SHALE GAS

PENG 6012

RENATA REMY
NANDANI SUDAMA

PRESENTATION OUTLINE

Defining shale gas

Production techniques
Shale gas fields
Global shale gas reserves
Shale gas reserves in Trinidad and Tobago
Shale gas environmental issues
Shale gas Economics
Conclusions
References

DEFINING SHALE GAS?

WHAT IS SHALE GAS

Natural gas that is trapped inside shale formations. (shaletec.org)

Natural gas is formed through the thermogenic processing of
carbonaceous material many million years old at significant
depths. (http://www.nortonrosefulbright.com/files/norton-rose-fulbright-shale-gas-handbook-108992.pdf)

Adapted From:
http://www.news.ucsb.edu

Adapted From:
http://info.drillinginfo.com/shale-gas-oilgeology/

DEFINING SHALE GAS

HOW IS SHALE FORMED?

Originally

deposited as mud in low energy depositional

environments such as tide flats and swamps where the
clay particles fall out of suspension. (www.gov.uk)
Organic matter is deposited in conjunction with the mud
deposits.
As the sediments were buried they were heated and the
mud turned to rock and the organic matter was
converted into gas.
Over geologic time, extreme pressures from burial forces
most of the gas to migrate from the organic shales into
more porous and permeable rock eg. sandstone

DEFINING SHALE GAS

WHAT IS SHALE?
Fine

grained sedimentary mudrock comprising mostly of

flakes of various clay minerals, fragments of calcite,
quartz, other minerals and organic material.
Typical grain sizes of < 1/16mm
Laminated
Fissile- parts easily along the thin laminated parallel
layers
Moderate to high porosity allowing it to store large
quantities of the shale gas
Low permeability- does not allow the flow of the gas from
this source rock freely.

DEFINING SHALE GAS

CONVENTIONAL OR UNCONVENTIONAL GAS?

CONVENTIONAL

RESERVOIR: This gas usually migrates

from the shale source rock to a nearby reservoir rock
that is usually carbonate or sandstone in nature, where
it is produced freely due to its interconnected pores.

UNCONVENTIONAL

RESERVOIR: The gas forms within

the shale rock but does not migrate over geologic time
and requires stimulation techniques to extract it.

Adapted from: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/304755/5057background-note-on-shale-gas-and-hydraulic-fractur.pdf

DEFINING SHALE GAS

Adapted From:
https://en.wikipedia.org/wiki/Shale_gas#/media/File:(Non)_Conventional_Deposits.svg

PRODUCTION TECHNIQUES

The main techniques employed for the extraction of

shale gas.
1.

Hydraulic Fracturing: Produces fractures in the rock

formation that helps to stimulate the movement of
the shale gas and facilitates its increased recovery.

2.

Horizontal Drilling: The well is drilled horizontally

through the shale rock to increase the amount of gas
recovered without the need for drilling several wells.

NOTE: Both Techniques are used in tandem!!

Adapted From: https://www.epa.gov/hydraulicfracturing/process-hydraulic-fracturing

PRODUCTION TECHNIQUES

HYDRAULIC FRACTURING
The

well is drilled
The casing is cemented in the well
Fractures are created using perforating guns
Fracturing fluid is pumped into the fractures
causing them to expand and branch out.
Fracturing Fluid is pumped out and the natural
gas is allowed to flow through the well bore.

PRODUCTION TECHNIQUES

Adapted From: https://www.youtube.com/watch?

v=lB3FOJjpy7s

PRODUCTION TECHNIQUES

DISADVANTAGES OF HYDRAULIC FRACTURING

Large

amounts of waste water to be disposed.

Limited techniques for the disposal of water
contaminated with brine and other radioactive
substances.
Contamination of drinking water with brine and
naturally occurring radioactive materials.
Air pollution from the emission of volatile organic
chemicals, and methane pose a challenge for
maintenance and air quality preservation.

