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Shale oil – what does it take?

PESA Qld Breakfast 22 May 2014. Shale oil – what does it take?. David Lowry. www.lowryresources.com.au. Source rock issues: Total Organic Carbon Hydrogen Index Maturity Kinetics Thickness Porosity Fraccing Issues Poissons Ratio, Youngs Modulus Reservoir/seal couplets

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Shale oil – what does it take?

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  1. PESA Qld Breakfast 22 May 2014 Shale oil – what does it take? David Lowry www.lowryresources.com.au

  2. Source rock issues: Total Organic Carbon Hydrogen Index Maturity Kinetics Thickness Porosity Fraccing Issues Poissons Ratio, Youngs Modulus Reservoir/seal couplets Resource Estimates Exploration in Australia

  3. Source rock issues: Need a good source rock Initial Total Organic Carbon > 4% Initial Hydrogen Index > 400 (my impression) Obtain from RockEval pyrolysis. Preferably core, or at least hand-picked cuttings. Regular cuttings likely to be full of cavings and may steer you away from a good source rock

  4. Source rock issues: Need a rich source rock Initial Total Organic Carbon > 4% Initial Hydrogen Index > 400 (my impression) mg HC generated from 1 g Organic Carbon at full maturity 1000 mg Organic Carbon ~ 1200 mg kerogen Immature Fully mature 600 mg Oil & Gas

  5. Source rock issues: Need a rich anoxic source rock Pyrite Lamination (no bioturbation) Good preservation of organic matter because no scavengers (my impression) Immature Fully mature

  6. Source rock issues: Need a rich mature source rock Maturity 0.8% — 1.1% Ro Estimating maturity Vitrinite reflectance – traditional but very likely suppressed in oil-prone shale. VIRF or FAMM - good TMax from RockEval – good for Proterozoic rocks; but suppression Modelling – good if heat flow and stripping histories are known; good for mapping; can use old wells but need some calibration.

  7. Source rock issues: Need to know your kerogen kinetics How easily does your kerogen crack? Track change in oil/gas ratio with maturity Use A and E parameters to model maturity

  8. Source rock issues: Thickness Thickness: the thicker the better. Minimum 30 m? volumetrics; engineering; seismic

  9. Source rock issues: Porosity SEM with ion milling Porosity: Organic porosity important at Ro ~1% Generation can also fracc the shale, giving permeability

  10. Source rock issues: Porosity Jarvie ,2012 10% TR 80% TR 0% 14%

  11. Fraccing Issues Poissons Ratio, Youngs Modulus Reservoir/source couplets clay rich, ductile cemented by silica, calcite or dolomite. Good to fracc Slatt, 2013 Optimum: interbedded reservoir/source ouplets

  12. Oil generated= Thickness (m) x initial TOC x initial Hydrogen Index x Transformation Ratio

  13. Available Oil in place = Thickness (m) x initial TOC x initial Hydrogen Index x Transformation Ratio — Adsorbed oil — Migrated oil Recoverable oil x Recovery factor

  14. Resource Estimates Resource calculation TOC. In anoxic marine source rock, uranium is adsorbed on the organic matter. Gamma Ray log roughly proportional to TOC Image deleted; data not yet open file Cluff, 2012

  15. Problem of adsorption Kerogen adsorbs early-formed oil. Not available for migration into pores and fractures Pepper & Corvie (1995) estimate: 100 mg oil / g organic C Suppose HI source rock is 500 and take particular Ro/TR kinetics curve. At Transformation Ratio 0.2, kerogen will have generated 500 x 0.2 = 100 mg oil / g TOC Just at start of expulsion at Ro 0.84%

  16. To quantify expulsion, need to quantify kinetics and initial HI Image deleted; data not yet open file

  17. Recovery Factors for shale oil Look to US experience Evaluating production potential of mature us oil, gas shale plays. Oil & Gas Journal 12/03/2012

  18. Eagle Ford fairway

  19. Recovery Factors for shale oil Oil & Gas Journal 12/03/2012 US Energy Information Administration 2013. Based on U.S. shale production experience, ...... the recovery factors for shale oil range from 3 percent to 7 percent of the oil in-place with exceptional cases being as high as 10 percent or as low as 1 percent. http://www.eia.gov/analysis/studies/worldshalegas/

  20. Recovery Factors for shale oil Oil & Gas Journal 12/03/2012

  21. Recovery Factors for shale oil Oil & Gas Journal 12/03/2012

  22. Study the core as source Rock Eval, RockEval on extracted samples, extract GCMS; Py-GC, Bulk and MSSV multicomponent kinetics, FAMM or VIRF, SEM with ion milling, clay XRD. Study the core as reservoir Mechanical properties, helium porosity, MICP, % carbonate, Dean-Starke saturation; dipole sonic log, image log A lot more science is needed than in conventional exploration. Companies will need staff with strong skills in the theory and practice of geochemistry and rock mechanics.

  23. Australia Shale oil: McArthur Basin Barney Creek Fm (1.6 Ga) & Velkerri Fm (1.4 Ga)

  24. Barney Creek Fm Velkerri FM HI 1000 Tmax Crick et al., 1988

  25. Who are the players? Permits held/applied for by Armour Energy Southern McArthur Basin Northern Georgina Basin

  26. Imperial O&G (Empire Energy)

  27. Tamboran Resources. Farmed out to Santos

  28. Falcon O&G Beetaloo Sub-basin.

  29. No obvious burial since Cambrian; chance of overpresssuring is limited Law et al., 2010

  30. 2011 Shenadoah-1 flowed wet gas from Velkerrie Relatively simple structure; source rocks in both gas and oil window

  31. Pangaea O&G

  32. Southern Georgina Basin

  33. Baldwin-2Hst1 August 2011 875 m in Arthur Creek Hot Shale. Oct 2012 fracc; casing failed Owen-3H August 2011 966 m in Arthur Creek Hot Shale. Oct 2012 10 stage fracc; recovered fracc fluids but no hydrocarbons MacIntyre-2H June 2012 1080 m in Arthur Creek Hot Shale. Oct 2012 9 stage fracc. Testing suspended (H2S)

  34. Buru Energy is major player in Canning Basin Ordovician Goldwyer Fm recognised as major shale oil opportunity

  35. SW NE

  36. New Standard Energy holds a large area New Standard Energy

  37. New Standard; ConocoPhillips & Petrochina farming in

  38. X X Hess – formerly Kingsway X

  39. Perth Basin. Hovea Mbr of Kockatea Shale (Earliest Triassic)

  40. AWE active exploration for tight gas. Four vertical wells stimulated. Arrowsmith-2 5 stage fracc. 22 bbl

  41. Eromanga Basin. Toolebuc Shale Early Cretaceous

  42. Exoma & CNOOC drilled a dozen wells on the Maneroo Platform. Maturity not quite high enough Elsewhere Toolebuc is largely immature; need to find an area with high heat flow and deep maximum burial

  43. PESA Qld Breakfast 22 May 2014 Shale oil – what does it take? Exceptional geology; lots of money David Lowry www.lowryresources.com.au

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