global gas shales and unconventional gas unlocking your potential
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What is unconventional gas? Who is the Gas Technology Institute (GTI)? What does abundant gas make possible? Global Unconventional Gas 2010TRANSCRIPT
Global Gas Shale and Unconventional Gas:
Unlocking Your Potential
Gas Technology InstituteFebruary, 2010
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Unconventional Gas is . . .
“…a revolution”- WSJ and New York Times
“…a game changer”- United Press International
“…the biggest energy innovation of the decade”
- Wall Street Journal
“…a paradigm shift”- Energy Tribune
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The White House
“The potential for natural gas production in the U.S. from hydrocarbon-rich shale formations, known as “shale gas,” has grown dramatically in recent years due to technological advances.
The development of shale gas is expected to significantly increase U.S. energy security and help reduce greenhouse gas pollution.
The United States is not alone in having significant shale gas resources.”
- President Barack ObamaStatement on U.S.-China shale gas resource initiative17 November 2009
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What is all the hype about?
Unconventional Gas
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Agenda
> Introductions and objectives
> GTI overview
> Global Gas Shales and Unconventional Gas
> What abundant natural gas makes possible
> What do you see as possible?
> Global Unconventional Gas 2010
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Objectives
> Awareness of GTI
> Inform you of how unconventional natural gas has transformed America's energy outlook.
> Enable you to consider what’s possible for your countries.
> Enroll your support in making appropriate connections in your countries.
Overview of GTI
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GTI solves important energy challenges, turning raw technology into practical solutions that create exceptional value for our customers in the global marketplace
Energy Solutions… Delivered
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> Not-for-profit research, with 65+ year history
> Facilities ─ 18 acre campus near
Chicago─ 300,000 ft2,
28 specialized labs ─ $140 M installed R&D
and testing capacity
> $60 MM Revenue
> Staff of 250 > 1000 patents; 500
products> 13 spin-out companies
Energy & Environmental Technology Center
Flex-Fuel Test
FacilityOffices & Labs
Our Company at a Glance…
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LocationsHeadquarters
Des Plaines, IL(Chicago suburb)
GTI/Catoosa Drilling Test Facility
Catoosa, OK
Regional OfficeHouston, TX
California Project Development
SpecialistFolsom, CA
Process Research and Evaluation GroupBirmingham, AL
Washington OperationsWashington, DC
NGA Strategic Acct Executive
Needham, MA
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Reducing carbon emissions to the environment
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How GTI Works with Customers
Example: Creating synthesis gas from coal
Example: Reducing water demand from production activities
Example: Enhancing the competitiveness of industry
Example: Managing unconventional natural gas research program under RPSEA
Proprietary R&D
Industry Partnerships
Collaborative Programs
Government-Funded Initiatives
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A Diverse Customer Mix
2008 New Business Awards
Global Gas Shales and Unconventional Gas
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Why Natural Gas?
• Secure• Abundant• Domestic• Clean• Versatile
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What is Unconventional Gas?
Unconventional gas is four natural gas sources:
• Tight gas sands• Coalbed methane (CBM) • Gas shales• Methane hydrates
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What is Unconventional Gas?
Conventional gas = harder to find, easier to produce.Unconventional gas = easier to find, harder to produce.
• Requires some type of stimulation (e.g., hydraulic fracturing) for economic production.
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Technology Enabled by GTI
> GTI’s Coal bed Methane Research Program (1982)
> Parallel research programs in Tight Sands and Gas Shales.
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Technology Enabled by GTI
> Hydraulic Fracturing• Microseismic
imaging• Hydraulic fracture
modeling software
> Horizontal Drilling
2020
A World of Abundant Supply
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A World of Abundant Supply
Source: Rogner’s 1997 “top-down” study of world hydrocarbon resources
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A World of Abundant Supply
Business Confidential 7Business Confidential 7
0
500
1000
1500
2000
2500
1960 1970 1980 1990 2000 2010
PGC
USGS
Mobil
Hubbert
Exxon
Hefner
Shell
Nehring
DOI
DOE
Enron
GTI
AAPG
NRC
EIA
NPC
Smith & Lindsky
Navigant
2008 Data point
Tcf
New Records!
