Unconventional Shale Resource Plays: Shale-Gas and Shale-Oil ...
Unconventional Shale Resource Plays: Shale-Gas and Shale-Oil ...
Unconventional Shale Resource Plays: Shale-Gas and Shale-Oil ...
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<strong>Unconventional</strong> <strong>Shale</strong> <strong>Resource</strong> <strong>Plays</strong>:<br />
<strong>Shale</strong>-<strong>Gas</strong> <strong>and</strong> <strong>Shale</strong>-<strong>Oil</strong> Opportunities ©<br />
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
Daniel M. Jarvie<br />
Energy Institute, Texas Christian University<br />
Worldwide Geochemistry, LLC<br />
Fort Worth Business Press meeting June 19, 2008 1
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
In Honor of<br />
“Marvelous” Marvin Gearhart<br />
Fort Worth Business Press meeting June 19, 2008 2
<strong>Unconventional</strong> <strong>Gas</strong> as a portion of total<br />
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
Dan Jarvie, Worldwide Geochemistry<br />
U.S. gas production<br />
Fort Worth Business Press meeting June 19, 2008 3
Impact of Barnett <strong>Shale</strong> Development<br />
• Jackson School of Geosciences,<br />
University of Texas:<br />
Royalties of $1.6 MM in 2006<br />
• Denton (Texas) Independent School District:<br />
Royalties of $12.1 MM<br />
• Energy Institute, TCU<br />
Royalties to follow... soon!<br />
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
Fort Worth Business Press meeting June 19, 2008 4
Market Price Energy-Equivalency<br />
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
oil vs. gas<br />
Fort Worth Business Press meeting June 19, 2008 5
20<br />
19<br />
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
<strong>Shale</strong>-<strong>Gas</strong> <strong>and</strong> <strong>Shale</strong>-<strong>Oil</strong><br />
16<br />
15<br />
<strong>Resource</strong> <strong>Plays</strong><br />
17<br />
14<br />
13<br />
18<br />
22<br />
23<br />
2<br />
9<br />
8<br />
24<br />
10<br />
7<br />
11<br />
6<br />
12<br />
21<br />
18<br />
3<br />
1<br />
5<br />
4<br />
Fort Worth Business Press meeting June 19, 2008 6
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
<strong>Shale</strong> <strong>Resource</strong> System:<br />
a self contained petroleum system<br />
RESERVOIR<br />
ROCK<br />
BARNETT<br />
SHALE<br />
SEAL ROCK<br />
Generation<br />
Adsorption<br />
Expulsion<br />
<strong>Oil</strong> Cracking<br />
SOURCE<br />
ROCK<br />
Jarvie et al., 2003<br />
Estimate<br />
60% of<br />
hydrocarbons<br />
expelled into<br />
conventional<br />
reservoirs<br />
Fort Worth Business Press meeting June 19, 2008 7
Why does Wall Street love <strong>Shale</strong>-<strong>Gas</strong> <strong>Plays</strong>?<br />
6000 square mile Barnett <strong>Shale</strong> Reservoir<br />
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
Fort Worth Business Press meeting June 19, 2008 8
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
EXAMPLES OF AVERAGE<br />
SOURCE POTENTIAL INDICES (SPI)<br />
(tons HC/m 2 )<br />
1. Junggar (China): 65<br />
2. L. Congo (Cabinda): 46<br />
3. Santa Barbara Channel (U.S.A.): 39<br />
4. San Joaquin (U.S.A.): 38<br />
5. Central Sumatra (Indonesia): 34<br />
6. E. Venezuela fold <strong>and</strong> thrust belt: 27<br />
7. Offshore Santa Maria (U.S.A): 21<br />
Fort Worth Business Press meeting June 19, 2008 9
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
EXAMPLES OF SPI (cont.)<br />
(tons HC/m 2 )<br />
8. Middle Magdalena (Colombia): 16<br />
9. North Sea (U.K.): 15<br />
10. Central Arabia (S. Arabia): 14<br />
11. Niger Delta (Nigeria): 14<br />