SHALE GAS FIELDS

Source:
https://en.wikipedia.org/wiki/List_of_natural_gas_fields#/media/File:Natural_gas_production_world.

GLOBAL RESERVES

Technically recoverable Shale Oil and Shale

Gas Resources: An assessment of 137 shale
formations in 41 countries outside the United
states
Prepared by: Advanced Resources
International Inc.
Prepared for: U.S. Energy Information
Administration, Department of Energy
Date of Report: June 2013
Website has updated data

GLOBAL RESERVES

Source: EIA Report

(2013)

GLOBAL RESERVES

GLOBAL SHALE GAS RESERVES

Technically recoverable
vs. economically
recoverable
Total risked Shale Gas
in place
= 22882 tcf
Technically recoverable
Shale Gas
= 7299 tcf

32%

68%

TRR SHALE GAS

NOT TRR SHALE GAS

Adapted from: EIA Report

(2013)

PERCENT OF TOTAL GLOBAL GAS RESERVES

0%

SHALE GAS PROVED

RESERVES
31%

39%

SHALE GAS UNPROVED

RESERVES

OTHER PROVED RESERVES

OTHER UNPROVED
RESERVES

29%

Adapted from: EIA Report

(2013)

SHALE GAS RESERVES BY COUNTRY

Top ten countries

contain
approximately
80% of TRR shale
gas

Nearly 2/3 of the

TRR shale gas
can be found in 6
countries

Adapted from: EIA Report

(2013)

NATURAL GAS RESERVES BY REGION

TRR GAS (TCF)

REGION

NATURAL GAS PRODUCTION (2011)

TRR UNPROVED SHALE GAS (2013)

TRR UNPROVEN CONVENTIAL NATURAL GAS (2012)

ESTIMATED PROVEN NATURAL GAS (2013)

SHALE RESERVES BY REGION

SHALE GAS (TCF)

REGION

RISKED SHALE GAS IN PLACE (TCF)

TRR SHALE GAS (TCF)

Adapted from: EIA Report

(2013)

SHALE GAS IN TRINIDAD AND TOBAGO

There have been no notable shale gas discoveries to date in

the country
The following quotes taken from an article in the Trinidad
Guardian (2013) give the thoughts of two of the countrys
leading geologists:

Helena Inniss-King, (then) President of GSTT:

If you look at one of BHPs offshore gas discoveries, it was made in the
Naparima hill formation, which is a solid mud rock with no real pore spaces as
you will get normally in sand, and what you have is the flowing of gas and oil
through the fractures. So in a real sense, that is a shale discovery.
- Krishna Persad, Petroleum Consultant:
Yes, there is certainly shale oil and gas both on-land and in the Gulf of Paria
that is not just commercial, but potentially lucrative. If you examine the source
rock that so much of our oil and gas has been produced from, in the
cretaceous, you will see that there is real potential for shale oil and gas. In
fact, not just potential, I am sure it exists in commercial quantities.

SHALE GAS ENVIRONMENTAL ISSUES

Environment
al issue

Counter argument

Solution

Large land use

foot print for well

sites, roads and
production

facilities

Foot print smaller

compared to other
energy forms
Drilling of multiple
horizontal wells from one
surface location

High water use

Small amount used in

comparison to other
industries (approximately
1%)

Regulate source of water

and water usage

Effect on
drinking water
Additives in
fracturing fluid
may contain
chemicals that
can affect water
quality

Aquifers rarely
contaminated because of
differences in depth
Occurs only in cases with
poor cementation and
bad casing
Similar chemicals to
household and
commercial applications

Ensure proper
cementation and casing
integrity on wells
Geological studies prior to
drilling to identify aquifers
Disclose additives in
fracture fluids to public
Research
into green
Adapted from: IGU Report
additives
(2012)

Make use of drilling

technology to maximise
number of wells per drill
site
Proper planning prior to
drilling to minimise impact

