regulating unconventional oil and gas in alberta – ercb ......june 21, 2011 regulating...
TRANSCRIPT
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June 21, 2011
Regulating Unconventional Oil and Gas in Alberta – ERCB Perspective
Presentation to Synergy Alberta Conference 2012
Cal Hill | October 30, 2012
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Outline
The ERCB Conventional versus Unconventional Shale Resources in Alberta Regulatory Challenges Regulatory Framework
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The Energy Resources Conservation Board (ERCB) “A quasi-judicial, arms-length body created by the Alberta Government to ensure that the discovery, development and delivery of Alberta's energy resources take place in a manner that is fair, responsible and in the public interest”
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The ERCB Across Alberta
9 Field Centres Head Office (Calgary) Core Research Centre (Calgary) Alberta Geological Survey (Edmonton) Fort McMurray Oil Sands Regional Office
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Conventional versus Unconventional
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Drivers for change
Depleting conventional oil and gas
New technology; economics
Abundant unconventional resources
New risks and opportunities
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Conventional
- Fluids flow through porous and permeable rock by pressure and buoyancy forces
- Hydrocarbons migrate from source rock to reservoir rock
- Hydrocarbons are trapped in pools by seals; low permeability rock
Unconventional - Rock has poor or no permeability - Requires innovative technology; hydraulic fracturing - Source rock is often target - Covers broad areas
Conventional versus Unconventional Oil & Gas
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Conventional versus Unconventional
- Play scale - Permeability
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Technological Innovation
Historical context - 171,000 wells hydraulically fractured in Alberta since 1950s - Drilling horizontal wells since mid 1980s - Since 2008, horizontal multi-stage hydraulically fractured wells >5200 Wide spread use of new technology --In 2011, over half of all wells drilled were horizontal - Wide range of geological targets (Cardium, Viking, Montney, Glauconitic, Mannville, Ellerslie, Exshaw, Duvernay)
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Horizontal Multi-stage Hydraulic Fractured Wells by Formation
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Shale Resources in Alberta
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Shale Play Duvernay Formation
Initial area of interest
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Challenges of Unconventional Oil and Gas Development
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Unconventional Oil & Gas Development Challenges
Water management and protection Hydraulic Fracturing Development planning and cumulative effects Communication
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Unconventional Oil & Gas Challenges
Water management and protection - Volumes and sources - Potential groundwater / surface water contamination - Flowback fluid management
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Unconventional Oil & Gas Challenges
High-pressure Hydraulic Fracturing - Understanding 3-D fracture propagation - Communication with offset wells - Cement integrity - Natural faults and fractures - Other
• Sub-surface wellbore spacing
• Caprock integrity • Resource assessment
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Unconventional Oil & Gas Challenges
Development planning and cumulative effects - Density of surface infrastructure and scale of development - Sensitive species habitat impacts - Access restrictions - Opportunities for collaboration - Nuisances
• Truck traffic – impact on roads • Noise • Duration of wellsite activity • Dust • Flaring and emissions • Light pollution
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Meeting the Challenge
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Regulatory Fundamentals
Comprehensive system of safety, environmental, and technical requirements; Well design Well casing and cementing blowout prevention groundwater protection Well completions shallow fracturing
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Regulatory Fundamentals Facilities design and operation
flaring, venting, emissions
Waste Management drilling waste flow back & produced water oilfield wastes
Compliance Assurance production reporting field inspection and audits authority to shut-in operations emergency response
Closure suspension & abandonment requirements
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ERCB Basic Requirements Dir 008: Surface Casing Depth Requirements Dir 009: Casing Cementing Requirements
Dir 020: Well Abandonment
Dir 027: Shallow Fracturing Restricted Operations Dir 029: Applications and Hearing Process Dir 031: Guidelines for… Cost Claims
Dir 035: Baseline Water Well Testing
Dir 038: Noise Control
Dir 044: Surveillance - Water Production in Wells
Dir 050: Drilling Waste Management
Dir 051: Injection and Disposal Wells
Dir 055: Storage Requirements
Dir 056: Energy Development Applications
Dir 058: Oilfield Waste Management
Dir 059: Drilling & Completion Data Filing
etc…
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Evolving the Regulatory Framework
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Reducing Surface Impact
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Unconventional Oil & Gas Regulatory Framework (URF)
Start with the regulatory fundamentals Address regional aspects of unconventional development Address new technical challenges
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URF Concept
URF based on two components: - risk-based -organizes risks by plays
Addresses ‘game changing’ new technologies Priority is low permeability resources Addresses regional impacts
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Play/project approach - Based on level of risk - Applied to resource plays
- Move from well-by-well authorization to project based approach
- Requires project plans -Water management
-Surface infrastructure
-Sub-surface reservoir management
-Stakeholder engagement
-Wellbore integrity
- Move to performance-based / management system approach
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Plans Must Address Water management - Play or project level Surface infrastructure development - Footprint, linear disturbances, trucking, dust, noise, etc. Sub-surface reservoir management - Resource recovery, minimize flaring, ER potential, reserves assessment Stakeholder engagement - Local community, business leaders, local authorities Lifecycle Wellbore Integrity - Apply Management-System approach to play
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Addressing Technical Challenges
Hydraulic Fracturing -Fracture fluid disclosure requirements -Disclosure through Fracfocus.ca -Field office notification of HF operations -Interwellbore communication addressed -Ensuring wellbore integrity -Requirements for wells; intermediate depths (200 – 600 m) -Monitoring potential for induced seismicity
-Target Winter 2012
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