CAPP Unveils Hydraulic Fracturing Guidelines

- CAPP Unveils Hydraulic Fracturing Guidelines

Friday, September 09, 2011
Canadian Association of Petroleum Producers

Canadian natural gas producers on Sept. 8 announced new guiding principles for hydraulic fracturing that guide water management and improved water and fluids reporting practices for shale gas development in Canada. The principles were created by members of the Canadian Association of Petroleum Producers (CAPP) and apply to all CAPP natural gas producing members, large and small, operating in Canada.

“Protecting Canada’s water resources is fundamental to our social licence to operate and to grow,” said CAPP president Dave Collyer. “Canada’s upstream industry has a strong track record as a safe and reliable producer of natural gas. With the increase in natural gas production from unconventional sources such as shale, Canadians have told us they want more information as to how industry uses and protects water. We respect that request, and these CAPP principles articulate our water management objectives and water protection practices, as well as our focus on improving our water performance over time.”

CAPP’s guiding principles for hydraulic fracturing apply in all jurisdictions in which the upstream industry operates in Canada. They were created with the understanding that some provinces are working on regulation, and we expect the principles to complement potential future regulatory requirements.

Canada has abundant unconventional natural gas resources, including shale gas. Technological innovations, particularly horizontal multi-well pad drilling and hydraulic fracturing, have made it possible for industry to economically develop shale gas resources in tight rock formations. The application of hydraulic fracturing technology requires the use of significant quantities of water, which necessitates increased focus by industry on both water use and water quality.

“The Canadian natural gas industry supports all regulations that govern hydraulic fracturing, water use and water protection, because we recognize water is a valuable resource,” said Michael McAllister, executive vice-president of Encana. “Strong regulations exist in regions of active unconventional gas development. Similar regulations are being developed in regions with an emerging unconventional natural gas sector, to ensure protection of water resources and provide the public confidence that these resources are being developed responsibly.”

The guiding principles for hydraulic fracturing are available on CAPP’s website at capp.ca . CAPP is also developing recommended practices to support the guiding principles for hydraulic fracturing. For example, a recommended practice describing CAPP member companies’ requirements for disclosure of fracturing fluid additives is under development. These recommended practices will be available on CAPP’s website as each is finalized.

The Canadian Association of Petroleum Producers (CAPP) represents companies, large and small, that explore for, develop and produce natural gas and crude oil throughout Canada. CAPP’s member companies produce more than 90 per cent of Canada’s natural gas and crude oil. CAPP's associate members provide a wide range of services that support the upstream crude oil and natural gas industry. Together CAPP's members and associate members are an important part of a national industry with revenues of about $100 billion-a-year. CAPP’s mission is to enhance the economic sustainability of the Canadian upstream petroleum industry in a safe and environmentally and socially responsible manner, through constructive engagement and communication with governments, the public and stakeholders in the communities in which we operate.

Oil & Gas Post

Promote Your Page Too
LINK

Toreador Comments on France's Fracking-Ban

- Toreador Comments on France's Fracking-Ban

Wednesday, July 06, 2011
Toreador Resources Corp.

Toreador commented on the recent French law, voted on June 30, 2011, banning the use of hydraulic fracturing for oil and gas extraction.

Craig McKenzie, President and CEO of Toreador, said, "As a longstanding operator in France, we have demonstrated our expertise and ability to conduct our Paris Basin operations in full respect of the environment and local residents where we operate. Notwithstanding the new law, we believe the oil resource potential of the Paris Basin can create jobs, provide local economic development, generate substantial revenues for the State and benefit all stakeholders. We reaffirm our commitment to define and develop this basin to reach its potential for all stakeholders, in compliance with French legislation and through cooperation with French authorities."

Added McKenzie, "It is important to note that our plan to evaluate our exploration licenses does not call for hydraulic fracturing. We will not conduct hydraulic fracturing operations within any of our permit areas. We will make full disclosures and representations to the French regulatory authorities as may be required."

Concluded McKenzie, "As we recently outlined at our annual shareholder's meeting, the company has been able to significantly advance its assessment of traditional exploration and development opportunities across its entire Paris Basin portfolio. It is our goal to bring these plans forward and to take the operational and strategic steps to create long-term value for our shareholders."

Oil & Gas Post

Promote Your Page Too
LINK

Exxon Mobil CEO Defends Hydraulic Fracturing

- Exxon Mobil CEO Defends Hydraulic Fracturing

Friday, May 27, 2011
Fort Worth Star-Telegram, Texas
by Jack Z. Smith

An obviously frustrated Exxon Mobil CEO Rex Tillerson jumped to the defense of hydraulic fracturing Wednesday while taking verbal pokes at the news media's reporting on the controversial process used to extract more oil and natural gas from rock formations.

