EXPLORERAAPG 2 JULY 2012 WWW.AAPG.ORG Vol. 33, No. 7 July 2012 EXPLORERAAPG PRESIDENT’SCOLUMN Concepts Shift Creates Ripples of Change By TED BEAUMONT n North America onshore, the production decline predicted resource play has caused by M. King Hubbert, who a dramatic shift in the in 1956 predicted that U.S. I Figure 1 exploration objectives of many, gas production would peak if not most, independent and about 1970 and that U.S. oil major petroleum companies. No production would peak about longer do companies explore 2000. for “conventional” targets – In retrospect, as far as gas instead they focus almost is concerned, the actual U.S. entirely on resource plays. BEAUMONT gas production trend followed As a result, many if not most the Hubbert decline prediction North American exploration geologists – pretty closely until sometime in the early who work onshore are creating prospects 1990s, when the decline trend began to that are potential new resource plays. reverse. Outside of North America, industry Today, we are actually producing more is just beginning to explore for resource gas in the United States than ever (figure 1). plays. Few thought this was possible. Natural gas is a finite resource and at some point * * * natural gas production will decline. Now it will happen sometime in the future. Changing basic concepts of anything Hubbert was a very capable that you are very familiar with can be and highly respected geologist. His especially challenging. predictions of peak U.S. oil and gas Gas shales for example, required production looked good to many people. changing our thinking about basic In fact, his peak oil production curve still Figure 2 petroleum geology. Ten years ago not looks good (see figure 2, from Ahlbrandt many of us imagined we would have 2011, after Charpentier 2005), but that to change our concept of shales as may be changing as well. only source rocks or seals, to shales During this coming year, AAPG will as reservoirs – reservoirs that have examine the impact of the resource nano-darcies of permeability and are play on our science. The resource play economic. concept opens up many questions: No one could have imagined the huge u How has petroleum geology impact this conceptual change would changed as a result of the resource play? have on the petroleum industry. u How has it changed our concept of Now, the petroleum industry accepts the petroleum system? the premise that shales are effective u What will the future petroleum gas reservoirs where they have the right geologist need to know to be effective? amount of organic matter, maturity and u How will we explore and develop brittleness. resource plays? Shale gas reservoirs in the United States have reversed the natural gas See President, next page STAFF TABLEofCONTENTS REGULARDEPARTMENTS AAPG Headquarters: Tulsa geologist Edward A. “Ted” Who’s in charge? Successful shale Geophysical Corner .............................38 1-800-364-2274 (U.S. & Canada only), 6 Beaumont assumes the presidency 22 production strategies should include others 1-918-584-2555 of AAPG as the 2012-13 Executive a crucial mantra: “Plan, Plan, Plan.” Historical Highlights .............................40 Communications Director Committee begins its term. Larry Nation The third dimension: Continued Foundation Update ...............................43 email: [email protected] The name game: Unraveling improvements in new technologies 28 ProTracks ..............................................43 the geologic complexities of the such as 3-D seismic are helping Managing Editor 8 Vern Stefanic Granite Wash is tough enough, some companies deal with the cost Spotlight On … .....................................44 email: [email protected] but one team of geologists went of successful shale exploration. one better – they unraveled Readers’ Forum ....................................46 Communications Project Specialist the mystery of the clashing Something old, something new: The Susie Moore nomenclatures. venerable Austin Chalk has been Professional News Briefs ......................49 email: [email protected] 32 a part of the U.S. oil story for more www.Update .........................................49 Correspondents Team spirit: One group of than three decades – but a new David Brown 18 geologists quickly realized they assessment by the U.S. Geological Classified Ads ......................................50 Louise S. Durham had to learn on the fly and work Survey has added a new chapter to Barry Friedman together to successfully tackle the its tale. Director’s Corner ..................................51 Ken Milam Wolfcamp shale. Graphics/Production Divisions Report (DPA) .........................51 Matt Randolph email: [email protected] Advertising Coordinator ON THE COVER: Brenda Merideth A group of AAPG members and P.O. Box 979 others studying – and enjoying – the Tulsa, Okla. 74101 Apennine Mountains in central Italy, telephone: (918) 560-2647 on a spot that is very close to the (U.S. and Canada only: 1-800-288-7636) upcoming AAPG short course plus (Note: The above number is for advertising purposes