Hydraulic Fracturing Best Management Practices

Environmentally Friendly Drilling Program

John Michael FernandezMatthew Gunter

Objectives of Presentation

• Introduce and describe hydraulic fracturing

• Present environmental concerns• Discuss best management practices

US Shale Plays

Major Shale Plays with Hydraulic Fracturing

• Bakkeno North Dakota,

Montana, Canadao Oil

• Barnetto Texas (DFW Area)o Natural Gas

• Eagle Fordo South Texaso Oil and Natural Gas

• Haynesvilleo Texas, Louisianao Natural Gas

• Marcelluso Pennsylvania, Ohio,

New York, West Virginia

o Natural Gas• Woodford

o Oklahomao Oil and Natural Gas

What is Hydraulic Fracturing?

• Hydraulic fracturing is a process used to stimulate wells in tight, shale reservoirs.

• Uses water, sand and chemicals to extend, prop open fractures to allow for the flow of oil and natural gas.

Hydraulic Fracturing Process

• Drill the wello Some only verticalo Some have horizontal lateral

• Case and Cement possible hazard areaso Pressure zoneso Ground Water Areas

• Perforate casing and cementing with Perforating Guno Begins fracture process in rock formation

• Pump fracturing fluid down holeo High pressured fluid extend fractures

• Production

Casing and Cementing

• Casing and cementing a wellbore is used to:o Protect groundwater from contaminationo Keep integrity of well-bore

• Casing is steel pipe that is designed to handle:o over- or under-pressured zones and o high tensile stresses down hole

• Casing is cemented in place to safely deliver hydrocarbons to the surface

Perforating the Formation

• Perforated using a “perf gun”o Perforating guns use explosive charges to

fracture:o Casingo Cementingo Formation

Fracturing Fluid

• 98-99.5% Water and Sand• The other 0.5-2%:

o Additives that enhance fracturingo Many additives are used to protect casing,

cementing, and well integrity• 3-7 million gallons of fluid used in typical

horizontal well

Proppant

• Sand pumped down hole is known as proppanto Keeps fractures “propped” open

• Comes in three major formso Untreated sando Resin-coated Sand

Coated for strength in harsh conditionso Ceramic

Artificial Proppant, very strong at high pressures Said to be in shortage, more using resin-coated sand

• Selected based on strength needed and size

Chemical Additives

• Common Additives include:o Acids, Biocides, Gelling Agents, pH Adjusting

Agents, Corrosion Inhibitors, Iron Control, Clay Stabilizer, Acid Inhibitor

o Other additives could be used depending on well characteristics

o Additives considered harmful are often found in household items

Hydraulic Fracturing Animation

Environmental Concerns

• Chemical concernso Pumping chemicals near water tableo Failure in pits and liners could leak chemicals

• High water usage• Air Emissions from truck use• Surface Area used

EPA Study

• Looking into groundwater protection• Major areas of study include:

o Water acquisitiono Chemical Mixingo Well Injectiono Flowback and Produced Watero Wastewater treatment/disposal

Water Table Safety – Fracture Facts

• Fractures are necessary for hydrocarbons to flow from the tight shale formations

• Fractures are typically thousands of feet below water table

• They extend only hundreds of feet at most in any given direction

Hydraulic Fracturing BMPs

• “Green Frac” Program Ideao Chesapeake Energy

• Refracturing wellso Restimulation via fracturing again

• Closed-loop Fracturing Systemo Chief Oil and Gas one of many users

• Pad Drillingo Drills multiple wells from same pad site

• Centralized Fracturingo Fracturing multiple wells from central pad

Green Frac Program

• Program instituted by Chesapeake Energyo October 2009

• Researching additives to:o Find which are unnecessaryo Find which are necessary, but harmfulo Find more environmentally friendly

replacements for harmful additives• Specific findings are proprietary

information

Refracturing Wells

• Used to restimulate wells with production slowed

• Reduces surface area taken by taking away need for new well for oil and gas

• 85% of success found in 15% of total wells drilledo Not universally successful

• When successful, greatly increases production

Closed Loop Fracturing System

• Rather than using water only once and putting in large pits, the frac fluid is circulated and stored in large steel tanks

• Solids are removed from water using mechanical and chemical methods

• Compared to older methods, CLF is o Environmentally friendlyo Economically efficient

Environmentally Friendly CLF

• Takes away use of pits and linerso Pits and liners have been known to burst,

releasing chemicals onto surfaceo Stores in large, sturdy steel tanks

• Uses much less watero Water is reused throughout fracturing processo Reduces water usage by as much as 80%

• Reduces truck traffico Truck loads have been observed to reduce by up

to 75%o Reduces air emissions and traffic congestion

Economically Efficient

• Water usage is reduced• Truck mileage is also reduced• Companies who have drilled similar wells

using CLF have saved about $10,000 in overall expenses compared to conventional drilling

Pad Drilling

• Drills multiple wells from single pad site• Allows for centralized fracturing

o Fracturing from single location for multiple wells

• Reduces acreage necessary for wells• Reduces truck traffic for making pad site• Enhances closed loop systems

Centralized Fracturing

• Fracing multiple wells on a site from a single, central pado Fraced up to 140 wells from single siteo Fraced up to 3 miles away

• Significantly reduces truck traffic and time expendedo Truck traffic was reduced by up to 30% for a single

well, up to 90% for the site as a wholeo Time was reduced by up to 80% to drill, complete

the well• When used with closed loop and pad drilling,

saves even more truck traffic and water used

Past, Present, and Future Best Management Practices

Conclusion

• Hydraulic fracturing is the future of the energy industry

• There are environmental risks involved• BMPs could be the answer to put unease at

rest• When used in combination, BMPs can be

even more effective.

• Questions?