Hydraulic fracturing, dubbed "fracking," has not been confirmed as the cause of contamination of water wells or aquifers in a single instance, Tillerson said during the company's annual shareholders meeting at the Morton H. Meyerson Symphony Center in Dallas.

A resolution calling for the company's board of directors to prepare a report on "known and potential impacts of Exxon Mobil's fracturing operations" was defeated after receiving support from 28.2 percent of shares voted.

The company opposed the measure, saying it operates "in an environmentally responsible manner," issued public statements about fracking and believes a report is unnecessary.

The Rev. Michael Crosby, a Franciscan friar from Milwaukee who deals with corporate responsibility issues, said at the meeting that Exxon "has not provided sufficient information" about its fracturing operations. "Shareholders have no way of assessing the risks and rewards," he said.

In a news conference after the meeting, Tillerson said that, in cases where groundwater supplies have been polluted, a likely cause is underground migration of methane gas or other contaminants as a result of old wells not having been "drilled as they should" in the 1920s, '30s or '40s.

In earlier decades, drilling regulations were not as exacting and industry technology was much less advanced.

"More often than not," cases of groundwater pollution are "not associated with any current-day activities," Tillerson said.

He also said that, in areas such as North Texas, extensive use of water wells has resulted in large withdrawals from aquifers, which could contribute to movement of potential contaminants such as methane gas into the aquifers.

Tillerson said fracking, which has drawn heavy media attention in recent years, has been portrayed as "something new and futuristic" while "in fact, this technology has been around 50 to 60 years."

Irving-based Exxon Mobil has been drawn into the debate on hydraulic fracturing after its acquisition last year of Fort Worth-based XTO Energy, a major shale-gas producer.

That acquisition made Exxon Mobil the largest natural gas producer in the U.S.

By adding XTO, "we have created the premier unconventional gas company," Tillerson told shareholders.

The company is now considering budding shale plays worldwide and is partnering with the French oil firm Total to explore for shale gas in Poland.

With a surge in U.S. shale-gas drilling, pioneered in North Texas' Barnett Shale, advanced horizontal drilling and fracturing techniques have led to much bigger "frack jobs" in completion of wells. But the fractures occur thousands of feet below freshwater aquifers and extend no more than about 400 feet upward, industry experts say.

The Environmental Protection Agency has launched a detailed study of fracking, and University of Texas researchers are taking an in-depth look as well.

Various other scientific and environmental groups have also examined the process.

Tillerson told reporters that fracking has a bad rap partly because of "you guys" in the media.

Exxon Mobil plans an advertising campaign "to reach out to the public with fact-based information" about fracking and other drilling issues, Tillerson said.

"We have some problems in getting out the message with some of you folks," he told reporters. "So we have to go out and buy some of the space" in which to present the industry's viewpoint, he said.

Tillerson said some fracking critics have made "pretty casual statements ... that have not been backed up with any kind of facts."

But the As You Sow Foundation -- a nonprofit organization that backed resolutions at the Exxon Mobil and Chevron shareholders meetings calling for more information about fracking -- said the 28.2 percent favorable vote at the Exxon meeting and 41 percent by Chevron shareholders show that "mainstream investors are concerned about fracking and want more disclosure."

Copyright (c) 2011, Fort Worth Star-Telegram, Texas

Oil & Gas Post

Promote Your Page Too

Internet Registry Opens for Hydraulic Fracturing Chemicals

Internet Registry Opens for Hydraulic Fracturing Chemicals

Tuesday, April 12, 2011
Rigzone Staff
by Karen Boman

The Ground Water Protection Council and the Interstate Oil and Gas Compact Commission on Monday launched a new website that allows oil and gas companies to disclose the chemical additives used in the hydraulic fracturing process on a well-by-well basis.

Chesapeake Energy has announced its active participation in the site, which is receiving funding support from the U.S. Department of Energy. The website will cover information on wells drilled starting with 2011.

Hydraulic fracturing fluid is used in developing deep shale horizontal wells, and is comprised of a mix of water and sand with small amounts of chemical additives to enhance production from otherwise inaccessible oil and gas reserves. Water and sand generally comprise about 98 percent of hydraulic fracturing fluid volume.

Chesapeake reports that it began loading well completion data onto the registry on Feb. 15, 2011, for wells where completion reports have been filed with the appropriate state agencies. Information has been uploaded covering 94 wells in Arkansas, Louisiana, Oklahoma, Pennsylvania, Texas and Wyoming.

"Providing further information about our drilling, completing and producing operations in today's environment is more critical than ever, and we believe this new public registry provides an immediate, workable and accurate way to present information about the additives of our hydraulic fracturing operations to all of our stakeholders," said Chesapeake CEO Aubrey K. McClendon.

