...Shale Gas and India Introduction Shale gas has impacted the scenario of Energy market world over. US being the first one to explore and produce shale gas with its indigenous technology, is projected to emerge as an exporter of LNG over the next few years from being a major importer few years back. China has the largest reserves of shale gas followed by Argentina and US, while India has sufficient reserves as well; around 100 trillion cubic feet. Indian Scenario GOI has appointed the public sector companies ONGC and OIL to further explore prospects of the six shale gas basins identified in India. With the shale gas policy to be cleared soon, ONGC has tied up with ConocoPhillips to explore and develop Cambay, Cauvery, Krishna-Godavari and Bengal basins, after the success of a pilot project in Damodar Basin. Also, OIL has hired Schlumberger to evaluate the potential of shale gas reserves in Rajasthan and Assam-Arakan basins. India at present is a net importer of natural gas with the demand supply gap increasing further. Shortage of gas is also aggravated by the lower production levels in KG-D6 block. This has resulted in the under utilization of gas-consuming industries, notably the power and fertilizer industry. Associated issues Shale gas being an unconventional source of natural gas requires unique technology of Hydro-fracking, a method of horizontal drilling using high pressure water along with chemicals. One of the key determinants for implementation of this technology...
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...The Shale Gas Revolution in the U.S. - Aspect of Domestic Market - Prepared for Microeconomics May 6, 2014 "The all-of-the-above energy strategy I announced a few years ago is working, and today, America is closer to energy independence than we’ve been in decades," Obama said during his fifth State of the Union speech on January 2014. In a fact sheet accompanying the speech, the White House called on Congress to establish "sustainable shale gas growth zones." As mentioned by the U.S. president Obama, “The Shale Gas Revolution” is hot topic in the energy industry recently. Previously, the U.S. has imported large amounts of natural gas from other countries, but now it is expected to be an exporter of natural gas because of shale gas production. (Reference: Annual Energy Outlook 2011, May, 2011) Exporting shale gas would bring economic benefits. Gross Domestic Product can be increased, employment on LNG supply chain would be increased, and there will be no import of LNG anymore. Nevertheless, there is some limitation which will not favor to domestic LNG market. For exporting the shale gas, there are many researches to determine the associated costs. The price U.S. LNG exporters can afford to charge can be separated into the following components. Price = Wellhead price + Pipeline + Liquefaction + Shipping + Regasification Based on the above formula, experts’ estimate that the minimum price the U.S. and afford to export LNG to Asia, mainly Japan and Korea...
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...half over the next two decades. The charts below shows the trends of worldwide energy consumption and the energy consumption of three big giants, USA, China and India till 2040. At present, we rely on coal, oil and gas (the fossil fuels) for over 80% of our current energy needs – a situation which shows little sign of changing over the medium-term without drastic policy changes. The problems associated with an over reliance of non-renewable energy sources is the fear that our energy resources are starting to run out, with devastating consequences for the global economy and global quality of life. At the same time, the tremendous risk of climate change associated with the use of fossil fuels makes supplying this energy increasingly difficult. While the potential for a crisis if we run out of energy is very real, but there is still time before that occurs. In the past two decades proven gas reserves have increased by 70% and proven oil reserves by 40%. At expected rates of demand growth we have enough for thirty years supply. Moreover, better technology means that new oil and gas fields are being discovered all the time while enhanced recovery techniques are opening up a potentially huge array of unconventional sources, including tar sands, shale gas and ultra-deep water. While in the long term, the use of renewable sources of energy like harnessing wind and solar energy is inevitable, at present the costs associated are high and the efficiency of the power generated is...
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...Impact of Shale Gas Production on the Market Fundamentals and Energy Security of Certain Countries ICCG Think Tank Map: a worldwide observatory on climate think tanks IMPACT OF SHALE GAS PRODUCTION ON THE MARKET FUNDAMENTALS AND ENERGY SECURITY OF CERTAIN COUNTRIES Ekaterina Zelenovskaya, ICCG 1 Impact of Shale Gas Production on the Market Fundamentals and Energy Security of Certain Countries Impact of Shale Gas Production on the Market Fundamentals and Energy Security of Certain Countries Ekaterina Zelenovskaya, ICCG Abstract The world’s unconventional gas base such as tight gas, coalbed methane (CBM) and shale gas are estimated to be as abundant as conventional gas resources. The recent start of shale gas production in the North America has significantly influenced major regional gas markets around the world. This article intends to examine the impact of shale gas production to the situation with the energy markets and energy security of particular countries, such as United States and countries of Continental Europe. 2 Overview of Shale Gas Production Activities and their Impact on Regional Energy Security Shale Gas and Energy Security Energy production and use have various environmental implications since energy represents about 1 65% of global anthropogenic greenhouse-gas emissions. The general belief/opinion is that fossil fuels will remain the dominant source of primary energy in the following decades. However, natural...
