Posts Tagged ‘United States’

The presence of an enormous volume of potentially recoverable gas in the eastern United States has a great economic significance. This will be some of the closest natural gas to the high population areas of New Jersey, New York and New England. This transportation advantage will give Marcellus gas a distinct advantage in the marketplace.

Gas produced from the shallower, western portion of the Marcellus extent might be transported to cities in the central part of the United States. It should have a positive impact on the stability of natural gas supply of the surrounding region for at least several years if the resource estimate quoted above proves accurate.
Copyright: Geology.com

Horizontal Drilling to Penetrate More Fractures

The fractures (also known as “joints”) in the Marcellus Shale are vertical. So, a vertical borehole would be expected to intersect very few of them. However, a horizontal well, drilled perpendicular to the most common fracture orientation should intersect a maximum number of fractures.

High yield wells in the Marcellus Shale have been built using the horizontal drilling technique. Some horizontal wells in the Marcellus Shale have initial flows that suggest that they are capable of yielding millions of cubic feet of gas per day, making them some of the most productive gas wells in the eastern United States. Although some experts are very optimistic on the long-term production rates of these wells, it is too early to determine their productive life or long-term yield.

A second method is used to increase the productivity of a well. That is to increase the number of fractures in a well using a technique known as “hydraulic fracturing” or “hydrofracing”. This method uses high-pressure water or a gel to induce fractures in the rock surrounding the well bore.

Hydrofracing is done by sealing off a portion of the well and injecting water or gel under very high pressure into the isolated portion of the hole. The high pressure fractures the rock and pushes the fractures open.

To prevent the fractures from closing when the pressure is reduced several tons of sand or other “propant” is pumped down the well and into the pressurized portion of the hole. When the fracturing occurs millions of sand grains are forced into the fractures. If enough sand grains are trapped in the fracture it will be propped partially open when the pressure is reduced. This provides an improved permeability for the flow of gas to the well.

Copyright: Geology.com

Both vertical and horizontal wells are used in shale gas drilling and completion; however, horizontal wells are the increasing trend due to both environmental concerns and economic efficiency (DOE, 2009). Horizontal drilling allows more exposure within the formation to optimize capture of natural gas as well as reducing the environmental footprint of drilling activity (DOE, 2009). The United States Department of Energy’s recently released document on shale gas development in the United States explains that “a vertical well may be exposed to as little as 50 ft of formation while a horizontal well may have a lateral wellbore extending in length from 2,000 to 6,000 ft within the 50-300 ft thick formation” (DOE, 2009, p.47). As such, surface disturbance and impacts to wildlife and communities are reduced while providing optimal gas recovery; considering 16 vertical wells per 640-acre section of land would disturb 77 acres, the equivalent in horizontal wells (4- horizontal wells) would disturb approximately 7.4 acres (DOE, 2009). In addition to reductions in surface disturbance, horizontal wells allow for development in areas previously considered unavailable, primarily urban and environmentally sensitive or protected areas. Well pads can be located away, or ‘setback’, from residences, roadways, wildlife habitats and other protected areas without hampering access to available gas reserves.

In order to recover the shale gas after drilling a well, current industry practice is to hydraulic fracture the formation to stimulate the near wellbore area and facilitate the release of natural gas trapped within the shale. Hydraulic fracturing is a process whereby a fracturing fluid, primarily water, is pumped into the formation under pressure at a calculated rate to form fractures and cracks within the formation, providing a pathway for the gas to migrate to the wellhead for recovery. Sand or other granular materials are added to the fracturing fluid to help ‘prop’ open the newly created fractures after the fluid has been removed from the formation (ALL, 2008a). Additional chemicals may be added to the fracturing fluid for specific engineering purposes; these additions may include friction-reducing agents, biocides and various stabilizers to prevent corrosion of metal piping in the well (DOE, 2009; ALL, 2008a). Depending on the formation and well characteristics, multiple fracturing procedures may be performed in order to fully develop the well for gas recovery (DOE, 2009). While each well and geologic formation is unique, continuing advances in horizontal drilling and well completion practices provide additional reductions in environmental impacts from oil and gas activities while providing the nation’s critical energy supply.
Copyright: GoMarcellusshale.com

As recently as 2002 the United States Geological Survey in its Assessment of Undiscovered Oil and Gas Resources of the Appalachian Basin Province, calculated that the Marcellus Shale contained an estimated undiscovered resource of about 1.9 trillion cubic feet of gas.  That’s a lot of gas but spread over the enormous geographic extent of the Marcellus it was not that much per acre.

