eagle ford fact book final
TRANSCRIPT
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EAGLE FORDOil and Natural Gas Fact Book
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Major Phases in an Oil and Natural Gas Development
Liecycle o an OnshoreOil and Natural Gas Project
Drill PadConstruction
Production
DrillingCompletion & Testing
Abandonment &Reclamation
Seismic Testing
PRODUCTIONAPPRAISALEXPLORATION
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EAGLE FORDOil and Natural Gas Fact Book
Production 13I wells are deemed economic, theproduction phase could last or severaldecades
Drilling 10-11A drilling rig moves on site and careullydrills deep into the earth over severalweeks
Drill Pad Construction 10Preparing the land or the arrival o thedrilling rig is an important part o a project
Abandonment & Reclamation 14Once a feld has been depleted, the goal is
to leave the land the way it was ound
Modern Oil and Gas Exploration 3-4Finding new reservoirs o oil and naturalgas has become more challenging andcomplex
Health & Safety 5Saety is embedded into every aspect oMarathon Oils business across the globe
Why Eagle Ford? 2The Eagle Ford Shale in Texas has becomea world-class resource play or oil and
natural gas
Completion & Testing 12Hydraulic racturing is the stimulationprocess required to make shale playseconomic
Environmental Stewardship 6-7Marathon strives to reduce itsenvironmental impact across all o itsoperations
Seismic Testing 8-9Companies use waves o energy toprovide pictures o the subsuracegeology to help determine where to drill
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As oil and gas companies continue to search or additional resources to address the countrys energy needsthe Eagle Ford Shale in Texas has become a ocus o exploration and production activity in North America.The Eagle Ford Shale ormation is considered by many to be the most signiicant new opportunity or
unconventional hydrocarbons both oil and natural gas in the United States. According to the Texas
Railroad Commission, 2010 production in the Eagle Ford Shale exceeded 3.5 million barrels o oil and will
increase over the next ew years.
Those potential resources are classiied as unconventional because the hydrocarbons are trapped in
ormations o shale a ine-grained, sedimentary rock and require innovative technologies to extract.
Advancements in two o those technologies horizontal drilling and hydraulic racturing have made
production o hydrocarbons rom these unconventional resources commercially viable in some areas and
greatly increased U.S. energy supplies.
The Eagle Ford Shale has been identiied as a premier play in North America and is expected to provide energy
resources or decades to come. Geologic studies in the Eagle Ford, which spans over 400 miles in south Texas,
have revealed the potential or large quantities o hydrocarbons; and energy companies have obtained the
rights to explore or and produce hydrocarbons on signiicant amounts o acreage stretching across the area.
The ull extent o the Eagle Ford Shales possible role as a major hydrocarbon resource is not yet known, andull-scale production could be several years away. Many challenges remain, including environmental concerns
and the lack o inrastructure to support production. However, the successul development o the Eagle Ford,
and other shale plays across the U.S., presents many beneits, including potentially reducing oil and gas
imports rom oreign sources.
The oil and gas drilling in the Eagle Ford Shale will not only help the U.S. on its path to energy security, but
will also create tens o thousands o jobs in the region.
Why Eagle Ford?The Eagle Ford Shale in Texas has become a world-class resource play or oil and natural gas
~75,000 net area
Marathon
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Modern Oil and Gas ExplorationFinding new reservoirs o oil and natural gas has become more challenging and complex
The potential o the Eagle Ford Shales naturalresources has created considerable interest in thearea. The Eagle Ford has an abundance o oil and
natural gas trapped within the shale ormation, making
these resources unconventional. Extracting these
unconventional resources saely requires both technologyand experience.
Oil rom conventional ormations is easier to produce
because its typically trapped in more permeable reservoir
rocks such as sandstone or limestone that allow it to
low more reely. Conversely, unconventional reservoirs,
like those in the Eagle Ford Shale, are characterized by
tight ormations that trap the hydrocarbons and require
stimulation techniques to allow them to low. This
typically makes production rom unconventional reservoirs
more costly and technologically challenging.
Shale oil is the terminology used simply to indicate thatthe reservoir rock containing the oil is shale. The oil itsel
is the same as oil ound in conventional ormations.
