Emerging Technology Disrupters in Oil, Gas and Data

O'Reilly Report Cover

Last week I learned that WellWiki.org was profiled in O’Reilly’s Oil, Gas and Data report. Written by Daniel Cowles, the O’Reilly report covers a variety of emerging technology disruptors. The report was handed out to attendees at the Strata + Hadoop World big data conference in London.  Below is an excerpt…

O'Reilly Report Page 16

Act 13 Reporting Paper a Top 10 Download Again

According to SSRN, our paper — An Analysis of Unconventional Gas Well Reporting under Pennsylvania’s Act 13 of 2012 — is once again a top 10 download in several categories, including:

The paper was published in the December issue of Environmental Practice and analyzes the extent to which the Pennsylvania Department of Environmental Protection (DEP) complied with its reporting requirements under Act 13. Using publicly available data, we find that the DEP likely omitted between 15,300 and 25,100 unconventional gas wells from its Act 13 report. Left uncorrected, we estimate that Pennsylvania’s state, county, and municipal governments could forfeit fees of $205-$303 million in 2012 and up to $0.75-$1.85 billion cumulatively over the expected life of these wells. We propose the implementation of a relational database and geographic information system as a way for the DEP to fulfill its Act 13 obligations.

The Ashcroft #1

Another example of a spud unconventional gas well omitted from the Pennsylvania Department of Environmental Protection’s Act 13 report, this one in the West Falls Formation.

Ashcroft #1

In December 1975, St. Joe Petroleum Corporation spud the Richard J. Ashcroft #1 well in Greene Township, Beaver County, ultimately drilling to a total depth of 7,519 feet in the Queenston Shale (Heyman & Cozart, 1978). The Ashcroft #1 was originally drilled as a test of the Lower Silurian Medina Group (Piotrowski & Harper, 1979), and reportedly completed on December 6, 1975. Although there was a slight show of gas, the well was initially shut-in, pending further production tests (Heyman & Cozart, 1978). The well was later plugged back, and, on February 19, 1976, was reportedly completed in the Devonian Rhinestreet shale (Piotrowski & Harper, 1979). However, after being hydraulically fractured, there was no sustained flow, and as of 1979, the well was again reported as shut-in (Piotrowski & Harper, 1979). The Ashcroft #1 was assigned Permit #BEA-20060 (Heyman & Cozart, 1978), now API #37-007-20060 (Ryder, 2004; Ryder et al., 2012; Trippi & Crangle, 2009). See Figure 1.

Figure 1. Ashcroft #1 Gamma Ray Log 

ashcroftlog

Source: Trippi & Crangle, 2009

References

Heyman, L., & Cozart, C. L. 1978. Oil and Gas Developments in Pennsylvania in 1977. Harrisburg, PA: Pennsylvania Geological Survey, Fourth Series, Progress Report 191.

Piotrowski, R. G., & Harper, J. A. 1979. Black Shale and Sandstone Facies of the Devonian “Catskill” Clastic Wedge in the Subsurface of Western Pennsylvania. Washington, DC: U.S. Department of Energy.

Ryder, R. T. 2004. Stratigraphic Framework and Depositional Sequences in the Lower Silurian Regional Oil and Gas Accumulation, Appalachian Basin: From Ashland County, Ohio, through Southwestern Pennsylvania, to Preston County, West Virginia. Washington, DC: U.S. Geological Survey, Geologic Investigations Series, Map I-2810.

Ryder, R. T., Trippi, M. H., Swezey, C. S., Crangle, R. D., Jr., Hope, R. S., Rowan, E. L., et al. 2012. Geologic Cross Section C–C’ through the Appalachian Basin From Erie County, North-Central Ohio, to the Valley and Ridge Province, Bedford County, South-Central Pennsylvania. Washington, DC: U.S. Geological Survey, Scientific Investigations Map 3172.

Trippi, M. H., & Crangle, R. D., Jr. 2009. Log ASCII Standard (LAS) Files for Geophysical (Gamma Ray) Wireline Well Logs and Their Application to Geologic Cross Section C-C’ through the Central Appalachian Basin. Washington, DC: U.S. Geological Survey, Open File Report 2009-1021.

The Fleck #1

Another example of a spud unconventional gas well omitted from the Pennsylvania Department of Environmental Protection’s Act 13 report, this one in the West Falls Formation.

