A Service Company Perspective on Effective Engagement
Unconventional Gas
8 May 2013
Dr Iain Paton
Region Business Unit Manager – Petroleum Consulting Asia Pacific
2© 2012 Weatherford. All rights reserved.
Unconventional: Satisfaction Survey
0% 10% 20% 30% 40% 50%
TOTAL SAMPLE
BARNETT SHALE
MID-CONTINENT
GULF COAST
ROCKIES
WILLISTON/ BAKKEN
MARCELLUS/ UTICA SHALE
PERMIAN BASIN
EAGLE FORD SHALE
HAYNESVILLE + FAYETTEVILLE
CANADA
INTERNATIONAL
24%
47%
35%
33%
32%
30%
25%
22%
21%
21%
19%
19%
Source: Welling & Company
SHARE OF FRAC JOBS NOT MEETING PERFORMANCE EXPECTATIONS
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Root Cause to Challenges in Unconventional Exploitation
0% 20% 40% 60% 80%
FAILURE TO UNDERSTANDSUBSURFACE
POOR FRAC DESIGN
DOWNHOLE EQUIPMENT/TOOLS
INEXPERIENCED CREWS /HUMAN ERROR
SURFACE EQUIPMENT
GEL NOT BROKEN UP
73%
18%
14%
13%
12%
1%
ROOT CAUSE OF FRAC JOBS NOT MEETING PERFORMANCE EXPECTATIONS
Source: Welling & Company
4© 2012 Weatherford. All rights reserved.
Engagement Strategy
• The most effective
strategy is to position the
service company as a
solution provider,
focused on delivering
answers rather than tools
• This is a very different
approach to conventional
O&G
5© 2012 Weatherford. All rights reserved.
Conventional Developments as Analogs?
• “Shale Reservoirs” are different
• Economics of two wells 1km apart might be very different
• Compare to conventional reservoirs – homogeneous over several kms
Ultra-Thin Sections
2D Nano-Scale ImagingElemental Fabric Mapping
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Technical Advantages of Delivering Solutions
FE
LWD
SLS
Shuttle
Geomechanics
Shale Variability
Completions
Efficiencies
Production
Microseismic
Frac Design
Variable Model
• Production
Logging
• ALS
Formation Evaluation Calibration
Measurements/Properties:
• Velocities analysis
• Lithology
• Geomechanics
• Petrophysics
• Geology
• Core Analysis
Build & Modify Reservoir Characterization Model Reservoir Management & Surveillance
Productivity = ƒ (geology, completion)
Appraisal & Development Development & ProductionProduction &
Surveillance
Update the reservoir model
Where to drill: image the zone of interest / target
How to land the well in zone?
How to keep the well in zone?
Characterizing for fracability
Completion design: Where to frac / selection of equipment / ALS
Initial Production?
Monitor Production• Neighboring
results
• Seismic
• Core analysis
• Logs: WL & LWD
• SAGR, CXD, LWD
to surface, Core,
CMI
Exploration
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Realizing the Technical Advantages
Treatment wellMonitor Well Grid spacing = 100 m (sidetrack)
Big Natural Fracture into the Lower Limestone
Region of Complex Fracturing in theTarget Shale Interval
Map View All Stages – 6,722 events (100 meter grid lines),
with large natural fracture in underlying limestone
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Effective Engagement
• Outstanding critical questions
– Where to drill – are there sweet spots?
– Which sections are most frackable?
– How to measure fracture performance?
– To re-frac or not to re-frac?
– Reservoir characterization – learning from experience
• Genuine case for “partnership” between operator and service companies
– This is not an off the shelf offering
– Appraising and developing unconventionals – technologies and experience
10© 2012 Weatherford. All rights reserved.
Summary
• Shifting emphasis from tools
to solutions
• Solution provider and
operator working together
• Regulatory environment
accepting closer relationships
• Commercial success lies in
working together to solve the
problem, not client-vendor
relationship