In early 2008, Terry Englander, a geoscience professor at Pennsylvania State University, and Gary Lash, a geology professor at the State University of New York at Fredonia, surprised everyone with estimates that the Marcellus might contain more than 500 trillion cubic feet of natural gas. Using some of the same horizontal drilling and hydraulic fracturing methods that had previously been applied in the Barnett Shale of Texas, perhaps 10% of that gas (50 trillion cubic feet) might be recoverable. That volume of natural gas would be enough to supply the entire United States for about two years and have a wellhead value of about one trillion dollars!
Copyright: Geology.com


A few years ago every geologist involved in Appalachian Basin oil and gas knew about the Devonian black shale called the Marcellus. Its black color made it easy to spot in the field and its slightly radioactive signature made it a very easy pick on a geophysical well log.

However, very few of these geologists were excited about the Marcellus Shale as a major source of natural gas. Wells drilled through it produced some gas but rarely in enormous quantity. Few if any in the natural gas industry suspected that the Marcellus might soon be a major contributor to the natural gas supply of the United States – large enough to be spoken of as a “super giant” gas field.

Copyright: Geology.com

Natural gas captured from organic shale formations is not new to the oil and gas industry; shale gas has been produced since the early 1800s (DOE, 2009).  Most shale gas formations have historically been deemed economically impractical to drill due to the available technology and relative abundance of domestic conventional natural gas sources.  However, recent technological advances in horizontal drilling and hydraulic fracturing along with increasing demand for natural gas and recent price trends for natural gas, have allowed previously inaccessible reserves to become technologically feasible and economically efficient to recover (DOE, 2009).

The Annual Energy Outlook for 2009, recently released by the United States’ Energy Information Administration, projects an increase of 0.5% total primary energy consumption annually through 2030 (EIA, 2009).  The majority of this demand increase will come from the residential sector’s demand for additional electricity (EIA, 2009).  Currently, coal-fired electricity generation dominates the electricity generation sector at approximately 49% of total U.S. domestic generation capacity (EIA, 2009).  However, due to emerging concerns and public policy developments regarding greenhouse gases and renewable portfolio standards for a sustainable energy supply, lower carbon energy sources needed for electricity generation are expected to gain marketplace demand (EIA, 2009).  Unfortunately, conversion from a fossil fuel-dependent energy economy to a low-carbon energy economy will take time and significant capital investment for infrastructure development (DOE, 2009).  A recent Wall Street Journal article cites Carl Pope, executive director of the Sierra Club as viewing natural gas as a “bridge fuel” from carbon-intensive fossil fuels, such as coal and petroleum, to cleaner future fuel sources (Casselman, 2009).

In order to meet the expected increased demand for natural gas without increasing dependence on foreign imports, development of domestic unconventional natural gas sources will need to grow rapidly.  Production from unconventional natural gas sources, namely organic shales, tight sand formations, and coal-bed methane, currently account for approximately 50% of the total domestic natural gas production (DOE, 2009), this total production from unconventional resources was estimated at 8.9 trillion cubic feet (Tcf) per year in 2007 (ALL, 2008c).  Of the 8.9 Tcf of unconventional natural gas produced in the United States in 2007, 1.2 Tcf was from shale formations; however, shale gas production is expected to grow to 4.2 Tcf by 2030, accounting for an estimated 18% of the total U.S. gas production in 2030.  Unconventional sources combined are predicted to grow to nearly 56% of total U.S. domestic natural gas production (EIA, 2009).  To date, four evolving shale gas plays (Haynesville, Marcellus, Fayetteville and Woodford) are estimated to have over 550 Tcf of total recoverable gas resources, these formatiosn are expected to be capable of providing sustainable production of 2-4 Tcf of natural gas annually for decades (DOE, 2009).  Of these four, the Haynesville Shale and Marcellus Shale may have the most significant additions to domestic reserves of natural gas in recent decades.

Copyright: GoMarcellusshale.com

DAVID WETHE Bloomberg News

HOUSTON — Halliburton Co. and Schlumberger Ltd., trying to forestall a regulatory crackdown that would cut natural-gas drilling, are developing ways to eliminate the need for chemicals that may taint water supplies near wells.

At risk is hydraulic fracturing, or fracking, a process that unlocked gas deposits in shale formations and drove gains in U.S. production of the fuel. Proposed regulations might slow drilling and add $3 billion a year in costs, a government study found. As one solution, energy companies are researching ways to kill bacteria in fracturing fluids without using harmful biocides.

“The most dangerous part in the shale frack is the biocide,” said Steve Mueller, chief executive officer at Southwestern Energy Co., the biggest producer in the Fayetteville Shale of Arkansas. “That’s the number-one thing the industry is trying to find a way around.”