Likewise, the term shale gas is commonly used to
identiy natural gas produced rom shale reservoirs.
Again, there is no dierence between this natural gas and
natural gas produced rom conventional reservoirs.
Finding Hydrocarbons
Exploration and production companies explore or
hydrocarbon deposits by using complex technologies to
identiy prospective drilling locations. Teams o geologists
geophysicists and engineers methodically identiy,
characterize and examine geologic prospects that hold
the promise o yielding commercial quantities o oil and
natural gas. Beore a drill touches the earth, a variety o
advanced technologies are used to pinpoint with a high
degree o certainty exactly where that drill should go.
Modern drilling is less intrusive and more precise, and
the entire process is designed to minimize disturbances
to land, vegetation, water, air, natural habitats and
surrounding communities.
The actual process o inding hydrocarbons consists o
three phases.
The exploration phase involves drilling wells
to evaluate whether a reservoir has suicient
hydrocarbons to make development economically
viable.
In the second phase, additional wells are drilled in
smaller, more contained areas to appraise the reservoir
and try to conirm the assumption that hydrocarbons
can be extracted economically.
Looking at rocks at the surace to understand what they look like in the subsurace
Geologists using the latest technology to review seismic data
KEY POINTS
nMany companies are now producing oil and natural gas rom shale, a rock
composed o mud and tiny ragments o other minerals including organic
materials
nHydraulic racturing is an important well stimulation technology used since
the 1940s to saely produce oil and natural gas
nThis advancement has allowed the move rom conventional to
unconventional reservoirs
nAdvancements in horizontal drilling and multi-stage hydraulic racturing
now make it possible to economically develop oil and natural gas rom
shales
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If the appraisal program indicates the project is
viable, it moves to the third phase production.
This would entail a much higher level o drilling
activity, and production rom these wells could last
or several decades, providing clean energy to the
marketplace.
Hydraulic Fracturing and Horizontal DrillingProduction rom hydrocarbon-rich shale ormations is
one o the most rapidly expanding trends in oil and gas
exploration and production.
The term shale reers to the sedimentary rock thats
predominantly comprised o mud, stones and organic
material. Its low permeability means that hydrocarbons
trapped in shale cannot move easily within the rock
except over geologic expanses o time (millions o
years).
A key element in the emergence o shale production
has been the cost-eective reinement o twotechnologies horizontal drilling and a process known
as hydraulic racturing.
Horizontal drilling provides more contact to a reservoir
ormation than a vertical well and allows more
hydrocarbons to be produced rom a given wellbore.
For example, six to eight horizontal wells drilled
rom one location, or well pad, can access the same
reservoir volume as 16 vertical wells. Using multi-well
pads can signiicantly reduce the overall number o
well pads, access roads, pipeline routes and production
acilities, minimizing habitat disturbance, impacts to the
public and the overall environmental ootprint.
The other key to economically developing shaleormations is hydraulic racturing, which involves
pumping a mixture o mostly water and sand, and a
small percentage o additives, under high pressure
into the reservoir to create ractures, or cracks, in the
target rock ormation. The main purpose o hydraulic
racturing is to increase both the production rate and
the ultimate recovery o oil and natural gas rom a
well.
During the past decade, both o these technologies
horizontal drilling and hydraulic racturing have been
saely applied in combination to allow the economic
development o oil and gas shale reservoirs.
Moving into the next decade, these concepts and
techniques are being applied around the world in
an attempt to produce more energy and help meet
growing global energy demand.
Magnication o a conventional
sandstone. Blue indicates space
available or hydrocarbons to be
stored and ow through.
0.1 mm
Similar magnication on anunconventional tight sandstone.
The reduction in blue indicates less
storage capacity and ow paths.
0.2 mm
Similar magnication on an
unconventional shale. At thislevel its dicult to observe any
blue present. This demonstrates
that the same volume o shale
has signicantly lower ow
potential than the other two rock
types and requires stimulation
to economically produce
hydrocarbons.
