PowerPoint BradFields

Information about PowerPoint BradFields

Published on September 28, 2007

Author: Megane

Source: authorstream.com

Content

MATURE REGION, YOUTHFUL POTENTIAL:  MATURE REGION, YOUTHFUL POTENTIAL Oil and Natural Gas Resources in the Appalachian and Illinois Basins A Report by the Appalachian and Illinois Basin Directors of the Interstate Oil and Gas Compact Commission Today’s Presentation:  Today’s Presentation The A/I Basins report the why, how and what Some NY examples Getting the word out The A/I Basins Directors:  The A/I Basins Directors Who and what are they? States involved Why formed What we’ve been doing Benefits Why Make A Report?:  Why Make A Report? Education Provide history Consolidated analysis never before done for this region Highlight current activity Planning and policy Call attention to overlooked potential Highlight opportunities Identify further actions and policies necessary to achieve potential Increase exploration, production and reserves DOE’s “bang for the buck” Who’s the Audience?:  Who’s the Audience? Legislators and Governments at all levels The public, educators and energy consumers The oil and gas Industry Prospectors outside of the Basins Operators within the Basins Investors How It Was Done – The Magic:  How It Was Done – The Magic Two years from idea to hard copy Each state provided history, resource estimates, current trends and graphics and photos Monthly conference calls, focus meetings IOGCC support DOE and partners ARI, NETL, Akoya Officially issued September 23, 2005 Report Contents:  Report Contents Overview The Opportunity Prerequisites for Bringing Resources to Market Next Steps Overview:  Overview Our nation’s appetite for oil and gas continues to grow Increasing our dependence on imports Our “most drilled but least explored” basins deserve a fresh look New plays in the Appalachian and Illinois basins are attracting heightened interest Eastern states already benefit significantly from regional oil and gas production And additional benefits could be realized The Opportunity - - Second Look at the Most Drilled, Least Explored Basins in the World:  The Opportunity - - Second Look at the Most Drilled, Least Explored Basins in the World The Appalachian and Illinois basins are the birthplace of the modern oil and gas industry Natural gas first produced in 1821 near Fredonia, NY Drake’s first oil well produced in Pennsylvania in 1859 Cumulatively, the basins have produced more than 5 billion barrels of oil 50 trillion cubic feet (Tcf) of natural gas Remaining technically recoverable resources approximate or exceed that already produced Nearly 5 billion barrels of oil 79 to 96 Tcf of natural gas Most Drilled, Least Explored:  Most Drilled, Least Explored Over 600,000 wells drilled in the Basins. Vast areas remain unassessed – most wells concentrated along established producing trends. Only 2.5% of wells have been drilled below 6,000 feet. Only 11 wells have been drilled deeper than 15,000 feet. Only 10-15% of possible hydrocarbon producing formations within the Appalachian Basin have been tested – Potential Gas Committee. Slide11:  New York Drilling Permits “Deeper” Drilling in New York:  “Deeper” Drilling in New York Technically Recoverable Resources in the Appalachian and Illinois Basins:  Technically Recoverable Resources in the Appalachian and Illinois Basins Proved reserves for oil include Illinois, Indiana, Kentucky, Ohio, Pennsylvania and West Virginia. For gas, estimates include Kentucky, New York, Ohio Pennsylvania, Virginia and West Virginia. USGS and NPC estimates for inferred reserves are for Eastern Interior, which includes the Appalachian and Illinois basins, the Michigan and Black Warrior basins. PGC estimates for conventional also include primarily tight gas and gas shales. *Not estimated separately. Estimated Technically Recoverable Resources in the Appalachian and Illinois Basins:  Estimated Technically Recoverable Resources in the Appalachian and Illinois Basins ~2 BBbls “Stranded” and unconventional oil 2-4 BBbl Oil sands 3-4 BBbl in place (Recoverable unknown) Oil shale 400 BBbls in place (Recoverable unknown) 20-40 Tcf Coalbed natural gas 9-17 Tcf Gas shales 12-17 Tcf Tight gas sands 35-55 Tcf CRUDE OIL NATURAL GAS Conventional Unconventional Attractive New Resource Plays:  Attractive New Resource Plays Coalbed Natural Gas Trenton/Black River Pinnacle Reefs Tight Gas Sands Shale Gas New York’s Trenton/Black River:  New York’s Trenton/Black River New York’s Trenton/Black River:  New York’s Trenton/Black River Underexplored + 3D Seismic, long-reach horizontal Total production through 2005 = 155 Bcf. Producing wells 2005 = 64, top producer = 6.3 Bcf. Multipliers Infrastructure, service companies Explore unassessed horizons More competition, new companies Chesapeake:  Chesapeake October 3, 2005 – Acquisition of CNR $2.2 billion in cash 2.5 Tcfe reserves, 125 Mmcfe per day production 4.1 million net acres, 9,435 drilling locations 6,500 miles of gathering lines $4.1 billion expected future drilling and development “Less than 1% of the 400,000 wells drilled to date in the Appalachian Basin have penetrated below 7,500 feet, leaving substantial deeper exploration opportunities.” – Chesapeake Chairman, CEO Aubrey K. McClendon. Oil and Gas Journal / October 24, 2005. Small Business is the Backbone of these Basins:  Small Business is the Backbone of these Basins Basin contains 38% of the 393,000 gas wells in the U.S. 23% of the 520,000 oil wells in the U.S. Most of these wells are “stripper” wells Producing <10 barrels or 60 Mcf per day Nearly all of these wells are produced by small, independent oil and gas producers Eastern States Benefit Significantly from Regional Oil and Natural Gas Production:  Eastern States Benefit Significantly from Regional Oil and Natural Gas Production Economic Benefits Realized Across the Oil and Gas Value Chain:  Economic Benefits Realized Across the Oil and Gas Value Chain Exploration and Production - - 19,000 direct jobs in E&P Refining and Processing - - 18% of the Nation’s refining capacity Transportation and Storage - - 40% of the Nation’s gas storage capacity Wholesale & Regional Distribution - - Serving the most densely populated region of the U.S. End Uses - - Commercial, residential, industrial (including feedstocks), agriculture, and power generation Economic Development The One Well Example:  Economic Development The One Well Example Economic Development The One Well Example:  Economic Development The One Well Example Pathway to Rejuvenation - Prerequisites:  Pathway to Rejuvenation - Prerequisites Technology progress Access to resources Infrastructure expansion Access to high-quality data Environmental stewardship Prerequisite 1: Technology Progress:  Prerequisite 1: Technology Progress Extending the life of existing wells and fields through advanced technology Improving fracture detection Applying more advanced 3D seismic imaging Tapping unexplored deep reservoirs through new drilling and completion techniques Exploiting opportunities to develop coalbed natural gas and other unconventional resources Expanding use of advanced enhanced recovery techniques Supporting technology transfer across the region Stimulating investment opportunities Prerequisite 2: Access to Resources:  Prerequisite 2: Access to Resources Increasing access to resources on public lands in an environmentally sound manner Resolving mineral rights conflicts between coal and oil and natural gas resources Addressing the unique access issues in urban and suburban areas Implementing energy education programs to increase public understanding of oil and gas operations New York State Land Leasing:  New York State Land Leasing “Win-Win-Win” - Energy-Environment-Revenues Enhanced leasing effort begun in 1999. 40,000 acres leased 65,000 acres under lease at year-end 2005 Revenues from leasing since 1999 = $13 million. Of the 40,000 acres leased, only 30 acres disturbed by well pads, access roads and pipelines (.07%). Proposed 2006 lease sale of 21,000 acres. New York State Land Leasing:  New York State Land Leasing Prerequisite 3: Infrastructure Expansion:  Prerequisite 3: Infrastructure Expansion Expanding pipeline capacity Expanding natural gas storage capabilities Improving the capacity of gas gathering and processing Prerequisite 4: Access to High-Quality Data:  Prerequisite 4: Access to High-Quality Data Public-private partnerships between geologic surveys, other state agencies and industry NYSERDA ESOGIS Continuing innovation in state data management RBDMS Website access, internet data queries, GIS Prerequisite 5: Environmental Stewardship:  Prerequisite 5: Environmental Stewardship Strong and responsive regulatory programs Cost-effective regulatory strategies Continuing oil field and pipeline emergency response programs and training Communication among state and federal regulatory agencies to improve program efficiency and effectiveness Encouraging Resource Development and Economic Growth Requires Basin-Wide Strategies:  Encouraging Resource Development and Economic Growth Requires Basin-Wide Strategies Collaborative approaches and basin-wide strategies fundamental to success Public-private partnerships Improved information from state geologic surveys Potential financial incentives by states Appalachian and Illinois Basin state directors could initiate dialog through stakeholder workshops Working with other established entities, like the Appalachian Oil and Gas Research Consortium Prospective returns to the Appalachian and Illinois basin states - - and to the Nation - - justify concerted efforts Information Campaign :  Information Campaign IOGCC Outreach package Letter and news release templates Fact sheets Talking points Copies to legislators, local governments, libraries Presentations to industry, groups, students For more information contact the IOGCC at (405)525-3556 or to download the full report, visit [email protected] :  For more information contact the IOGCC at (405)525-3556 or to download the full report, visit [email protected]

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