26
OIL AND GAS PLAYS OF THE MICHIGAN BASIN, SOUTHERN ONTARIO Terry Carter, Consulting Geologist London, Ontario 1
OIL AND GAS PLAYS OF THE MICHIGAN BASIN, SOUTHERN ONTARIO
Terry Carter, Consulting Geologist
London, Ontario
1
2
PLAY BY PLAYEXPLORING THE MICHIGAN BASIN
Oil and Natural Gas 1250 oil wells, 1200 gas wells, annual production 400,000 bo,
5.7 bcf natural gas, 100 different producers
5 wells/yr, 27,000 well records
Hydrocarbon Storage in Geological Formations 270 bcf natural gas in 35 depleted reservoirs, 275 wells
22 million bbl refined petroleum products in 71 solution-mined caverns at Sarnia-Windsor area refineries/petrochemical plants – 95 wells
Salt Solution Mining 250,000 tonnes/yr, 18 wells
Ontario Petroleum Industries
3
PLAY BY PLAYEXPLORING THE MICHIGAN BASIN
Oil & Gas Historically and presently exploration and production is dominated by small
(mostly), Ontario-based operators History of periodic interest from large Calgary-based and international
companies Small companies are low-cost, maintain operations through down-cycles,
generate new plays, raise local capital Local companies have grown into large national and international
corporations with long-term economic impact; Imperial Oil, Union Gas, and former McColl-Frontenac (Texaco
Canada), British-American Oil Co. (Gulf Canada) and White Rose (purchased by Shell Canada)
Hydrocarbon Storage Natural gas storage dominated by one large +billion$ company All cavern storage operations owned by large +billion$ petrochemical
companies
Salt solution mining Two operations owned by large corporations
Industry Participants
4
PLAY BY PLAYEXPLORING THE MICHIGAN BASIN
• 1858 - first commercial oil well in North America at Oil Springs (and first oil spills)
• 1866 – first salt solution mining well at Goderich
• 1870 – first oil exports to U.S
• 1873 – first export of technology – first Canadian drillers leave for Indonesia
• 1889 - commercial gas production at Kingsville and Welland
• 1890 – first export of natural gas to U.S.
• 1913 – first offshore well in Lake Erie
• 1915 – first subsurface injection of natural gas for storage
• 1914 – Ontario Natural Gas and Oil Wells Act
• 1985 - year of peak gas production
• 1995 - year of peak oil production
Ontario Oil and Gas History & Firsts
-Precambrian crystalline
rocks of Canadian Shield
form core of the North
American continent, > 1
billion years old
-Sedimentary rocks
deposited on top of these
crystalline rocks around
edges of the continent
-Oil and gas production
only in Michigan &
Appalachian basins
Geological Setting
6
PLAY BY PLAYEXPLORING THE MICHIGAN BASIN
Bedrock Geology of Southern Ontario
7
PLAY BY PLAYEXPLORING THE MICHIGAN BASIN
Paleozoic Stratigraphy of Southern Ontario
Michigan Basin
Appalachian Basin
8
PLAY BY PLAYEXPLORING THE MICHIGAN BASIN
Oil and Natural Gas Fields of the Michigan and Appalachian Basins
9
PLAY BY PLAYEXPLORING THE MICHIGAN BASIN
DEV – structural traps in Devonian carbonates and sandstones
Oil and Natural Gas Plays of the Michigan Basin, Ontario
CAM
ORD – hydrothermal dolomite traps in Trenton and Black Groups (U. Ordovician)
CLI
SAL – reefs and structural traps in Silurian carbonates;
10
PLAY BY PLAYEXPLORING THE MICHIGAN BASIN
Oil and Natural Gas Fields of Ontario
11
PLAY BY PLAYEXPLORING THE MICHIGAN BASIN
Oil and Natural Gas Fields of the Michigan Basin, Ontario
12
PLAY BY PLAYEXPLORING THE MICHIGAN BASIN
Ontario Oil and Gas Plays
Play Description Depth
m.