0.5 mm
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Health & SafetySaety is embedded into every aspect o Marathons business across the globe
Marathons commitment to saety isstraightorward and a responsibility shared byour employees, executives, contractors and everyone
involved in our operations. Protecting the health and
saety o all workers and the surrounding community
is a core value or the Company. We will not moveorward with any job until we know it can be done
saely.
The Company recognizes that the ability to do business
in any community is a privilege. High standards o
health, environmental, saety and security (HES&S)
perormance underpin a culture o continuous
improvement, and includes:
A comprehensive HES&S policy and associated
perormance principles
A broad Corporate Social Responsibility (CSR) policythat airms a continuing commitment to our core
values and which promotes sustainable social,
environmental and economic beneits wherever
Marathon operates
Use of integrated HES&S Management Systems
to drive continuous improvement throughout the
Company.
Saety is embedded into everything the Company
does. Marathon is committed to creating a sae
work environment and works diligently to achieve
a 100 percent accident-ree workplace. Employees
strive or continuous improvement through near-
miss recognition and investigation, on-the-job
saety programs, health programs, saety training
and awareness, and programs designed to ensure
compliance with applicable regulations and industry
standards.
Preventing saety accidents involves designing
appropriate systems into both processes and
equipment, operating according to established
procedures, applying sae work controls and properly
maintaining equipment.
The Company systematically identiies potential
hazards, assesses their signiicance and develops
measures to make sure any risks are properly
addressed.
Management System Drives ContinuousImprovement
Marathon uses a management system aligned with
international standards to manage HES&S perormance,
and its eectiveness has been proven around the
world. Called the Global Perormance System, it
promotes a consistent approach or conducting
business across all global operations and provides the
ramework or setting targets, implementing actions to
achieve them, measuring perormance and reporting
results. The system is aligned with the basic continuous
improvement cycle o Plan-Do-Check/Adjust. The
elements are recognized as key components o best
practice management systems that drive business
excellence.
The Global Perormance System proactively identiies
and addresses potential impacts to people, the
environment and company assets. It also addresses
the ull lie cycle o any asset, rom project design toconstruction, operation and maintenance.
Regardless o size, location, range o issues or degree
o regulation, Marathon can then assess and manage
HES&S and social impacts within a common ramework
and integrate this stewardship into all aspects o
operations.
KEY POINTS
nProtecting the health
and saety o all
workers and the
community is a corevalue
nThe ability to do
business in any
community is a
privilege that must be
earned
nWe have a system
in place that strives
to drive continuous
improvement in health
and saety perormance
nPotential hazards
are systematically
identiied and
measures are taken to
address the risk
Monitoring & Measurement;
Accidents & Incidents
Management ReviewPolicy & Leadership;
Risk Assessment;
Regulatory Compliance;
Goals & Action Plans
Roles & Responsibilities;
Training & Competency;
Stakeholder Engagement/Communication;
Operational Controls;
Change Management;
Security & Emergency Preparedness;
Contractors & Suppliers;
Product Stewardship;
Documentation & Records
Global Performance System
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Across the globe, Marathon is striving to reduce its environmental impacts, while expanding its operationsto meet growing energy demand. Eorts include decreasing operational use o natural resources, reducingemissions through energy eiciency improvements and investing in new technologies and renewable energy
resources.
We implement our main initiatives to protect the environment.
We will live by our core principles:
Protecting the environment in which we work is a core value for Marathon. If a job cant be done in a safe and
environmentally conscious manner, we wont proceed until we can do so in a responsible way.
We will always implement the appropriate management systems:
Were committed to developing customized procedures, procuring equipment as necessary and using best
practices and lessons learned rom around the world. All workers will communicate daily about the operation
and identify potential hazards. If an unforeseen event occurs, we will report the incident, clean it up properly,
work diligently to determine why it happened and identiy what we will do to prevent re-occurrence. We will also
conduct baseline water testing as a best practice.
We will ensure that the wellbore is structurally sound and that no leaks exist:
Wellbore luids will be isolated rom groundwater by casing and cement, and the casing will be pressure-testedprior to any racture stimulation or hydrocarbon production. Casing integrity is ensured throughout the hydraulic
racturing process by continuous monitoring o annular pressure. Casing and cement also protect groundwater
rom oil and gas during the producing lie o the well. These procedures ensure reshwater aquiers are protected
rom wellbore luids.
