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Hello. Welcome, welcome.
Come on in and find a seat.
Well, this is a real pleasure to be here today, and it's going to be a long evening.
And so what I'd like to do to start out with is reiterate the purpose of the forum.
And so what I'd like to do to start out with is reiterate the purpose of the forum.
This is the third of a series of BLM forums that we've been holding -
one in Bismarck, one in Little Rock and then this one in Denver -
one in Bismarck, one in Little Rock and then this one in Denver -
one in Bismarck, one in Little Rock and then this one in Denver -
and these three forums build on a D.C. public meeting that was held back in November.
Ken Salazar is genuinely interested - this is generally a divergent conversation -
Ken Salazar is genuinely interested - this is generally a divergent conversation -
genuinely interested in hearing from the public
genuinely interested in hearing from the public
about the innovations that have occurred in the oil and gas industry and the remarkable development that's occurring in this country.
about the innovations that have occurred in the oil and gas industry and the remarkable development that's occurring in this country.
about the innovations that have occurred in the oil and gas industry and the remarkable development that's occurring in this country.
And so the point of this forum is an outreach.
There's no answer in the back of the book. There's no rule-making happening.
This is genuine outreach, and so this is your opportunity as the public to inform that process.
This is genuine outreach, and so this is your opportunity as the public to inform that process.
This is genuine outreach, and so this is your opportunity as the public to inform that process.
This is genuine outreach, and so this is your opportunity as the public to inform that process.
And so we'll just make sure that we develop this resource as a nation in an environmentally sustainable way.
And so we'll just make sure that we develop this resource as a nation in an environmentally sustainable way.
And so we'll just make sure that we develop this resource as a nation in an environmentally sustainable way.
And so we'll just make sure that we develop this resource as a nation in an environmentally sustainable way.
Let me go through the program, and then you can see where you fit in.
Let me go through the program, and then you can see where you fit in.
So this first part - the first part of the agenda, the first hour - what we'd like to do is a little bit of introduction,
So this first part - the first part of the agenda, the first hour - what we'd like to do is a little bit of introduction,
So this first part - the first part of the agenda, the first hour - what we'd like to do is a little bit of introduction,
So this first part - the first part of the agenda, the first hour - what we'd like to do is a little bit of introduction,
and I'm going to take you through "Hydraulic Fracturing 101" - 15 minutes.
and I'm going to take you through "Hydraulic Fracturing 101" - 15 minutes.
And the reason for that is just to get the right lexicon in the room.
There are people of different backgrounds, different technical knowledge.
For some in industry, it'll be a snore. For others, it might be new information.
For some in industry, it'll be a snore. For others, it might be new information.
For some in industry, it'll be a snore. For others, it might be new information.
And the reason for that is just to sort of level the playing field.
After that, we'll hear from the BLM, who will speak about their authorities, both federally and in the states.
After that, we'll hear from the BLM, who will speak about their authorities, both federally and in the states.
After that, we'll hear from the BLM, who will speak about their authorities, both federally and in the states.
After that, what we're going to do is have a panel of experts.
After that, what we're going to do is have a panel of experts.
After that, what we're going to do is have a panel of experts.
And these experts come from the state, they come from civil society, and they come from industry.
And I've asked each of them to give their bona fides - their credentials - and sort of role model that.
And I've asked each of them to give their bona fides - their credentials - and sort of role model that.
And the reason for - I've asked them to do this is
if you if you think in terms of what makes a good argument, it's logos, pathos and ethos, right?
There's the logic, there's the drama, but then there's the ethos.
There's the logic, there's the drama, but then there's the ethos.
The ethos is why I'm credible to speak to you.
And so it's the one part that we don't like to do as people because it's so self-serving.
And so it's the one part that we don't like to do as people because it's so self-serving.
But since I've asked everybody to do it on the panel, I'm going to do it myself.
But since I've asked everybody to do it on the panel, I'm going to do it myself.
I'm 25 years a geologist, hydrologist - worked on contaminant fate and transport.
