A Comparison of Unconventional Reservoirs in Canada Robert Mitchell, Canada Sales Manager Geosciences & Petroleum Engineering (GPE) PetroTechnical Services (PTS) What Does Unconventional Mean? • Wikipedia—Petroleum extracted using techniques other than conventional • IEA—In general conventional is easier and cheaper to produce than unconventional. Categories of unconventional and conventional change over time as economic and technical conditions evolve—unconventional can migrate to conventional. • AER—Unconventional refers to low permeability rock where the pores are poorly connected, making it difficult for oil and natural gas to move through the rock to the well. 2 Unconventional… Unconventional fluid • Heavy oil • Bitumen Unconventional reservoir • Tight Oil/Gas • Shale Oil/Gas 3 Unconventional Oil and Gas in Canada Heavy oil Bitumen Tight/Shale gas Tight/Shale oil “EOR” 4 Shale Gas Liard Shale Gas Horn River Basin Heavy Oil and EOR Bitumen Tight Gas Montney Shale Gas Duvernay Heavy Oil Tight Oil - Bakken and EOR Bitumen Very high density (very high viscosity) Production mechanism: • Mining • Steam Assisted Gravity Drainage (SAGD) • Cyclic Steam Stimulation (CSS) • Chemical Injection Challenges: Environmental footprint. Cap Rock Integrity. Cost of Steam. Shale. 5 Heavy Oil High density (high viscosity) Low primary oil recovery (~5-10%) Low cost, high volume Production mechanism: • Cold production • Cold Heavy Oil Production with Sand (CHOPS) • Post CHOPS thermal Challenges: Under characterized. Water production. Hit or miss for production. How to get 20% (or higher) recovery? 6 Enhanced Oil Recovery Mature oil fields Primary recovery has finished Water, chemicals, CO2, Water Alternating Gas (WAG) Challenges: Which method to use? How to optimize field development? Often under characterized. 7 Tight & Shale Oil/Gas Low porosity (3-6%) Low permeability (under 0.01mD) Gas is easier than oil to flow Production mechanism: • Hydraulic fracturing • Horizontal, multi-well pads Challenges: Heterogeneities. Costs. Understanding of how the fractures go for field development. 8 Challenges with $50 Oil… Maximize capital investment • Drill less wells, produce more • Re-Fracturing existing wells • Migrate to EOR • Optimize completion strategy 9 Unconventional Reservoirs cFRAC’s 10 Effective Fracturing ?? 11 Engineering Completions to Increase Productivity CQ Engineering process for completion design Reservoir properties—Reservoir Quality (RQ), Completion Quality (CQ) Structural constraints—Natural fractures, faults, etc. Operational constraints—Injections rate, stage length, etc. 12 + RQ = Composite Engineered Completion—Montney Example 13 Unconventional Oil and Gas Definition of Unconventional Understanding and Challenges for Unconventional Reservoirs • Heavy Oil & Bitumen • Tight and Shale Oil/Gas Engineered Completion 14 Reference Technical Papers SPE 163855—Asset Development Drivers in the Bakken and Three Forks Bilu V. Cherian, SPE, Schlumberger; Chris M. Nichols, SPE, Continental Resources Inc.; Maraden L. Panjaitan, SPE, Schlumberger; Jayanth K. Krishnamurthy, SPE; Jason Sitchler, SPE, Schlumberger SPE 171662-MS—Back to the Future: Shale 2.0 - Returning Back to Engineering and Modelling Hydraulic Fractures in Unconventionals With New Seismic to Stimulation Workflows V. Ramanathan, D. Boskovic, A. Zhmodik, Q. Li, M. Ansarizadeh, Schlumberger Canada Limited 15
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