U.S. Technically Recoverable Gas (Tcf)
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A World of Abundant Supply
European Gas Shales:Vienna Basin – Mikulov Shale
The deep Jurassic Mikulov Shale in the Vienna Basin:
• The University of Vienna has a study, funded by OMV, to characterize these shales.
• Preliminary estimate for the unrisked resource endowment is 240 Tcf (7 Tcm)
• with a risked recoverable resource of 30 Tcf (1 Tcm).
Source: Vello A. Kuuskraa and Scott H. Stevens, Advanced Resources International. WORLDWIDE GAS SHALES AND UNCONVENTIONAL GAS: A STATUS REPORT
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A World of Abundant Supply
China and India
China and India have numerous gas shale basins that are only now starting to be evaluated. Recently, Shell and PetroChina announced plans to jointly evaluate and develop the gas shales in Sichuan Province.
Other Countries
Gas shale exploration is underway in many other parts of the world, including Australia, New Zealand and Southern Africa where Statoil, Chesapeake and Sasol recently announced joint plans.
Source: Vello A. Kuuskraa and Scott H. Stevens, Advanced Resources International. WORLDWIDE GAS SHALES AND UNCONVENTIONAL GAS: A STATUS REPORT
What Abundant Natural Gas Makes Possible
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Energy Independence
Supply Security
• Over 100-year supply projections of natural gas, expected to grow.
• Impacts global energy trade balance.• Importers may become producers.
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Reducing Climate Change Risk
Source: EnCana 2009
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Reducing Climate Change Risk
“Electricity from natural gas will account for 57% of new capacity through 2030, more than all other sources combined”
Source: Ray Walker, Range Resources. According to EIA Annual Energy Outlook 2009 Reference Case Presentation -- December 17, 2008
Gas is the future, says EIA.
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Lowest Cost Supply Alternative
$80
$95
$101
$111
$114
$142
$264
$396
Source: Ray Walker, Range Resources. According to the Institute for Energy Research, in Fall 2009 issue of “Technology Review, published by M.I.T.”
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Economic Impact: Wealth, Investment and Jobs
2010• $9 billion impact and 110,000 new jobs• $800 million in state/local tax revenue
2020• $13.5 billion impact and 175,000 jobs• $12 billion state/local tax revenue,
cummulative
Marcellus Shale report from economists and industry experts at Penn State University
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So What’s All the Hype About?
Centuries worth of supply Energy security and independence Reduces climate change risk Hundreds of thousands of new jobs Hundreds of $ billions in annual
economic impact and tax revenue Investment attraction and retention Enables renewable energy Clean, affordable, home grown,
abundant energy More stable prices
Energy Efficiency
What do you see as possible?
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Coming Soon in 2010
For more information, visit http://www.gastechnology.org/gug2010
Appendix Slides
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Gasification and Renewable Gas
> Developing efficient gasification systems that convert fossil and
renewable fuels into synthesis gases for power generation,
hydrogen, liquid fuels and chemicals
Advanced Gasifiers> Fluidized-bed technologies> Entrained-flow slagging
gasifiers> Catalytic gasification
reactor
Gas Processing Solutions
> Sour gas upgrading
> Syngas—contaminant removal, separations, catalysis, synthesis
Pilot-scale systems engineering and evaluations
Process simulation andTechno-economic evaluations
Engineering support for commercial project
deployment
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Exploration and Production
> Be a catalyst for new technology development and commercialization to expand the supply of affordable, abundant and clean-burning energy
Flow-back & Produced Water
> Water processing> Conservation> Public outreach
Reservoir Characterization
> Unconventional Gas> Methane Hydrates> Geothermal> CO2 sequestration
GTI Catoosa Test Facility> Drilling technologies> Well completion
technologies> Down-hole procedure
testing
Well Construction & Completion
> Laser energy applications
> Coiled tubing drilling> Innovative completion
methods
CNXGas
and .
GTI as technology
partner
ADT