I'm 25 years a geologist, hydrologist - worked on contaminant fate and transport.
I'm 25 years a geologist, hydrologist - worked on contaminant fate and transport.
I started as an exploration geologist, got a good degree from Stanford in petroleum geology - both master's and a B.S. -
I started as an exploration geologist, got a good degree from Stanford in petroleum geology - both master's and a B.S. -
I started as an exploration geologist, got a good degree from Stanford in petroleum geology - both master's and a B.S. -
I started as an exploration geologist, got a good degree from Stanford in petroleum geology - both master's and a B.S. -
and had been working on the sustainability side.
I was three down from the top of Shell as the Sustainability Director.
I decided to move to Washington and had joined the Aspen Science Center.
And so the Aspen Science Center I joined because it's a really compelling group,
And so the Aspen Science Center I joined because it's a really compelling group,
where we try to bring people of divergent opinions together through rational dialogue.
where we try to bring people of divergent opinions together through rational dialogue.
where we try to bring people of divergent opinions together through rational dialogue.
where we try to bring people of divergent opinions together through rational dialogue.
where we try to bring people of divergent opinions together through rational dialogue.
And it's a pleasure for me to be able to moderate the BLM forum.
And it's a pleasure for me to be able to moderate the BLM forum.
And it's a pleasure for me to be able to moderate the BLM forum.
And what we're going to do in the second part of the agenda is hear from a series of experts,
And what we're going to do in the second part of the agenda is hear from a series of experts,
and they'll come up sequentially in the next hour to give their 10-minute view.
and they'll come up sequentially in the next hour to give their 10-minute view.
and they'll come up sequentially in the next hour to give their 10-minute view.
And then following that, after a 10-minute break, we'll have an hour - well, actually as long as it takes.
And then following that, after a 10-minute break, we'll have an hour - well, actually as long as it takes.
And then following that, after a 10-minute break, we'll have an hour - well, actually as long as it takes.
We're going to target closing at 9:00, where we can hear from you your concerns and your questions.
We're going to target closing at 9:00, where we can hear from you your concerns and your questions.
We're going to target closing at 9:00, where we can hear from you your concerns and your questions.
We're going to target closing at 9:00, where we can hear from you your concerns and your questions.
Now, when you came in, there were 3x5 cards.
Now, when you came in, there were 3x5 cards.
During this whole program, you can write on the 3x5 cards to get your thoughts down, get your ideas together,
During this whole program, you can write on the 3x5 cards to get your thoughts down, get your ideas together,
so that when you come up to the mic or when you present them to me,
so that when you come up to the mic or when you present them to me,
they're succinct and well thought through so that we can move through time quickly.
they're succinct and well thought through so that we can move through time quickly.
What we're not going to have is a long back-and-forth at the mic because we need to share the time with everybody.
What we're not going to have is a long back-and-forth at the mic because we need to share the time with everybody.
And so one question per person, and then you get back to the back of the line or back of the queue.
And so one question per person, and then you get back to the back of the line or back of the queue.
OK? So just a little bit of housekeeping.
So let's launch into Hydraulic Fracturing 101 and get everybody sort of on the same level playing field.
So let's launch into Hydraulic Fracturing 101 and get everybody sort of on the same level playing field.
So let's launch into Hydraulic Fracturing 101 and get everybody sort of on the same level playing field.
The big energy game changer is a combination of two technologies that have been around for a long time, as you all know.
The big energy game changer is a combination of two technologies that have been around for a long time, as you all know.
The big energy game changer is a combination of two technologies that have been around for a long time, as you all know.