Fleck #1

In 1975, Peoples Natural Gas Company spud the James Fleck #1 in Sandy Creek Township, Mercer County, reaching a total depth of 9,246 feet in “Precambrian granite” (Lytle et al., 1977: 23). The well was plugged back and fractured in the Lower Silurian Medina Group from 4,990 to 5,040 feet, discovering the Fleck Pool in the Sheakleyville Field (Lytle et al., 1977). In 1977, the Pennsylvania Geological Survey reported two different completion dates for this well: August 27, 1975, and March 12, 1976, creating indeterminacy as to when these events took place (Lytle et al., 1977). Regardless, initial production was reportedly 231 Mcfgpd, and the well was assigned Permit #MER-20116 (Lytle et al., 1977), or API #37-085-20116 under current nomenclature (Baranoski, 2002). The well was then shut-in (Heyman & Cozart, 1978). According to later reports, “although a significant amount of gas was encountered, it was not deemed sufficient to justify the expense of putting the well on line” (Harper & Abel, 1979: 41).

Around this same time, the Energy Research and Development Administration (ERDA) had launched a five-year study of Devonian organic-rich shales in the Appalachian Basin (Piotrowski & Krajewski, 1977).[1] As it relates to the James Fleck #1, in addition to production from the Medina Group, well logs indicated gas production in so-called Zone I facies, which were then thought to be “approximately equivalent to the Rhine Street Shale of New York” (Piotrowski & Krajewski, 1977: 41). Seizing upon this potential, Peoples Natural Gas Company and the ERDA began negotiating the possibility of using the James Fleck #1 to test the West Falls Formation (Frohne, 1978; Piotrowski & Krajewski, 1977).

These negotiations succeeded, and in March 1978, the newly formed U.S. Department of Energy (DOE) “attempted to stimulate the Rhinestreet facies … by means of a massive hydraulic fracturing treatment” (Harper & Abel, 1979: 41). In preparation for the treatment, the Devonian Shale was perforated with 50 holes between 3,112 and 3,360 feet deep (Frohne, 1978). The planned hydraulic fracturing treatment called for 270,000 gallons of nitrogen-water foam fracturing fluid, 324,000 pounds of sand proppant, and 12 major pieces of fracturing equipment (Frohne, 1978). Additionally, 6 gallons of surfactant, 1 gallon of clay stabilizer, and 44 pounds of calcium chloride per thousand gallons of water were injected with the foam (Frohne, 1978). The job also included 2,000 pounds of flaked benzoic acid to be used as a temporary diverting agent to insure that the entire perforated interval accepted some fracturing fluid (Frohne, 1978). See Table 1 for complete specifications of the planned massive hydraulic fracture treatment.

Table 1. Fleck #1 Massive Hydraulic Fracture Treatment Schedule

fleckmhf

Source: Frohne, 1978

However, during the hydraulic fracturing treatment, unexpectedly high pressures were encountered, as well as a mechanical packer problem, resulting in a catastrophic downhole casing failure (Frohne, 1978). During the curtailed foam frac operation, 1,582,000 SCF of nitrogen gas, 18,500 gallons of water, and 19,700 pounds of sand had been pumped into the well, most of which then rapidly escaped from the fractured interval and returned to the surface. During the flowback, a substantial amount of sand proppant was sprayed over the backside of the well location. Trees about 30 to 50 yards away had coats of sand plastered on trunks and branches, and there was a solid layer of sand over the rear quadrant of the well site (see Figure 1). “This served to illustrate the potential hazards associated with any stimulation effort, as well as the need for good wellhead arrangement and spectator control” (Frohne, 1978: 5).

Figure 1. Fleck #1 Massive Hydraulic Fracture Treatment Schematic

fleckdiagram

Source: Frohne, 1978

Despite extensive remedial efforts, the treatment had to be aborted, and the well was plugged and abandoned (Frohne, 1978; Piotrowski, Cozart, Heyman, Harper, & Abel, 1979; Piotrowski & Harper, 1979). Following these events, the Pennsylvania Geological Survey published another completion record for this well, dated March 16, 1978 (Piotrowski et al., 1979).