We will implement surface fluid handling procedures at the wellsite:
Using lessons and procedures derived rom our management systems, we will implement measures to prevent
surace spills o luids or chemicals. For example, drip pots and catch pans will be used on mobile equipment to
prevent luids rom contacting the ground.
KEY POINTS
nRobust wellbore casing
procedures ensure
reshwater aquiers
are always protectedrom wellbore luids by
at least two barriers o
steel casing and cement
nChemical additives used
in hydraulic racturing
luid are similar to those
ound in household
products
nAny hydraulic racturing
luids or produced
water rom wells will
be reused or hydraulic
racturing or disposed
o in accordance
with environmental
regulations
Environmental StewardshipMarathon strives to reduce its environmental impact across all o its operations
Fracture treating the Eagle Ford ormation through several horizontal
stages. The depth o the Eagle Ford ormation, as can be seen,
ensures that the aquier is not afected.
Casing strings protect the aquier.
AQUIFER
16 in. Conductor Pipe
10.75 in. Surface Casing
5.5 in. Production Casing
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COMPOUND PURPOSE COMMON APPLICATIONS
Acids Helps dissolve minerals and initiatessure in rock (pre-racture)
Swimming pool cleaner
Sodium Chloride Allows a delayed breakdown o thegel polymer chains
Table salt
Polyacrylamide Minimizes the riction between uid
and pipe
Water treatment, soil conditioner
Ethylene Glycol Prevents scale deposits inthe pipe
Automotive anti-reeze, deicingagent, household cleaners
Sodium/Potassium
Carbonate
Maintains efectiveness o othercomponents, such as crosslinkers
Washing soda, detergent, soap,water sotener, glass, ceramics
Glutaraldehyde Eliminates bacteria in the water Disinectant, sterilization o medical
and dental equipment
Guar Gum Thickens the water to suspend thesand
Thickener in cosmetics, baked goods,ice cream, toothpaste, sauces
Citric Acid Prevents precipitation o metaloxides
Food additive, ood and beverages,lemon juice
Isopropanol Used to increase the viscosity o the
racture uid
Glass cleaner, antiperspirant,
hair color
Typical Shale Fracturing
Mixture Makeup
90%
WATER
9.5%
SAND
0.5%
CHEMICAL
Typical Chemical Additives Used in Hydraulic Fracturing Water
There has been much debate about the luids used in hydraulic racturing. The table below indicates the additives
that are mixed with the sand and water in the hydraulic racturing process. Many o the additives are similar to
those ound in household chemicals.
All chemicals or additives used at a wellsite must have a corresponding material saety data sheet, or MSDS, or
use by both the workorce and emergency services personnel. We participate in a website (www.racocus.org)
that publicly discloses rack luid components in speciic wells.
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Seismic testing, which has been perormed saelyby the oil and gas industry or decades, involvessending vibrations through the earth and recording
the relected waves as they come back to the surace.
Collecting the data requires equipment that includes a
vibration, or vibe, truck and recording devices knownas geophones. The data recorded will ultimately
provide inormation about the earths properties and
allow Marathon to create maps o major layers o the
subsurace.
The Process
In areas that require seismic, introductions with
landowners will be conducted and agreements signed
to grant access so crews can conduct the testing. A
team o surveyors will scout a targeted area and walk
the actual lines where the geophones will be placed.
Prior to testing, acquisition crews will lay out lines o
cables with geophones attached. The cables will be
connected to a recording truck, where technicians
with computers will record data during acquisition
operations.
To create the subsurace waves, three to our vibe
trucks will travel to a speciic location where the lines
o geophones have been installed. The trucks lower a
large plate to the ground that vibrates and creates the
waves o energy.
While the trucks generate some noise, the vibrations
are typically not enough to cause more than a ripple
in a container o water. Additionally, a monitoring
instrument called a peak particle velocity meter is used
to measure the amount o energy reaching a nearby
structure. This allows the energy output o the vibrators
to be adjusted to prevent any damage to existing
buildings. Seismic acquisition at any given location
typically takes only a ew hours.
