DEEP SHALE OIL AND GAS DEEP SHALE OIL AND GAS JAMES G. SPEIGHT, PhD, DSc CD&W Inc., Laramie, WY, United States AMSTERDAM • BOSTON • HEIDELBERG • LONDON NEW YORK • OXFORD • PARIS • SAN DIEGO SAN FRANCISCO • SINGAPORE • SYDNEY • TOKYO Gulf Professional Publishing is an imprint of Elsevier Gulf Professional Publishing is an imprint of Elsevier 50 Hampshire Street, 5th Floor, Cambridge, MA 02139, United States The Boulevard, Langford Lane, Kidlington, Oxford, OX5 1GB, United Kingdom © 2017 Elsevier Inc. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or any information storage and retrieval system, without permission in writing from the publisher. 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To the fullest extent of the law, neither the Publisher nor the authors, contributors, or editors, assume any liability for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions, or ideas contained in the material herein. Library of Congress Cataloging-in-Publication Data A catalog record for this book is available from the Library of Congress British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library ISBN: 978-0-12-803097-4 For information on all Gulf Professional publications visit our website at https://www.elsevier.com/ Publisher: Joe Hayton Senior Acquisition Editor: Katie Hammon Senior Editorial Project Manager: Kattie Washington Production Project Manager: Kiruthika Govindaraju Cover Designer: Matthew Limbert Typeset by SPi Global, India CONTENTS About the Author VII Preface ix 1. Gas and Oil in Tight Formations Introduction 1 2 Definitions 2 3 Tight Gas and Tight Oil 16 4 Origin and Reservoirs 29 5 Oil Shale and Shale Oil 39 6 Tight Oil, Tight Gas, and Energy Security 51 7 Resources and Reserves 53 References 56 2. Reservoirs and Reservoir Fluids 63 1 Introduction 63 2 Sediments 68 3 Reservoirs and Reservoir Evaluation 75 4 Tight Formations 91 5 Core Analyses for Tight Reservoirs 110 References 115 3. Gas and Oil Resources in Tight Formations 121 1 Introduction 121 2 United States 127 3 Canada 158 4 Other Countries 164 5 The Future of Resources in Tight Formations 167 References 169 4. Development and Production 175 1 Introduction 175 2 Tight Reservoirs and Conventional Reservoirs 178 3 Well Drilling and Completion 182 4 Production Trends 200 References 206 MaTep�aJ1, 3aw"weHH�f1 8BTOPCK"M npaSOM vi Contents 5. Hydraulic Fracturing 209 1 Introduction 209 2 Reservoir Evaluation 214 3 The Fracturing Process 224 4 Hydraulic Fracturing in Tight Reservoirs 247 References 256 6. Fluids Management 261 1 Introduction 261 2 Water Requirements, Use, and Sources 264 3 Water Disposal 2 83 4 Waste Fluids 286 5 Water Manage m e nt and Disposal 293 6 Fluids Analysis 300 References 305 7. Properties Processing of Gas From Tight Formations 307 1 Introduction 307 2 Tight Gas and Gas Composition 310 3 Gas Processing 3 1 6 4 Tight Gas Properties and Processing 326 5 Tight Gas Processing 332 References 346 8. Properties and Processing of Crude Oil From Tight Formations 349 1 Introduction 349 2 Tight Oil Properties 353 3 Transportation and Handling 370 4 Behavior in Refinery Processes 374 5 Mitigating Refinery Impact 389 References 394 9. Environmental Impact 397 1 Introduction 397 2 Environmental Regulations 402 3 Environmental Impact 410 4 Remediation Requirements and Outlook 423 References 428 Conversion Factors 431 Glossary 433 �� � MaTep�aJ1, 3aw"weHH�f1 8BTOPCK"M npaSOM ABOUT THE AUTHOR Dr. James G. Speight CChem., FRSC, FCIC, FACS earned his BSc and PhD degrees from the University of Manchester, England. He also holds a DSC in The Geological Sciences (VINIGRI, St. Petersburg, Russia) and a PhD in Petroleum Engineering, Dubna International University, Moscow, Russia. Dr. Speight is the author of more than 60 books in petroleum sci- ence, petroleum engineering, and environmental sciences. Formerly the CEO of the Western Research Institute (now an independent consultant), he has served as adjunct professor in the Department of Chemical and Fuels Engineering at the University of Utah and in the Departments of Chemistry and Chemical and Petroleum Engineering at the University of Wyoming. In addition, he has also been a visiting professor in Chemical Engineering at the following universities: the University of Missouri-Columbia, the Technical University of Denmark, and the University of Trinidad and Tobago. Dr. Speight was elected to the Russian Academy of Sciences in 1996 and