Directional drilling, horizontal drilling combined with hydraulic fracturing, has opened up enormous zones for hydrocarbon production,
Directional drilling, horizontal drilling combined with hydraulic fracturing, has opened up enormous zones for hydrocarbon production,
Directional drilling, horizontal drilling combined with hydraulic fracturing, has opened up enormous zones for hydrocarbon production,
Directional drilling, horizontal drilling combined with hydraulic fracturing, has opened up enormous zones for hydrocarbon production,
Directional drilling, horizontal drilling combined with hydraulic fracturing, has opened up enormous zones for hydrocarbon production,
Directional drilling, horizontal drilling combined with hydraulic fracturing, has opened up enormous zones for hydrocarbon production,
and it has opened up formations that were previously thought unable to be explored in a tremendous way.
and it has opened up formations that were previously thought unable to be explored in a tremendous way.
and it has opened up formations that were previously thought unable to be explored in a tremendous way.
and it has opened up formations that were previously thought unable to be explored in a tremendous way.
Essentially, the entire oil basin now has become the oil field, and that is what this map shows.
Essentially, the entire oil basin now has become the oil field, and that is what this map shows.
Essentially, the entire oil basin now has become the oil field, and that is what this map shows.
Fully a third of the nation is now a prospect for oil and gas development.
Fully a third of the nation is now a prospect for oil and gas development.
The reason I say oil development is that in the Bakken, we hear about shale plays.
The reason I say oil development is that in the Bakken, we hear about shale plays.
In the Bakken, actually it's a very tight dolomite.
In the Bakken, actually it's a very tight dolomite.
And in the Monterey here in California, it's a tight diatomaceous - originally diatomaceous deposit, which is now crystobalite opal-CT.
And in the Monterey here in California, it's a tight diatomaceous - originally diatomaceous deposit, which is now crystobalite opal-CT.
And in the Monterey here in California, it's a tight diatomaceous - originally diatomaceous deposit, which is now crystobalite opal-CT.
And in the Monterey here in California, it's a tight diatomaceous - originally diatomaceous deposit, which is now crystobalite opal-CT.
But here again, with this long lateral hydraulic fracturing and these - this type of completion,
But here again, with this long lateral hydraulic fracturing and these - this type of completion,
these formations that have oil in them are now yielding tremendous reserves.
these formations that have oil in them are now yielding tremendous reserves.
these formations that have oil in them are now yielding tremendous reserves.
The Bakken is on the order of 3 billion barrels, just a phenomenal amount.
The Bakken is on the order of 3 billion barrels, just a phenomenal amount.
The Bakken is on the order of 3 billion barrels, just a phenomenal amount.
The Bakken is on the order of 3 billion barrels, just a phenomenal amount.
When we talk about gas, the Marcellus, here in the East, is on par with anything in the Middle East.
When we talk about gas, the Marcellus, here in the East, is on par with anything in the Middle East.
When we talk about gas, the Marcellus, here in the East, is on par with anything in the Middle East.
When we talk about gas, the Marcellus, here in the East, is on par with anything in the Middle East.
Now the United States has reserves comparable to none in the world, and the thing that's so compelling about this whole event
Now the United States has reserves comparable to none in the world, and the thing that's so compelling about this whole event
Now the United States has reserves comparable to none in the world, and the thing that's so compelling about this whole event
is that we invented - Americans - we invented the technology, and we will have the capability of exporting the technology.
is that we invented - Americans - we invented the technology, and we will have the capability of exporting the technology.
is that we invented - Americans - we invented the technology, and we will have the capability of exporting the technology.
is that we invented - Americans - we invented the technology, and we will have the capability of exporting the technology.
Sedimentary basins occur all around the world.
Sedimentary basins occur all around the world.
And so what's happening here in the U.S., what happened in Poland, in Sweden, in Austria -
And so what's happening here in the U.S., what happened in Poland, in Sweden, in Austria -
places that if you had asked me ten years ago whether they would ever be in the oil game, I would've said, "No, not on your life."
places that if you had asked me ten years ago whether they would ever be in the oil game, I would've said, "No, not on your life."
places that if you had asked me ten years ago whether they would ever be in the oil game, I would've said, "No, not on your life."
places that if you had asked me ten years ago whether they would ever be in the oil game, I would've said, "No, not on your life."
And so it has profound geopolitcal ramifications.
