Slide 1 – Discuss development trends in the USA, AND some of the challenges we face in a region like Europe to adapt to these changing methods. Will also talk about some solutions to those challenges
Halliburton’s experience is highlighted – North American Shale American fracturing experience, HPHT experience, SPE paper written during the past 20 years and Shale basins screened by Hal teams around the world pass 2 years.The technologies that have facilitated shale plays commercial success: completions, drilling, hydraulic fracturing. Approximately 82% of Halliburton’s 2010 portfolio are patents associated with these technologies. Halliburton pumps 4,200 stages per month – Unconventional HydrocarbonsHalliburton HP/HT experience since 2003Stages Pumped below 15,000’ – 14,275Stages Pumped above 350°F – 1,719Stages Pumped below 18,000’ – 2,514Stages Pumped above 400°F – 677450 SPE papers on Unconventional GasShale screening / recommendations for appraisal and development of various shale plays around the globe. (>50 Basins, 32 countries)
One of the first trends we are seeing in the US is the nearly exclusive use of horizontal wells to complete shale gas reservoirs. When we look at reservoir simulations, for example, we see that multifrac HZ wells are really the only way to complete shale gas plays with microdarcypermeabilitiesDirectional and vertical rig count are each expected to rise 5% in 2011.
Environmental scrutiny includes land access, noise control, frac fluid compositions, etcWater management includes supply and disposal issues
When we look at the Global Gas Markets and compare that to the available fracturing hydraulic horsepower in the various areas, we quickly notice that there is a serious imbalance of HHP around the world. Note that the US has about 25% of the estimated GIP globally, along with 75% of the global pumping HHPWhen we look at South America, we see more than ½ of the US gas volume, but less than 10% of the HHPIn Europe, the situation is even worse with Europe having more than 25% of the US gas volume but only 2% of the available HHP. So what do we do? What I would like to discuss over the next few slides are the way in which these shales plays are being completed, and some alternative approaches we can use in places like South America and Europe that can help us overcome some of these equipment availability issues.
Unconventional shale gas development requires large amounts of water. While water volumes used in hydraulic fracturing operations are still a small percentage of overall water consumption in the US, it is nonetheless an issue with much public attention and concern in local communities where water supplies can be limited. We are developing and championing water management technologies that reduce the amount of water consumed and which also allow the reuse of flowback and produced waters for ongoing stimulation campaigns. These technologies allow operators to take a typical waste stream (produced water) and turn it to an asset (water to support ongoing completion activities). Not only is this an economic benefit to operators, it is also a great opportunity for us to minimize any potential environmental impact of water consumption in fields under development.Harmful impact of chemicals used in oil and gas completions is an area of growing scrutiny by public and government groups today. While there is not one single documented case of hydraulic fracturing or hydraulic fracturing chemicals damaging underground water sources, we must advance our chemical technologies to minimize potential hazards…real or perceived. To that end, our company has introduced CleanSuite technology, providing the opportunity to reduce and eliminate chemical biocides in our fracturing operations. This technology, employing very high power ultraviolet light, is able to kill bacteria and microorganisms at down hole job rates and protect the formation without use of traditional chemicals. This is a great advancement for our operators and we are seeing a great deal of interest in this technology in a number of fields. Halliburton has also developed our Chemical Scoring Index (CSI). This chemical product scoring system rates products in our portfolio based on ecotoxicity, human health, and physical hazard parameters to highlight best in class materials, target other materials for replacement, and provide a suite of environmental product choices for our customers. This methodology will allow us to lead our industry toward new levels of environmental stewardship on shale gas development. We are very excited about this as it moves forward.
Developed using the same products used to make marshmallows and ice cream…Advantages of CleanStim®Most environmentally acceptable frac fluid todayCan be used as a “slickwater”, linear gel, or crosslinked systemCan be mixed in a variety of base mix waters, including produced waterNew version being tested for use in seawater
Developing shale plays outside of the USA brings unique challenges such as limited equipment availability, smaller wellsite sizes, and increased environmental restrictions Technologies such as PinPoint Stimulation minimize equipment requirements, location size, and overall frac job costsThe PowerReach system provides a unique solution for fracturing in deep horizontal wellsThe CleanSuite technologies offer solutions for reducing fresh water requirements and water disposal, and provides a much more environmentally friendly solution for the fracturing process
