, The National Academies Press, Available at http://www.nap.edu/catalog.php?record_id=13355
Induced Seismicity
Seismic Moment = µ * (Rupture Area) * (Fault Offset) Mw = 2 / 3 * log(Seismic Moment) - 10.73
Las Vegas Strip Home Plate to
1st Base
500 foot fracture (152.4 meters)
Rock Strength
Displacement
Maximum Seismic Moment Maximum seismic moment and magnitude as functions of total volume of injected fluid from the start of injection until the time of the largest induced earthquake. The equation along the solid line relates the upper bound seismic moment to the product of the modulus of rigidity and the total volume of injected fluid.
Source: McGarr, A. 2014. Maximum magnitude earthquakes induced by fluid injection, J. Geophys. Res. Solid Earth, 119, doi:10.1002/2013JB010597.
5.6 million gallons 1.6 million gallons
In the U.S. 3 reported earthquakes induced by permeability-enhancing treatments in unconventional oil and gas fields that were large enough to be felt at the surface.
The McGarr line tells you the maximum magnitude you could get if you are very unlucky.
Environmental Issues
• Water Requirements • Surface Releases • Subsurface Releases • Chemicals Used • Induced Seismicity • Disposal of Flowback Water • Air Emissions
Disposal of Flowback Water
• Nevada Regulations All liquids contained in steel tanks Method and location of final disposal of returned
liquids must be approved by the Division before removal from well location.
Disposal of Flowback Water
• Numerous Options Recycle/Re-use Subsurface injection Onsite vacuum distillation
Environmental Issues
• Water Requirements • Surface Releases • Subsurface Releases • Chemicals Used • Induced Seismicity • Disposal of Flowback Water • Air Emissions
Air Emissions
• EPA 40 CFR Parts 60 and 63 Oil and Natural Gas Sector: New Source
Performance Standards and National Emission Standards for Hazardous Air Pollutants Reviews; Final Rule Anticipate ~ 95 percent reduction in VOC emissions
from hydraulically fractured wells. Prevent gas/vapor escape Capture escaping gas/vapor and put into sales line
Federal Register - August 16, 2012; Volume 77 No. 159 p. 49490-49600
See: http://www.gpo.gov/fdsys/pkg/FR-2012-08-16/pdf/2012-16806.pdf; also see USEPA Oil and Natural Gas Air Pollution Standards, available at http://www.epa.gov/airquality/oilandgas/
Air Emissions
• Diesel New Technology Diesel Engines and Reformulated
Diesel Fuel ultra-low emissions of Sulfur Aromatics Particulates
Limited time footprint Emissions only during drilling and completion
Long, C. M. and Valberg, P. A. 2013. Recent Developments Related to the Health Effects of Diesel Exhaust (DE): Implications for Hydraulic Fracturing and Oil & Gas Development. IPEC, San Antonio, TX November 13, 2013, Available at http://ipec.utulsa.edu/Conf2013/Manuscripts_pdfs/CMLong.pdf
Air Emissions
• Gas Flares Controlled burning of gas Safety Production testing
Gas only flared until it can be sold Methane and low molecular weight hydrocarbons
burn cleanly
Dust
• Issue during drilling and completion of well Crew rotation Supply and equipment delivery
• Nevada Air Permit – ZERO DUST EMISSION Dust suppression on unpaved roads Limit speeds (15 mph) / monitor performance
Personal communication, Lee Hinman, Noble Energy, 2014; also see NAC 445B.22037 Emissions of particulate matter: Fugitive dust, available at http://www.leg.state.nv.us/nac/nac-445b.html
Environmental Issues
• Water Requirements • Surface Releases • Subsurface Releases • Chemicals Used • Induced Seismicity • Disposal of Flowback Water • Air Emissions
Environmental Answers
• Nevada’s Proposed Hydraulic Fracturing Regulations Comprehensive Stringent Transparent
• Standard Industry Practice
The facts about fracturing • Nearly 70 Years of Experience: Hydraulic fracturing
was first used in 1947 in an oil well in Grant County, KS • One Million Hydraulic Fractures: By 2002, ~ a million
hydraulic fractures completed in the United States. • Nearly all wells are hydraulically fractured: Up to
95% of wells drilled today are hydraulically fractured. • Responsible for much U.S. energy production: More
than 43% of total U.S. oil and 67% of U.S. natural gas production from hydraulically fractured wells
National Petroleum Council, 2011. PRUDENT DEVELOPMENT: Realizing the Potential of North America’s Abundant Natural Gas and Oil Resources, available at http://www.npc.org/reports/NARD-ExecSummVol.pdf
The facts about fracturing • Consumptive water use minimized; recycling
maximized • Thousands of feet separate freshwater aquifers from
shale resource rocks • Hydraulic fractures cannot
Reach shallow groundwater Induce large seismic events
• In Nevada Stringent cementing and casing regulations Hydraulic fracturing fluids are isolated in steel tanks Flowback disposal must be pre-approved
National Petroleum Council, 2011. PRUDENT DEVELOPMENT: Realizing the Potential of North America’s Abundant Natural Gas and Oil Resources, available at http://www.npc.org/reports/NARD-ExecSummVol.pdf
The facts about fracturing
• Environmental viability affirmed by multiple studies U.S. DOE and Ground Water Protection Council - 2009 U.S.EPA – 2004
• No verified cases of underground drinking water contamination from hydraulic fracturing Interstate Oil and Gas Compact Commission - 2009
National Petroleum Council, 2011. PRUDENT DEVELOPMENT: Realizing the Potential of North America’s Abundant Natural Gas and Oil Resources, available at http://www.npc.org/reports/NARD-ExecSummVol.pdf
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