Geothermal Energy Wellbore Construction and Production Challenges Technology to Help Meet Germany's Cleaner Energy Future Energy Forum at James A. Baker Institute for Public Policy Rice University, Houston, October 01, 2009 Friedhelm Makohl, Vice President Marketing, Baker Hughes 10/5/2009 © 2009 Baker Hughes Incorporated. All Rights Reserved. Baker Hughes Portfolio Product Lines FY2008 • Revenues: $11.9 billion • R&E budget: $426 million (Baker Atlas + INTEQ) Hughes Baker Hughes • Employees: 35,000 Drilling and Evaluation Christensen Drilling Fluids • Facilities: 72 countries • Operations: More than 90 countries Ba ker Oil CfCentrilift BkBaker Petro lite Tools Reservoir Technology & Consulting 2 © 2009 Baker Hughes Incorporated. All Rights Reserved. GF1 The Celle Technology Center CTC In the Network of Baker Hughes Research Centers CTC Celle Technology Center HTC Houston Saudi Arabia CTI Houston Technology Center Brazil BARSC Novosibirsk 3 © 2009 Baker Hughes Incorporated. All Rights Reserved. Slide 3 GF1 1) Need photos of these research centers 2) Maybe a map with picture call outs? 3) CRITICAL: Confirm with Derek that this is all of our research centers. e.g. what about the CTI Gary Flaharty, 9/13/2009 Why the Geothermal Focus? • Expanding the use of Geothermal Energy to meet Germany’s CO2 reduction goals in 2020, supported by the Fe dera l Mi ni st ry f or th e E nvi ronment , N at ure Conserva tion and Nuclear Safety (BMU) • The German State of Niedersachsen (Lower Saxony) has expressed a distinct interest to make use of geothermal energy generation in Northern Germany • Bakhhhker Hughes has more than 25 years experience with geothermal wells 4 © 2009 Baker Hughes Incorporated. All Rights Reserved. Geothermal (Hydrothermal) Reservoir Heat Production Geothermal Consumer Heating Station Injection Production Well Well 100-150 l/s , up to 140°C 5 © 2009 Baker Hughes Incorporated. All Rights Reserved. Solution of Choice - Hot Dry Rock/Petrothermal • 2-3 deep wells are drilled to 5,000-7,000m and fractured tidto induce a cond uc tive reservoir • Water is injected and steam iddtltilis produced to run electrical generating turbines – mining the heat from the earth where ever you need it ( 50 l/s , >200°C) • Locations independent from consumer proximity 6 © 2009 Baker Hughes Incorporated. All Rights Reserved. Hydrothermal Energy Resources in Germany Areas with Hydrothermal Energy Ressources Rostock Bremerhaven Neubrandenburg Prenzlau Hamburg Waren Neustadt-Glewe Neuruppin Groß Schönebeck N o r d d e u t s c h e s B e c k e n TU Berlin Berlin Hannover 1 & Leipzig Bochum Thüringischer Köln Becken Dresden Aachen Frankfurt Weinheim Ober- rhein-Speyer grabenOffenbach Landau-Süd Bruchsal Soultz Straubing Stuttgart Griesbach Bad Urach Erding Unterschleißheim Buchau Riem 3 Bad Füssing Biberach München 2 MlMolasse beck enUtUnter hac hing Altheim Riehen Bad Waldsee Basel 7 © 2009 Baker Hughes Incorporated. All Rights Reserved. Wellbore Construction Optimization Challenges Solutions 8 © 2009 Baker Hughes Incorporated. All Rights Reserved. Geothermal Well Construction Challenges • Reduce Well Construction Costs through: – Lowering drilling costs via automation and process predictability – Minimizing the risk using real-time data – Maximizing drilling progress – DiDetecting recoverabl e reservoirs in real-time – Durable and material saving compltiletion and prod ucti on systems Source: Tiefe Geothermie in Deutschland, BMU, 2007 9 © 2009 Baker Hughes Incorporated. All Rights Reserved. Coiled Tubing Monobore Well Construction InnovativeInnovative development concepts for conceptsdeveloppgment of geothermal of geothermal reservoirsreservoirs FabricationFabrication and andwelding welding of of foldedfolded endless endless pipe pipe MonoboreMonbore well constructionconstruction High‐Performance materials with folded pipe High-performance materials with folded pipe andand surfaces surfaces AutomatedAutomated drillingdrilling with with SystemsSystems reliability reliability and endlessendless pipe pipe (Coiled (Coiled Tubing) Tubing) andavailability availability HighHigh Temperature temperature Artificial intelligenceArtificial geo intelligence model electronics/sensors geo modeland and drilling drilling simulator simulator electronics/sensors Source: ITE TU Clausthal 10 © 2009 Baker Hughes Incorporated. All Rights Reserved. 11 Cooperative UniversityResearchProject © 2009 Baker Hughes Incorporated. All Rights Reserved. Incorporated. Hughes Baker © 2009 … and Research Focus Development Geo System High ‐ Performance Research Focus Geothermal Drilling Technology gebo Activities Drilling Energy Research Focus Te chnol ogy and of Materials Baker Hughes Research Focus Technical Systems Geothermal Electrical Submersible Pump Project • Well construction is the first step • Production of hot water – pumping - comes next – Southern Germany Pump: High volume, medium temperature – Northern Germany Pump: Low volume, high temp, high salinity • Centrilift product line has established an engineering group in Celle to develop pumps for German geothermal market • Federal Government (BMU) Project has been granted 12 © 2009 Baker Hughes Incorporated. All Rights Reserved. Celle: WW Center of Excellence for Geothermal • Celle technology center expansion opened September 16 • Focus: – Technology innovations for geothermal market – Cross product line initiatives • Grants from State (Niedersachsen) and Federal German Governments 13 © 2009 Baker Hughes Incorporated. All Rights Reserved. Thank you. 14 © 2009 Baker Hughes Incorporated. All Rights Reserved..