Fracking in the Permian Basin Texas

Permian Basin Map

The Permian basin in West Texas is one the mostly widely known producing areas in the U.S. Improvements in horizontal drilling technology and fracking techniques have made it one of the premier producing regions in the world.

 Hydraulic fracturing, or fracking is a proven technology to improve oil and gas production from "tite" geologic formations and shale zones. these "tier" formations are characterized geologically as having low porosity and permeability. This technologies make it possible for zones previously thought to be uneconomic to be produced at profitable rates.

A combination of water, sand, and anti friction fluids are pumped down the well to create small fissures or cracks to release gas trapped oil or natural gas. Generally these frack fluids are 99% water.

Fracking has used for well completions for more than 50 years. The water used in the frack process is recycled for future frack jobs. The industry has made big strides in reducing emissions such as eliminating flaring of gas while improving production rates for wells.

The Permian basin is an example of industry evolution in a complex world of oil and gas horizontal drilling and development.

Fracking the Eagle Ford Shale: Birdseye View

This a a photo taken by NASA's Landsat 5 satellite in 2000. The town of Cotulla had a population of 4,000. The area was about to become a ghost town. The shale boom came to town.

Cotulla  picture taken by NASA's Landsat 8 satellite in 2015. The population doubled to more than 10,000. The Texas Observer reported that property taxes rose from $50 million in 2008 to $200 million in 2014. gas producing wells rose from 67 in 2009 to more than 2,500 in 2013. The related oil and gas infrastructure is clearly visible.

Texas Oil Production Chart

Bakken Production, North Dakota

Wolfberry Production Map

 

Economic Wolfberry production occurs at platform margins where turbidite sequences are well developed.

Ohio Utica Shale Permit Activity

The Shale Oil Revolution

The shale oil revolution,  source Pira Energy Group.

US Gas Rigs Continue to Tank

Over the past eight reports going back to late October, natural gas rigs have dropped 132 while oil rigs have jumped 123, further entrenching oil's market share in the drilling space. Oil rigs now account for almost 60% of all U.S. drilling, up from 53.3% just eight weeks ago. Comparatively, natural gas drilling makes up less than 40% of U.S. activity, down from 46.2% eight weeks ago.
According to the survey, 802 rigs were drilling for gas, down 16 on the week, down 129 on the year and at its lowest point in almost two years. The report shows 1,201 rigs were drilling for oil, up five on the week, up 430 on the year and above 1,200 for the first time in Baker Hughes records. Miscellaneous rigs, typically associated with geothermal drilling, were unchanged on the week at five.

Fairway Field, East Texas Basin: revved up with Technology

Fairway (James Lime) Field, in Henderson and Anderson counties, Texas, trapped volatile 48° oil in the Aptian age James Lime member of the Pearsall Formation. The reservoir is a large patch reef complex of varied carbonate facies that grew on a paleobathymetric high in the interior platform of the Lower Cretaceous shelf. For reservoir management purposes, the James is divided into an upper "A" zone with reef-derived skeletal grainstone and/or lagoonal facies with moldic and interparticle porosity, a "B" dense zone of non-porous reef core, and a lower "C" zone composed of uniform fine grainstone. Porosity and permeability average 12.5% and 33 mD in the "A" zone and 12.9% and <1 mD in the "C" zone, respectively, at depths of 9,800 to 10,200 ft. Total net pay averages 56 ft.

Following discovery in 1960, 157 wells were drilled on 160 acre spacing during the initial development phase. In 1963, a high pressure gas gathering system and gas plant were put into operation, and in 1965 a field-wide unit of 28,518 acres was approved, designed to conduct gas and water pressure maintenance operations. An injection project was then initiated to preserve reservoir energy and increase recovery through use of a WAG (water-alternating-gas) miscible recovery process. Additional infill drilling projects were implemented in 1971, 1980, 1991, and 2006 to optimize recovery; to date 237 wells have been drilled, including 3 recent horizontal wells targeting bypassed pay in the upper "A" and lower "C" zones. A large secondary gas saturation developed over the years as the gas recycling program was implemented. Gas sales began in 2000, and gas injection was terminated in January, 2005. OOIP in the James was calculated as 410 MMBO, of which 213 MMBO has been produced. As of Aug. 1, 2007, production was 1220 BOPD, 23,400 BWPD, 70 MMCFD, and 3360 BNGLPD. Field life is projected beyond 2015. (from Webster et al)

Bakken Oil Production

Natural Gas Drilling Performance

Advances in drilling and completion technologies have resulted in a complete transformation of the domestic U.S. natural gas industry. SWN is just a single example of  market forces at work!

Mississippian Lime Horizontal Play

Sandridge drilling ahead in their Miss Lime play.

Kodiak: Bakken Drill and Completion

Longer laterals and more frac stages are better. Whiting Petroleum would like to increase their frac stages from 26 to 30.

Fayetteville Shale Gas: Decline vs. Lateral length

This is a typical evolutionary cycle of the unconventional shale gas play. Verical wells get bigger and bigger fracs. Then the horizonatal learning curve starts. The laterals increasingly become longer, which results in an increasing number of frac stages. Just a couple of years ago, SWN was hoping to get out 3500'.
Oh yeah, and gas is under $4.00/mcf.

RIGZONE - The Role Of Natural Gas Grows Despite Economics

This is a great postthat reviews the dynamics of the U.S. natural gas industry. What is been coined as U.S. unconventional resources will be the new "normal". In fact the new normal is here to stay, both in the U.S. and abroad.
Oh yeah, and I love charts!

RIGZONE - The Role Of Natural Gas Grows Despite Economics: "The Role Of Natural Gas Grows Despite Economics"