A REVIEW OF MICHIGAN'S UNDERGROUND HYDROCARBON STORAGE
SPE MWGS SPRING WORKSHOP 4 MARCH 2015
Timothy J. Brock, PE Brock Engineering, LLC PRESENTATION OVERVIEW
• Why does Michigan need underground storage? • Where are the storage facilities? • What is stored and how much? • How is it stored? • What are the formations that are used? • How is the working gas distributed by formation? • What is the percentage of base gas to total storage? • How many wells are involved? • How does the base gas requirement differ between zones? • How much area do the fields require/BCF? • How old are the facilities?
NOTE: ALL INFORMATION IN THIS PRESENTATION HAS BEEN OBTAINED FROM PUBLIC SOURCES – USEIA, MDEQ AND MPSC
2 MICHIGAN ENERGY CONSUMPTION BY TYPE
3 MICHIGAN NATURAL GAS CONSUMPTION AND PRODUCTION, 2001-2013*
1,000,000
900,000
800,000
700,000
600,000
500,000 Gas Consumption Gas Production 400,000
300,000 Annual Gas Volumes, MMCF Gas Annual
200,000
100,000
0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
* Per USEIA 4 MICHIGAN’S UNDERGROUND HYDROCARBON STORAGE LOCATIONS
5 MICHIGAN STRATIGRAPHIC COLUMN SHOWING STORAGE FORMATIONS*
Stray Sandstone
Reed City
Salina Salts, Carbonates, Niagaran and Reef
Trenton
* Michigan DEQ Office of Oil, Gas and Minerals 6 WHAT IS STORED UNDERGROUND IN MICHIGAN?
• Natural Gas • Natural Gas Liquids • Propane • i-Butane • n-Butane • Mixed Butanes • Mixed NGL’s
7 HOW MUCH IS STORED?
• Natural Gas* • Working Gas: 688 BCF • Base Gas: 447 BCF • Total Storage Gas: 1,135 BCF • NGL** • Total Cavern Capacity: 537 MMGAL • Number of Facilities: 5 • Number of Caverns: 40
* Per Michigan Public Service Commission ** Per Michigan DEQ Office of Oil, Gas and Minerals, not necessarily storage volume
8 HOW IS IT STORED?
• Natural gas • Depleted reservoirs – former producing reservoirs that have been converted to storage • Salt caverns – former solution mining operations for salt production and dedicated caverns constructed for gas storage • NGL’s • Salt Caverns – former solution mining operations for salt production and dedicated caverns constructed for NGL storage
9 WHAT FORMATIONS ARE USED?
• Natural Gas • Michigan Stray Sandstone (Mississippian), 14 Fields, 11 Active • Reed City Dolomite (Devonian), 1 Active Field • Salina Salts (Silurian), 2 Active Facilities, 9 Caverns • Salina Carbonates (Silurian), 2 Active Fields • Regional Niagaran (Silurian), 2 Fields, 1 Active • Niagaran Reefs (Silurian), 39 Fields, 38 Active • Trenton (Ordovician), 1 Inactive Field • NGL’s • Salina Salts (Silurian), 5 Active Facilities, 40 ActiveCaverns
10 NATURAL GAS STORAGE WORKING GAS BY FORMATION, BCF*
2.17 9 30.9 33 22
146.9 A-1 Carbonate B Salt Michigan Stray Niagaran Reef Reed City Regional Niagaran Trenton
466.5
* Per Michigan Public Service Commission 11 NUMBER OF WELLS INVOLVED*
Active I/W Plugged I/W Active OBS Plugged OBS Gas Storage 2322 708 465 152 NGL Storage401800
* Per Michigan DEQ Office of Oil, Gas and Minerals
12 BASE GAS % OF TOTAL GAS STORAGE CAPACITY*
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0% Base GasPercent of Total Storage
* Per Michigan Public Service Commission 13 GAS STORAGE ACRES/BCF WORKING GAS*
10000
1000
100
10 Acres/BCF of Working Gas
1 A1 B Salt Michigan Michigan Niagaran Niagaran Reed City Regional Regional Trenton - Carbonate Stray - Stray - Reef Reef - Prop Niagaran Niagaran - Abdn Active Abdn Abdn
* Per Michigan Public Service Commission 14 STORAGE RESERVOIRS AVERAGE AGE, YEARS
70
60
50
40
30
20 Average Age in Years in Age Average 10
0
* Per Michigan Public Service Commission 15 FUTURE DEVELOPMENT
• Most likely additional natural gas storage will occur in depleted Niagaran Reefs • High deliverability • Lower base gas requirement • Less areal extent required • Large number of potential targets • Most likely additional NGL storage will occur in and around existing facilities, due to infrastructure.
16 QUESTIONS?
• Thank you for the opportunity to share this information today.
• Brock Engineering, LLC is a professional engineering consulting company. Our mission is to provide top quality engineering solutions to our clients’ needs in a timely and in a cost effective manner.
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