Baker Hughes Company · NASDAQ:BKR
Baker Hughes — Technical Presentation (2011)
28 slides from Baker Hughes's technical presentation, 2011
Slide 1: Baker Hughes Technology Day 2011: Challenges of Developing Shale Resources in Europe
Baker Hughes Technology Day 2011 The Challenges of Developing Shale Resources in Europe Chris Burns Geoscientist, Gaffney, Cline & Associates [email protected] © 2011 Baker Hughes Incorporated. All Rights Reserved. “Where Baker Hughes/RDS has carried out evaluations and interpretat
Slide 2: Overview
Overview 1. Why are we here? 2. What are “shale resources”? 3. Where and how much? 4. How do we find them? 5. What next? 2 © 2010 Baker Hughes Incorporated. All Rights Reserved.
Slide 3: What is the PRIZE?
What is the PRIZE? U.S. Shale Gas Annual Production to 2010 TCF/Y 2005 EIA predicted shale gas production Sources: Richard Newell, Dec 16 2010 / Lippman Consulting (2010) estimate 3 © 2010 Baker Hughes Incorporated. All Rights Reserved.
Slide 4: European Example: Poland
Euoprean Example: Poland Source: BP Statistical Review of World Energy, 2010 4 © 2010 Baker Hughes Incorporated. All Rights Reserved.
Slide 5: Reserves & Resources
Reserves & Resources Resources Resources European Shale Gas Discovered Discovered Undiscovered Commercially Non Non--- US / Recoverable Recoverable Commercial Commercial Canadian Shale Gas Cumulative Reserves European Cumulative Reserves Production Production Shale Gas reserves likely start 2014 + P
Slide 6: What are shale resources?
What are shale resources? 6 © 2010 Baker Hughes Incorporated. All Rights Reserved.
Slide 7: Unconventional Gas Geology (Schematic)
Unconventional Gas Geology (Schematic) Shale Gas / Oil -Laterally extensive? Source: EIA - No trap required 3 © 2009 Baker Hughes Incorporated. All Rights Reserved
Slide 8: Unconventional Gas
Unconventional Gas • Tight Gas – siltstones, carbonates and very fine sandstones with low permeability – Slightly better flow rates than shales however higher risk of low charge • CBM – Coal bed methane is usually trapped in coal deposits that have been buried to the kitchen window. – Gas is adsorbe
Slide 9: Conventional vs. Unconventional Gas E&P
Conventional vs. Unconventional Gas E&P “Conventional” gas Shale gas Requires structural or stratigraphic trap Does not require trapping mechanism Requires source, reservoir, seal Gas stored in natural fractures or adsorbed on lithologies mineral surfaces; self-sourcing, self sealing = resource play
Slide 10: Where and how much?
Where and how much? 10 © 2010 Baker Hughes Incorporated. All Rights Reserved.
Slide 11: Globally – Estimated Shale Gas in Place
Globally – Estimated Shale Gas in Place Europe (excl. Europe CIS) ~ 550 (excl. TCF CIS) ~ 2,587 TCF China and India ~ China 3,530and TCFIndia ~ 5,597 TCF North America ~North 3,840America TCF ~ 3,856 TCF North Africa and North Africa Middle East ~and MiddleTCF 2,550 East ~ 2,128 TCF South America ~S
Slide 12: Europe – Estimated Shale Gas
Europe – Estimated Shale Gas UK ~ 97 TCF in Scandinavia ~ place; 20 TCF 589 TCF in place; Poland ~ 792 rec 147 TCF rec TCF in place; 187 TCF rec Germany ??? France ~ 717 TCF in place; 180 TCF rec Turkey ~ 64 TCF in place; 20 TCF 0 rec Source: EIA 2011 12
Slide 13: Poland vs. Texas
Poland vs. Texas Texas is developed with six basins defined _______________ Poland has six discovered basins but is undeveloped 0 100 km 13
Slide 14: How do we find them?