SHALE GAS
ENVIRONMENTAL ISSUES
Environment
al issue

Counter argument

Earthquakes
caused by
hydraulic
fracturing

Water pollution

from waste water

disposal

Solution

According to the USGS it

is difficult to link these
earthquakes to fracs
Can cause seismic
activity but the
magnitude is very
insignificant to be felt

Waste water must be

managed in one of 3
ways: reused, disposed
by injection into deep
wells, and treatment of
the water

Review local geology to

determine the possibility
of earthquakes occurring
Monitor activities using
sensitive equipment and
instruments to shut down
operations if needed
Ensure regulations exist
and are enforced to
prevent water pollution
Reuse the water for
subsequent fracturing
procedures

Adapted from: IGU Report

(2012)

Economic gain versus the environment

Taken from the International Gas Union Report (2012)

SHALE GAS - ECONOMICS

United States Kennedy (2015)

Initiation of commercial shale gas

production lead to increase in production
and decrease in prices
Average price since 2008 - US$4 per
MMBTU
Continued production increases
Decline in oil price began a decline in gas
production
Decreased imports of natural gas and its
products

SHALE GAS - ECONOMICS

Source: Kennedy
(2015)

SHALE GAS - ECONOMICS

China and Canada

Orcutt (2015) states that China and

Canada also produce commercial shale gas.
Production is much less than the U.S.
In China, challenging geology makes
production difficult.
Other countries are only now beginning to
look for shale gas reserves

SHALE GAS - ECONOMICS

Trinidad and Tobago

US used to be the largest importer of

Trinidads LNG
Imports decreased with increased shale gas
Trinidad had to find other spot markets to
sell its LNG eg Japan.
Higher prices but only short term contract
for sales
Formation of Gas Master Plan (2015)

CONCLUSIONS

Although shale gas is an unconventional

resource, advances in horizontal drilling and
hydraulic fracturing have made these
reservoirs more accessible and producible.

Estimates of global reserves vary over time

as new information is obtained

Current global estimates is at 22882 TCF of

which 7792 TCF is recoverable

CONCLUSIONS

Trinidad has the potential for shale gas but more

research must be done to determine commercial
viability

Environmental issues are associated with shale

gas but often are minimal in comparison to other
industries

The increase in shale gas production in the US

can have both positive and negative impacts on
Trinidads gas sales

REFRENCES

A_EIA_ARI_2013 World Shale Gas and Shale Oil Resource Assessment.pdf. (2013, June).
Retrieved February 20, 2016, from http://www.adv-res.com/pdf/A_EIA_ARI_2013 World Shale
Gas and Shale Oil Resource Assessment.pdf
Fernandez, S. (2014, February 19). Unconventional Gas and Oil: Symposium on a Game
Changer. Retrieved February 29, 2016, from
http://www.news.ucsb.edu/2014/013960/unconventional-gas-and-oil-symposium-game-changer
Fulbright, N. R. (2013, November). Shale gas handbook A quick-reference guide for companies
involved in the exploitation of unconventional gas resources. Retrieved February 20, 2016,
from http://www.nortonrosefulbright.com/files/norton-rose-fulbright-shale-gas-handbook108992.pdf
Guiltinan, T. (2014, November 20). Inside Shale Gas and Oil Geology. Retrieved February 19,
2016, from http://info.drillinginfo.com/shale-gas-oil-geology/
Hydraulic Fracturing-Shale Natural Gas Extraction [Video file]. (2011, May 17). Retrieved
February 19, 2016, from https://www.youtube.com/watch?v=lB3FOJjpy7s
The Process of Hydraulic Fracturing. (2015, October 16). Retrieved February 20, 2016, from
https://www.epa.gov/hydraulicfracturing/process-hydraulic-fracturing
What is Shale Gas and Why is it Important (n.d.). Retrieved February 29, 2016, from
http://www.shaletec.org/whatis.htm
What is Shale Gas (n.d.). Retrieved February 20, 2016, from
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/49547/What_is_
shale_gas.pdf

