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I am proud of the work Halliburton has done with its customers around
the world to enable their tight-gas assets to achieve their full potential.
We would welcome the opportunity to develop your tight-gas assets.
Optimal tight-gas development requires analysis on a basin-wide scale.
Using the available geological, geophysical and engineering data, we will
develop a detailed understanding of the unique geology, stratigraphy,
mineralogy, petrophysics and reservoir engineering in each basin.
This information will allow us to develop accurate drilling and completion
practices that will enable us to determine the full potential of these resources,
as well as the best strategies to recover the gas from your asset to realize
this potential. Our Technical Excellence Centers, the best equipped and
staffed in the world, are fully designed to develop tight-gas solutions.
Most importantly, our partnership will result in the environmentally
friendly development of tight-gas resources.
Dave Lesar
Chairman, President and CEO, Halliburton
HALLIBURTON: TIGHT GAS
Table of Contents
Chapter I Introduction
Chapter VI Conclusions
Introduction
According to 2008 BP Worldwide
Statistics, world natural-gas consumption
rose by 3.1% in 2007, and in North America,
gas consumption rose by 5.2% (39.5 BCM),
the strongest growth in 18 years. In 2008,
worldwide consumption exceeded 2007
levels. The primary reason for these
increases is easy to understand. Although
crude oil has a higher carbon and energy
content per unit volume, natural gas is
considered a cleaner fuel whose exploitation
has less environmental impact.
Conventional gas resources are depleting and are becoming increasingly difficult to replace (find and produce). As a result, operators
are being forced to place greater reliance on unconventional gas resources to meet residential, industrial and transportation energy
needs. Unconventional gas resources include coalbed methane, shale gas and low-permeability “tight-gas” sandstones and diatomites.
These reservoirs are complex and often difficult to produce. Shale gas and coalbed methane are sourced and stored in the same forma-
tions whereas tight-gas sandstones are merely repositories for gas sourced elsewhere. The one feature common to these diverse re-
sources is very low matrix permeability. This low permeability may be the product of either (a) the extremely small size of the mineral
and organic material comprising these formations or (b) the result of diagenetic changes and authigentic clays that have reduced the
original primary porosity. Some of these resources are naturally fractured, but all require artificial stimulation to connect existing
natural fractures and induce new ones, typically through hydraulic fracturing. Also, increased or enhanced reservoir exposure, through
horizontal drilling, multilaterals, multistage fracturing, or a combination, is needed to make the wells economic, i.e., profitable.
Four factors determine the order in which unconventional resources are produced: (1) availability, (2) volume of gas that individual
wells are capable of producing, (3) exploration and development cost, and (4) market need. Tight-gas was the first unconventional-
gas resource to be developed on a large scale. This development was the product of years of government and industry-sponsored
research and technology development. Today, there is great interest in the United States in shale-gas resources because some of
these formations have the potential for higher gas production with slower production declines per well and overall higher ultimate
recovery than tight-gas resources.
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The following table summarizes the worldwide location of unconventional gas resources by region.
Holditch, S.A. 2006. “Tight-Gas Sands”, Journal of Petroleum Technology, 58(6): 86-93.
Holditch defines a tight-gas reservoir as “a reservoir that cannot be produced at economic flow rates nor recover economic volumes
of natural gas unless the well is stimulated by a large hydraulic fracture treatment or produced by use of a horizontal wellbore or
multilateral wellbores.” Typical tight-gas reservoirs have matrix porosities of 10% or less and permeabilities below 1.0 md and
produce dry gas. In the U.S., the legal definition is 0.1 md or less. The ultra-tight gas formations now being developed (e.g.,
U.S. Rocky Mountain basins) have permeabilities in the micro- (0.001 md) and nanodarcy range. Production declines in tight-gas
wells average 67% in the first year and are often fully depleted within four or five years. However, the continual need to replace the
gas supply means that well and reservoir production must be continually optimized throughout their producing lives, usually
through horizontal drilling and stimulation techniques. As such, a restimulation, recompletion, sidetrack, or MLT completion
may take place even near the well’s end of life.
Tight-gas reservoirs share a number of characteristics, but these may not all be present in a single resource play:
• Lithology - Generally sandstones with varying amounts of clay, shale, iron and other mineralogies
• Permeability - Low to ultra low, 0.1 md to less than 0.001 md.
• Reservoir size and geometry - Tight-gas reservoirs commonly occur as stacked, discontinuous fluvial sandstones that
require precise drilling and production techniques to achieve optimal production. While the thickness of an individual
reservoir typically may not exceed a few hundred feet, a system of stacked reservoirs may have a total thickness of several
thousand feet.
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Conventional
an initially non-economic well into a profitable well.
• MilliDarcy Range (>10)
• Fluid type varies
• Drive mechanism - Fluid drive defined by Darcy’s law. • Rock type varies
Unconventional
• Dry Gas–Wet Gas
• Sandstone
• Drilling and completion costs - Rapid and efficient
Shale Gas
drilling and completion methods are necessary to • Nano Darcy Range
• Dry Gas–Wet Gas
maintain gas output and minimize cost. The key drilling • Shale (Type I–IV)
Although unconventional gas resources are widespread worldwide, outside of North America they have generally not received close
attention from natural gas operators and development has been limited (NPC, 2007). This is due, in part to (a) the scarcity of the
information available on these resources, (b) unfavorable natural-gas policies and market conditions in many countries, and (c) to a
chronic shortage of expertise in the specific technologies needed to successfully develop these resources. This situation is changing as
more countries focus on unconventional and tight-gas resources to replace depleted conventional resources in the energy mix and to
improve their national economies.
