Unconventional Resource Development 

and Hydraulic Fracturing

for

October 25, 2012

Kevin Heffernan

President 

Red Deer River Watershed Alliance
October 25, 2012

• Horizontal wells now account for more than 70% of 

wells drilled

• Unconventional gas now accounts for more than 25% of 

Canadian natural gas supply and over 50% in the United 

States

• Advances in technology (horizontal drilling and multistage hydraulic fracturing) have enabled substantial 

growth in oil and natural gas supply in North America

The Oil and Gas Industry is Changing 
October 25, 2012

What Makes an Unconventional Reservoir ?

Sidewalk

Cement

modified from US DOE

Granite

0.0001 0.001 0.01 0.1 1.0 10.0 100.0

Extremely Tight Very Tight Tight Low Moderate High

Unconventional Reservoirs Conventional Reservoirs

Shale

Tight Gas Sand

Conventional

Natural Gas Reservoirs

Natural Gas from Coal

Permeability (mD)

Volcanic Pumice

Limestone

Poor Quality of Reservoir Good

Note: Natural Gas from Coal reservoirs are classified as unconventional due to type of gas storage

Increasing Requirement for Hydraulic Fracturing
October 25, 2012

What is Hydraulic Fracturing?

• From a geological perspective there are a number of stresses (or 

pressures) present in the subsurface that affect the ability of rock to 

fracture

• Principle of hydraulic fracturing is to create enough pressure on the 

rock in the subsurface to overcome the stresses that lie within the 

rock and create a fracture

• The purpose of a hydraulic fracture is to create a series of pathways 

that connect the wellbore to the natural fractures or flow paths within 

the reservoir

Hydraulic fracturing is the process of transmitting sufficient 

pressure by fluid or gas into rock in the subsurface to cause 

existing fractures to open or new fractures to be created 
October 25, 2012

First Commercial Frac Job was at 

Velma, Oklahoma in March of 1949

Courtesy of Halliburton

Hydraulic Fracturing has a long history and is not something new

History of Hydraulic Fracturing
October 25, 2012

Drilling of wells with the horizontal legs up to 

3500 m in length

Multi stage fracture stimulations using a 

variety of fracture fluids and sand to 

essentially “create reservoir” in rock that 

would not have been previously be 

considered reservoir quality 

Drilling and Completion Technologies
October 25, 2012

 Hydraulic fracturing fluids can consist of gases, or fluids that are capable 

of being pumped under pressure into the reservoir as well as capable of 

supporting proppant material

 The most common fluid used is water (or variations) although in some 

cases, nitrogen, propane, oil and CO2 have been used. The choice of fluid is 

dependent on reservoir properties, cost and availability. Compatibility tests 

between fracture fluid and reservoir properties are commonly completed prior 

to fracture treatment

 Proppant materials commonly consist of sand or ceramics of specific size 

that can be carried within the fluid as well as withstand reservoir pressures 

once the fracture treatment is completed

 Where necessary small amounts of chemicals are added to the fracture 

fluid to minimize some of the reactions that may occur between the fracture 

fluid and the reservoir or hydrocarbons

Basic Hydraulic Fracturing Principles
October 25, 2012

Basic Hydraulic Fracturing Principles

 To fracture the reservoir rock, a 

fracture fluid (or gas) is pumped using 

mechanical means under sufficient 

pressure into the reservoir

 To achieve sufficient downhole pressure 

commonly pumping units are placed in 

tandem to achieve sufficient pumping 

capacity to reach fracture pressures 

 Volumes of fluid, proppant as well as 

fracturing pressures are monitored and 

controlled onsite Courtesy of Trican

 Objective of the fracturing process is to create a fracture, induce growth of the 

fracture, but confine it to the reservoir zone, and allow proppant to be placed into the 

fracture to hold it open once the pressure has been released

 Changes in rock characteristics tend to terminate growth of hydraulic fractures 

upward or downward
October 25, 2012

 “Slick Water” fracture fluid consists mostly of water and is the most common fluid 