12. Gulf of Suez (Egypt): 14<br />
13. San Joaquin - Eoc./Oligo. (U.S.A.): 14<br />
14. Ft. Worth - Barnett (U.S.A.): 13<br />
Fort Worth Business Press meeting June 19, 2008 10
A container<br />
filled with<br />
goodies<br />
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
<strong>Shale</strong> <strong>Gas</strong> Dispenser<br />
Jarvie, 2005<br />
Top Seal/Barrier<br />
Barrier<br />
Goodies<br />
Bottom Seal/Barrier<br />
Insert money<br />
Produce 1<br />
Goodie<br />
Fort Worth Business Press meeting June 19, 2008 11
<strong>Shale</strong>s with a mixture of oil <strong>and</strong> gas<br />
showing both adsorbed <strong>and</strong> free pore space hydrocarbons<br />
stored in various little containers<br />
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
Dan Jarvie, Worldwide Geochemistry<br />
Micro-reservoir compartments in a tight shale<br />
having free gas (gas in micropores) <strong>and</strong> adsorbed<br />
gas (gas adhering to organic surfaces)<br />
Jarvie, 2005<br />
Fort Worth Business Press meeting June 19, 2008 12
Various<br />
sizes of<br />
molecules<br />
or entities<br />
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
<strong>Shale</strong> in <strong>Oil</strong> Window<br />
Jarvie, 2005<br />
Methane<br />
<strong>and</strong><br />
other gases<br />
Various<br />
paraffins<br />
Resins<br />
<strong>and</strong><br />
Asphaltenes<br />
“big uglies”<br />
Fort Worth Business Press meeting June 19, 2008 13
Molecular Sizes<br />
Approximate Molecular Diameters<br />
of some products in petroleum reservoirs<br />
Effective<br />
Diameter<br />
Molecule (nm)<br />
Water 0.30<br />
Methane 0.38<br />
Benzene 0.47<br />
n-alkanes 0.48<br />
Cyclohexane 0.54<br />
Complex rings 1-3<br />
Asphaltenes 5-10<br />
Is molecular size<br />
the only factor ?<br />
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
<strong>Shale</strong> Porosity (%)<br />
30<br />
25<br />
20<br />
15<br />
10<br />
5<br />
Complex<br />
ring<br />
structures<br />
n-alkanes<br />
Cyclohexane<br />
Benzene<br />
Methane<br />
Small<br />
asphaltene<br />
molecule<br />
Large<br />
asphaltene<br />
molecule<br />
0 5 10 15 20<br />
<strong>Shale</strong> Pore Diameter (nm)<br />
Fort Worth Business Press meeting June 19, 2008 14
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
<strong>Shale</strong> in <strong>Gas</strong> Window<br />
Jarvie, 2005<br />
Mostly methane<br />
Some wet gas<br />
<strong>and</strong> liquid<br />
hydrocarbons<br />
Fort Worth Business Press meeting June 19, 2008 15
Frequency<br />
350<br />
300<br />
250<br />
200<br />
150<br />
100<br />
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
50<br />
0<br />
2,000 Marine <strong>Shale</strong>s<br />
Histogram<br />
Humble Database TOC<br />
0.1<br />
-3 -2 -1 0 1 2 3<br />
1<br />
TOC (%)<br />
10<br />
Fort Worth Business Press meeting June 19, 2008 16
Micro-Reservoir System:<br />
Porosity Increase due to Organic Carbon Decomposition<br />
TOC of 7.00 wt. %<br />
is 14% vol. %<br />
7% by mass<br />
14% by vol.<br />
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
Jarvie et al., 2007a<br />
Assume 35% carbon loss<br />
due to generation<br />
4.90% porosity increase<br />
Fort Worth Business Press meeting June 19, 2008 17
Pores <strong>and</strong> C-rich Areas: Barnett <strong>Shale</strong><br />
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
Areas of higher TOC<br />
Reed, Loucks, <strong>and</strong> Jarvie, 2008<br />
Fort Worth Business Press meeting June 19, 2008 18
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
Nanopores in the Barnett <strong>Shale</strong><br />