And so it has profound geopolitcal ramifications.
And so it has profound geopolitcal ramifications.
So what is this technology? What actually goes on?
So what is this technology? What actually goes on?
So what is this technology? What actually goes on?
You build a well pad. You put in a little basin for your mud pit.
You put in your conductor pipe, and that conductor pipe is installed through this sort of gray material, which represents the water table.
You put in your conductor pipe, and that conductor pipe is installed through this sort of gray material, which represents the water table.
You put in your conductor pipe, and that conductor pipe is installed through this sort of gray material, which represents the water table.
And the conductor pipe generally protects most private wells.
And the conductor pipe generally protects most private wells.
And the conductor pipe generally protects most private wells.
Then, you bring the rig on site - and here you can see a picture of a rig.
And it begins drilling, and it drills down through the water table.
And as it drills through the water table, the drill bit uses water or air.
It doesn't use any kind of chemicals.
The aim is to really protect the water table,
and here you can see that this rig is using air and the cuttings are put into this pit so they're disposed of properly.
and here you can see that this rig is using air and the cuttings are put into this pit so they're disposed of properly.
When the bit gets through the water table, what happens is we extract the bit - or the industry representatives -
When the bit gets through the water table, what happens is we extract the bit - or the industry representatives -
whoever is drilling the rig extracts the bit and puts a pipe on it.
whoever is drilling the rig extracts the bit and puts a pipe on it.
It's called casing, and that pipe is centralized.
You'll see a centralizer coming in right here in a minute.
You'll see a centralizer coming in right here in a minute.
You'll see that it's centralized in the hole, and it goes down to the total depth.
You'll see that it's centralized in the hole, and it goes down to the total depth.
And a specially formulated cement is put into the pipe, and that cement goes all the way up and around the outside of the centralized pipe.
And a specially formulated cement is put into the pipe, and that cement goes all the way up and around the outside of the centralized pipe.
And the aim is to put a barrier of cement and pipe between the water table and the hole
And the aim is to put a barrier of cement and pipe between the water table and the hole
And the aim is to put a barrier of cement and pipe between the water table and the hole
so that when you come back in to drill it out again with a smaller diameter bit to go all the way down to the zone of interest,
so that when you come back in to drill it out again with a smaller diameter bit to go all the way down to the zone of interest,
the groundwater is already protected.
And this drilling operation now uses a mud,
and this mud generally is a water-bentonite formula with all sorts of other additives that could be added.
and this mud generally is a water-bentonite formula with all sorts of other additives that could be added.
Now, at this stage, it depends on where you are in the nation.
Now, at this stage, it depends on where you are in the nation.
This is a general thing just to get us all grounded.
You could stop here and put in another piece of casing, called intermediate casing.
You could stop here and put in another piece of casing, called intermediate casing.
And for this example, the video goes on, and the well is kicked out, and it starts drilling through the horizon of interest.
And for this example, the video goes on, and the well is kicked out, and it starts drilling through the horizon of interest.
And for this example, the video goes on, and the well is kicked out, and it starts drilling through the horizon of interest.
This can be shale, dolomite, tight sand, and it can go out for a mile or 2 miles horizontally.
This can be shale, dolomite, tight sand, and it can go out for a mile or 2 miles horizontally.
This can be shale, dolomite, tight sand, and it can go out for a mile or 2 miles horizontally.
When the well completes all the way to the end, again, the pipe is taken out, and the casing is -
When the well completes all the way to the end, again, the pipe is taken out, and the casing is -
When the well completes all the way to the end, again, the pipe is taken out, and the casing is -
another string of casing, this time called production casing, smaller diameter, here again centralized,
another string of casing, this time called production casing, smaller diameter, here again centralized,
another string of casing, this time called production casing, smaller diameter, here again centralized,
goes into the hole all the way to TD, and again the cement is poured down the pipe and around the outside of this production casing.
goes into the hole all the way to TD, and again the cement is poured down the pipe and around the outside of this production casing.
goes into the hole all the way to TD, and again the cement is poured down the pipe and around the outside of this production casing.
goes into the hole all the way to TD, and again the cement is poured down the pipe and around the outside of this production casing.
goes into the hole all the way to TD, and again the cement is poured down the pipe and around the outside of this production casing.
