## Green Completions

Lessons Learned from Natural Gas STAR

Producers Technology Transfer Workshop

ExxonMobil Production Company,
American Petroleum Institute and EPA’s Natural Gas STAR Program

September 21, 2004Page 2

Reducing Emissions, Increasing Efficiency, Maximizing Profits 

## Green Completions: Agenda

 

### Methane Losses

 

### Methane Recovery

 

### Is Recovery Profitable?

 

### Industry Experience

 

### Discussion QuestionsPage 3

Reducing Emissions, Increasing Efficiency, Maximizing Profits 

## Methane Loss During Well Completions

 

### It is necessary to clean out the well bore and formation surrounding perforations

 After new well completion

 After well workovers

 

### Produce the well to an open pit or tankage to 

### collect sand, cuttings and reservoir fluids for disposal

 

### Vent or flare the natural gas produced

 Venting may lead to dangerous gas buildup

 Flaring is preferred where no fire hazard or nuisancePage 4

Reducing Emissions, Increasing Efficiency, Maximizing Profits 

## Methane Losses: 

## Well Completions and Workovers

 EIA reported annual losses due to flaring and venting from onshore gas well completion, workovers and blowdowns to be 76 Bcf

 Estimated 45 billion cubic feet (Bcf) of natural gas lost annually due to well completions and workovers 1

Note:

- 1 Percentage that is flared and vented is not known

- Value of natural gas at $3/Mcf

- Value of condensate at $22/bbl Venting and Flaring from Well Completions and Workovers 59% Venting from Blowdowns, 41%  Estimated a total of 480,000 barrels (Bbl) condensate lost annually due to venting and flaring

 A total of $145 million lost due to well completions and workoversPage 5

Reducing Emissions, Increasing Efficiency, Maximizing Profits 

## Methane Recovery by Green Completions

 

### Recover natural gas and condensate produced during well completions or workovers

 

### Estimated 24 Bcf of natural gas can be recovered annually using Green Completions

 

### Use portable equipment to process gas and
condensate suitable for sales

 

### Direct recovered gas through permanent 

### dehydrator and meter to sales line, reducing venting and flaringPage 6

Reducing Emissions, Increasing Efficiency, Maximizing Profits 

## Green Completions: Equipment

 

### Truck

- or trailer

- mounted 

### equipment to capture produced gas during cleanup

 Sand trap

 Three

- phase separator

 

### Use portable desiccant dehydrator for workovers 

### requiring glycol dehydrator maintenance Temporary, Mobile Surface Facilities, Source: BPPage 7

Reducing Emissions, Increasing Efficiency, Maximizing Profits 

## Green Completions: Preconditions

 

### Permanent equipment on site before cleanup

 Piping to well head

 Dehydrator

 Lease meter

 Stock tank

 

### Sales line gas can be used for energy and/ or gas lift in low pressure wellsPage 8

Reducing Emissions, Increasing Efficiency, Maximizing Profits 

## Green Completions: Low Pressure Wells

Portable Compressors, Separator and Other Equipment on a trailer

Source: Herald  

### Use portable compressors when pressure in well is low

 Artificial gas lift to clear fluids

 Boost gas to sales line

 Higher cost to amortize investmentPage 9

Reducing Emissions, Increasing Efficiency, Maximizing Profits 

## Green Completions: Benefits

 

### Reduced methane emissions during completions and workovers

 

### Sales revenue from recovered gas and condensate

 

### Improved relations with state agencies and public neighbors

 

### Improved safety

 

### Reduced disposal costsPage 10

Reducing Emissions, Increasing Efficiency, Maximizing Profits 

## Is Recovery Profitable?

 

### Partners report recovering 2% to 89% (average of 53%) of total gas produced 

### during well completions and workovers

 

### Estimated 7 to 12,500 thousand cubic feet (Mcf) (average of 3,000 Mcf) of natural gas can be recovered from each cleanup

 

### Estimate 1 to 580 Bbl of condensate can be recovered from each cleanup

Note: Values for high pressure wellsPage 11

Reducing Emissions, Increasing Efficiency, Maximizing Profits 

## BP Experience

 

### Capital investment ~ $1.4 million on portable three phase separators, sand traps and 

### tanks

 

### Used Green Completions on 106 wells

 

### Total natural gas recovered ~ 350 million cubic feet per year (MMcf/yr)

 

### Total condensate recovered ~ 6,700 Bbl/yrPage 12

Reducing Emissions, Increasing Efficiency, Maximizing Profits 

## BP Experience

 

### Total value of natural gas and condensate recovered 

### ~ $840,000 per year

 

### Investment recovered in 2+ years

Portable Three Phase Separator, Source: BP

Note:

- Value of natural gas at $1.99/Mcf

- Value of condensate at $22/BblPage 13

Reducing Emissions, Increasing Efficiency, Maximizing Profits 

## Devon Energy Experience

 Implemented Reduced Emission Completion (REC) in the Fort Worth Basin

 REC performed on 30 wells at an average incremental cost of $8,700

 Average 11,900 Mcf of natural gas sold vs. vented per well

 Natural gas flow and sales occur 9 days out of 2 to 3 weeks of well completion

 Low pressure gas sent to gas plant

 Conservative net value of gas saved is $50,000 per well

 Expects emission reduction of 1.5 to 2 Bcf in year 2005Page 14

Reducing Emissions, Increasing Efficiency, Maximizing Profits 

## Weatherford Durango Experience

 

### Successfully completed pilot project in the Fruitland coal formations in Durango, 

### Colorado

 Well depth: 2,700 to 3,200 feet

 Pore pressure: estimated at 80 pounds per square inch gauge (psig)

 Well type: coal bed methane

 Hole size: 5 1⁄2 inches

 No. of wells: 3 well pilots

 

### Captured 2 MMcf of gas and sold by clientPage 15

Reducing Emissions, Increasing Efficiency, Maximizing Profits 

## Weatherford Portable EquipmentPage 16

Reducing Emissions, Increasing Efficiency, Maximizing Profits 

## Weatherford Green Completions

 Use natural gas from pipeline along with proprietary foaming agent as compressible fluid to initiate cleanout

 Cleaning system consists of a wet screw compressor in addition to the booster, three phase separator and sand trap

 Wet screw compressor used when well pressure is less than 80 psig

 Estimate a clean up pressure of 300 to 400 psig at a well depth of 8000 feet

 Suggests use in all kinds of completion and workover cleanup operationsPage 17

Reducing Emissions, Increasing Efficiency, Maximizing Profits 

## Discussion Questions

 

### To what extent are you implementing this opportunity?

 

### Can you suggest other approaches for 

### reducing well venting?

 

### How could these opportunities be improved upon or altered for use in your operation?

 

### What are the barriers (technological, economic, lack of information, regulatory, focus, manpower, etc.) that are preventing you from implementing this practice?