[1] The ERDA was created on Oct 17, 1974 as part of the Energy Reorganization Act of 1974. On October 1, 1977, the ERDA was combined with the Federal Energy Administration to form the United States Department of Energy.

References

Baranoski, M. T. 2002. Structure Contour Map on the Precambrian Unconformity Surface in Ohio and Related Basement Features. Columbus, OH: Ohio Department of Natural Resources.

Frohne, K.-H. 1978. Technical Assessment: Massive Foam Stimulation Attempt in Mercer Co., Pa. Washington, DC: U.S. Department of Energy.

Harper, J. A., & Abel, K. D. 1979. Devonian Shale Research in Pennsylvania: An Update. In R. G. Piotrowski, C. L. Cozart, L. Heyman, J. A. Harper, & K. D. Abel (Eds.), Oil and Gas Developments in Pennsylvania in 1978: 34–43. Harrisburg, PA: Pennsylvania Geological Survey, Fourth Series, Progress Report 192.

Heyman, L., & Cozart, C. L. 1978. Oil and Gas Developments in Pennsylvania in 1977. Harrisburg, PA: Pennsylvania Geological Survey, Fourth Series, Progress Report 191.

Lytle, W. S., Heyman, L., Piotrowski, R. G., & Krajewski, S. A. 1977. Oil and Gas Developments in Pennsylvania in 1976. Harrisburg, PA: Pennsylvania Geological Survey, Fourth Series, Progress Report 190.

Piotrowski, R. G., Cozart, C. L., Heyman, L., Harper, J. A., & Abel, K. D. 1979. Oil and Gas Developments in Pennsylvania in 1978. Harrisburg, PA: Pennsylvania Geological Survey, Fourth Series, Progress Report 192.

Piotrowski, R. G., & Harper, J. A. 1979. Black Shale and Sandstone Facies of the Devonian “Catskill” Clastic Wedge in the Subsurface of Western Pennsylvania. Washington, DC: U.S. Department of Energy.

Piotrowski, R. G., & Krajewski, S. A. 1977. Devonian Shale Research in Pennsylvania. In W. S. Lytle, L. Heyman, R. G. Piotrowski, & S. A. Krajewski (Eds.), Oil and Gas Developments in Pennsylvania in 1976: 33–42. Harrisburg, PA: Pennsylvania Geological Survey, Fourth Series, Progress Report 190.

The Metropolitan Industry #1

Another example of a spud unconventional gas well omitted from the Pennsylvania Department of Environmental Protection’s Act 13 report, this one in the West Falls Formation.

Metropolitan Industry #1

In 1975, Quaker State Oil Refining Corporation completed the Metropolitan Industry #1 in Darlington Township, Beaver County, as a test of the Lower Silurian Medina Group (Harper & Abel, 1979; Lytle, Piotrowski, & Heyman, 1976; Piotrowski & Harper, 1979). The well was drilled to a total depth of 6,666 feet in the Queenston Shale (Lytle, Heyman, Piotrowski, & Krajewski, 1977; Lytle, Piotrowski, et al., 1976). After no gas was encountered in the Medina, the well was plugged back to test the Upper Devonian shale (Harper & Abel, 1979; Lytle, Piotrowski, et al., 1976). There was no natural production from the shale, but after hydraulic fracturing from just above the Onondaga limestone to above the Tully limestone the well initially produced 150 Mcfgepd (Harper & Abel, 1979; Lytle et al., 1977; Lytle, Piotrowski, et al., 1976; Piotrowski & Harper, 1979).

At the time, the Pennsylvania Geological Survey claimed the well “could be a most significant discovery” (Lytle, Piotrowski, et al., 1976: 25), and credited it with discovering the Darlington Field. This enthusiasm proved to be short lived, however, as production declined each day, and by the end of 30 days the well was non-productive (Lytle et al., 1977). “When shut-in, pressure would build up, but on opening up the well, it would blow off to nothing in a short time. Evidently, there was very little original fracture porosity. Gas accumulated mainly in fractures induced when the well was completed by hydraulic fracturing” (Lytle et al., 1977: 23). The well was eventually plugged and abandoned (Piotrowski & Harper, 1979).