Cum.
production
DEV Structural traps in fractured Devonian
carbonates and sandstone – structural
domes related to differential salt
dissolution
100 - 150 45 mmbo
SAL Silurian carbonates
- pinnacle, incipient and patch reefs
- fault traps
300 - 700 15 mmbo
748 bcf
250 bcf gas
storage capacity
CLI Lower Silurian sandstones basin-centre
stratigraphic trap
150 - 500 0.05 mmbo
507 bcf
ORD Ordovician carbonates – hydrothermal
dolomite reservoirs
800 - 900 25 mmbo
43 bcf
CAM Cambrian sandstones – stratigraphic
traps, fault traps
700 - 1200 5.3 mmbo
32 bcf
DEV: Devonian structural traps
SAL: Silurian carbonates
ORDOVICIAN HYDROTHERMAL DOLOMITE
COLLINGWOOD –BLUE MOUNTAIN
Shale Potential
Kettle Point (Antrim)
Marcellus
Collingwood-Blue Mtn
POTENTIAL SHALE PLAYS
Kettle Point Marcellus Collingwood-
Blue Mountain
Thickness 30-105 1-12 10-50
Max depth m. 143 225 1000
Area km3 9500 4700 70,000
TOC 3 – 15% 1 – 11% 1 – 11%
18
PLAY BY PLAYEXPLORING THE MICHIGAN BASIN
0
50
100
150
200
250
300
350
400
450
500
1950 1960 1970 1980 1990 2000 2010 2020
DRILLING 1955 - 2015 Total Wells
431 wells - 1956
Lake Erie 126 wells - 1980
19
PLAY BY PLAYEXPLORING THE MICHIGAN BASIN
0
5
10
15
20
2519
06
1910
1914
1918
192
2
192
6
1930
1934
1938
194
2
194
6
1950
1954
1958
196
2
196
6
1970
1974
1978
198
2
198
6
199
0
199
4
199
8
20
02
20
06
20
10
20
14
Bcf
Annual Gas Production 1906-2015
1985 peak gas
Gas peaks in 1917, 1940, 1960,1985 corresponding to technological advances in seismic and offshore drilling
SAL –Tilbury reef1917
Lake Erie
SAL-seismic
CLI
20
PLAY BY PLAYEXPLORING THE MICHIGAN BASIN
0
20
40
60
80
100
120
140
1950 1960 1970 1980 1990 2000 2010 2020
LAKE ERIE DRILLING 1960 TO 2016 Total Wells
126 wells in 1980
21
PLAY BY PLAYEXPLORING THE MICHIGAN BASIN
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
Yea
r
186
5
1871
1877
188
3
188
9
189
5
190
1
190
7
1913
1919
192
5
1931
1937
194
3
194
9
1955
196
1
196
7
1973
1979
198
5
199
1
199
7
20
03
20
09
20
15
ba
rre
ls o
il
Annual Oil Production 1863 - 2015
1995 peak oil
DEV
SAL
ORD
Oil peaks in 1895, 1966, and 1995 corresponding to successive discovery of deeper plays, seismic and new exploration models
• Not-for-profit centre for management of publicly accessible data on oil, gas, salt, hydrocarbon storage resources, and subsurface Paleozoic geology of Ontario
• Industry-operated• Both free and fee-based access to data• 669 Exeter Road, London, ON• www.ogsrlibrary.com
Oil, Gas and Salt
Resources Library
23
• Petroleum well files 26,500 +20/yr• Scanned well file images 500,000+• Drill cuttings 11,000 wells +20/yr• Drill core 1,100 +4/yr• Monthly production reports 40,000 +2,000/yr• Injection+disposal reports 10,000 +150/yr• Maps & Reports 2,500 +10/yr• Geophysical logs 21,000• Oil and gas pool map• Journals, reprints, government reports• ArcGIS workstation• Digital petroleum well database• Oil, gas, water analyses, isotopic analyses• Deep groundwater maps
89 water type, 17 potentiometric
Data Resources
Digital Data: www.ogsrlibrary.com
25
PLAY BY PLAYEXPLORING THE MICHIGAN BASIN
What Next?• Large unexplored areas in Ordovician
• Undiscovered incipient reefs
• Low drilling density in Huron County
• Lake Huron reefs?
• Conversion of more depleted gas pools to storage
• Technological improvements in enhanced recovery from known oil reservoirs
• Historic Devonian oil pools now account for 20% of Ontario annual production – flat production decline
• New play concepts
• Unassessed shale gas/oil potential
• Excellent data availability at OGSR Library
QUESTIONS?
26
