Emerging Trends in ShaleEnergy DevelopmentMay 14, 2014Presented by Dave Yoxtheimer, P.G.Penn State Marcellus Centerfor Outreach and ResearchShale Energy: A Global PlaySummary of PA Marcellus Production• 4917 producing wells in 2013• 3.1 TCF of gas produced• 30.6 MMBBLs of brine producedSummary of OH Production• 397 producing wells in 2013• 9.7 MMBBLs of oil• 203 BCF of gas produced• Estimated 4 MMBBLs of brine producedWell Site in OperationStaying in Drilling Target Zone is KeySource:SenecaResourcesMore Wells and Footage Per Rig•Directional PlanOptimizationMinimize drillingpath corrections•Bit SelectionIncreases drillingrate and durability•Drill Top-holeSections Deeperwith Water anduse Mud Systemsfor the Kick-offand Lateral-Moreefficient and costeffective•Optimize LandingDepth-Improvesproduction and rateof penetrationSource:SenecaResourcesReduced Cluster Spacing= GreaterStimulated Reservoir VolumeTwice the number ofstages increasesstimulated reservoirvolume: stagespacing reducedfrom 300’ to 150’Increased proppantnear the wellboreimproves fractureconductivity:proppant useincreased by >200lbs/ft (~1500 lbs/ft)Source:SenecaResourcesImproving ProductionImprovementsdue to:• Increasinglateral length• Increaseproductioncasing size• Reducedclusterspacing• Soaking thewells longerprior toflowbackSource:SenecaResourcesDrilling and Production Waste Streams• Air emissions• Drilling cuttings• Drilling muds• Waste proppant• Flowback fluids• Produced fluids• Treatment sludgesTreatmentandDisposalFacilitiesReducing Emissions andCostsfromDrilling and Fracturing• Emissions from drilling, fracturing,and line leaks totaled 225 millionmetric tons of CO2 equivalentsduring 2011, 2ndonly to power plants• A single drill rig can consume up to80 gallons of diesel an hour• Compared to diesel, a natural-gas rigemits ~30% CO2 and little NOx, SOx,and particulate matter.• A natural gas-run costs more to buildbut switching to LNG or field gas canreduce annual fuel costs $660K-$1MM off the annual fuel cost of onerig.• 700 million gallons of dieseldomestically in hydraulic fracturinglast year• A gallon of diesel fuel costs about$3.60, while equivalent amount of thenatural gas blend costs $1.20Drilling Fluids Generation1.6 MM BBLs of drillingfluids generated during2013– 92% of drilling fluids wererecycled (147 MMBBLs)– 7% of drilling fluids weredisposed (119 MBBLs)– 1% of drilling fluids werestored (11 MBBLs)2013 Drilling Cuttings Management1.13 million tons of drillingcuttings generated in 2013-Total of 1,210 wells spud in2013-Average of 937 tons of drillcuttings generated per well-Cuttings are primarily landfilled(90%) with some recycling and aminor amount of encapsulation136,000 tons of sandproppant generated in 2013-Total of 1,352 wells fractured in2013-Average of 101 tons of sandgenerated per well and areprimarily landfilledShale Gas Development Water Use*Assumesaverageof4.4milliongallonsofwaterusedduringhydraulicfracturingperSRBC•4917producingwellsinPAasofendof2013•Estimatedtotalwateruseof21.6billiongallonsofwater(514MMBBLs)*•1,352newproducingwellsin2013•Estimated2013wateruseof5.9billiongallonsor16.3milliongallonsperday*•Approximately6%ofinjectedfluidsreturninitiallyand10BBLs/1MMCFofgasproduced2013 PA Unconventional EnergyWastewater Figures30.6millionbarrels(MMBBLs)offlowback andproducedwatergeneratedinPA8.1MMBBLsofflowback (fluidsreturningafterfracturingandbeforeproduction)‐26%oftotalwastewatergenerated‐5.8%ofwaterusedinfracturingreturnedasflowback22.5MMBBLsofproducedwater(fluidsgeneratedduringproduction)‐74%oftotalwastewatergeneratedGenerate~10BBLsoffluidsforevery1millioncubicfeetofgasproduced87%offlowback andproducedfluidswererecycledin2013inPA2013 Wastewater Recycling TrendsFlowback reusetrends2.2MMBBLstreatedatcentralizedplants(WMGR123)5.4MMBBLsreusedinthefield71%%recyclingoccurringinthefieldvs.29%atWMGR123facilities94%overallreuserateProducedwaterreusetrends3.3MMBBLstreatedatcentralizedplants(WMGR123)15.7MMBBLsreusedinthefield83%%recyclingoccurringinthefieldvs.17%atWMGR123facilities84%overallreuserateProduced Fluid Management OptionsProduced fluid managementoptionsDirect reuse (blending)On-site treatment w/reuseOff-site treatment w/reuseUIC well disposalTreatment technologies includeFilter socksChemical precipitationElectrocoagulationEvaporation (MVR)FiltrationCosts of <$2 to $10+/BBLDuring 2013 in PA ~87% of shalegas flowback and produced waterwas recycled and ~13% disposed(mainly via injection wells)PA 2013 Wastewater Disposal Trends3.8 MM BLs of flowback and produced waterdisposed of-15% disposal rate of produced water-6% disposal rate of flowback water3.2 MMBBLs in Class II-D UIC wells85% disposal rate587 MBBLs via centralized plant discharge15% disposal rate3530 BBLs via landfill<0.1% disposal rate105 BBLs via road spreading<0.01% disposal rateSource:APIBrine Disposal In Pennsylvania• 7 operating Class IId UIC wells in PA w/ 3recently issued permits• Approximately 3.2 MMBBLs of unconventionalproduced water generated in 2013 was disposedin UIC wells• Every 1 MMCF of Marcellus gas in PA generates~10 BBLs of produced water• ~1.3 BBLs of flowback/produced water disposedof via UIC wells for each 1 MMCF of Marcellusgas• Distribution of UIC disposal in 2013:– 95% of the disposed brine from PA injectedinto 42 of Ohio’s UIC wells– 4% of the disposed brine from PA injectedinto 2 PA UIC wells– 1% of the disposed brine from PA injectedinto 4 WV UIC wellsClass II-D UICWells in Ohio• 191 Class II-D wellsin OH• Injected ~16.3 MMBBLs in 2013• 51% of injected fluidsfrom out of district• Average injectionrate of 235 BBLs/Dper wellProjected Increase in MarcellusProduced Fluids Disposal via UIC WellsGenerating Less Fluids and More GasGetting More Bang Per Barrel!Northeast US ProductionU.S. Natural Gas ProductionBest Management TrendsBestmanagementpractices:Flowback andproducedwaterreuseClosedloopdrillingandfluidsstorageLiningwellpadstominimizereleasesUseofnaturalgas‐poweredrigsandfracturingfleetsUseofgreencompletions/vaporrecoverysystemsShaleenergyproductionisincreasingandwillcontinuetodosoEfficientandenvironmentallyacceptablewastemanagementstrategiesarecrucialPAhasemergedasagloballeaderinshalewastewatertreatmentandrecyclingSignificantvolumesofsolidsarebeinglandfilled—aretherebettermanagementtechniques?Thank you!!PSU MCOR320 EES BuildingUniversity Park, PA 16802814-865-1587 (office)www.marcellus.psu.eduThe End