barnett shale road to recovery

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ROAD DAMAGE

Base Failures

Edges Rutting

Distress

WHAT IS GOING ON IN THE BARNETT SHALE TODAY

2008

2012

Moderate Drilling Continues in Tarrant County (Urban) Drilling Has Slowed Outside of Tarrant; Production Saltwater Oil Drilling Increasing in North Part of Barnett Combo Play

New 75 Unit Windmill Farm Under Construction in Jack County

OIL & GAS RIG COUNT FOLLOWS THE

MARKET

Since Mid-2008 to Current : Natural Gas Drilling Down , Oil Drilling Up 76%

0 250 500 750 1000 1250 1500 1750 2000 2250

Johnson

Tarrant

Parker

Hood 200720082009201020112012

2012 2011 2010 2009 2008 2007

Johnson 103 420 578 625 1438 1425

Tarrant 533 1854 1784 1405 2030 1492

Parker 96 144 118 181 449 494

Hood 45 63 53 76 311 369

2012 Permits thru July 2012

Permits Issued in the Active Core

Counties

Consolidated Maintenance Sections

• Better Access To And Sharing Of Resources

• Greater Flexibility • Can Assist Others and Still

Have Home Base Covered • Increases Efficiency and

Consistency

Allows You To Reposition Project Crews To Rehab An Area That Can’t Wait For A Project (Cement Stabilization)

REPAIR FAILURES AS QUICKLY AS POSSIBLE

Typical Maintenance Repair: Bomag 4% Cement into Existing Base, Cap with HMAC or Seal Coat

• Use Pothole & Base Repair Contracts To Hit Hot Spots

• Partner With Counties To Address County Road Intersections

• Watch Your Edges For Drop Offs

• Use Drag Box for Rut Filling • HMAC Intersections With Heavy

Track Turning

Ralph Garza “Drive your roads daily and stay on top of problems while they are still manageable. Don’t wait or you can lose the road”

WORK WITH YOUR LOCAL DPS OFFICERS

• Built Several New Weight Stations • DPS Can Help You With Mud On The

Road Problems (Shakers Help A Lot)

OTHER STRATEGIES • Shift Cat 1 Funds to Effected Areas (Defer

Preventative Maintenance In Non-Effected Areas) To Rehab Pavements

• Shift Strategy 105 & 144 Funds to Effected Areas (Defer Preventative Maintenance in Non-Effected Areas) To Provide Extra Materials and Contracts To Hold The Roadway Together and Address Safety Issues

• Standardized Driveway Permitting; Address Mineral Rights vs. Surface Rights

• Revise Your Pavement Designs To Handle Additional Truck Loading

• Require TIAs for Saltwater Disposal Facilities • Standardized Utility Permitting • Widen and Stabilize Shoulders (Provide Lateral

Support For Pavement Edges)

• Shortage of Personnel & CDL Drivers - ???

The Technological Advancements in Horizontal Drilling and Hydraulic Fracturing That Has Allowed Energy Companies the Economic Feasibility to Extract Shale Oil and Shale Gas And Is Here to Stay. Horizontal Drilling and Hydraulic Fracturing Will Move From Oily To Gassy Parts of a Shale Formation Following Slightly Behind The Trend of the Oil/Gas Ratio.

The US Energy Information Administration Forecast:

Using Current Technology NG Prices Need To Be between $5-$6/mcf To

be Profitable.

• NG Prices are determined largely by supply and demand. Currently there is a glut of NG and prices are less than replacement cost.

• Important factor affecting NG prices will be cumulative production of shale gas wells. (How quickly will the production curve decline).

2020 ???

FM 2257 – PARKER COUNTY 3 YEAR OLD ROADWAY RECONSTRUCTION

NEW SALTWATER DISPOSAL WELL

SHOULDER STABILIZATION

• Heel Out 18” – 24” Next to existing shoulder.

• Fill with 8”- 10” Flexbase or Pugged RAP Using Truck or Widener.

• Compact • Seal

RICHARD SCHILLER DIRECTOR OF MAINTENANCE TXDOT - FORT WORTH DISTRICT