How do we find them? 14 © 2010 Baker Hughes Incorporated. All Rights Reserved.
Slide 15: Key Criteria For Evaluation
Key Criteria For Evaluation • Shale studies can be divided into 4 (or more) key disciplines • All will need to be examined during a full shale gas study in Europe • Drilling and operating costs mean that we cannot learn by the drill bit as in the US DISCIPLINE WHY? 1 Geology and Geophysics Is shale
Slide 16: 1 - Geology and Geophysics
1 - Geology and Geophyiscs 16 © 2010 Baker Hughes Incorporated. All Rights Reserved.
Slide 17: 2 - Source Rock Quality: TOC and Kerogen
2 - Source Rock Quality: “TOC” and Kerogen • TOC = Total Organic Carbon Content – Expressed as % by weight – Oil and gas source rocks typically have > 1.0% TOC – NOT the same as kerogen content: the TOC is made up of kerogen and bitumen • TOC is a qualitative measure of source rock potential • Kerog
Slide 18: 3 - Shale Mineralogy
3 - Shale Mineralogy • Why is this important? • Understanding in the inorganic mineralogy of a shale is key to understanding how it will behave when fractured... • Typically to do this properly we need core! © 2009 Baker Hughes Incorporated. All Rights Reserved. Source: Passey et al 2010
Slide 19: Shale Gas Evaluation: An Integrated Petrophysical Approach
Shale Gas Evaluation … An Integrated Petrophysical Approach Neutron, Resistivity, Density Mineral NMR Logging Logs Acoustic Logs Core Cutting Microseismic Borehole Imaging 300+ Evaluation Suites run in US Shale Plays, 40+ in Canada 19 © 2011 Baker Hughes Incorporated. All Rights Reserved.
Slide 20: Geomechanical Model
4 - Geomechanical Model Sv The geomechanical model of a reservoir involves detailed knowledge of: • In situ stress orientations • In situ stress magnitudes • Pore pressure • Effective rock strength UCS • Fracture patterns Pp • Structure Shmin SHmax 20
Slide 21: Understanding Natural Fractures
Understanding Natural Fractures • Data from: – Interpretation of borehole image logs – Analysis of caliper, breakout leak-off data – Core analysis and mechanical testing – Cross multipole acoustic logs • shear wave anisotropy • Stoneley Wave reflection analysis – Seismic attribute analysis – ... And
Slide 22: The Shale Static Model
The Shale Static Model Baseline Structural Model Geomechanical Model Property Model Shale Static Model Finding the “sweet spot” 22 © 2011 Baker Hughes Incorporated. All Rights Reserved.
Slide 23: What next?
What next? 23 © 2010 Baker Hughes Incorporated. All Rights Reserved.
Slide 24: Development: Horizontal Wells & Fracturing
Development: Horizontal Wells & Fracturing • Maximise wellbore contact with Increased size of reservoir “artificial reservoir” • Maximise number of frac stages • Reduce surface footprint – 100 ft open hole vertical wellbore, 8.5” diameter = 71 sq ft – 5,000 ft open hole horizontal wellbore, 8.5” dia
Slide 25: Well design: why horizontal?
Well design: why horizontal? Source: NPC Committee on Global Oil & Gas, 2007 / Fisher et al (2004): SPE90051 25
Slide 26: Putting it all together…
Putting it all together… • Geological model • Petrophysics • Geomechanics • Reservoir simulation • Microseismic • The key to successful development will be learning from what happens each time we drill a well!
Slide 27: What have we learnt so far?
What have we learnt so far? • Shale resource exploitation is in its early stages in Europe – but there is both economic and geological potential • Shales are “resource plays”, which require pressure stimulation in order to create an effective “artificial reservoir” • Shale plays can often be delinea
Slide 28: Thank you Questions?
Thank you Questions? 28 © 2010 Baker Hughes Incorporated. All Rights Reserved.