Green dots are<br />
10 nm diameter<br />
Reed, Loucks, <strong>and</strong> Jarvie, 2008<br />
Fort Worth Business Press meeting June 19, 2008 19
Schematic of <strong>Oil</strong> <strong>and</strong> <strong>Gas</strong> Generation:<br />
why is there more gas at higher thermal maturity?<br />
Organic Matter<br />
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
Primary<br />
Cracking<br />
<strong>Oil</strong><br />
Secondary<br />
Cracking<br />
Wet<br />
<strong>Gas</strong><br />
Dry <strong>Gas</strong><br />
Dead Carbon<br />
Biodegradation<br />
Fort Worth Business Press meeting June 19, 2008 20
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
TOC in a Marine <strong>Shale</strong><br />
Petroleum Source Rock<br />
7.00 wt.% organic carbon<br />
2.50 wt.% 4.50 wt.%<br />
Hydrogen is limiting factor on conversion of organic carbon to hydrocarbons<br />
Fort Worth Business Press meeting June 19, 2008 21
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
Volumes of <strong>Oil</strong> <strong>and</strong> <strong>Gas</strong><br />
Expelled <strong>and</strong> Retained from 2.50% TOC<br />
(at dry gas window thermal maturity)<br />
Expelled<br />
256 bo/af<br />
(1536 mcfe/af)<br />
+<br />
658 mcf/af<br />
Retained<br />
921 mcf/af<br />
Fort Worth Business Press meeting June 19, 2008 22
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
<strong>Oil</strong> vs. <strong>Gas</strong> Fairways<br />
Fort Worth Business Press meeting June 19, 2008 23
Geologic<br />
maturation<br />
series<br />
from the<br />
Barnett<br />
<strong>Shale</strong><br />
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
Lampasas outcrop<br />
Mitcham #1<br />
Truit #1<br />
Heirs #1 Young #1<br />
Gage #1<br />
Sims #2<br />
Maturation<br />
Trend<br />
Line<br />
Oliver #1<br />
Fort Worth Business Press meeting June 19, 2008 24
Geochemical Assessment of <strong>Gas</strong> Risk<br />
various visual <strong>and</strong> chemical thermal maturity parameters<br />
% C20- [100]<br />
% Dry <strong>Gas</strong> [100]<br />
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
%VRo [2.2]<br />
500-HIpd [500]<br />
<strong>Shale</strong>-<strong>Gas</strong> Region<br />
Tmax-eq. %VRo<br />
[2.2]<br />
<strong>Oil</strong> Window<br />
TR (%) [100]<br />
Fort Worth Business Press meeting June 19, 2008 25
Well name:<br />
Depth(ft)<br />
7630<br />
7640<br />
7650<br />
7660<br />
7670<br />
7680<br />
7690<br />
7700<br />
7710<br />
7720<br />
7730<br />
7740<br />
7750<br />
7760<br />
T.P. Sims #2 Wise County, Texas: Geochemical Log<br />
TOC<br />
2 4 6 8<br />
S2<br />
10 20<br />
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
HI<br />
100 200 300 400 500 600 700 800 900<br />
0.4 0.6 0.8<br />
CalVRo<br />
1 1.2 1.4 1.6 1.8 2<br />
0.4 0.6 0.8<br />
%Ro<br />
1 1.2 1.4 1.6 1.8 2<br />
25<br />
S1/TOC<br />
50 75 100<br />
Fort Worth Business Press meeting June 19, 2008 26
Well name:<br />
Depth(ft)<br />
7760<br />
7780<br />
7800<br />
7820<br />
7840<br />
7860<br />
7880<br />
7900<br />
7920<br />
7940<br />
7960<br />
7980<br />
8000<br />
8020<br />
Oryx Grant #1, Montague County Texas: Geochemical Log<br />
TOC<br />
2 4 6 8<br />
S2<br />
5 10 15 20<br />
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
HI<br />
100 200 300 400 500 600 700 800 900<br />
0.4 0.6 0.8<br />
CalVRo<br />
1 1.2 1.4 1.6 1.8 2<br />
0.4 0.6 0.8<br />
Ro<br />
1 1.2 1.4 1.6 1.8 2<br />
25<br />
S1/TOC<br />
50 75 100<br />
Depth(ft)<br />
7760<br />
7780<br />
7800<br />
7820<br />
7840<br />
7860<br />
7880<br />
7900<br />
7920<br />
7940<br />
7960<br />
7980<br />
8000<br />