The relected signals are recorded and reviewed or
completeness in the recording truck. The vibe truck
may move slightly and repeat the process i necessary.
Once a line has been completed, the crew will pickup the geophones and cables and move to the next
location.
Seismic TestingCompanies use waves o energy to provide pictures o the subsurace geology to help determine
where to drill
1 The equipment is set up such that the geophones are laid out on the surace and connected to the
recording truck. The vibe truck then lowers the plate to the ground and starts to vibrate.
2 Sound waves rom the vibrations pass through the earths layers.
3 The waves are reected at the interace o diferent rock types and return to the surace where they
are recorded on the geophones.
2
1
3
KEY POINTS
nAgreements must be signed between the seismic contractor and landowners
beore testing begins
nSurveying crews will visit sites in advance o testing
nDuring testing, large trucks will send vibrations into the ground to provide a
picture o the subsurace geology
nTypically, trucks are at each site or only a ew hours
nThe data is collected using small geophones placed in the ground and
removed when testing is completed
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Seismic crew deploying the cables in the eld
Vibration plate lowered into position on groundThe vibration truck
Geophone recording device inserted into the groundGeophones are manually placed into the earth
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Drill Pad ConstructionPreparing the land or the arrival o the drilling rig is an important part o the project
DrillingA drilling rig moves on site and careully drills deep into the earth over several weeks
Construction process
Once the wellsite has been identiied and an accessagreement has been signed, an area o land is
cleared so that drilling, construction and production
traic can enter the site. This may require upgrading
roads and, in some cases, erecting power lines to
connect the site to the local electrical supply. The
impacted area or drilling is typically less than 500 eet
by 500 eet. The drilling pad itsel is usually 350 eet by
400 eet.
As part o the clearing process, topsoil is removed and
typically stored on site or use in the reclamation o the
pad at a later date. Rocks may be removed and reused
elsewhere. As part o the construction phase, a number
o actors are taken into consideration, including
saety, proximity to water sources, buildings and
other public places. Additionally, measures are taken
during construction to ensure that surrounding land is
preserved and protected. This may include using rocks
or other material to control water runo rom the pad.
Typically, several large construction vehicles will clear and level the drill site
KEY POINTS
nAccess roads will be
upgraded i necessary
to accommodate
construction equipmentand traic
nConstruction vehicles
will clear land and
construct drill pad on
site
Once a site has been prepared, the drilling rig movesin, a process that will require numerous truckscarrying various parts o the rig. Once assembled, the
rig will be both visible and audible as drilling operations
take place around the clock or approximately three to
four weeks for each well. In some cases, more than one
well will be drilled at the same location. Noise-reduction
equipment will be used where possible, and lights will be
used at night to ensure the saety o the workers.
Drilling Process
Once the operation begins, the drill bit is lowered into
the hole by adding sections o drill pipe at the surace.
This pipe is pumped ull o drilling luid, or mud,
which travels down the pipe, through the bit, and back
to the surace, carrying rock pieces, called cuttings.
The mud has several unctions. As it passes out o the
drill bit, it lubricates the cutting surace, reduces riction
and wear and keeps the drill bit cooler. Additionally, it
carries rock cuttings away rom the drill bit and back to
the surace or separation and disposal. While traveling
back up the hole, the mud also provides pressure to
prevent the hole rom caving in on itsel.
KEY POINTS
nThe drill rig will be bothvisible and audible and
will typically be on site
or about three to our
weeks or each well
nThere will be an
increase in road traic
during this time
nA rigs primary unction
is to drill a hole in the
earth by lowering a drillbit on drill pipe
nAt depths approved
by governmental
regulators, drilling
will stop and steel
casing will be lowered
and cemented in
place beore drilling
continues
Drill bit
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Drilling rig
Casing Creates Physical Barriers
Drilling will be stopped at certain depths to place steel
casing into the ground to protect the hole as well as
surrounding rock layers and underground aquiers. The
casing is ixed in place by pumping cement down theinside o the casing and up the outside between the steel
casing and the surrounding rock. Drilling operations are
halted until the cement hardens. The quality and integrity
o the cement job is then checked with a logging tool.