awarded the Gold Medal of Honor that same year for outstanding contribu- tions to the field of petroleum sciences. He has also received the Scientists without Borders Medal of Honor of the Russian Academy of Sciences. In 2001, the Academy also awarded Dr. Speight the Einstein Medal for out- standing contributions and service in the field of Geological Sciences. vii PREFACE Natural gas and crude oil production from hydrocarbon rich deep shale for- mations, known (incorrectly) as shale oil and shale gas, is one of the most quickly expanding trends in onshore domestic oil and gas exploration. Vast new natural gas and oil resources are being discovered every year across North America—drilling activity is at a 25-year high and supplies are rapidly growing. One major source of these “new resources” comes from the devel- opment of deep shale formations, typically located many thousands of feet below the surface of the Earth in tight, low-permeability formations. Recent technological advancements in horizontal drilling and hydraulic fracturing are unlocking an abundance of deep shale natural gas and oil in the United States. However, the issues of oil and gas recovery relate to the differences in shale plays. Natural gas and crude oil from shale formations are considered an uncon- ventional source as the gas may be attached to or adsorbed onto organic mat- ter. The gas is contained in difficult-to-produce reservoirs—shale is a rock that can hold huge amounts of gas, not only in the zones between the par- ticles, but within the particles themselves as they are organic-like sponges. Evaluation of the shale gas potential of sedimentary basins has now become an important area of development internationally and is of great national interest as shale gas potential evaluation will have direct positive impact on the energy security of many countries which have sizeable resources in sedimentary basins. However, it will be appreciated that the reserves esti- mations are not static and are changing annually based upon new discoveries and improvement in drilling and recovery techniques. Three decades ago natural gas and crude oil from shale formations were of limited importance, but due to issues related to price and availability at times of natural disasters, concerns grew that natural gas prices would con- tinue to escalate. Furthermore, natural gas and crude oil from tight shale for- mations have not only changed the energy distribution in the United States as a result of this new-found popularity, but development of these resources also brings change to the environmental and socioeconomic landscape, par- ticularly in those areas where gas development is new. With these changes have come questions about the nature of shale development, the potential environmental impacts, and the ability of the current regulatory structure to deal with these issues. ix x Preface Increasing global significance of shale gas plays has led to the need for deeper understanding of shale behavior. Increased understanding of gas shale reservoirs will provide a better decision regarding the development of these resources. To find these reserves may be easy, but the technology to produce gas is very expensive. This is due to the fact that the hole drilled straight through the gas bearing rock has very little exposure for the gas to escape. Hydraulic fracturing is the only way to increase this exposure for successful gas production rate. This book presents (1) shale gas and oil potential, (2) the evolution of shale plays, (3) exploitation through discovery, drilling, and reservoir eval- uation, (4) production, (5) the efficiency of these completion operations, and (6) impact on the environment. A descriptive Glossary is also included. The objective of this book is to present an introduction to shale gas resources, as well as offer an understanding of the geomechanical properties of shale, the need for hydraulic fracturing, and an indication of shale gas processing. The book also introduces the reader to issues regarding the nature of shale gas development, the potential environmental impacts, and the ability of the current regulatory structure to deal with these issues. The book also serves to introduce scientists, engineers, managers, regulators, and policymakers to objective sources of information upon which to make decisions about meeting and managing the challenges that may accompany development of these resources.