255 bp-doe study

Resource Characterization and Quantification of Natural Gas-Hydrate andAssociated Free-Gas Accumulations in the Prudhoe Bay Kuparuk River

Area on the North Slope of AlaskaRobert B. Hunter, [email protected], (907)-564-5733

Scott A. Digert, [email protected], (907) 770-8072BP Exploration (Alaska), Inc.

P.O. Box 196612Anchorage, Alaska 99519-6612

Mary Poulton, [email protected], (520) 621-8391Robert Casavant, [email protected], (520) 626-3785

Charles Glass, [email protected], (520) 621-6062University of Arizona, Dept. Mining and Geological Engineering

Mines and Metallurgy Bldg. #121235 E. North Campus Dr., POB 210012

Tucson, AZ 85721-0012Roy Johnson, [email protected], (520) 621-4890

University of Arizona, Dept. of Geosciences888 N. Euclid #510, P.O. Box 3308

Tucson, Arizona 85722-3308

Shirish L. Patil, [email protected], (907) 474-5127Godwin A. Chukwu, [email protected], (907) 474-7748

Abhijit Y. Dandekar, [email protected], (907) 474-6427Santanu Khataniar, [email protected], (907) 474-5658

David O. Ogbe, [email protected], (907) 474-7698Department of Petroleum Engineering, Petroleum Development Laboratory

University of Alaska FairbanksP.O. Box 755880, 425 Duckering Building

Fairbanks, AK 99775-5880

Timothy S. Collett, [email protected], (303) 236-5731U.S. Geological Survey, Denver Federal Center

P. O. Box 25046, MS939Denver, CO 80225

The objectives of this project are to characterize, quantify, and determine the commerciality ofin-place and recoverable gas-hydrate and associated free-gas resources in the Prudhoe Bay Unit(PBU) Kuparuk River Unit (KRU) Milne Point Unit (MPU) areas on the Alaska North Slope(ANS). The project team will accomplish these goals through integrated academic, industry, andgovernment collaborative research designed to assess the potential for safe, cost competitive, andenvironmentally responsible production of these possible abundant, strategic, and secureunconventional energy resources.

mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]

The large magnitude of potential gas hydrate reserves and the interest in future ANS gascommercialization make this an opportune time to assess the energy resource potential of ANSgas hydrates. The PBU-KRU-MPU area is the premier area in the world for a project of thistype. This area combines the presence of both gas hydrate and associated free gas within high-quality reservoirs beneath existing oil and gas facility infrastructure. This infrastructure enablesaccess to sites, support equipment, and production facilities needed for a project of thismagnitude.

Gas hydrate resource assessments of northern Alaska range from 6.7 to 66.8 trillion cubic meters(TCM) (236 to 2,357 trillion cubic feet (TCF)) of gas in-place (Collett, 1997). Collett (1997)calculates the mean ANS basin gas in-place resources are 16.7 TCM (590 TCF). Alaska siteswhere gas hydrates are inferred or identified include the Eileen trend within the PBU KRU MPU areas, which may contain as much as 1.24 TCM (44 TCF) of gas in-place.

Only limited, systematic gas hydrate reservoir characterization studies have been accomplished.ANS gas hydrates have not been characterized by detailed reservoir analyses to determinereservoir extent, stratigraphy, structure, continuity, compartmentalization, quality, variability,and geophysical and petrophysical property distributions. This project will study these reservoircharacteristics to provide practical input to reservoir and economic models. The project will alsodetermine the technical feasibility of gas hydrate production on the ANS.

Accomplishing project goals will require a multi-phased, multi-year, collaborative project withspecific deliverables to determine the technical and economic feasibility of gas hydrate andassociated free gas resource development. Three phases will occur over 4 years. Each phasewill build on prior phases, with clear project continuation/commerciality decisions betweenphases. The first phase focuses on reservoir characterization using existing seismic and welldata, leading to a scoping evaluation of recoverable reserves and commercial potential. Thisphase will also design drilling system, data acquisition, completions, and production testingtechnologies. Phase 2 will apply developed technologies and integrate well, core, log, andproduction test data from an additional well if justified by results from Phase 1. This phase willalso extend the geologic and reservoir models, include detailed analyses of structural control ongeothermal gradient and hydrate stability, and refine the evaluation of reserves andcommerciality. Phase 3 will further verify the resource, extend the models to full field, andinclude additional drilling and long-term production testing if justified by Phase 2 results. Thisphase could lead to a future ANS gas hydrate pilot development.