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...Economics of Global Shale Gas Development Shale gas is considered as a “game changer” for the US and global gas markets. Gas production from shale gas in the US has significantly reduced US gas imports in the last five years. Shale gas has become a common discussion topic in the industry as nobody wants to miss the opportunities that are related to the exploitation of gas from these resources. Policymakers in many countries with shale gas resources are seeking to replicate the success of shale gas in the US. This short write-up provides: (a) Summary of the global shale gas resources (b) Estimated economics of shale gas development Some useful rules of thumb are provided that can be used to quickly assess the estimated profitability of shale gas development. Natural gas is produced from different types of gas accumulations. These accumulations are classified into conventional and unconventional gas (UG) resources. The conventional gas can be either associated gas (gas produced with oil), gas cap gas (a gas column in direct communication with oil column below) or non-associated gas (gas reservoir by itself). The unconventional gas is non-associated gas and it comes from hydrocarbon bearing formations that are classified as Tight Gas, Coal Bed Methane (CBM), Shale Gas and Gas Hydrates. Gas has been produced from tight gas and CBM for more than three decades. Production from shale gas started about a decade ago. In 2011, the US Energy Information Administration...
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...Economic Analysis of Shale Gas an Industry Alternative By Lillian Ashford & Bridget M. Chow Professor Nelson Altamirano, Ph.D. National University ECO 607 Economics for Managerial Decision-Making December 11, 2011 Introduction Shale gas is natural gas that is trapped in shale formations. Shale particles are fine grained sedimentary rocks that are rich sources of petroleum and natural gas. In the past, it was not economically viable to produce shale gas; however, with technological advances and the forward thinking perceptions of reducing our ecological footprint, the process has become more economical due to horizontal drilling and fracturing. The natural gas industry in the United States has been revitalized as a result of the production of natural gas from shale formations. In 2009, shale gas represented approximately 14% of the United States total natural gas supply. The production of shale gas is expected to increase and make up approximately 60% of the (U.S.) total natural gas supply by 2035. The question to ponder is whether or not shale gas is a viable energy option for the United States to consider in reducing the energy dependence of the Organization of Petroleum Exporting Countries (OPEC) while increasing fiscal responsibility and economic viability in both the short and long run analysis? Economic Analysis The shale gas industry has contributed to the economy in terms of jobs, economic value...
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...PROSPECTS OF SHALE GAS DEVELOPMENT IN INDIA: A term paper by Tejal Johri (MPE1296) and Shruti Sharma (MPE1293) for Semester 1 Course: Environment and Development Department of Policy Studies, The Energy and Resource Institute (New Delhi) Submitted on 9th December 2012 Table of Contents Executive Summary 1 Literature Review 4 Scope 6 Conclusion 10 Works Cited 11 Executive Summary The gradual shift of the US gas sector- from one of deficit to one of surplus has gathered appreciative appraisals from the rest of the world and initiated talks about the prospect of harnessing shale gas in other countries, as US reached the lowest CO2 emission level in the last 20 years due to shift to natural gas. It has been referred to as “the biggest energy innovation of the decade”, in light of the growing need for suitable alternatives to conventional oil and gas with increasing pressure on energy over time. 90% of global shale gas is currently produced by the US. India meets two-thirds of its petroleum requirements by importing of fuels that include coal, and this figure is expected to rise in the future in spite of India being a coal-rich country. Even with introduction of more efficient technologies and cases of higher CO2 emission reduction, our country’s import dependence on petrol, oil and gas will significantly rise in the future, raising the pressure on the resources. This concern for energy security calls for further research in technological solutions for greater...
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...| Hydraulic Fracturing Hydraulic fracturing is a completion process that has been proven. It allows producers to recover natural gas and oil safely. This process reduces our national carbon dioxide, reduces our reliance on foreign fuel imports, and accelerates our transition to a carbon light environment. The development of natural gas and oil is critical to America’s energy needs and economic renewal. The process of hydraulic fracturing is using water pressure under tight controls to create fractures in rock that allow oil and natural gas to escape and flow up out of the ground. While in this process “fracturing fluids” are mixed in using high pressure. This creates fissures that allow resources to move freely from rock pores where they are trapped. (Chesapeake Energy) First, the way hydraulic fracturing works is a production drill is drilled through the rock layers to intersect the coal seem that contains coal bed methane, CBN. Second, fractures are created or existing fractures are enlarged in the coal seem so that the CBM can be drawn from the well and pumped to the surface. These fractures are created or enlarged by using a thick water-based fluid which is gradually increased by rate and pressure. Third, over time the coal seam is unable to keep up with the fracturing fluid which results in high pressure causing the coal to fracture along the weaknesses within. Sand is pumped into these fractures to keep them ‘propped’ open after the pressures are released. After a...