The casing and cement create a physical barrier between
the external ormation and the inside o the pipe to stop
external luids and rock rom entering the wellbore during
drilling. It also keeps production fluids and natural gas
rom escaping the wellbore in the production phase.
Once the hole has been drilled to the target depth,
workers remove the drill pipe and run tools into the well
to evaluate the target rock layer. Once that evaluation
is complete, a inal casing segment is installed and
cemented in place. Additional cement plugs are let inside
the casing or added protection.
To inish the drilling process, a stack o valves is placed
on top o the wellhead at the surace. These valves allow
access to the wellbore in the uture and will be the main
eature visible once the drilling rig leaves.
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KEY POINTS
nHydraulic racturing is
the well stimulation
process required to
make shale reservoirseconomically viable
nThe luid used contains
99.5 percent sand and
water with 0.5 percent
additives, many o
which are ound in
household products
nFreshwater aquiers are
protected by at least
two barriers o steelcasing and cement
Completion & TestingHydraulic racturing is the stimulation process required to make shale plays economic
Ater the drilling rig has let the location, wellcompletion will start. The timing could vary romdays to months, but will again result in increased
activity.
The Process
The well completion process starts by removing any
temporary plugs that were placed in the wellbore. The
casing is pressure tested to ensure integrity, i.e., that
no leak paths exist. The wellbore is then peroratedby sending down a tool reerred to as a perorating
gun, which contains numerous individual shot charges
that are ired into the casing at the designed depth.
Once the charges go o, they create a hole through
the casing and cement into the rock ormation. This
will allow the oil and natural gas to low rom the rock
ormation into the well. The tool is used at such great
depths that nothing is heard or elt on the surace
when the gun is ired.
As noted previously, to enhance productivity, a well
stimulation process known as hydraulic racturing isused to create small cracks in the underground geologic
ormations that in turn allow luids and natural gas to
low more easily into the well and up to the surace.
The process involves pumping a stimulation luid (see
page 7) into the shale ormation at high pressures to
create the small ractures a ew millimeters wide, up
to 500 eet in height toward the surace, and up to
approximately 2,000 eet in length. When the pressure
is released, the ractures attempt to close but the sand
contained in the luid keeps the racture open, making
an easy path or oil and gas to low into the well.
The volume o water required or the stimulation luid
can only be determined once the data received rom
the drilling operation has been analyzed, but can be
estimated at up to 4 to 8 million gallons (or 100,000to 200,000 barrels) o water or a horizontal well.
Marathon is working to optimize the use o non-potable
brackish water on racking programs to limit use o
resh water.
During the hydraulic racturing process, the pressure on
the outside o the casing is continuously monitored and
i a problem occurs, the job is stopped immediately.
During the past 60 years, the oil and gas industry
has conducted racture stimulations in more than 1
million wells worldwide.
Once the stimulation is complete, production rom the
well typically will be monitored or a ew weeks to
evaluate its perormance. Once the testing has been
completed, all equipment will be removed and the only
thing remaining on the site will be the valves on top o
the wellbore itsel.
Schematic showing hydraulic racturing. This is conducted within the shale that is several thousand eet below any reshwater aquiers.
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Eagle Ford Oil and Natural Gas Fact Book 13
In the production phase, activity levels are initiallyvery high as the Company substantially increases thenumber of wells drilled. In any one region Marathon
may have multiple drilling and completion rigs in
operation simultaneously.
In some cases, drilling pads can be designed to house
multiple wells per pad. The well would be connected
to production acilities, which are then connected to
pipelines.
Most sites will have equipment to separate the oil, gas
and water produced rom the well into distinct low
paths. Separate storage tanks will be required to collect
oil and water until trucks can visit the site. The trucks
will then haul water to another site or re-use or proper
disposal, and the oil will be transported to a sales point.
Most surace equipment will have some orm o lined
secondary containment to protect the surroundingenvironment in the unlikely event o a leak. The most
notable will be containment walls placed around tanks
and catch pans or mobile equipment to prevent any
material rom getting osite.
