Technology Focus: Gas Production Technology (November 2008)

Abstract

Technology Focus One trend that Stephen Norris noted in his Unconventional Recovery editorial (JPT, July 2008, page 74) is that resources that have been on someone's back burner for 17 years (in the case of the Barnett shale) have finally started to have their day in the sun. What has changed? Did a new technology suddenly change all the drivers? Did incremental adjustments in existing technologies, or cross pollination from other disciplines, or an excess supply of technical talent make the difference? How about the value of the underlying product? Until approximately 10 years ago, gas was viewed in many parts of the world as a waste product and was flared. Now, worldwide natural-gas prices make it possible to go to extraordinary efforts to bring gas to market. Classic economic theory predicts that as prices increase, high technology and high-cost supplies will, eventually, join the market, and as long as they do not overwhelm it, will become a long-term source and drive the price back to equilibrium. This new price is high enough to provide a profit to these new producers but low enough to maintain demand. Just as a receding tide can expose a shipwreck holding treasure, a stable higher price renders many difficult gas-production and -transportation methods worthwhile. How is possible to develop 13,000-ft gas wells on 10-acre spacing? If the target zone is 3,500 ft thick and needs 12 separate fracture treatments, the lack of areal extent is offset by huge vertical extent. But how will the well perform with some zones continuous and others not? Consider the Barnett shale: "The largest gas field in Texas," where the average well is less than 4 years old and water production in the noncore area typically necessitates artificial lift. The Haynesville and Marcellus shales are expected to be equally impressive, even though these tight formations were identified long before drill bits turned to the right. Extensively developed in the US and Australia, coalbed methane still is viewed as "unconventional" in most of the world. For all of you with a 17-year science project waiting for a lucky break, remember that luck happens when opportunity meets preparation, and opportunity is knocking…. Gas Production Technology additional reading available at the SPE eLibrary: www.spe.org IPTC 11307 • "Subsea LNG Transfer System" by William S. Mathews, ExxonMobil, et al. IPTC 11795 • "A Model for Short-Term Supply-Chain Management of an LNG Production System" by Ajay Selot, Massachusetts Institute of Technology, et al. SPE 109182 • "Gas-to-Hydrate Technology, an Alternative Energy for Low-Level Communities in Indonesia" by Adam Nur Bawono, Perusahaan Gas Negara SPE 113816 • "Angsi K-Sand Production Performance: A Case History of Hydraulically Fractured Retrograde-Gas-Condensate Reservoir" by Mohamad Othman, SPE, Petronas, et al.