only.) field trip, “Application of Structural Scan this for the Geology in Prospecting in Thrusted fax: (918) 560-2636 mobile version of the email: [email protected] current web Explorer. Photo courtesy of Krystal Pearson and Extensional Terrain,” which will be held Aug. 27-31 in Perugia, Italy. The AAPG EXPLORER (ISSN 0195-2986) is published monthly for members by the American Association of Petroleum Geologists, 1444 S. Boulder Ave., P.O. Box 979, Tulsa, Okla. 74101-3604, Registration at reduced rates remains (918) 584-2555. e-mail address: [email protected]. Periodicals Postage Paid at Tulsa, OK and at additional mailing offices.POSTMASTER: Please send address changes to AAPG EXPLORER, available online through July 16, at P.O. Box 979, Tulsa, Okla. 74101. Canada Publication Agreement Number 40063731 Return undeliverable Canadian address to: Station A, P.O. Box 54 • Windsor, ON N9A 6J5 • E-mail: [email protected] www.aapg.org/education/shortcourse. Advertising rates: Contact Brenda Merideth, AAPG headquarters. Subscriptions: Contact Veta McCoy, AAPG headquarters. Unsolicited manuscripts, photographs and videos must be accompanied by a stamped, self-addressed envelope to ensure return. The American Association of Petroleum Geologists (AAPG) does not endorse or recommend any products or services Photo by Debbi Boonstra. that may be cited, used or discussed in AAPG publications or in presentations at events associated with AAPG. Copyright 2012 by the American Association of Petroleum Geologists. All Left: Something new is emerging from rights reserved. Note to members: $6 of annual dues pays for one year’s subscription to the EXPLORER. Airmail service for members: $55. Subscription rates for non-members: $75 for 12 Vol. 33, No. 7 Vol. issues; add $72 for airmail service. the Austin Chalk. See page 32. WWW.AAPG.ORG JULY 2012 3 EXPLORERAAPG Obviously, we can’t predict what will President happen this year, either in our personal AAPG Officer Candidates Announced from previous page lives or for our collective efforts toward APG officer candidates have been Vice President-Regions AAPG. But there are two things that I announced for the 2013-14 term. p István Bérczi, MOL Hungarian Oil know: A Biographies and individual and Gas, Budapest, Hungary. u What tools will we need to evaluate u AAPG needs to be ready to aid its information for all candidates will be p John G. Kaldi, Australian School them or explore for them? members as they adjust to changing available online in mid-July at of Petroleum, University of Adelaide, u Where will new resource plays be concepts, like the resource play. www.aapg.org. Adelaide, Australia. located? u The 2012-13 AAPG Executive The person voted president-elect will Committee is well qualified to lead us – serve in that capacity for one year and Secretary * * * it has a good balance of industry and will be AAPG president for 2014-15. The p Richard W. Ball, Chevron Upstream, academic experience. terms for vice president and secretary Southern Africa SBU, Houston. The emergence of the resource play Our president-elect is Lee Krystinik. are two years; editor is a three-year term. p Sigrunn Johnsen, independent could be termed a “black swan event.” Lee is principal founder of Fossil Ballots will be mailed in spring 2013. consultant with ProTeamAS, Stavanger, Black swan events are unpredictable Creek Resources, where he initiated a The slate is: Norway. events that have huge, long-term impact. successful horizontal drilling play in the In retrospect, black swan events Cleveland Sandstone in north central President-Elect Editor always look like they should have been Oklahoma. p Randi S. Martinsen, University of p Colin P. North, University of predictable, but they aren’t. Some Vice president-Regions is Stuart Wyoming, Laramie, Wyo. Aberdeen, Aberdeen, Scotland. examples of black swan events include Harker, whose company, Circle Oil of p Kay L. Pitts, Aera Energy, p Michael Sweet, ExxonMobil the creation of the Internet, Google Aberdeen Scotland, is exploring the Bakersfield, Calif. Production, Houston. or 9/11. North Sea. Vice president-Sections is Tom Ewing, who is recognized for his many outstanding contributions to sorting out the geology of the U.S. Gulf Coast, where he is currently exploring for oil and gas with Yegua Energy Associates. Editor Steve Laubach is senior research scientist with the Texas Bureau of Economic Geology in Austin. Some of his current research includes the emerging field of structural diagenesis, which considers fracture cementation. Secretary Denise Cox is successfully prospecting for oil and gas in the west Texas Permian Basin with her company, Storm Energy of Panama City, Fla. Treasurer Debra Sacrey is a successful Texas Gulf Coast independent/consulting geophysicist/ geologist with the company she founded, Auburn Energy of Houston, Texas. Chair of the House of Delegates is R. Randy Ray, independent geologist in Denver and chief geophysicist for Underground Energy Co. Black swans and various challenges may both come our way this year, but we have a team that’s ready to respond for the good of AAPG.