Significant technical, economical, environmental and safety issues require resolution before gashydrates become a viable energy resource. The energy resource potential of gas hydrates hasbeen studied for nearly three decades. However, the developed knowledge has not beenadequately tested or applied to practical gas hydrate resource development and economicrecovery in the United States. Production from gas hydrates will likely require innovations indrilling, completion, and reservoir technology. Development of this technology could requiresignificant capital investment. The PBU KRU MPU region of the ANS provides the bestarea for timely gas hydrate and associated free gas resource delineation studies, economicevaluations, and pilot development program plans due to the coincidence of resource presencebeneath existing or planned facility infrastructure.

Courtesy USDOECourtesy USDOE

BP Alaska Methane Hydrate BP Alaska Methane Hydrate Project Project DOE DOE IndustryIndustry

Alaska Resource & Economics Focus Mission Alignment Right Place Alaska Prize

Definitions & Historical Onshore Resource Alaska Perspective

Alaska Project Specifics Commercial Viability Objectives/Timing Technical Challenges


BP Alaska Gas Hydrate ProjectBP Alaska Gas Hydrate ProjectMission: Economic ResourceMission: Economic Resource

Characterize, quantify, & determine commerciality of gas hydrate & associated free gas resources in arctic regions through integrated academic, industry, & government collaborative research to promote safe, low cost, & environmentally responsible production of abundant, strategic, & secure energy resources


Alaska Project CollaboratorsAlaska Project Collaborators

BP Exploration (Alaska), Inc. Lead, Project Coordination & Industry Liaison

USGS Research and Historical

University of Arizona, Tucson Geology and Geophysics

University of Alaska Fairbanks Petroleum & Reservoir Engineering

Advisory Committee Industry Data Owners and Research Collaborators


Alaska Gas Hydrate ResourceAlaska Gas Hydrate Resource

Premier Area & Time for Research Resource Infrastructure Alignment

Quantify/Verify Resource Size and Extent Assess Verified Resource Commerciality Leverage DOE Support Research

Extend Industry Capability Collaboration Unconventional Resource Challenges Approve Phase Advance if Economic Resource

Assess Resource to Reserves Challenge Enable Informed Industry & DOE Evaluation

Future Commerciality Options Future Development Options



Onshore Existing Facility, Reservoir

Eileen Trend to 44 TCF in-place Accessible Prize Requires Characterization Associated Free Gas Present, Undefined

Tarn Trend to 60 TCF in-place (IP) Less Well Defined No Known Associated Free Gas

North Slope Basin to 590 TCF IP USGS Probabilistic Play Estimates



TARN TREND

FREE GAS?

PBUKRU

MPU

DIU

EILEEN TREND

44 TCF

60 TCF?

GAS HYDRATE& FREE GAS

GAS HYDRATE


Alaska North Slope Alaska North Slope Development InfrastructureDevelopment Infrastructure


EILEENTREND

Alaska Gas Hydrate Resource Alaska Gas Hydrate Resource Gas Hydrate Stability FieldGas Hydrate Stability Field

300

600

900

1200

1500

1800

0(m) (ft)

0

1000

2000

3000

4000

5000

(psi)0

500

1000

1500

2000

2500

0

4

8

12

16

-10 0 10 20 30TEMPERATURE (C)

DEP

TH

PRES

SUR

E (M

Pa)

Base ofice-bearingPermafrost

Geothermalgradient G

as h

ydr a

te s

tab i

lity

fi eld

After Collett, 1993

MethaneHydrate

Rock/Sediment

TARNTREND

Free Gas


Alaska Gas Hydrates Alaska Gas Hydrates Historical PerspectiveHistorical Perspective

1970s Industry Awareness Oil Focus 1980s Government & Industry Research 1990s Huge Potential Resource: 44 TCF+ 2000s Potential Conventional Gas