And the point of this cement is to create zonal isolation, to isolate the zones - the production zones - from anything at the surface.
And the point of this cement is to create zonal isolation, to isolate the zones - the production zones - from anything at the surface.
And the point of this cement is to create zonal isolation, to isolate the zones - the production zones - from anything at the surface.
And the cement is injected at sufficient pressure and at sufficient volumes
And the cement is injected at sufficient pressure and at sufficient volumes
to cover the design that's specificed by the regulators and by the operators.
to cover the design that's specificed by the regulators and by the operators.
to cover the design that's specificed by the regulators and by the operators.
That cement can come up to a horizon that's specified, can come up to a certain height, can come up -
That cement can come up to a horizon that's specified, can come up to a certain height, can come up -
That cement can come up to a horizon that's specified, can come up to a certain height, can come up -
it deponds on the geology. It's very much associated with local condition.
it deponds on the geology. It's very much associated with local condition.
And so the aim at the end is to protect groundwater.
And so the aim at the end is to protect groundwater.
And so here, this white rock represents the sandstone that's containing groundwater.
And so here, this white rock represents the sandstone that's containing groundwater.
And you have a line of cement, and then you have your conductor casing, line of cement, surface casing, mud, production casing,
And you have a line of cement, and then you have your conductor casing, line of cement, surface casing, mud, production casing,
And you have a line of cement, and then you have your conductor casing, line of cement, surface casing, mud, production casing,
And you have a line of cement, and then you have your conductor casing, line of cement, surface casing, mud, production casing,
and then finally, tubing is put down the hole when the well is put on production.
and then finally, tubing is put down the hole when the well is put on production.
So there are seven layers to protect groundwater.
And this is all about well integrity, and well integrity is absolutely key in this whole process.
And this is all about well integrity, and well integrity is absolutely key in this whole process.
So after the well is drilled, the rig drops down a perforating gun,
So after the well is drilled, the rig drops down a perforating gun,
and perforating guns are simply charges on a tool that shoot holes in the rock and through the casing.
and perforating guns are simply charges on a tool that shoot holes in the rock and through the casing.
and perforating guns are simply charges on a tool that shoot holes in the rock and through the casing.
and perforating guns are simply charges on a tool that shoot holes in the rock and through the casing.
You can see the charges have shot off.
The rig is replaced by a hydraulic fracturing crew,
and the hydraulic fracturing crew brings water in from an impoundment or from a truck operation into containers that hold water
and the hydraulic fracturing crew brings water in from an impoundment or from a truck operation into containers that hold water
and the hydraulic fracturing crew brings water in from an impoundment or from a truck operation into containers that hold water
and the hydraulic fracturing crew brings water in from an impoundment or from a truck operation into containers that hold water
and then into a mixer that combines chemicals, surfactants, deviscositers - all kinds of things to make the pump job work better.
and then into a mixer that combines chemicals, surfactants, deviscositers - all kinds of things to make the pump job work better.
and then into a mixer that combines chemicals, surfactants, deviscositers - all kinds of things to make the pump job work better.
And then it goes through a sand mixer - and Halliburton is here and will further elaborate on this process - and the sand mixer adds proppant.
And then it goes through a sand mixer - and Halliburton is here and will further elaborate on this process - and the sand mixer adds proppant.
And then it goes through a sand mixer - and Halliburton is here and will further elaborate on this process - and the sand mixer adds proppant.
The mixture goes through a low side of the manifolds - low-pressure side through these pump trucks to the high pressure side,
The mixture goes through a low side of the manifolds - low-pressure side through these pump trucks to the high pressure side,
then down in through the Christmas tree and downhole.
