The Development Of The "Deep Basin" Natural Gas Project - Western Canada

Abstract

Abstract During the past six years while most national attention has been focused on the so-called "mega" project for energy self sufficiency, a giant resource project has been developing without the fanfare generally accorded a scheme with such potential impact on the well being of the nation. Geologic evidence suggested the probable existence of an enormous natural gas accumulation trapped in the deepest part of the Alberta syncline and its extension into British Columbia. This area covers 26,000 square miles (67,600 square km) and contains sediments which are potentially hydrocarbon bearing over a thickness of 15,000 feet (4,570 metres). Reserve and production potential is so large as to significantly alter energy supply estimates for North America. This paper will document the development of these reserves and the stages in the installation of facilities required for the production of this enormous hydrocarbon reserve. Commentary will be made regarding credibility, cost, scope, and impact of this development. This paper was presented at the 7th Western Region Conference of The Engineering institute of Canada in Calgary, November 17, 1982. Introduction In the late winter of 1976, just over six years ago, there occurred an event that our industry, and our nation will recognize as one of the historic milestones in the evolution of the petroleum industry on this continent. The event was the drilling of the Elmworth discovery well —Canadian Hunter Elmworth 11-15-70-11 W6M. This well represented the birth of a "giant" and the beginning of the on-going development process which is validating the Deep Basin hypothesis and the hydrocarbon reserves in the Deep Basin area of Western Canada. The philosophical basis for the effort and money which has been invested in the development of the Deep Basin is described by the Resource Triangle(1) in Figure 1. It is a known concept that most natural resources are distributed as in a triangle with high-grade deposits occupying the peak, or smallest part of the triangle. In general, as the grade decreases, the size of the deposit increases. CanHunter's fundamental thesis was that in-situ natural gas resources had a similar distribution and that as reservoir quality decreases, larger amounts of gas would be found trapped in lower quality reservoir rock. This triangle also demonstrates the elasticity of resources because as price and technology improve it is possible to produce more of the lower quality, uneconomic resources. The truth, with respect to the Deep Basin as we now know, is very much representative of the total "triangle concept" whereby gas reserves in the Deep Basin exist within the full spectrum of resource distribution from excellent to very poor. This fact is important because there arc still those who are skeptical and retain the belief that the Western Canada Deep Basin is entirely a low-grade natural gas resource existing in unconventional reservoirs. Reserves are predominantly natural gas with some oil in perimeter regions of the Basin. The existence of undesirable salt water is negligible due to the entrapment process.