Basics of Gas

Exploration and
Production
And some of the career opportunities
created by the industry

Eric K. Albert, PhD

Our economy runs on

energy!
In 2009:

Energy
Information
Administration

Natural Gas
A

non-renewable energy resource

Used in a variety of ways:

Energy Information
Administration,
2005

As an energy source:
Natural

gas burns more cleanly

than other fossil fuels
BUT

Still
And

results in CO2 emissions!

unburned natural gas

(methane) is considered a
greenhouse gas

2008 US Natural Gas

Total Production

21,200 Billion Cubic Feet

(BCF)

Consumption

23,200 BCF

Imports

3,984 BCF

Exports

1,006 BCF

Wellhead price

$7.96 / thousand cubic feet

Avg. City Gate price

$9.18 / thousand cubic feet

Top US Gas Producing State

7,760 BCF: Texas

Energy Information
Administration

How much energy?

A

BTU is the heat required to

raise the temperature of one
pound of water 1 degree
Fahrenheit
One cubic foot of natural gas
(volume) contains about 1031
BTU
One candy bar has about 1000
BTU!
One cubic foot of gasoline
contains about 961,000 BTU!

Equivalent Energy
Cost
January

2011* Natural Gas price

is $4.48 / Million BTU (MMBTU)
compared to todays price of
$3.19/gallon of gasoline
the equivalent energy price of 1
gallon of gasoline is

$25.23

MMBTU

Put

another way, at current prices, the

same energy from Natural Gas is
about 1/6 the cost!
*NYMEX

How is Natural Gas

formed?
Trapped

organic matter
decomposing under pressure and
heat
In time, depending on conditions,
we get:
Coal

beds
Oil fields
Natural gas
Think:

even landfills are

recovering methane from
decomposing trash

How is it found?
Geologists

use a variety of means

to locate possible sources
Knowing

where it has been found

already
Historical geological setting
Specific site location typically uses
Seismic methods

Historical Oil and Gas

Production

Oil: green
Gas: red
Oil & Gas: yellow

USGS

Main Phases of Gas

Development
Exploration
Land

identification for sites

Location of deposits
Environmental concerns
Proving potential reserves
Drilling
Land

leasing, right of ways

Permits
Pad development
Roads and water infrastructure

 Production
Pipeline

construction
Monitoring and compliance
Pumping and storage
Well maintenance
Post-production
Capping

/ sealing wells
Water quality monitoring
Other compliance issues
Site reclamation

EXPLORATION

Seismic Survey
An

array of geophones
Data collection equipment
A noise source
Vibrating

trucks
Explosives
The

reflected sound waves are

collected and analyzed with
computers to form structural
images

Seismic Surveys

Resolution Resources

Marcellus Shale
Gas

deposit known since the

1930s
Technology

for recovery not

available
Price of gas too low for cost of
drilling
6,000

-7,000 underground,
maybe more
PA gas wells: 35,000+ already in
place
Estimates 4,000 per year may be

Traps

Pore spaces filled

Pore spaces dont communicate

Both of these types of rocks are impermeable,

meaning that they do not allow liquids or gasses
to move through them!

Geology.com

Drilling

DTE Energy

 Horizontal

drilling is employed to
connect to the largest reservoir
space
The drill string does not turnbut
is steered to a horizontal line
This is accomplished through a
steerable drill (Mud Motor)
and a follow-behind probe
(Measure While Drilling)

What does a borehole look

like?

Side View
Top View

Note: the casing system seals off

higher elevations of rocks in the
well so that only the production
area is eventually connected.

Well Logging
Gamma Ray

Neutron

After

the well is drilled, a

log is made
Gamma

ray = natural
radiation in the rocks
Neutron = higher reading
means more hydrogen*
This

along with other

data collected in the log
helps to indentify if this
will be a productive
hole
*Natural gas is a hydrocarbon!

Final Steps
After

the production area is

reached:
The

casing is sealed to this area

The production area casing is
perforated by blasting
The rocks surrounding the
production area are fractured
(hydraulic fracturing)

PRODUCTION

Deal or No Deal?
Even

so, after all this, the well

might not be productive!
Non-productive wells are plugged
with cement and operations
cease.
Hydraulic Fracturing might be
repeated in one well several
times to attempt to increase
pressure and recovery
Higher pressure = higher flow
rate = more valuable well

Transport
A

producing well is then

connected to a pipeline for
transport
Also, to buffer the effects of
seasonal demand, underground
gas storage reservoirs are used.
In PA there are at least 88 active
reservoirs

Well Maintenance
Well

production is monitored both

remotely and by on-site
inspections
Routine maintenance of the site
is necessary to confirm safety
and integrity of the well
Water quality monitoring of
nearby drinking water sources, as
well as natural sites may be
needed (looking for leakage of
gas into sources)

POSTPRODUCTIO

Well Life
A

well might produce for 5, 10,

even 20 years
Production

rates decline with time

Eventually the rate may be deemed
too low to be useful, or noneconomic
Wells

are disconnected, sealed

(capped) with cement, and a
surface vent pipe is installed.

Where are the jobs?

Exploration
Land

identification for sites

Surveyors,

Location

Civil engineers, etc.

of deposits

Geologists

Environmental

concerns

Environmental

techs, biologists, forest

technology, chemists

Proving

potential reserves

Geologists,

Petroleum & NG Engineers

Drilling
Land

leasing, right of ways

 Drilling
Land

leasing, right of ways

Paralegals,

title search, lawyers, land

agents
Permits
Hydrologists,

civil engineers, land

planners
Pad

development

Commercial

drivers, riggers, drill

operators, diesel power generation,
construction, welding, electrical, heavy
equipment

Roads

and water infrastructure

 Production
Pipeline

construction

Heavy

equipment operators, diesel

techs, welders, riggers, surveyors

Monitoring

and compliance

Electronics,

computer networking,
communications / satellite techs,
biologists, hydrologists, chemists

Pumping

and storage
Well maintenance

 Post-production
Capping

/ sealing wells

Construction,

welders, general

maintenance
Water

quality monitoring
Other compliance issues
Site reclamation
Heavy

equipment operators, forest /

reclamation technology

How it all got started

Sam

Drake Well Museum

Kier, 1840s

Questions?