wattenberg hz presentation 4-9-12
TRANSCRIPT
www.anadarko.com | NYSE: APC
The Equipment: From Rig to Producing Well
Hydraulic Fracturing
Producing Well: 20+ YearsProducing Well: 20+ Years
Drilling Rig
Anadarko Petroleum Corporation 13
www.anadarko.com | NYSE: APC
Horizontal Drilling
Commences with Common Rotary Vertical Drilling
Wellbore then Reaches a “KickoffWellbore then Reaches a “Kickoff Point”
Drill Bit Angles Diagonally Until
Kickoff Point~6,300 feet
Entry Point~7,000 feetg g y
the “Entry Point”
Wellbore Becomes Fully Horizontal to Maximize Contact Lateral LengthHorizontal to Maximize Contact with Productive Zones
Lateral Length
Anadarko Petroleum Corporation 14
www.anadarko.com | NYSE: APC
Horizontal Drilling – Significant Surface‐Space Reduction
Traditional Vertical Wells Horizontal Drilling
Anadarko Petroleum Corporation
www.anadarko.com | NYSE: APC
Hydraulic Fracturing
Essential Technology in Oil and Natural Gas Production from TightProduction from Tight Sands and Shales
Involves Injecting a Involves Injecting a Mixture of Water, Sand and a Relatively Small Amount of Additives Under Pressure into
1+ Mile Separates Aquifer from Fractured Formation
Multiple Layers of Protective
Steel and CementUnder Pressure into Targeted Formations
Pressure Creates Pathways
Steel and Cement
Pressure Creates Pathways, Propped Open by Sand, for Oil or Natural Gas to Flow to the Wellbore
Anadarko Petroleum Corporation 16
www.anadarko.com | NYSE: APC
Hydraulic Fracturing Equipment
Water tanksWater tanks
BlenderBlenderF VF V
S d t kS d t k WellheadWellhead
Frac VanFrac Van
Sand tanksSand tanks Pump trucksPump trucksWellheadWellhead
Anadarko Petroleum Corporation 17
17
www.anadarko.com | NYSE: APC
Hydraulic Fracturing Technology
EquipmentWater TanksPump TruckspSand MoversBlenders
Frac DesignPrimarily Water and SandAdditives Include: Gel (ice cream) Biocide (bleach) Friction reducer (polymer used in make‐up, nail and skin products)
Anadarko Publicly Shares the Ingredients of All Hydraulic Fracturing Operations at
Anadarko Petroleum Corporation 18
www.FracFocus.org
www.anadarko.com | NYSE: APC
Hydraulic Fracturing is Transparent
Anadarko was Instrumental in Creating the Ground Water Protection Council’s Online Public Registry that Enhances Transparency b bli l h i h di d iby Publicly Sharing the Ingredients Used in Hydraulic Fracturing on a Per‐Well Basis.
GWPC’s Online Public Registry
Fracfocus.org
g y
Publicly Shares All FracingIngredients on a “Per‐Well” Basis
Available to Anyone at Any Time
Anadarko Petroleum Corporation 19
www.anadarko.com | NYSE: APC
Protecting Water Quality in Colorado
Anadarko is a Participant in Colorado’s Water‐Quality Sampling Program
Independent Third‐Party Experts Collect Water Samples Prior to Drilling …
And Again After Drilling
To Ensure Water Quality is Protected
All Water‐Quality Data is MaintainedAll Water Quality Data is Maintained by the Colorado Oil and Gas Conservation Commission
Anadarko Petroleum Corporation 20
www.anadarko.com | NYSE: APC
Coexist with agricultural operations…
WellheadWellhead WellheadWellheadWellheadWellhead WellheadWellhead
WellheadWellhead
Anadarko Petroleum Corporation 21
www.anadarko.com | NYSE: APC
Existing COGCC Hydraulic Fracturing Rules
Rule 317 ‐‐ Surface casing and cementing requirements and cement bond logRule 317B ‐‐ Setbacks and precautions near surface waterRule 906 – Spill containment and reportingRule 341 – Monitor pressures and reporting requirements Rule 907 Management of produced waterRule 907 – Management of produced water
Injection – COGCC permit processCommercial Facilities – CDPHE permit processLand Treatment – COGCC permit processCentralized E&P Water Facility – COGCC permit processReuse and Recycle – COGCC permit process
Anadarko Petroleum Corporation 22
www.anadarko.com | NYSE: APC
New COGCC Hydraulic Fracturing Rules
Publicly share ALL fluid additivesPublicly share both additives and ingredientsProtection of proprietary information allowed with theProtection of proprietary information allowed with the submission of a certification signed under the “penalty of perjury” by service providersEmergency professionals have access to proprietary informationEmergency professionals have access to proprietary informationPublicly share information via FracFocus within 60 days of hydraulic fracturing being completedS f l d i f i hSurface landowner information sheetProvide 48‐hour notification to COGCC prior to commencing hydraulic fracturing applicationsCOGCC will then notify LGD
Anadarko Petroleum Corporation 23
www.anadarko.com | NYSE: APC
How Much Is 5 Million Gallons Of Water?
• A Typical Wattenberg HZ Well Uses 3 - 5 MM Gallons
750704
A Typical Wattenberg HZ Well Uses 3 5 MM Gallons
• The Same Amount Is Consumed By:
472
204
364
1,000 MWh coal-fired
1,000 MWh nuclear
Corn Fieldover
Avg. golf courseevery014 34 52
114power plant in
11 HOURS
power plantin
6 HOURS
5 ACRESper
SEASON
y37 DAYS
Anadarko Petroleum Corporation
www.anadarko.com | NYSE: APC
Environmental Protections & Best Management Practices
• Pad Drilling: Reduces Surface Space• Closed-Loop System: No Open Pits• Water Recycling: Conserves Water Usage• Green Completions: Reduces Emissions• FLIR Cameras: Identifies and Addresses Potential Leaks • Flowline Testing: Ensures System Integrity• Stuffing Box Shutoff: Enhances SafetyStuffing Box Shutoff: Enhances Safety• Drip Catch Pan: Protects the Surface• Oil Polishing Facility: Reduces Truck Traffic & Emissions• Automatation: Reduces Truck Traffic & Emissions
Ob ti R t E C li• Observation Reports: Ensures Compliance• Emission-Control Devices: Reduces Emissions
Anadarko Petroleum Corporation 26
www.anadarko.com | NYSE: APC
Recognition for Environmental Protection
Awarded as 2011 Outstanding Operator in the State of Colorado for:
Environmental Protection
Water-Quality Protection
Community Relationsy
Anadarko Petroleum Corporation 27
www.anadarko.com | NYSE: APC
Giving Back to the Community & Environment
Community InvolvementWeld Food BankWeld County Special OlympicsWeld County Fair and Junior AuctionHabitat for Humanity – 4th home under wayGreeley StampedeNational Western Stock Show and JuniorNational Western Stock Show and Junior AuctionAmerican Cancer Society Cattle Baron’s BallDearfield MonumentWeld Community FoundationWeld Community FoundationHistoric Ft. Lupton Support numerous Denver‐based charities and civic organizations
Addi i l E i l Additional Environmental Awards
IOGCC Chairman’s Stewardship Award
Anadarko Petroleum Corporation 28