8020<br />
Fort Worth Business Press meeting June 19, 2008 27
Geochemical Assessment of <strong>Gas</strong> Risk<br />
Interpreted Thermal Maturity<br />
using visual <strong>and</strong> basic chemical data<br />
<strong>Gas</strong> Dryness [100]<br />
Suggested minimum <strong>and</strong> “gray<br />
area” values for potential shale gas:<br />
TOC: 2.00% - 3.00%<br />
VRo: 1.00% - 1.20%<br />
Tmax-VRo: 1.00% - 1.20%<br />
TR: 80% - 85%<br />
<strong>Gas</strong> Dryness: 80% - 85%<br />
TR (%) [100]<br />
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
85%<br />
85%<br />
TOC (wt.%) [10]<br />
3%<br />
2%<br />
1.20%<br />
T.P. Sims #2<br />
1.20%<br />
Ro(%) [2]<br />
Tmax-based %VRo [2]<br />
Green area represents oil<br />
window; lines must be outside<br />
green area to indicate potentially<br />
productive shale gas based<br />
strictly on the Barnett <strong>Shale</strong> gas<br />
model from the Ft. Worth Basin.<br />
Gray area represents latest oil<br />
window – earliest condensate-wet<br />
gas window where commercial<br />
gas production can be achieved<br />
depending on hydrocarbon<br />
composition <strong>and</strong> depth.<br />
Jarvie et al., 2007a<br />
Fort Worth Business Press meeting June 19, 2008 28
Geochemical Assessment of <strong>Gas</strong> Risk<br />
Interpreted Thermal Maturity<br />
using visual <strong>and</strong> basic chemical data<br />
<strong>Gas</strong> Dryness [100]<br />
Suggested minimum <strong>and</strong> “gray<br />
area” values for potential shale gas:<br />
TOC: 2.00% - 3.00%<br />
VRo: 1.00% - 1.20%<br />
Tmax-VRo: 1.00% - 1.20%<br />
TR: 80% - 85%<br />
<strong>Gas</strong> Dryness: 80% - 85%<br />
TR (%) [100]<br />
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
85%<br />
85%<br />
TOC (wt.%) [10]<br />
3%<br />
2%<br />
1.20%<br />
Grant #1<br />
1.20%<br />
Ro(%) [2]<br />
Tmax-based %VRo [2]<br />
Green area represents oil<br />
window; lines must be outside<br />
green area to indicate potentially<br />
productive shale gas based<br />
strictly on the Barnett <strong>Shale</strong> gas<br />
model from the Ft. Worth Basin.<br />
Gray area represents latest oil<br />
window – earliest condensate-wet<br />
gas window where commercial<br />
gas production can be achieved<br />
depending on hydrocarbon<br />
composition <strong>and</strong> depth.<br />
Jarvie et al., 2007a<br />
Fort Worth Business Press meeting June 19, 2008 29
Geochemical Logs:<br />
anomalously high normalized oil contents indicate<br />
pay <strong>and</strong> by-passed pay<br />
DEPTH (feet)<br />
5000<br />
7000<br />
9000<br />
11000<br />
13000<br />
15000<br />
ORGANIC RICHNESS<br />
Organic<br />
Rich<br />
0 5 10<br />
TOC (wt.%)<br />
HYDROCARBON<br />
POTENTIAL<br />
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
11000<br />
13000<br />
15000<br />
5000<br />
7000<br />
9000<br />
Excellent<br />
0 2 4 6 8 10<br />
OIL POTENTIAL (S2)<br />
11000<br />
13000<br />
15000<br />
5000<br />
7000<br />
9000<br />
OIL or GAS PRONE<br />
ORGANIC MATTER<br />
<strong>Gas</strong> Mix <strong>Oil</strong> <strong>Oil</strong><br />
(mar.) (lac.)<br />
0 200 400 600 800 1000<br />
HYDROGEN INDEX (HI)<br />
11000<br />
13000<br />
15000<br />
5000<br />
7000<br />
9000<br />
Low maturity or expelled<br />
Early mature source rock<br />
NORMALIZED OIL<br />
CONTENT<br />
Mature stained source rock<br />
<strong>Oil</strong>/<strong>Gas</strong> Production or Contamination<br />
0 50 100 150 200<br />
NORMALIZED OIL CONTENT<br />
11000<br />
13000<br />
15000<br />
5000<br />
7000<br />
9000<br />
CALCULATED MATURITY<br />
Immature<br />