This whole process is governed by a truck that monitors the pressure,
This whole process is governed by a truck that monitors the pressure,
and you'll see later in our discussion how important pressures are for the whole process.
and you'll see later in our discussion how important pressures are for the whole process.
That water goes down - that water and sand mixture goes downhole under sufficient pressure to break the gradient of the rock.
That water goes down - that water and sand mixture goes downhole under sufficient pressure to break the gradient of the rock.
The fractures migrate vertically and then horizontally on zones of weakness, and the fracks propagate out.
The fractures migrate vertically and then horizontally on zones of weakness, and the fracks propagate out.
The fractures migrate vertically and then horizontally on zones of weakness, and the fracks propagate out.
The fractures migrate vertically and then horizontally on zones of weakness, and the fracks propagate out.
The fractures migrate vertically and then horizontally on zones of weakness, and the fracks propagate out.
The sand is put into the fracks.
The sand is put into the fracks.
And so the reason that sand is necessary is to hold these really microfractures open
And so the reason that sand is necessary is to hold these really microfractures open
And so the reason that sand is necessary is to hold these really microfractures open
so that when the water drains out, that the fractures don't close and that the gas can flow to the surface.
so that when the water drains out, that the fractures don't close and that the gas can flow to the surface.
After the first frack job is done, the rig's replaced, and it's all done on wireline.
After the first frack job is done, the rig's replaced, and it's all done on wireline.
After the first frack job is done, the rig's replaced, and it's all done on wireline.
This shows the installation of the bridge plug to protect this frack job from the subsequent frack job.
The perforation gun continues to perforate this stage,
The perforation gun continues to perforate this stage,
and after the perforation gun is removed from the well, the same exact process that you saw earlier occurs.
and after the perforation gun is removed from the well, the same exact process that you saw earlier occurs.
and after the perforation gun is removed from the well, the same exact process that you saw earlier occurs.
And that process is done in stages, anywhere from 10 to 20 stages.
And that process is done in stages, anywhere from 10 to 20 stages.
And so this is what we're talking about.
This is what this big innovation is - this new technology of hydraulic fracturing and horizontal drilling.
This is what this big innovation is - this new technology of hydraulic fracturing and horizontal drilling.
And this shows how a formation is opened up to production,
and once it's under production, what comes back, of course, in the first stages is a lot of that fluid that went down the hole - the frack fluid.
and once it's under production, what comes back, of course, in the first stages is a lot of that fluid that went down the hole - the frack fluid.
and once it's under production, what comes back, of course, in the first stages is a lot of that fluid that went down the hole - the frack fluid.
And that frack fluid is contained according to state regulations - state and federal regulations - and disposed of and will be recycled properly.
And that frack fluid is contained according to state regulations - state and federal regulations - and disposed of and will be recycled properly.
And that frack fluid is contained according to state regulations - state and federal regulations - and disposed of and will be recycled properly.
And that frack fluid is contained according to state regulations - state and federal regulations - and disposed of and will be recycled properly.
And that frack fluid is contained according to state regulations - state and federal regulations - and disposed of and will be recycled properly.
And that is it, and what's also fantastic about this technology is that every rig that goes out there is a directional rig.
And that is it, and what's also fantastic about this technology is that every rig that goes out there is a directional rig.
And so if we were to do this with conventional rigs, doing only vertical holes,
And so if we were to do this with conventional rigs, doing only vertical holes,
it would require an enormous surface infrastructure with - you know, just prohibitively costly.
it would require an enormous surface infrastructure with - you know, just prohibitively costly.
it would require an enormous surface infrastructure with - you know, just prohibitively costly.
You can see everything would look like Signal Hill in this kind of a development,
You can see everything would look like Signal Hill in this kind of a development,
You can see everything would look like Signal Hill in this kind of a development,
but with directional wells and the potential of even having multipad drilling, it really, really reduces the surface footprint.
but with directional wells and the potential of even having multipad drilling, it really, really reduces the surface footprint.
but with directional wells and the potential of even having multipad drilling, it really, really reduces the surface footprint.