used

 Tight oil reservoirs such as the Cardium may require different types of fracture fluids 

and proppant to optimize production

Basic Hydraulic Fracturing Principles
October 25, 2012

Groundwater Protection 

Proper well construction and groundwater 

protection is critical for oil and gas development
October 25, 2012

Fracture Mapping Observations

Maximum known depth of aquifer

Maximum depth of groundwater

Maximum vertical growth of hydraulic fracture
October 25, 2012

Fluid volumes

• Fluid volumes required depend on many factors 

including rock characteristics and pressures, horizontal 

well length, and number of fracturing stages

• Shale gas hydraulic fracturing operations are typically 

larger than tight oil hydraulic fracturing operations

– Shale gas - 10,000 to 50,000 cubic meters per well

– Tight oil – 1,500 to 4,000 cubic meters per well

... but there is no global rule of thumb – different regional 

geological characteristics and different operator preferences can 

result in significant variation 
October 25, 2012

Source: Shell Canada at Groundbirch

Source: Talisman

• Water storage practices can vary, depending 

on the stage of development, location, and 

size of fracturing operation

- Surface impoundments

- C-rings

- Tanks 

• Increasing use of additives like CO2, N2, and 

alternate fluids is reducing water use and 

associated impacts

Source: Talisman

Fluid volumes
October 25, 2012

Flowback and Produced Water

• Volumes can vary greatly, but are often 10% to 50% of the frac fluid 

volume

• Produced water management varies depending on the stage of the 

operation – typically tanks or c-rings then to disposal wells 

• Water treatment, re-use, and recycling options increase as 

operations move to commercial development

Trends include 

- Aggressive moves to develop “green” 

additives and salt tolerant chemicals that will 

allow greater re-use of flowback and 

produced water

- Deep saline aquifers as source water

- Industrial and community waste water as 

source water

- Development of less water intensive fluids 
October 25, 2012

Independent Assessments

• Groundwater Protection Council (GWPC) - Ohio and 

Texas Review – August, 2011

– Texas (1993-2008) – 187,788 wells drilled (including 16,000 

horizontal with multistage fracs); 140,818 plugged (all vintages)

• 211 groundwater contamination incidents including 57 legacy wells 

• 33% waste management and disposal, 25% due to tanks and flow 

lines, zero related to hydraulic fracturing

• Zero incidents related to drilling, well construction, hydraulic 

fracturing, or production at any of the horizontal wells

– Ohio (1983-2007) – 61,000 wells drilled or plugged

• 185 groundwater contamination incidents; 53% during the first 5 

years, > 25% legacy wells, pit construction 40%

• Zero attributable to well construction, hydraulic fracturing, or 

production
October 25, 2012

• In addition to review of regulations in many US States, third party 

reviews are underway in some areas

• STRONGER is a non-profit, multi-stakeholder organization (State 

Review of Oil and Natural Gas Environmental Regulations, Inc.) that 

established a set of “2010 Hydraulic Fracturing Guidelines” and is 

slowly working its way through reviews of regulations in various 

states.

• These reviews represent a clear and common desire from multiple 

stakeholders to ensure current regulations are appropriate for 

modern shale gas development from OHS and environmental 

perspectives.

• Several states with active development of unconventional resources 

have been reviewed

Independent Assessments
October 25, 2012

Trends

• Voluntary disclosure of additives used in hydraulic fracturing 

fluids is now commonplace in North America, either on 

operator websites or through FracFocus websites

• Regulated disclosure of additives now applies in many US jurisdictions

• BC implemented mandatory disclosure requirements effective 

January 1, 2012, and Alberta will have similar disclosure 

requirements in the coming months

• Through the Canadian Association of Petroleum Producers 

(CAPP) the industry is adopting a set of principles and 

operating practices for shale gas development and hydraulic 

fracturing (www.capp.ca) 

• Alberta and British Columbia oil and gas regulators continue 

to be consulted by other jurisdictions, and are a standard 

against which other jurisdictions measure their capability
October 25, 2012

Thank You!

www.csur.com