Operators will monitor production sites on a routine
basis to check tank volumes and ensure everything is
operating correctly. In addition, electronic monitors
and alarms are designed to immediately notiy our
personnel o any irregularity.
Ultimately, the production phase may last up to 30
years. On occasion, Marathon will need to bringequipment to the site to perorm maintenance on the
wellbores and processing equipment.
ProductionThe production phase could last or several decades
KEY POINTS
nEconomic well rates
must be observed in
both the exploration
and appraisal phasesbeore moving into the
production phase
nThis phase could last
up to 30 years and
result in the drilling o
hundreds o wells
nEach well must be
racture stimulated;
some o the water
necessary or these
stimulations can be
used in multiple wells
n In some cases, drilling
pads can be designed
to house multiple wells
per pad
nProduction acilities,
storage tanks and
compressors may be
added to sites
n Trucks may be required
to collect any liquids
produced
Typical onshore well
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Abandonment & ReclamationOnce a ield has been depleted, the goal is to leave the land the way it was ound
KEY POINTS
nReclamation will leave the site the way it was
originally ound
nAll surace equipment will be removed
nWells will be illed with cement and pipes cut-o
below plow level
nAll pads will be illed in with dirt or replanted
Once a ield has been deemed depleted or uneconomic, it will be shut in andabandoned.Again, vehicle activity will increase as crews move around the well site and
remove equipment. Permanent plugs and cement will be set in the wellbores, in
accordance with State and Federal regulations, to ensure ull isolation rom the
reservoir and to prevent any leaks. The wellheads will be physically cut o rom
below the surace. Cement will be placed on top o the cut pipe as a inal barrier
The well will then be buried with dirt. The pad will be illed and the land will be
turned back to the owner.
A Marathon well that was drilled in the Shoshone National Forest in Wyoming, (let
photo). All equipment was removed rom the site later the same year
(right photo).
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Eagle Ford Oil and Natural Gas Fact Book 15
Cementing To prepare and pump cement into
place in a wellbore. Cement is used or a variety o
uses such as creating physical barriers on the outside
o casing strings or inside the casing as a plug that
can be used in several ways.
Completion A generic term to describe the
preparation o a wellbore or sae and eicient
production.
Derrick A steel structure mounted over the
borehole to support the drill pipe and other
equipment that is lowered and raised during drilling
operations.
Directional Drilling A technique that enables
drilling at an angle to reach a particular underground
ormation.
Drillbit Tool used in drilling to break up rock
mechanically in order to penetrate the subsoil. The
bit drills a circular hole.
Drill Pad The area constructed on the surace
rom which a drilling rig will drill wells.
Drill Rig The derrick, pumps, tanks, hoisting
system and other equipment collectively utilized to
drill a wellbore.
Exploration The process o searching or minerals
such as oil and gas that enables an oil and gas
company to determine whether to proceed with
appraisal and production.Geophone A device used in surace seismic
acquisition that detects ground velocity produced
by seismic waves and transorms the motion into
electrical impulses.
Horizontal Drilling An advanced orm o
directional drilling in which the well is drilled
horizontally through the reservoir.
Hydraulic fracturing The pumping o water,
chemicals and a proppant into a reservoir with such
orce that the reservoir rock is cracked and results in
greater low o oil or gas rom the reservoir.
Land Professional The individual in an oil and
gas company or agent who negotiates leases with
surace owners.
Material Safety Data Sheet (MSDS) A document
that shows important physical and chemical
characteristics o a chemical or product to alert
a user, transporter or other interested party to
potential saety hazards that may be associated with
the material. The MSDS also contains treatments
or exposure or ingestion as well as the type o
equipment needed or sae handling. An MSDS is a
legal requirement in most countries or all aspects o
commerce involving chemicals.
Mud Fluid used in drilling operations to cool the
bit, lit drill cuttings to the surace, and balance the
pressure o exposed rock ormations. Mud typically
consists o a base-luid and chemical additives such
as clay.
Natural Gas A naturally occurring mixture o
hydrocarbon and non-hydrocarbon gases ound in
porous rock formations. Its principal component is
methane.
Operator The party responsible or exploration,
development and production o an oil or gas project.
Permeability A measure o the ease with which
water, oil or natural gas can move through a rock.