<strong>Oil</strong> Zone<br />
Condensate Zone<br />
Dry <strong>Gas</strong> Zone<br />
0.0 0.5 1.0 1.5 2.0 2.5<br />
CALCULATED %Ro<br />
Bypassed<br />
Pay<br />
Fort Worth Business Press meeting June 19, 2008 30
Bakken <strong>Shale</strong>, Middle Member, <strong>and</strong> Threeforks,<br />
High residual oil content in low maturity rock indicates<br />
potential shale-oil production<br />
FREE OIL (mg HC/g TOC)<br />
30.00<br />
25.00<br />
20.00<br />
15.00<br />
10.00<br />
5.00<br />
0.00<br />
0.00 5.00 10.00 15.00 20.00 25.00 30.00<br />
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
TOC (wt.%)<br />
<strong>Oil</strong> Shows/Productive<br />
High Saturation<br />
Moderate Saturation<br />
Low Saturation<br />
Fort Worth Business Press meeting June 19, 2008 31
Activity<br />
50<br />
40<br />
30<br />
20<br />
10<br />
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
0<br />
10<br />
8<br />
6<br />
Anoxic <strong>Shale</strong>s<br />
Oxic <strong>Shale</strong>s<br />
4<br />
TOC<br />
2<br />
0<br />
0.0<br />
0.2<br />
0.4<br />
0.6<br />
0.8<br />
1.0<br />
1.2<br />
HI/(HI+OI)<br />
Fort Worth Business Press meeting June 19, 2008 32
Oxic Marine <strong>Shale</strong>s<br />
Low Activity<br />
HI/OI < 3<br />
Frequency<br />
350<br />
300<br />
250<br />
200<br />
150<br />
100<br />
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
50<br />
0<br />
Histogram<br />
Humble Database TOC<br />
0.1<br />
1<br />
TOC (%)<br />
-3 -2 -1 0 1 2 3<br />
10<br />
Anoxic Marine <strong>Shale</strong>s<br />
High Activity<br />
HI/OI > 3<br />
Fort Worth Business Press meeting June 19, 2008 33
Geochemical Risk Parameters<br />
100 - Normalized oil content [0-100]<br />
<strong>Gas</strong> Dryness [0-100]<br />
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
TOC (wt%) [0-10]<br />
TR [0-100]<br />
%Ro [0.2-2.2]<br />
Tmax (C) [390-550]<br />
Fort Worth Business Press meeting June 19, 2008 34
Geological Risk Assessment<br />
Infrastructure ? [Yes-No]<br />
S<strong>and</strong>s Present ? [Yes-No]<br />
Seals/Barriers Present? [Yes-No]<br />
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
<strong>Gas</strong> in Basin? [Yes-No]<br />
20,000 ft. - Depth to <strong>Shale</strong> [0-20000]<br />
Gamma Ray [0-200]<br />
Resistivity [0-200]<br />
<strong>Shale</strong> Thickness [0-500]<br />
Fort Worth Business Press meeting June 19, 2008 35
Petrophysical-Mineralogical Risk<br />
<strong>Gas</strong> Filled Porosity (%) [0-100]<br />
20 - <strong>Oil</strong>-Filled Porosity (%) [0-20]<br />
Condensate only? [Yes-No]<br />
50 - Water-Filled Porosity (%) [0-50]<br />
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
Permeability (nD) [0-500]<br />
Clay Water Sensitivty [Yes-No]<br />
Porosity (%) [0-10]<br />
100 - <strong>Shale</strong> % [0-100]<br />
Silica % [0-100]<br />
Carbonate % [0-100]<br />
Fort Worth Business Press meeting June 19, 2008 36
GIP <strong>and</strong> EUR Assessments<br />
EUR at 20% TOC GIP [0-100]<br />
GIP from TOC [0-300]<br />
EUR at 20% GIP [0-100]<br />
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
<strong>Gas</strong> Content (scf/ton) [0-300]<br />
Free <strong>Gas</strong> % [0-100]<br />
GIP from <strong>Gas</strong> Content [0-300]<br />
Adsorbed <strong>Gas</strong> % [0-100]<br />
Fort Worth Business Press meeting June 19, 2008 37
Thank you for your participation.<br />
© Dan Jarvie. Energy Institute, TCU / Worldwide Geochemistry<br />
Peace be with you !<br />
Barnett <strong>Shale</strong><br />
outcrop<br />
San Saba<br />
Fort Worth Business Press meeting June 19, 2008 38
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