Despite being completed on February 6, 1975, “the [well] record was not received until 1976” (Lytle, Piotrowski, et al., 1976: 25–26). In 1977, some two years after it had been completed, the state published the well record (Lytle et al., 1977). The well was originally assigned Permit #BEA-20054 (Lytle et al., 1977). Under current nomenclature, the Metropolitan Industry #1 is known as API #37-007-20054 (Hosterman & Whitlow, 1983; Ryder et al., 2012).

Initially, the Metropolitan Industry #1 was described as having been completed in the Upper Devonian shale (Lytle, Piotrowski, et al., 1976). The following year the Pennsylvania Geological Survey reported the well produced from so-called Zone I facies, “the second major black shale unit in Pennsylvania” (see Figure 1), which was thought to be “approximately equivalent to the Rhine Street Shale of New York” (Piotrowski & Krajewski, 1977: 41). By 1978, the Metropolitan Industry #1 was considered to produce from the “Rhinestreet shale facies” (Harper & Abel, 1979: 38). Finally, by 1979, it was shown that the well completed and produced from the West Falls, Sonyea, and Genesse Formations (see Figure 2) (Piotrowski & Harper, 1979).

Figure 1. Upper Devonian Cross Section Circa 1977

upperdevonian1977

Source: Piotrowski & Krajewski, 1977

Figure 2. Metropolitan Industry #1 Combined Well Logs

metro1logs

Source: Piotrowski & Harper, 1979

References

Harper, J. A., & Abel, K. D. 1979. Devonian Shale Research in Pennsylvania: An Update. In R. G. Piotrowski, C. L. Cozart, L. Heyman, J. A. Harper, & K. D. Abel (Eds.), Oil and Gas Developments in Pennsylvania in 1978: 34–43. Harrisburg, PA: Pennsylvania Geological Survey, Fourth Series, Progress Report 192.

Hosterman, J. W., & Whitlow, S. I. 1983. Clay Mineralogy of Devonian Shales in the Appalachian Basin. Washington, DC: U.S. Geological Survey.

Lytle, W. S., Heyman, L., Piotrowski, R. G., & Krajewski, S. A. 1977. Oil and Gas Developments in Pennsylvania in 1976. Harrisburg, PA: Pennsylvania Geological Survey, Fourth Series, Progress Report 190.

Lytle, W. S., Piotrowski, R. G., & Heyman, L. 1976. Oil and Gas Developments in Pennsylvania in 1975. Harrisburg, PA: Pennsylvania Geological Survey, Fourth Series, Progress Report 189.

Piotrowski, R. G., & Harper, J. A. 1979. Black Shale and Sandstone Facies of the Devonian “Catskill” Clastic Wedge in the Subsurface of Western Pennsylvania. Washington, DC: U.S. Department of Energy.

Piotrowski, R. G., & Krajewski, S. A. 1977. Devonian Shale Research in Pennsylvania. In W. S. Lytle, L. Heyman, R. G. Piotrowski, & S. A. Krajewski (Eds.), Oil and Gas Developments in Pennsylvania in 1976: 33–42. Harrisburg, PA: Pennsylvania Geological Survey, Fourth Series, Progress Report 190.

Ryder, R. T., Trippi, M. H., Swezey, C. S., Crangle, R. D., Jr., Hope, R. S., Rowan, E. L., et al. 2012. Geologic Cross Section C–C’ through the Appalachian Basin From Erie County, North-Central Ohio, to the Valley and Ridge Province, Bedford County, South-Central Pennsylvania. Washington, DC: U.S. Geological Survey, Scientific Investigations Map 3172.

Some Recent Unconventional Shale Research

Recently, I’ve stumbled across a growing number of studies related to various aspects of unconventional shale drilling and hydraulic fracturing, a number of which are specific to the Marcellus Formation. Below are a few highlights:

Estimation of Regional Air-Quality Damages from Marcellus Shale Natural Gas Extraction in Pennsylvania, by Aviva Litovitz, Aimee Curtright, Shmuel Abramzon, Nicholas Burger and Constantine Samaras, in Environmental Research Letters

The Relationship between Marcellus Shale Gas Development in Pennsylvania and Local Perceptions of Risk and Opportunity, by Kai A. Schafft, Yetkin Borlu, and Leland Glenna, in Rural Sociology

