Drilling for Success
November 28, 2007
Ken Silverstein
EnergyBiz Insider
Editor-in-ChiefUnion Drilling says that its natural gas drilling fleet
consists of 71 land-based rigs. It is predicting business will boom in all
of its service territories from the Appalachian Basin through the Arkoma
Basin in Arkansas and Oklahoma and into the Forth Worth Basin -- all
containing rich sources of conventional and unconventional natural gas.
The company is one of dozens angling to get more access to natural gas
reserves in the United States. The industry's arguments today have more
resonance and namely that the demand for natural gas is greater than
available supplies, causing prices to rise. But, their points are well-taken
because of improvements in drilling technologies that are reported to leave
a much smaller footprint in the communities in which they operate.
Strict amendments attached to the Clean Air Act of 1990 meant that natural
gas became the "fuel of choice." But, as the commodity becomes more mature,
domestic resources are becoming more difficult to find and produce. The
larger and more conventional gas deposits have typically been extracted,
leaving less conventional and more elusive gas to be mined. That's where
modern drilling techniques that have been developed over the last 30 years
come into play.
According to the U.S. Energy Information Administration, unconventional
natural gas sources that are buried deep such as coal-bed methane and shale
will become the largest onshore supplies. It says that such supplies will
increase through 2025. If accurate, developers must continue to find better
ways to deliver gas-rich reserves. "Substantially all of our rigs operate in
unconventional natural gas producing areas, where specialized drilling
techniques, such as horizontal drilling and underbalanced drilling, are
required to develop unconventional natural gas resources efficiently," says
Union Drilling.
Horizontal drilling starts the same as "vertical drilling" but then moves
laterally. It uses a drainage network to siphon off the available gas.
Vertical wells, by comparison, go straight down. And while such a technique
is cheaper than horizontal drilling, it is less productive. Underbalanced
drilling, meanwhile, uses rigs that are equipped with air compression
systems and which result in higher penetration rates through hard rock
formations when compared to traditional fluid-based circulation systems.
As technologies improve, developers are increasing their production. In
fact, the Natural Gas Supply Association says such progress means that fewer
wells are needed on an annual basis. Advances in technology mean that one
gas well today can produce two times as much as a single gas well did in
1985. The drilling footprint of well pads, meanwhile, has decreased by as
much as 70 percent.
"Advances in exploration and drilling techniques have allowed companies to
find (commodities) with much less impact than before," says U.S. Energy
Secretary Sam Bodman, in an earlier speech.
Less Invasive
If the decision to drill for gas is made, producers must then determine
where to establish the drill site. And that depends on the formation of the
expected deposits as well as the characteristics of the subsurface geology
and the size and depth of the natural gas that it is to be drilled. Once
geologists determine the most optimal point to drill, developers then go to
regulators to get the necessary permits that include the building of
gathering lines that in essence create a tributary system from which any gas
would flow.
The improvements in technology do not placate many environmentalists who
fear increased production would mean more harm to wildlife and the
environment. And nowhere is that battle more passionate than in Wyoming.
The Bureau of Land Management, which issues permits to private companies to
drill on public lands, expects to grant more than 4,500 new permits in
Wyoming this year, which is 300 percent more than in 2002. Altogether, close
to 30,000 natural gas wells exist there -- an amount that may double in a
decade. Wyoming is thought to hold 24 trillion cubic feet of natural gas
reserves.
Green groups argue that accelerated drilling in the state has already taken
a huge toll. But, they recognize the economic significance of the gas
industry and say that if more drilling is to go forth, then it should be
"directional drilling." That's when several wells are dug at various angles
and all from a single starting point, which would reduce the overall surface
area disruption.
Producers such as BP and EnCana emphasize that they are committed to
preserving Wyoming's local habitat and have said they will spend millions to
make sure it happens. They counter the push for "directional drilling,"
saying that as much as one-third of the recoverable gas at the Jonah and
Pinedale Fields -- where about 29 percent of all deposits are thought to be
-- would remain "unrecoverable."
Much of the focus may be on those natural gas deposits deep below earth's
surface but the industry cannot neglect those supplies that are offshore and
specifically in the deep waters of the Gulf of Mexico. To better understand
the risks, developers use computers to create a three-dimensional model of
the subsurface layers. 4-D seismology then expands on this by adding time as
a dimension, allowing exploration teams to observe how subsurface
characteristics change over time.
Exploration teams can more easily find those natural gas deposits that sit
offshore, thereby cutting drilling costs and searching times as well as
minimizing the number of dry holes. "With a significant portion of the
nation's oil and natural gas resource trapped in deep reservoirs, the new
seismic technology represents a much-needed improvement that should bring
more deep oil and gas to market," says the National Energy Renewable
Laboratory that is helping to fund pre-drilling seismic projects.
Hurdles still obstruct natural gas production. But, developers have a reason
to be positive. The increased demand for cleaner burning fuels is providing
the impetus to improve drilling techniques. That, in turn, is enabling
producers to deliver tighter gas from deeper wells in a less-intrusive way.
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