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...WHAT WILL BE A "GAME CHANGER" FOR EUROPE AND POLAND: SECURE SUPPLIES, SHALE GAS, OPEN MARKET OR RENEWABLE ENERGY (a "game changer" means- which of the mentioned options will influence strongly/determine energy developments in Europe and Poland) Zarówno w Polsce, jak i w Europie można zaobserwować wielkie zmiany zachodzące w sektorze energetyki. W ostatnich latach zintensyfikowano poszukiwania złóż gazu łupkowego, Polska przygotowuje się do wzniesienia elektrowni atomowej, ponadto wdraża się system inteligentnych sieci, a także co raz bardziej wspiera się inicjatywy dotyczące odnawialnych źródeł energii oraz gorąco debatuje się nad kwestiami ekologicznymi oraz emisji CO2. Bezpieczeństwo energetyczne oznacza – zgodnie z polskim prawem – stan gospodarki, który umożliwia porycie bieżącego, a także perspektywicznego zapotrzebowania na energię przy zachowaniu wymagań odnośnie ochrony środowiska. Oznacza to, że Polska powinna się starać stworzyć taki system prawny i ekonomiczny, który zapewniałbym pewność dostaw, wysoką konkurencję oraz powinien zapewniać ochronę środowiska. Jeśli chodzi natomiast o Unię Europejską, jej polityka energetyczna sprowadza się do trzech głównych celów: przeciwdziałania zmian klimatycznym, ograniczania podatności państw członkowskich na wpływy czynników zewnętrznych od importerów oraz na wspieraniu zatrudnienia, a także zapewnienia wzrostu gospodarczego. Polska w swoich planach określających perspektywy bezpieczeństwa energetycznego zamierza poprawić...
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...Hydro-Fracking Synopsis Hydraulic Fracturing, commonly known as Hydro-Fracking is a newly discovered drilling technique for extracting natural gas from rock shale formations. These shale formations are quite abundant throughout the United States the largest being the Marcellus which encompasses a range of West Virginia to Upstate New York. Estimates predict that these 30 shale formations could provide enough natural gas for US consumption for 118 years (Fortin). Although there appears to be vast amounts of shale fissures containing natural gas within our nation, the extraction process has come under harsh scrutiny. The process of drilling and extracting these gases from the shale formations requires creating fissures within the shale by drilling horizontally, forcing water, sand and chemicals into the rock. In each 10,000 ft well over a million gallons of water is pumped, along with sand in chemicals agents in order to cause fissures. By flowing sand through the well, this acts to keep these fissures open, to allow the natural gas to escape. Between 2005-2009, the House Energy and Commerce committee released a report addressing the chemicals used in the hydro-fracking process. The report stated, “The 14 leading oil and gas service companies used more than 780 million gallons of hydraulic fracturing products, not including water added at the well site. Overall, the companies used more than 2,500 hydraulic fracturing products containing 750 different...
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...Lithology-based sequence-stratigraphic framework of a mixed carbonate-siliciclastic succession, Lower Cretaceous, Atlantic coastal plain Brian P. Coffey and Richard F. Sunde AUTHORS Brian P. Coffey ∼ Earth Sciences, Simon Fraser University, Burnaby, British Columbia, Canada, present address: Apache Corporation, Houston, 2000 Post Oak Boulevard, Texas 77056; bpcoffey@ gmail.com Brian Coffey received his B.Sc. degree in geology from the University of North Carolina at Chapel Hill in 1995 and his Ph.D. in geology at Virginia Polytechnic Institute and State University in 1999. He has worked at ExxonMobil, Simon Fraser University, and Maersk Oil and has been a private consultant specializing in carbonate reservoir characterization. He currently works as a carbonate specialist at Apache Corporation in Houston. Richard F. Sunde ∼ EnCana, 500 Centre Street, Calgary, Alberta, Canada T2G1A6; richard.sunde@encana.com Richard Sunde earned a D.E.C. degree (Diplôme dietudes Collégiales) at Dawson College, Montreal, in 2000 and a B.Sc. degree in geology at McGill University, Montreal, in 2004. He then completed an M.Sc. degree at Simon Fraser University, British Columbia, in 2008; his thesis research focused on the content presented in this article. Richard currently is employed as a Geoscientist at Encana Corporation in Calgary. ACKNOWLEDGEMENTS ABSTRACT This study presents a lithology-based sequence-stratigraphic framework and depositional model for Lower Cretaceous, mixed siliciclastic-carbonate...