House and Senate bills introduced in 2009 would force producers to get permits for each well. That and other proposed environmental measures would cut drilling by as much as half and add compliance costs of $75 billion over 25 years, according to the U.S. Energy Department.

Biocides are employed because the watery fluids used to fracture rocks heat up when they’re pumped into the ground at high speed, causing bacteria and mold to multiply, Mueller said. The bacteria grow, inhibiting the flow of gas.

“You basically get a black slime in your lines,” he said. “It just becomes a black ooze of this bacteria that grew very quickly.”

Halliburton said March 9 that it’s testing a process using ultraviolet light to kill bacteria in fracking fluid.

About 80 percent of gas wells drilled in North America, including virtually all of those in the Marcellus Shale in Pennsylvania, are stimulated or fractured in some way, Tim Probert, corporate development chief at Halliburton, said.

“It’s incumbent on the industry to continue to develop tools and technologies that are compatible with minimizing the environmental impact of the stimulation process,” Probert said.

Copyright: Times Leader

(Source: Pittsburgh Post-Gazette) tracking By Pittsburgh Post-Gazette

Mar. 24–The discovery and development of the Marcellus shale natural gas deposits has been big news in Pennsylvania and neighboring states for several reasons.

One is the massive energy resource it represents. Another is the jump in jobs it could create. A third is the tax revenue that might be reaped. And one more is the concern that widespread drilling poses for the environment.

That worry covers a range of issues, but a major one to catch the eye of the Environmental Protection Agency is “fracking,” the hydraulic fracturing technology that breaks the rock deep in the ground to release the gas. The process injects millions of gallons of water mixed with chemicals and sand under great pressure into a gas well to crack the shale. How should drillers best dispose of this water?

While fracking has been used for decades at shallow depths, the EPA said last Thursday it would do a $1.9 million study of the potential adverse effects of the process at a mile or more underground. The EPA wants to gauge the impact on water quality and public health — and that makes this money well spent.

In Pennsylvania alone, 2,500 drilling permits were issued by the state for Marcellus shale gas wells between 2007 and 2009, with another 5,000 expected this year. The Marcellus Shale Coalition, a trade group, says 1,100 Marcellus shale wells have been drilled so far, as a way to get to some of the estimated 363 trillion cubic feet of natural gas.

While the coalition and others in the industry say they are committed to ensuring a safe approach to treatment and disposal of wastewater due to fracking, it’s good to know the EPA study will provide an objective, scientific view on how well they are doing.

It’s unfortunate the study could take two years to complete, but Americans should be willing to sacrifice speed for thoroughness on a question that involves community health.

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75 percent of gas production workforce composed of unskilled, semi-skilled jobs.

By Steve Mocarskysmocarsky@timesleader.com
Staff Writer

If natural gas production from the Marcellus Shale is as successful as energy companies and landowners hope, the companies likely will need to hire more employees to man wells, perform testing for and oversee the drilling of new ones and monitor their operations.

“The jobs associated with natural gas drilling are well-paying jobs,” said Doug Hock, spokesman for Calgary-based Encana Energy, which has its U.S. headquarters in Denver, Colo.

Salaries even for less-skilled positions generally range between $60,000 and $70,000, Hock said.

The types of company jobs that usually become available when drilling operations are successful include drilling engineers, geologists and geophysicists and permitting experts. Pumpers, employees who check wells on a regular basis for proper operation, will be needed after more wells are drilled, Hock said.

Other positions with energy companies include experts in land negotiations and in community relations, he said.

Rory Sweeney, spokesman for Chesapeake Energy, said the Oklahoma City, Okla.-based company currently has 1,032 employees working in Pennsylvania, up from 215 in January 2009.

Local employment

As far as local employment, Sweeney said 168 employees report to local offices, “but we have more than 1,000 statewide and most of them are working rigs in NEPA.”

Types of workers expected to be hired include welders, rig hands, production workers, engineers, drilling and land technicians, pipeline field staff, construction field staff, administrative support and dozens of other occupations.

Last summer, the Marcellus Shale Education and Training Center at the Pennsylvania College of Technology conducted a Marcellus Shale Workforce Needs Assessment study that looked at potential workforce needs in two tiers of Pennsylvania counties – the northern tier, which borders Luzerne County to the north, and the central tier, which borders Luzerne County to the west.

The northern tier includes Wyoming, Sullivan, Susquehanna, Bradford and Tioga counties; the central tier includes Clinton, Centre, Columbia, Montour, Northumberland, Union, Snyder, Lycoming and Mifflin counties.