So there are all kinds of options for establishing best practices.
So there are all kinds of options for establishing best practices.
Let me try to move on here.
Let me try to move on here.
So that is a quick overview of hydraulic fracturing, and what you get from it is that the well construction is absolutely key.
So that is a quick overview of hydraulic fracturing, and what you get from it is that the well construction is absolutely key.
So that is a quick overview of hydraulic fracturing, and what you get from it is that the well construction is absolutely key.
So that is a quick overview of hydraulic fracturing, and what you get from it is that the well construction is absolutely key.
So that is a quick overview of hydraulic fracturing, and what you get from it is that the well construction is absolutely key.
So that is a quick overview of hydraulic fracturing, and what you get from it is that the well construction is absolutely key.
Well, in the oil and gas industry, well construction has been key for the last 60 years,
Well, in the oil and gas industry, well construction has been key for the last 60 years,
and there has been a lot of technology in place to make sure that well construction standards protect our water resources.
and there has been a lot of technology in place to make sure that well construction standards protect our water resources.
and there has been a lot of technology in place to make sure that well construction standards protect our water resources.
And so why do we read in the press about how this new technology has contaminated groundwater?
And so why do we read in the press about how this new technology has contaminated groundwater?
And so why do we read in the press about how this new technology has contaminated groundwater?
Why do we read that, you know, wells are - have gas in them?
Why do we read that, you know, wells are - have gas in them?
Why do we read about all of these issues if it - you know, it can't all be apocryphal.
Why do we read about all of these issues if it - you know, it can't all be apocryphal.
And so what I thought I'd show you is how things can go wrong.
And so what I thought I'd show you is how things can go wrong.
When things are right, and you have the right cement seal
keeping the formation water or radionuclides or gas or oil out of the formation or out of the well, things work just fine.
keeping the formation water or radionuclides or gas or oil out of the formation or out of the well, things work just fine.
keeping the formation water or radionuclides or gas or oil out of the formation or out of the well, things work just fine.
keeping the formation water or radionuclides or gas or oil out of the formation or out of the well, things work just fine.
The gas and oil is produced from the target zone, up the annulus - or up the production casing, production tubing -
The gas and oil is produced from the target zone, up the annulus - or up the production casing, production tubing -
The gas and oil is produced from the target zone, up the annulus - or up the production casing, production tubing -
The gas and oil is produced from the target zone, up the annulus - or up the production casing, production tubing -
to the surface and goes to market.
But, however, if you don't have a good cement job and the shallow producing zone is allowed to produce in that annulus,
But, however, if you don't have a good cement job and the shallow producing zone is allowed to produce in that annulus,
But, however, if you don't have a good cement job and the shallow producing zone is allowed to produce in that annulus,
But, however, if you don't have a good cement job and the shallow producing zone is allowed to produce in that annulus,
But, however, if you don't have a good cement job and the shallow producing zone is allowed to produce in that annulus,
what can happen is it goes up the annulus, pressure builds up and then it could come out of the shoe
what can happen is it goes up the annulus, pressure builds up and then it could come out of the shoe
and cause problems in the lower strata beneath the water table.
and cause problems in the lower strata beneath the water table.
This has happened in the oil fields.
This has happened in the oil fields.
In addition, a poor well design - or if too much cement got lost in the lower formation, you don't have enough cement coverage -
In addition, a poor well design - or if too much cement got lost in the lower formation, you don't have enough cement coverage -
In addition, a poor well design - or if too much cement got lost in the lower formation, you don't have enough cement coverage -
In addition, a poor well design - or if too much cement got lost in the lower formation, you don't have enough cement coverage -
similar phenomena can happen.
similar phenomena can happen.
Shows you how important it is to measure annular pressures.
And that's a best practice, and we'll probably discuss that.
Because once you measure the annular pressure, you know you've got a problem, and you can go fix it - squeeze it.
Because once you measure the annular pressure, you know you've got a problem, and you can go fix it - squeeze it.