Recent attention on tight-gas reservoirs outside of North America includes low-permeability gas reservoirs that don’t fall under the
conventional definition of tight gas. These reservoirs, termed “complex gas” reservoirs (Fig. 1), have permeability values ranging
between 1.0 md and 0.1 md and contain retrograde gas-condensate. These reservoirs can be shallow or deep and can be normally-to-
abnormally pressured. Like conventional tight-gas reservoirs, complex-gas reservoirs are challenging to develop and may require
artificial stimulation. When developing a “complex-gas” asset, i.e., low-permeability, retrograde gas-condensate reservoir, accurately
predicting and assuring well deliverability are of paramount importance. These tasks are more challenging than in traditional tight-
gas reservoirs because the potential for condensate development around the well in the near-wellbore region may adversely affect
development opportunities unless preventive steps are taken. In these cases, a holistic approach that includes formation testing,
sampling, and well design, is essential. Successful economic development of complex-gas resources is a challenge and also a series
of opportunities that involve the following general steps:
In tight-gas development, no two wells or reservoirs are exactly alike. Successful development of these resources requires a thorough
understanding of the geology, stratigraphy, petrophysics, geochemistry, geomechanics, and engineering parameters, as they apply to
the specific field and reservoir in question, to determine the best drilling and completion methods. This involves aggressive and early
data gathering and analysis using special technologies and techniques. Early development opportunites may be detected by
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HALLIBURTON: TIGHT GAS
classifying near- and long-term actions, including drilling, completion, stimulation, and production practices, for strategic field
development. While offset wells may provide essential information that can be directly applied to the planned wells, the use
of reservoir analogs from other fields or geologic basins should be avoided unless, or until the geologic and petrophysical
similarities can be established. Similarly, lessons learned from previous experiences and the development of similar or
reservoir analogs may be helpful, but it shouldn’t be assumed that they are directly applicable. To do so before determining
that they are appropriate to the reservoirs in question may result in poor well and field performance.
The service company helping to develop these assets must have a deep understanding of the reservoir, as well as the creative
minds (R&D) needed to develop the right solutions for the particular asset from the very basics. No single technology will
determine the success or failure in a particular tight-gas reservoir. Rather, development in these reservoirs is like a pyramid
where many individual solutions are combined and work together at different levels to create a total solution.
Halliburton strongly believes that the first step toward the efficient development and management of tight-gas resources is
developing a detailed understanding of the basic geology and engineering characteristics from a basin-wide perspective.
Rapid changes in lithology, porosity and permeability are typical in unconventional reservoirs and an entire field cannot be
developed using identical methods, nor can other fields within the basin be treated similarly. Tight-gas resource development
means applying the most appropriate available technologies to a unique set of reservoir geological conditions and engineering
requirements to achieve the optimum production and best rate of return for individual wells and entire fields. Halliburton’s
long experience and success in developing tight-gas resources has made it the leader in this market. The following global
map shows where Halliburton is currently working to develop tight-gas resources worldwide.
Chapter I discusses the rationale behind this report and its organization. Chapter II describes the strong foundation of Health,
Safety and Environment and Operational Excellence that is applied during the entire life of the asset. Chapter III describes a
logical sequence of individual and integrated tight-gas solutions that can be combined to create a complete, holistic solution to
achieve optimum results in specific reservoirs and fields. Chapter IV summarizes individual technological solutions that improve
economic results. These solutions represent the ideas of many dedicated and talented researchers and engineers. Chapter V
presents summaries of case histories that describe the practical application of a variety of the drilling and completion solutions
covered in Chapter IV. Chapter VI summarizes the overall message of this document. In Chapter VII Halliburton showcases its
solid foundation of technological advancements that have benefited individual customers and the entire industry through se-
lected listings of industry awards, published technical papers, and granted patents. A patent is an indicator of the uniqueness of a
specific technology to industry, while the awards presented to Halliburton are recognition of the value and significance operators
and industry have placed on specific technological solutions. Technical papers address the challenges in reservoir exploitation
and present new methods and innovations that have been used to overcome these challenges.
This report, representing the collaboration between Halliburton and its customers, focuses on the challenges and
solutions used to develop basin-centered tight-gas resources. Chapters II, IV and V address these challenges in more detail.
These challenges include:
• Early and Rapid Well/Field Development
• Reducing Nonproductive Time and Cost
• Drilling to Maximize Production
• Finding the Sweetspot in the Reservoir
• Testing the Tight-Gas Wells
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Tight-gas reservoirs must be addressed starting with the basics including HSE and Operational Excellence, building up to a
total solution. A single document cannot address every potential issue and challenge that you might face. If you do not find
specific answers to your tight-gas questions, please contact your local Halliburton representative to discuss your particular
challenges, so that we may address them directly. The following diagram communicates Halliburton’s message –
COLLABORATION + TECHNOLOGY = SOLUTION. Nothing can be created without it. Working together as partners is essential to
achieving success in developing unconventional tight-gas resources.
Reference: National Petroleum Council, 2007. Facing the Hard Truths about Energy, Topic Paper No. 29, Unconventional Gas, 54 p.
http://www.npc.org/Study_Topic_Papers/29-TTG-Unconventional-Gas.pdf
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