The study found that the direct workforce needed to drill a single well in the Marcellus Shale region is comprised of more than 410 individuals working in nearly 150 different occupations. The total hours worked by these individuals are the equivalent of 11.53 full-time, direct jobs over the course of a year.

The study notes that nearly all of these jobs are required only while wells are being drilled.

By comparison, 0.17 long-term, full-time jobs associated with the production phase of development are created for each well drilled in a given field. While comprising a very small percentage of the overall workforce, these long-term jobs compound every year as more wells are drilled. For example, if 100 wells were drilled each year for 10 years, 17 production jobs would be created each year, according to the study.

The study found the majority of occupations in the direct workforce were unskilled or semi-skilled jobs including heavy equipment operation, CDL truck operation, general labor, pipefitters and a variety of office-related occupations. These occupations account for about 75 percent of the workforce.

Learn on the job

Industry representatives, survey respondents and additional research indicated that most of these occupations require no formal post-secondary education, and only a few, such as CDL, welding and X-ray, require a specialized license or trade certification.

However, nearly all of them require the skills and knowledge unique to the natural gas industry, which are best learned through experience. Workers within all occupations of the natural gas industry are additionally prized for their hard work ethic and willingness to work very long hours in unfavorable conditions, the study found.

The majority of the remaining 25 percent of workers are in occupations that are white collar in nature, including foremen, supervisors, paralegals, Realtors, engineers and geological scientists.

Larry Milliken, director of Energy Programs at Lackawanna College, said that industry wide, jobs in the gas and oil drilling industry pay about 20 percent better than the same types of jobs in other industries.

“Around here, there are an awful lot of jobs in the $9- to $14-per-hour range. Jobs in the oil and gas industry tend to start in the $18-per-hour range and go up from there,” Milliken said.

A petroleum engineer might earn $40,000 to $45,000 teaching at a college or university, but working in the field for a gas or oil company, the engineer could make close to $90,000, he said.

The average technician in the natural gas industry can expect to earn about $30 per hour, which equates to an annual salary of about $60,000. A starting technician with a two-year degree can expect to earn $18 to $20 to start, amounting to a salary near $40,000, Milliken said.

In gas production growth areas, employees with at least associate’s degrees would tend to progress up the employment ladder “faster than someone off the street,” Milliken said.

Sweeney said Chesapeake has a variety of recruiting events, such as a drill-rig worker recruiting event this week through PA CareerLink, and a job fair in Towanda in October that attracted more than 1,000 applicants.

Chesapeake also employs a Scranton-based professional recruiting firm to recruit local employees for NOMAC, Chesapeake’s wholly owned drilling subsidiary.

Company officials plan to build a residential and training facility in Bradford County this year to serve as quarters for out-of-town employees and as NOMAC’s Eastern U.S. Training Facility, which will help the company train workers, Sweeney said.

Coming tomorrow: Schools gear up to train Marcellus Shale workers.

Copyright: Times Leader

Nearly $2 million will be allocated for a look at environmental results.

STEVE GELSI MarketWatch

NEW YORK — The U.S. Environmental Protection Agency said Thursday it will conduct a massive study to investigate any potential adverse impact of hydraulic fracturing to extract natural gas, as the energy industry moves to boost domestic natural gas supplies.

The effort comes as part of a move by government officials and academics to grapple with an expected increase in the decades-old practice of extracting natural gas by injecting water and fracturing rock, a practice known as fracking.

In Northeastern Pennsylvania, drilling is proceeding in the Marcellus Shale, a layer of bedrock containing natural gas.

“There are concerns that hydraulic fracturing may impact ground water and surface water quality in ways that threaten human health and the environment,” the EPA said Thursday.

The agency said it’s reallocating $1.9 million to help pay for a “comprehensive, peer-reviewed” study. Regina Hopper, president of industry group America’s Natural Gas Alliance, said the EPA study will help affirm the safety of fracking.

“Hydraulic fracturing has been refined and improved over the past 60 years and has been used safely on more than one million U.S. wells,” Hopper said in a prepared statement. While hydraulic fracturing usually takes place far underground, well below aquifers for domestic water supplies, it also produces wastewater which must be treated on site or trucked off for disposal.

Last month, the House Energy and Commerce Committee launched an investigation into the potential impact and said it would like to see more information on the chemicals used in fracturing liquid.

“Hydraulic fracturing could help us unlock vast domestic natural gas reserves once thought unattainable, strengthening America’s energy independence and reducing carbon emissions,” said Chairman Henry Waxman, D-Calif. “As we use this technology in more parts of the country on a much larger scale, we must ensure that we are not creating new environmental and public health problems.”

Copyright: Times Leader