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Clearing Misconceptions: Education on Drilling Operation and Fracturing Technique

Learn about hydraulic fracturing operation, well construction, accurate data requirements, water usage facts, and groundwater protection measures in Colorado's oil and gas industry. Engage with meaningful resources for informed understanding.

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Clearing Misconceptions: Education on Drilling Operation and Fracturing Technique

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  1. Moving Beyond Misinformation: Education and Engagement

  2. Misperception: Hydraulic Fracturing is Injecting Fluids into Groundwater

  3. The Process

  4. Drilling Distance Aquifer 400-800 ft. Wells Fargo Center ~700 ft 7000 ft.

  5. Casing • Multiple layers surrounding the aquifer • Cement • Conductor Casing • Cement • Surface Casing • Drilling Mud/Cement • Production Casing • Production Tubing

  6. Surface Casing • Purpose • Protect ground water • Provide stable wellbore during drilling operation • Provide well control during drilling • Depth Requirements • Set by State and BLM regulations • Extends below the aquifer • Cement Helps • Protect casing from corrosion • Provide zonal isolation • Support casing in wellbore

  7. Production Casing • Purpose • Provide zonal isolation • Provide well control • Well path to productive intervals • Cement Requirements • Set by State regulations • Set by BLM regulations • Operator requirements • Cement Helps • Protect casing from corrosion • Support casing in wellbore

  8. Misperception: Hydraulic Fracturing is Not Engineered

  9. Fracture Design Predict-K 3.0 • Data Required • Petrophysics/Formation properties • k, Φ, ν,E, σ, Pp, BHT • Fluid properties • Multitude of fluid types • n’, K’, μ, break profile, Pf, • Proppant properties • Variety of proppant types • β, sg, size, CD

  10. Pump Schedule • A pump schedule is required for the simulator to determine the predicted fracture geometry • Fluid and proppant volumes • Treatment rate • Additive rates Frac Job

  11. Treatment Graph Frac Job

  12. Misperception: Drilling is Getting Riskier

  13. Fractured Contact

  14. Footprint 1 Well Pad or 32?

  15. Misperception: Drilling and Hydraulic Fracturing Uses Too Much Water

  16. Colorado Water Use Source: USGS 2005 Estimated Withdrawals and Use of Water in Colorado, 2005

  17. Horizontal Well Activity • 2011 • 517 Horizontal wells permitted • 2009-2011 • 295 Horizontal wells spud • Total wells spud • 2009 - 2019 • 2010 - 2327 • 2011- 2069

  18. Estimate All Well Activity • 2011 Estimate Water Use • 1000 horizontal wells (5M gal) • 1500 vertical wells (1M gal) • Conservative Estimate: • 0.14% of Colorado annual irrigation water use • 0.13% of Colorado annual water use

  19. Water Requirements • Natural gas has one of the lowest water usage rates per MMBTU

  20. Misperception: There is No Data Showing Groundwater is Protected

  21. COGCC • Groundwater complaints • Hundreds of complaints • No verified instances of hydraulic fracturing harming groundwater in Colorado • Water sampling • Since 2000, baseline and periodic water sampling for over 2,000 water wells in the San Juan Basin • Independently verified; no significant increase in chemical concentrations

  22. COGCC Data

  23. Meaningful Engagement and Education

  24. FracFocus Website http://fracfocus.brocodev.com/hydraulic-fracturing-process http://fracfocus.brocodev.com/

  25. HF Disclosure Example

  26. Baseline Water Sampling • Pre and Post-drilling water samples taken around new well starts • Increased transparency & accountability for industry

  27. Colorado’s O&G Industry • 46,426 active wells • 7th highest state in natural gas production • 7th highest state in number of natural gas wells drilled in 2010 • 12th highest state in crude oil production • 18th highest state in number of crude oil wells drilled in 2010 • $1.1B in public revenue • $9.1B production value in 2010 • 102,000 jobs Sources: Colorado Oil and Gas Conservation Commission, Independent Petroleum Association of America.

  28. Total Direct Public Revenue $1.1 Billion 2010 Sources: Colorado Dept of Revenue, Office of Natural Resources Revenue, Colorado Dept of Local Affairs

  29. COGA Fast Facts

  30. Resources • Hydraulic Fracturing Fact Sheet • COGCC Gasland Correction Document • COGA’s The Truth About Gasland • Other Fact Sheets • Natural Gas Facts • Socioeconomic Benefits • Produced Water • Natural Gas Supply www.coga.org

  31. Questions? Thank you for your interest in Colorado’s oil and gas industry! www.coga.org

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