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5 th World Shale Oil & Gas Summit ∙ www.world-shale.com ∙ OCTOBER 2014 5 th World Shale Oil & Gas Summit ∙ www.world-shale.com ∙ OCTOBER 2014 Introduction Shale is the game changer in the oil and gas industry right now. And, if utilised correctly, it could be a game changer for decades to come. 1 Who would have predicted the unconventional hydrocarbon development in the U.S. ten years or so ago? Extracting a number of shale reserves was pretty much impossible due to limited capabilities in drilling technologies and potential environmental concerns. The ability to exploit shale took nigh on everyone by surprise, and now oil and gas players are looking for the new angle that will change shale once again. The industry has come on in leaps and bounds with innovative technological solutions and economic policy support, the future looks bright for the extraction, production and utilisation of shale. Trends in Technology: Technological developments have been a major driver in changing the shale industry, enabling extraction and production while avoiding more hazardous and high-risk processes. Fracture propagation modelled in 3D, or 3D seismic mapping, ensures that a realistic image is created to study the behaviour of rocks before, during and after fracturing. 2 Ultimately, such modelling improves production techniques because of increased predictability in knowing how to optimise water volume and pressure levels. 3D mapping lets one know where to drill, but what could increase further accuracy is high- resolution imaging. Seismic technology uses acoustic vibrations that bounce back off geological microphones to determine subsurface features, says Mark P. Mills, Founder and CEO of the Digital Power Group, and writer of the Forbes.com Energy Intelligence Blog. 3 Going forward, microseismic fracture mapping can enhance the accuracy of fracturing further. With sensors and instrumentation used to highlight obstacles in the fracturing process, as well as understanding distance, geometry and much more 4 , microseismic technology deploys ultrasensitive sensors able to record 3,000 meters underground and listen for noises where the rocks react. 5 To really understand what is happening underground, technology also needs to move from snap-shot coverage to full blown “continuous real-time monitoring.” 6 Today’s coverage is episodic, and many occurrences could potentially be missed because of a lack of 24/7 surveillance. Technology is also being utilised not just to increase the efficiency in shale exploration and production, but to soften the impact the industry has on the environment, the local communities and the surrounding infrastructure, according to The Denver Post. Mark Jaffe 7 reports that while drilling for shale can be disruptive to local communities, with increased road use and tons of sand and chemicals to move around on site, companies have begun to look into ways that technology can not only improve the situation for the benefit of the oil and gas industry, but can soften the impact on the surrounding area. A number of underground pipeline initiatives in Colorado, U.S., are leading the way in transporting oil, water and natural gas from sites to facilities further afield. Anadarko Petroleum Corp’s “stim center” is a mile away from the well for example, separating equipment noise and disturbance from the well location. Companies are not only finding that the consolidation of operations and supplies to one central but external location is a means to please communities, but is also a sensible economic decision as it reduces the amount of downtime in between moving equipment, field to field. 8 Trends in Politics: With armed conflicts and geopolitical risks in the Middle East and Ukraine, as well as repercussions still being felt from the Arab Spring, the oil and gas marketplace has surprisingly been for the past few years, as former chief economist of BP Christof Ruhl says, an “eerie calm”. 9 The North American shale energy boom has countered much of the lost oil production in conflict zones 10 , and a number of governments have reflected on the appeasing in volatility by embracing shale into their own politics, while others have not been as favourable. France and Bulgaria are the two EU nations who have banned fracking for shale gas 11 , while across the English Channel, Britain is embracing the shale industry with ministers announcing over the summer of 2014 that the country is open to bids from fracking companies to begin exploration. 12 Europe has been looking for other energy options to break Russia’s dominance on the continent’s natural gas supplies in the wake of the Ukraine crisis and imposed sanctions. Shale Trends to Watch Out For Worldwide – Technological, political and economic development potential from around the globe.
