coalbed methane in kansas - kansas geological survey · coalbed methane in kansas presented to:...
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Coalbed Methane Coalbed Methane inin
KansasKansasPresented to:
Senate Utilities CommitteeMarch 4, 2004
Presented by:Timothy R. [email protected]
The Chanute Publishing Co, 07/10/2002
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OutlineOutline• Background on the Natural Gas Markets• Background on Coalbed Methane (CBM)• Overview of Kansas CBM Activity
– Role of Geological Survey• Impact on Kansas
– Economy• Potential Issues
– Supply Problems– Severed Minerals vs. Surface– Enhanced Coalbed Methane Recovery– Carbon Sequestration
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Kansas national population and energy use rankings:Kansas national population and energy use rankings:
Population – 32th (2002)
Total per capita energy – 18th (2000)
Natural Gas Consumption (2002)Natural Gas Consumption (2002)
Residential – 71,002 MMcf
Commercial – 38,812 MMcf
Industrial – 105,400*
Electric Power – 23,126 MMcf
Natural Gas Production (2002) – 453,417 MMcf
*Estimated.
Kansas ProfileKansas Profile
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Natural Gas Prices Natural Gas Prices Continue to Be VolatileContinue to Be Volatile
$1
$3
$5
$7
$9
Jan-90
Jan-91
Jan-92
Jan-93
Jan-94
Jan-95
Jan-96
Jan-97
Jan-98
Jan-99
Jan-00
Jan-01
Jan-02
Jan-03
$/M
CF
Industrial PriceCity Gate PriceWellhead Price
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Recent Energy PricesRecent Energy Prices
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Coalbed Methane Production Coalbed Methane Production from U.S. Basinsfrom U.S. Basins
0
200
400
600
800
1000
1200
1400
1600
1800
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
Emerging BasinsAppalachian BasinWarrior BasinSan Juan & Raton Basins
Year
CB
M P
rodu
ctio
n (B
illio
n C
ubic
Fee
t)
EIA 2001 Annual Report, September 2002U.S. Crude Oil, Natural Gas, and Natural Gas Liquids
CBM representsapproximately 10%of US gas reserves
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Coalbed Methane ActivityCoalbed Methane Activity
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Kansas Coalbed Methane ActivityKansas Coalbed Methane Activity
OIL &GAS FIELDSand
major gas pipelines(�8")
oil oil &gas gas gaspipeline
Bourbon ArchCherokee Basin
Fore
st C
ity B
asinknowncoal bed
gasprojects
Wyandotte
24
9
1
0
1
0
59
9
12314
0
13
116
0288328
86568110
180
7
0
0
14142
07
8
0
7
12
NUMBERof WELLSDRILLEDfor
COALBEDGAS bycounty
(through mid-2003)
25mi 25km
N
Douglas
Franklin
Johnson
LeavenworthJefferson
AtchisonDoniphan
BrownNemaha
Jackson
Pottawatomie
Wabaunsee
Shawnee
Osage
Miami
Linn
Bourbon
Crawford
CherokeeLabette
Neosho
Allen
AndersonCoffey
Woodson
Wilson
MontgomeryChautauqua
Elk
Cowley
GreenwoodButler
Lyon
ChaseMorris
0
24
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Unconventional ReservoirUnconventional Reservoir
FracturedReservoir
Micropores
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Methane Production fromMethane Production fromMicroporesMicropores
Desorption
Replacement
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Time
Conventional Gas andConventional Gas andCoal Bed GasCoal Bed Gas
Vol
ume
per d
ay
PRODUCTION DECLINE
–coalbed gas
–conventional gas
Adapted from Rice, 1997
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–.