Pipeline A string o interconnected pipe providinga route or natural gas to travel rom the wellhead
to market.
Plug A barrier, usually cement or a purpose-built
mechanical device, set in a borehole to block the
low o luids, to isolate sections o the well or to
permanently abandon a dry hole or depleted well.
Porosity The open space within a rock, similar to
pores in a sponge.
Processing The separation o oil, gas and natural
gas liquids and the removal o impurities.
Production A generic industry term that reers
to operations and activities involved in bringing
oil and gas to the earths surace, as well as initial
processing.
Proppant Naturally-occurring or man-madeparticles similar to sand which are part o a hydraulic
racturing stimulation. The proppant is necessary to
prevent the racture, which has been created duringa stimulation treatment, rom closing when pump
pressure is removed. The proppant particles prop
the racture open.
Reservoir A subsurace volume o rock that storesthe oil and gas being targeted.
Seismic A computer-assisted process that maps
sedimentary structures to assist in planning drilling
programs. Acoustic waves are generated at the
Earths surace, and their relection rom subsurace
rock ormations are measured to generate the map.
Shales A type o sedimentary rock containing very
small particles o minerals. Because o this small particle
size, the permeability o shale is extremely low.
Glossary
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16 Eagle Ford Oil and Natural Gas Fact Book
Glossary
Shut In Well A well capable o producing but
that is not actively being produced at a given
time. Reasons or wells being shut in may be
lack o pipeline access to market or economically
unavorable market prices.
Sound Barrier A wall or other device sometimes
erected in order to reduce the noise emitted rom a
particular operation.
Stimulation Fluid A liquid pumped into the
reservoir rock in order to create a racture, which
enables hydrocarbons to low rom the reservoir into
the wellbore. The stimulation luid also transports the
proppant into the racture. Stimulation luid is water-
based with chemical additives.
Vibration Plate The metal plate that creates the
energy waves used in seismic operations. The plate
is lowered to the ground and is mechanically vibrated
which in turn send waves o energy into the earth.
Waste Water Water that has been used in theexploration and production process, has returned to
the surace rom the wellbore, and will be disposed o
according to relevant environmental regulations.
Well A hole drilled through rock and cased with
steel pipe, which is then cemented in place. The well
is the conduit or hydrocarbons to be produced rom
the reservoir to the surace.
Wellhead The control equipment itted to the top
o the well, consisting o outlets and valves.
Notes
Sources: American Petroleum Institute; U.S. Department of Energy, Oce of Fossil Energy, National Energy Technology Laboratory; Schlumberger Oileld Glossary
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About Marathon Oil
Marathon Oil Corporation (NYSE: MRO) is an international energycompany engaged in exploration and production, oil sands mining
and integrated gas.
Based in Houston, Texas, the Company has a strong portolio o assets
delivering deined growth leveraged to crude oil production with
exploration upside. The Companys operations are located in the United
States, Angola, Canada, Equatorial Guinea, Iraqi Kurdistan Region,
Libya, Norway, Poland and the United Kingdom.
Exploration and Production
Marathons exploration activities are ocused on adding protable
production to existing core areas and developing potential new core
areas. Marathons production operations supply liquid hydrocarbonsand natural gas to the growing world energy markets. Worldwide
production operations are currently ocused in North America, Arica
and Europe. The Company also holds ownership interests in both
operated and outside-operated oil sands leases in Canada that could be
developed using in-situ methods o extraction.
Oil Sands MiningMarathon owns a 20 percent outside-operated interest in the Athabasca
Oil Sands Project (AOSP), which includes the existing Muskeg
River and Jackpine mines, the Scotord Upgrader, and additional
prospective acreage in Alberta, Canada. These assets give Marathon
access to stable, long-lie Organisation or Economic Cooperation and
Development (OECD) production.
Integrated Gas
Marathons integrated gas business adds value through the
development o opportunities created by demand or natural gas. This
business complements the Companys exploration and production
operations and opens a wide array o investment opportunities designedto add sustainable value growth.
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Marathon Oil Corporation
5555 San Felipe Street
Houston, TX 77056-2723
www.marathonoil.com