REFERENCES

"LNG versus Shale Gas." December 6, 2012. Accessed February 13, 2016.
http://www.newsday.co.tt/businessday/0,170228.html.
"Geological Society, Consultant Say: T&Thas Shale Gas." July 4, 2013. Accessed February 19, 2016.
http://www.guardian.co.tt/business-guardian/2013-07-04/geological-society-consultant-say-tthasshale-gas.
"Shale Gas, Fracking, Atlantic LNG and Ticking Clocks | Firstline Securities Limited." Firstline
Securities Limited. Accessed March 3, 2016. http://firstlinesecurities.com/shale-gas-frackingatlantic-lng-and-ticking-clocks/.
Kennedy, Charles. "Is This The End Of The U.S Shale Gas Revolution? | OilPrice.com." OilPrice.com.
September 16, 2015. Accessed February 14, 2016. http://oilprice.com/Energy/Natural-Gas/Is-ThisThe-End-Of-The-US-Shale-Gas-Revolution.html.
Orcutt, Mike. Where Is the Global Shale Gas Revolution? July 20, 2015. Accessed February 19, 2016.
http://oilprice.com/Energy/Natural-Gas/Is-This-The-End-Of-The-US-Shale-Gas-Revolution.html.
"Prime Minister's Address in Panama." Prime Minister's Address in Panama. April 10, 2015. Accessed
February 20, 2016. http://www.news.gov.tt/content/prime-ministers-address-panama#.VuZB1_krLIV.
Renwick, David. "Principle behind T&T Natural Gas Master Plan." RSS. January 29, 2016. Accessed
March 1, 2016. http://energynow.tt/blog/principle-behind-tt-natural-gas-master-plan.
Shale Gas The Facts about the Environmental Concerns. Publication. May 2012. Accessed February
23, 2016. http://www.igu.org/sites/default/files/node-page-field_file/Shale Gas, The Facts about the
Environmental Concerns June 2012.pdf.
Wikipedia. Accessed March 10, 2016. https://en.wikipedia.org/wiki/List_of_natural_gas_fields.

Click icon to add picture

Thank your for your time and attention!

Questions? Comments?

SHALE GAS ENVIRONMENTAL ISSUES

Environment
al issue

Counter argument

Solution

Large land use

foot print for well

sites, roads and
production

facilities

Foot print smaller

compared to other
energy forms
Drilling of multiple
horizontal wells from one
surface location

High water use

Small amount used in

comparison to other
industries (approximately
1%)

Regulate source of water

and water usage

Effect on
drinking water
Additives in
fracturing fluid
may contain
chemicals that
can affect water
quality

Aquifers rarely
contaminated because of
differences in depth
Occurs only in cases with
poor cementation and
bad casing
Similar chemicals to
household and
commercial applications

Ensure proper
cementation and casing
integrity on wells
Geological studies prior to
drilling to identify aquifers
Disclose additives in
fracture fluids to public
Research
into green
Adapted from: IGU Report
additives
(2012)

Make use of drilling

technology to maximise
number of wells per drill
site
Proper planning prior to
drilling to minimise impact

SHALE GAS
ENVIRONMENTAL ISSUES
Environment
al issue

Counter argument

Earthquakes
caused by
hydraulic
fracturing

Water pollution

from waste water

disposal

Solution

According to the USGS it

is difficult to link these
earthquakes to fracs
Can cause seismic
activity but the
magnitude is very
insignificant to be felt

Waste water must be

managed in one of 3
ways: reused, disposed
by injection into deep
wells, and treatment of
the water

Review local geology to

determine the possibility
of earthquakes occurring
Monitor activities using
sensitive equipment and
instruments to shut down
operations if needed
Ensure regulations exist
and are enforced to
prevent water pollution
Reuse the water for
subsequent fracturing
procedures

Adapted from: IGU Report

(2012)

Economic gain versus the environment

Taken from the International Gas Union Report (2012)