Time
Production Stages of aProduction Stages of aCoalbed Gas WellCoalbed Gas Well
–Gas
–Water
Vol
ume
StableProduction
Stage
DewateringStage
DeclineStage
Adapted from Rice, 1997
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Kansas Coalbed Methane Kansas Coalbed Methane Monthly ProductionMonthly Production
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Neosho County CBM ProductionNeosho County CBM Production
3,585
0
500
1000
1500
2000
2500
3000
3500
4000
1995 1996 1997 1998 1999 2000 2001 2002 2003
Year
Prod
uctio
n M
illio
n C
ubic
Fee
t
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
$20
Dol
lars
Mill
ions
at W
ellh
ead
Production (mmcf)Estimated Annual ProductionValueEstimated Annual Value
Estimated Annual Value Assumes Constant Production and Price for Remainder of Year
2003 Production Through November2003 Value through September
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SE Kansas CBM ProductionSE Kansas CBM Production9.06
0
1
2
3
4
5
6
7
8
9
10
1995 1996 1997 1998 1999 2000 2001 2002 2003
Year
Bill
ion
Cub
ic F
eet
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
Dol
lars
Mill
ions
Wel
lhea
d
Production (Bcf)Value
Estimated 2003 Annual Value Assumes Constant Production and Price for Remainder of Year
Includes Gas Production for Labette, Montgomery, Neosho and Wilson counties
2003 Production Through November2003 Prices through September
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Kansas Gas ProductionKansas Gas Production
30.000
35.000
40.000
45.000
50.000
55.000
60.000
65.000
70.000
75.000
Jan-9
0Ja
n-91
Jan-9
2Ja
n-93
Jan-9
4Ja
n-95
Jan-9
6Ja
n-97
Jan-9
8Ja
n-99
Jan-0
0Ja
n-01
Jan-0
2Ja
n-03
Gas
Pro
duct
ion
(BC
F/M
onth
)
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
$9.00
Avg.
Wel
lhea
d Pr
ice
($ P
er M
CF)
Production Through November 2003Wellhead Prices through September 2003
Production Through November 2003Wellhead Prices through September 2003
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Coalbed Methane ProgramCoalbed Methane Program
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Coalbed Methane ProgramCoalbed Methane Program
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Coalbed Methane ProgramCoalbed Methane Program
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WeirWeir--Pitt CoalPitt Coal
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United States Carbon Dioxide United States Carbon Dioxide EmissionsEmissions
By Source & Sector)
Commercial16%
Commercial16%
Oil42%Oil
42%
Coal37%Coal37%
Transportation33%
Transportation33%
Residential20%
Industry31%
Industry31%
Natural Gas21%
Other29%
Other29%
Transportation33%
Transportation33%
Electricity38%
Electricity38%
EIA AEO2002
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Southeast KansasSoutheast Kansas
214 m tons/yr
1,095
380
552
249
163
CBM
25 Miles
Greenwood Co.
El Dorado Field
“Gol
den
Lane
s”
Salya
rds T
rend
Partially miscible and immiscible CO2 EOR • El Dorado
• Salyards Trend,
Enhanced Coalbed Methane (N2 and CO2)Cement plant gas stream may be best suited for ECBM
Lafarge
Industry
G as
O il & G as
O il
C B M EthanolOil and Gas Fields
RefineryAmmonia
Power
Cement
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Cement ProductionCement Production
Dry Kiln Portland Cement ProcessCalcination ProcessCaCO3 > CaO + CO20.51 tons CO2 / ton cement
CO2 and N2 kiln gas mix may be suitable for ECBM with little processing
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Landfill GasLandfill Gas
Landfill Gas (LFG) CH4, CO2, NMOC Pipeline
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Kansas CBM SummaryKansas CBM Summary• Expect CBM Production Increase to Continue • Continued Exploration Expected
– Extent Dependent on Outcome of Pilots› Geological Survey Working to Provide Information
– Northward Spread– Significant Impact on SE Kansas Economy– Potential Significant Impact on Kansas Economy
• A Substantial Boost in US Supplies will take Time– US Market Controls Kansas Gas Price – Kansas is Vulnerable to Energy Price Spikes