Commercialization = Alignment

Unconventional Resource Challenges Encourage Industry Partnership via DOE Funds Characterize, Quantify, & Verify Seismic Data Economic Viability Determines Phase Progression Apply Innovative Research Technical Challenges Conceptually Similar to Viscous Oil Resource

Convert Resource to Reserves? Provide Additional Gas within Existing

Infrastructure & Potential Exploration Areas


Alaska Gas HydratesAlaska Gas HydratesHistorical PerspectiveHistorical Perspective

YearInitial ANS Exploration, Industry

NW Eileen #2 Gas Hydrate Test Well

Prudhoe Bay Field Discovery

USGS Research ProjectsUSDOE Gas Hydrate ProjectsBP EWE Seismic

USGS Resource Assessment 590 TCFARCO Gas/HydrateUSDOE-BP Gas Hydrate Project

Possible Pilot Development

1960

1970

1980

1990

2000

2010

Oil-Focus Research Gap


Alaska Gas Hydrate ProjectAlaska Gas Hydrate Project

2001

2002

2003

2004

2005

2006

Year/Phase/~ DOE Cost ($13.2 MM)

I2.0

II3.6

III7.6

Project Proposal to DOE

Drilling/Production RE/PE StudiesWells of Opportunity DataReservoir and Economic Modeling

Drilling, Data, Production Testing

Possible Pilot Development

Reservoir and Economic Modeling& Reserves Calculation Studies

Reservoir and Fluid Characterization& In-Place Resource Calculation Studies

Proceed if Commercially Viable

Proceed if Commercially Viable


Assess Existing Seismic & Well Data to Characterize Gas Hydrate Free Gas Reservoir and Fluids Resource

Verify Resource Size and Extent Enhance Data Collection Opportunities Evaluate Reservoir Performance

Parameters: Equilibrium, Relative Perm Design Drilling System, Completions,

Data Acquisition, & Production Testing Technology

Build Reservoir and Economic Models to Determine Phase Progression

Select Candidate Areas for Phase II Operations and Development Scenario

Phase I: Assess Available Phase I: Assess Available Data & Verify CommercialityData & Verify Commerciality


Apply Drilling, Completion, Production Testing Technology Design Developed in Phase I to Field Operations

Target Data Acquisition in Specific Areas

Integrate Seismic / Well Data to Extend, Add Detail, & Model Reservoir Character

Select/Drill Well in Best Candidate Area Provide Staff, Facilities, & Infrastructure Acquire Rock & Production Data in Well

Calculate Phase Progression Economics

Phase II: Apply Technology in Phase II: Apply Technology in Field Operations, EconomicsField Operations, Economics


Apply Drilling, Completion, Production Testing Technology Design Developed in Phase I-II to Field Operations

Enhance and Apply Production Methods in Probable Long-Term Field Operations Provide Staff, Facilities, & Infrastructure Acquire Reservoir & Production Data

Construct Full Field Reservoir Characterization and Reservoir Model

Study Gas Hydrate Decomposition and Geotechnical Properties

Calculate Pilot Development Economics

Phase III: Verify Resource, Phase III: Verify Resource, Lead to Possible Pilot ProgramLead to Possible Pilot Program


North Alaska Fields/FormationsNorth Alaska Fields/FormationsChronostratigraphic DiagramChronostratigraphic Diagram

Sequence0

115

215

355

S N

BROO

KIAN

BEAUFORTIAN

ELLE

SMER

IAN

TER

TIAR

YC

RET

ACEO

US

JUR

ASSI

CTR

IASS

ICD

EVO

NIA

NC

ARBO

NIF

ERO

US

PER

MIA

N

Colu

mbi

anLa

ram

ide

Cam

den

Break U

p Failed Rift

Franklinian

Hunt ForkKanayut

Lisburne

Kayak

Kekiktuk

Shublik

EileenKavik

Echooka

Ivishak

Simpson

BarrowLower Kingak

UPPER KINGAK

Upper ShaleBeechy Pt.

