Natural Gas: A Rich Resource for Technological Challenges

Abstract

Emerging Technology When Gerald Schotman Shell’s chief technology officer looks at the unconventional oil and gas business, he sees so many young technologies and “from the perspective a chief technology officer, that is such an opportunity.” Shell’s list of promising areas for research and development is broad, ranging from creating cheaper, more effective sensors for seismic testing to a new generation of specialized, automated drilling rigs. The goal is always “change that creates value.” In natural gas the rewards can be broken down three ways: produce more gas per well now, bring down the costs per well, and reduce the footprint when doing so. The footprint can be defined in many ways: the size of the pads used for drilling multiple wells; the level of emissions; the water used; and the many ways exploration and production can touch the people and the environment, near and far. The long list of things to do represents large investments of money and time, which Schotman says could be rewarding in multiple ways. “As it happens, some of the research helps two or three goals at a time,” Schotman said in an interview. Often with “the gas agenda a nice thing is you do not have to trade off.” A continuously better understanding of why specific fractures are more effective than others could lead to hydraulic fracturing methods using less water and sand, saving money, producing more, and reducing the footprint. There is a wide range of research to respond to “the things where we can find new approaches for these plays.” Enhanced seismic imaging is a priority because many of the growth areas are in tight, poorly understood rocks onshore, such as shale and coal-beds. Laboratory studies are needed to observe how reservoir rocks interact with hydrocarbon molecules on a microscopic scale. The goal is to learn: “How is Mother Earth organized to release these molecules, and what is the most low-energy way to get it into the wells?” he said. Rethinking Exploration Unconventional formations demand unconventional approaches. “You have to get back to the fundamentals to make it a business,” Schotman said. “With these types of plays there are specific cost challenges….There are things that do not work well for these plays.” The reasons are many and the rocks are complex, but generally unconventional formations require more inputs for less output than conventional formations.