Source Signature of Volatile Organic Compounds from Oil and Natural Gas Operations in Northeastern Colorado, by J. B. Gilman, B. M. Lerner, W. C. Kuster, and J. A. de Gouw, in Environmental Science & Technology

Analysis of BTEX Groundwater Concentration from Surface Spills Associated with Hydraulic Fracturing Operations, by Sherilyn A. Gross, Heather J. Avens, Amber M. Banducci, Jennifer Sahmel, Julie M. Panko, and Brooke E. Tvermoes, in Journal of the Air & Waste Management Association

Generation, Transport, and Disposal of Wastewater Associated with Marcellus Shale Gas Development, by Brian D. Lutz, Aurana N. Lewis, and Martin W. Doyle, in Water Resources Research

These studies are all in addition to the 13 articles published as part of Environmental Practice’s December 2012 special issue on hydraulic fracturing.

Another Early Rhinestreet Well

A few months ago I wrote a series of posts about early unconventional wells that appear to have been omitted from the Pennsylvania Department of Environmental Protection’s (DEP) Act 13 report, contrary to requirements.

Today I stumbled across another early Rhinestreet Shale well. According to Tarr (1980, p. 4), in November 1979, in the the northeastern portion of the Lake Erie shoreline the Pennsylvania Department of Environmental Resources (DER), the US Department of Energy (DOE) and the Morgantown Energy Technology Center (METC) “completed the Commonwealth of Pennsylvania [COP], 3 DER Presque Isle State Park, Permit #ERI-20846 [now 37-049-20846] in the Devonian Shale interval 117-1247.5′. The well was bottomed at a total depth of 1276 ft in the Middle Devonian Onondaga Limestone. The well flowed 160 Mcfpd natural from the open hole. Reservoir pressure was 170# psig after being shut-in 33 days. Gas production was obtained from the interval 945-1040 ft in the Upper Devonian Rhinestreet Shale.” In other words, this well qualifies an unconventional gas well under Act 13.

As of 1994, ERI-20846 was one of two gas wells in Presque Isle State Park, then known as the “Marina” well. According to a DER report, the Marina well was completed on October 10, 1979, at a depth of 1,276 feet. It was estimated to heat several buildings (marina, manager’s home, and administration building) for 30 to 40 years. The DER provided $23,000 towards the $200,000 project. This well last reported production in 2006. It was not listed in the DEP’s Act 13 report of spud unconventional gas wells.

The same report noted that the second well — the Beach #7 — was drilled in 1910 by the City of Erie at a depth of 3,572 feet. It was used to run machinery at waterworks park and later abandoned in the 1920s. However, the well was apparently not plugged.

In 1970, a black, foul-smelling surface discharge was reported in the Beach 7 well area. The discharge resulted in the release of hydrogen sulfide gas into the air and other hazardous substances into the soil and shallow ground water near the well. As the odors continued, DER uncovered the pavement overlying the discharge in 1979, and identified the well as the source of the discharge. The discharge was found to be emanating from a deep underground formation called the Bass Island formation.

From 1964 to 1971, over one-billion, ninety-million gallons of wood pulping wastes were injected into the Bass Island formation by the Hammermill Paper Company at wells located approximately four miles to the east of the Presque Isle State Park 7 well. An explanation is that the injected wood pulping wastes flowed along the Bass Island formation and surfaced at the Beach 7 well. [The] Beach 7 well was shut off and plugged in April 15, 1980 to 900 feet of the surface. At that time a substantial amount of gas was found near the surface that did have potential for use.

In September 1983, the Beach 7 well was placed on EPA’s National Priorities List. The National Priorities List consists of hazardous sites across the country where cleanup need’s are so serious as to warrant designation as a Superfund site. The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), commonly known as the “Superfund,” was passed by Congress in 1980. The Act addresses the nationwide problem of uncontrolled hazardous sites.

In 1992, EPA delisted the well from the National Priorities List. Restoration work was done on the site.

So, according to this report, wastes injected into a disposal well four miles away traveled from the Bass Island Formation, (which is of Upper Silurian age, and thus, much older and stratigraphically lower than the Marcellus Formation), and a depth of 3,500+ feet, through numerous intervening formations, before finally migrating up the Beach #7 well, with a bottom depth of ~1300 feet. In other words, here is at least one example that suggests fracking fluids may be able to travel laterally and vertically without much difficulty!