KuparukLower Shale

Okpikru

ak

Mackenzie

Colville Mudsto

neWest Sak /

UgnuSpruce Tree

Shale Wall

HRZ

TorokNan.

Schrader Bluff, Milne Pt., WSak

Pt. McIntyre, NiakukKuparuk, Milne Pt.

Prudhoe Bay

Endicott

NuiqsutNechelik

Badami, Ugnu

Alpine

Lisburne

(Gas Hydrate)

~Depth Age Formation Field

20003000

4000500060007000

8000

9000

1000

0

10000

Alapah

Wahoo

Tarn

Sag River

Pt. Thompson


Alaska North Slope (ANS) Alaska North Slope (ANS) Schematic CrossSchematic Cross--SectionSection

KUPARUK/MILNE PT

NORTH

BROOKS RANGE

ELLESMERIAN BEAUFORTIAN BROOKIAN

WEST SAK/UGNU/GAS HYDRATECOLVILLE

ENDICOTT

PT. MCINTYRE/NIAKUK

PRUDHOELISBURNE

ALPINE

Present-Day Surface

TARN


0

500

1000

1500

2000

2500

3000

KRU 1D-8 KRU 1C-8 NW Eileen - 02

A

B

C

D E

F

Top Methane Hydrate Stability Field

Base Methane Hydrate Stability Field

BasePermafrost

BasePermafrost

Free Gas TrappedBelow Gas Hydrates

Gas Hydrates in Reservoir Sand

ANS Gas Hydrate/Free GasANS Gas Hydrate/Free Gas

After Collett, 1993


Conventional 3D SeismicConventional 3D Seismic

0.5

0.75

1.0

1.25

Time

Base Gas Hydrate Stability Zone


Technical ChallengesTechnical Challenges

Gas Hydrate Productivity Endothermic Gas Dissociation Thermodynamic Modeling/Application Recovery Factor Calculation Critical

Seismic Imaging No High-Resolution Data Available Shallow Portions of Conventional Data Acoustic Properties Unique when within

Non-Permafrost Section

Well Completion Assess Productivity Issues Conventional vs. NonConventional Application of Heavy Oil Technology?


Productivity ChallengesProductivity Challenges

Gas Hydrate Production Methods

Methanol

Dissociated

Thermal Injection

Gas Out

Imperm. Rock

Impermeable Rock

Gas Hydrate

Inhibitor Injection

Gas Out

Imperm. Rock

Impermeable Rock

Depressurization

Free-Gas

Gas Out

Gas Hydrate

Hydrate

Reservoir Dissociated HydrateDissociated Hydrate

Imperm. Rock

Hot Brine or Gas

Gas Hydrate

After Collett, 2000


BP Alaska Gas Hydrate BP Alaska Gas Hydrate Project SummaryProject Summary

PBU/KRU/MPU: Premier Area & Time Resource Infrastructure Alignment

Characterize and Quantify Resource Verify In-Place Resource & Resolve Extent

Assess Commercial Potential Productivity/Recovery Factor - Reserves

Benefit Industry & USDOE Potential Huge/Unconv. Gas Resource

Assess Technical/Economic Hurdles Prize Convert Resource to Reserves Utilize Gas Reservoir Energy/Sales Enable Industry & DOE to Assess Future

Development Potential in Accessible Area


Short-Term: 4-5/7Determine Physical/Chemical PropertiesInput Research to Databases and WebsiteImprove Distribution/Volume AssessmentImprove Geophysical Characterization ToolsProvide Samples and Use Sampling Tools

Mid-Term: 3/3Refine Characterization ToolsEstimate Recovery PotentialDevelop/Test Production Methods

Long-Term: 3/4Commercially Produce for Secure Gas SupplyProvide Knowledge/Tools Supporting R & DEstablish U.S. as Leader - Gas Hydrate R & D

Interagency Gas Hydrate R & DInteragency Gas Hydrate R & DObjectives Attainable in AlaskaObjectives Attainable in Alaska

ContentsArctic Region Projects

255 bp-doe study

Documents

free gas

recoverable gashydrate

freegas resources

alaska siteswhere gas

gas facility infrastructure

cubic feet tcf of gas

mean ans basin gas

alaska north slopeans