Twenty-four companies have registered as participants on the website, and 11 of these companies, including Chesapeake, have begun using the website to provide detailed information about the additives in their hydraulic fracturing operations.

The website, www.fracfocus.org, includes information about how hydraulic fracturing works, about the chemicals used and how fresh ground water is protected. The website may also be used by the public.

Europa O&G Updates Ops

Europa O&G Updates Ops

Wednesday, March 30, 2011
Europa O&G plc

Europa O&G provided an update on several active projects.

Highlights

• UK Production tested oil from two zones in the new onshore West Firsby well
• WF-9
• Installation of jet pump is key to maximizing rates
• Well stimulation work being planned for Crosby Warren
• Romania Barchiz-1 sidetrack to deepen the well to the primary target
• France 3D reprocessing complete at Berenx, new 3D and engineering work planned

West Firsby

Two zonal pumping tests have been conducted on the new WF-9 well. As previously reported, the well encountered oil in two reservoir zones.

The lower of these, Zone 2, produced oil at rates of around 80bopd with strong associated gas but very little water. Heavy wax build-up in the well and the high gas rates are thought to have impaired flow through the beam pump.

Zone 1 produces much higher volumes of fluid, but with a high water cut. Net oil production from this zone under a beam pump regime is 40bopd. The beam pump, however, is only able to drawdown the well some 300psi, indicating that there is significant production upside with a properly configured pump. It should be possible with a jet pump to produce drawdown in the region of 1,500psi or more and the main constraint will be fluid handling capacity. The recent successful re-completion of WF-3 as a water disposal well is key tool in managing this issue long term.

A jet pump system has been sourced and will be commissioned to undertake further tests on both zones. Following the results of these new tests, a longer term zonal production strategy will be decided.

The workover of WF-7, which required a new bottom hole assembly, is due to commence this week and it is hoped the well will be back onstream within the next 2 weeks. Once WF-7 is back onstream, it is expected that Group production should be approximately 300bopd with further upside expected following installation of the jet pump on WF-9 and well stimulation work at Crosby Warren.

Crosby Warren

Engineering studies are complete on the question of undertaking a new hydraulic frac stimulation of the CW-1 reservoir. The study has shown that the historical frac has become ineffective over time. Consequently, a repeat frac stimulation presents an opportunity to significantly increase field production. The original frac was highly successful and led to a 15 fold increase in production rate. It is hoped that this work can be carried out in the next 2-4 months.

Discussions are ongoing with regard to the acquisition of a new 3D seismic survey jointly with neighboring license holders later this year which would lead to a much more robust subsurface model for both the Crosby Warren field and the Company's nearby Wressle exploration prospect.

Barchiz

Barchiz-1, drilled late last year, recovered oil on DST from a shallow sandstone reservoir with approximately 35 feet of net pay. The main exploration target of the well was not reached due to technical constraints. Following partner meetings last week, Europa has declared an intention to deepen the Barchiz-1 well to the primary objective as a sole-risk operation, subject to financing. The Operator proposed acquiring further seismic data along trend from Barchiz to identify a new exploration well location in the play. However, the Directors' view is that this an opportunity to test whether the Oligocene reservoir is present beneath the current well TD, a concept supported by nearby well control.

The joint venture group has applied for a license extension in order to pursue the remaining undrilled prospectivity on the license and the associated work program is currently being agreed with the authorities. Barchiz-1 sidetrack is expected to be drilled in the second half of 2011.

Berenx

Planning the appraisal of this potentially multi-TCF gas project has taken a step forward with the completion of 3D seismic reprocessing by CGG, which has greatly improved the seismic image. NRG, the Aberdeen-based well engineering company, have been retained to undertake detailed well engineering for the planned Berenx-3 appraisal well.

In the meantime and following the success of the CGG work, further 3D seismic data is planned for later this year. This survey, which could be acquired in Q4 2011, will quantify the western extent of the Berenx structure, which tested dry gas in the 1970's.

Acquiring this survey will fulfil the work commitment of the first phase of the permit and allow for automatic renewal in early 2012.

General

It should be noted that achieving optimum rates on the new West Firsby well will take some weeks and that, in conjunction with the earlier drilling delays this will generate full year (to July 31, 2011) projected revenue and profits below market expectations.

The Company is actively engaged in new venture activity, including current and near-term licensing rounds in its core area of NW and Continental Europe. The aim is to add significant high impact exploration acreage into the asset portfolio for drilling in 2012 onwards.

Paul Barrett, Managing Director, said, "There has been significant progress in a number of value-enhancing projects and we look forward to a sustained newsflow from seismic, drilling and new venture activity through the coming 12 months. Production growth over the coming months is expected to support this activity."