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...Rock Physics Modelling Rock physics is an essential part of any seismic reservoir characterisation project. The rock physics may be as simple as establishing empirical relationships between rock properties or as complex as poroelastic numerical modelling. The sophistication of the modelling will depend on the objectives and the quality and availability of data. Typical objectives of rock physics modelling studies based on well log data are: 1. Quality control of the measured elastic logs: density, p-sonic and s-sonic. Demanding a consistent and meaningful rock physics model can often indicate anomalous and poor quality measurements in the elastic logs that need correction or mitigation. 2. Quality control of petrophysical interpretation. It has been suggested that empirical relationships are more reasonable to use with well log data as it is hard to establish a consistent numerical rock physics model to explain the information from various wells even though they are drilled close by and in the same formations. However, the root of these problems may lie in inconsistencies in the petrophysical interpretations. Insisting on a consistent rock physics model can often highlight inconsistencies within the petrophysical interpretations. 3. Synthesis of elastic logs where missing or the quality is poor. Once a strong relationship has been established between the petrophysical interpretation (or other well log data) and the elastic properties, prediction...
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...World Shale Gas and Shale Oil Resource Assessment SHALE GAS AND SHALE OIL RESOURCE ASSESSMENT METHODOLOGY INTRODUCTION This report sets forth Advanced Resources’ methodology for assessing the in-place and recoverable shale gas and shale oil resources for the EIA/ARI “World Shale Gas and Shale Oil Resource Assessment.” The methodology relies on geological information and reservoir properties assembled from the technical literature and data from publically available company reports and presentations. This publically available information is augmented by internal (nonconfidential) proprietary prior work on U.S. and international shale gas and shale oil resources by Advanced Resources International. The report should be viewed as an initial step toward future, more comprehensive assessments of shale gas and shale oil resources. As additional exploration data are gathered, evaluated and incorporated, the assessments of shale oil and gas resources will become more rigorous. RESOURCE ASSESSMENT METHODOLOGY The methodology for conducting the basin- and formation-level assessments of shale gas and shale oil resources includes the following five topics: 1. Conducting preliminary geologic and reservoir characterization of shale basins and formation(s). 2. Establishing the areal extent of the major shale gas and shale oil formations. 3. Defining the prospective area for each shale gas and shale oil formation. 4. Estimating the risked shale gas and shale...
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...sand, and chemicals are drilled and injected at high pressures in a shale formation creating the fractures need to release the natural gas from shale rock. The fracking fluid is then pushed and drilled down into the ground 10,000 ft. at high volumes of pressure then reaches the end of the well causing the shale rock to crack and the natural gas begins to flow into the well to the surface for use. This hydraulic fracturing idea is something that has been around for years. With much research the process has changed and become a new formation. Shale is a sedimentary rock that forms from silt and clay-size mineral like mud. The oil and natural gas migrated out of black shale rock upwards because of the low density that it has. Conventional reservoirs are deposits where the natural gas and oil flow through the pores of the rock in and up through the well. Marcellus Shale is 1 mile beneath our earths surface. It can be found in Ohio, Pennsylvania, and New York. Small amounts can be found in states nearby but Pennsylvania is the main supply for Ohio and New York. Thousands of wells are now being drilled in Pennsylvania a year and in the near future New York will follow suit but New York’s water supply isn't tested and makes the situation worse for their residence. Barnett, Fayettville, and Haynesville Shale are also beginning to boom. Hydraulic tracking produces about 300,000 barrels of gas a day but is it worth the harm to the environment, and safety and health...
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...Hydrofracking in Marcellus shale: The Consequences of America’s Gas Rush Introduction Demand for fossil fuels in America has led to a flurry of unorthodox methods for the extraction of natural gas. Fracking or hydrofracking in the U.S.A has proven to be an efficient way of extracting natural gas from permeable rock. A new large scale hydrofracking operation has been proposed in the eastern states of Ohio, Pennsylvania and New York. This method of extraction is highly controversial, and is thought to have severe environmental and potential health consequences. This essay will provide further insight into the practice of Fracking in an area of shale known as Marcellus shale, and help to expose the environmental and human implications. What is Hydrofracking? Hydraulic Fracturing is an un-conventional process used in the extraction of gas in permeable rock (David 1973). A horizontal well is drilled into permeable rock such as shale and is injected with millions of gallons a high pressure fluid known as frac-fluid, this fluid is a mixture of sand, water, and an array of lubricating chemicals (Deutch 2011). The high pressure frac-fluid forces open fishers (cracks) within the rock which are kept open with sand granules; this allows pockets of gas to flow more easily from the shale (David 1973). Once the well is depleted all fluid that can be recycled is extracted, and the well is capped to stop any unused gas escaping (David 1973). The process of fracking is expensive and requires...
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