Because once you measure the annular pressure, you know you've got a problem, and you can go fix it - squeeze it.
When you're drilling those wells out, remember, you go into the casing, you continue to drill out.
Sometimes you can nick the casing, or sometimes the casing can be flawed, or sometimes it can't withstand the pressure.
Sometimes you can nick the casing, or sometimes the casing can be flawed, or sometimes it can't withstand the pressure.
Even though there are all sorts of regulations about its specification, we can have casing ruptures,
Even though there are all sorts of regulations about its specification, we can have casing ruptures,
and this has happened and has caused problems.
and this has happened and has caused problems.
At the very near surface in really hydrocarbon-rich zones where there are a lot of coal seams, there's an awful lot of methogenic activity,
At the very near surface in really hydrocarbon-rich zones where there are a lot of coal seams, there's an awful lot of methogenic activity,
and even at the surface casing, if you have a bad cement job, it's plausible that methane can migrate up through the surface casing.
and even at the surface casing, if you have a bad cement job, it's plausible that methane can migrate up through the surface casing.
and even at the surface casing, if you have a bad cement job, it's plausible that methane can migrate up through the surface casing.
and even in the surface casing, if you have a bad cement job, it's plausible that methane can migrate up through the surface casing.
and even in the surface casing, if you have a bad cement job, it's plausible that methane can migrate up through the surface casing.
So well integrity is really, really key.
That's what it's all about - to make sure that we protect our groundwater.
That's what it's all about - to make sure that we protect our groundwater.
So what happens when somebody drills - and here we've got good mechanical integrity, and this operation can go on fine.
So what happens when somebody drills - and here we've got good mechanical integrity, and this operation can go on fine.
So what happens when somebody drills - and here we've got good mechanical integrity, and this operation can go on fine.
So what happens when somebody drills - and here we've got good mechanical integrity, and this operation can go on fine.
So what happens when somebody drills - and here we've got good mechanical integrity, and this operation can go on fine.
I think I'm going to leave this for the Halliburton folks to talk about.
I think I'm going to leave this for the Halliburton folks to talk about.
Let me go to another slide here.
What happens when you have a water well that's drilled in an oil province or in a gas province,
What happens when you have a water well that's drilled in an oil province or in a gas province,
and that water well shows up with gas in it?
Obviously, it's because of this well.
I mean, there's no other reason that there could be gas in the water well.
I mean, there's no other reason that there could be gas in the water well.
I mean, there's no other reason that there could be gas in the water well.
Well, actually, there is a reason.
It's called biogenic gas, and this is a slide show to show those folks who don't understand the process how it works.
It's called biogenic gas, and this is a slide show to show those folks who don't understand the process how it works.
It's called biogenic gas, and this is a slide show to show those folks who don't understand the process how it works.
This gas is sitting under pressure in a coal seam, and it's been there for thousands of years.
This gas is sitting under pressure in a coal seam, and it's been there for thousands of years.
And this water is providing pressure to hold that gas into solution.
And this water is providing pressure to hold that gas into solution.
It's just like a 7-Up bottle with a top on it,
and when you drill your water well and you start producing, you actually lower the pressure.
That's what this shows.
You're pumping the water well, and you lower the cone of depression.
And you actually take the top off the 7-Up bottle,
And you actually take the top off the 7-Up bottle,
and it can cause fresh water - clean water - to actually have methane in it, totally unrelated to this well.
and it can cause fresh water - clean water - to actually have methane in it, totally unrelated to this well.
and it can cause fresh water - clean water - to actually have methane in it, totally unrelated to this well.
and it can cause fresh water - clean water - to actually have methane in it, totally unrelated to this well.
Now, it's really tough to tell whether this water well and this well have no relation unless you fingerprint the gases,
Now, it's really tough to tell whether this water well and this well have no relation unless you fingerprint the gases,
and there are techniques to do that - or if you look at the fluids.
and there are techniques to do that - or if you look at the fluids.
And so I just thought I'd bring this up because there is a natural explanation for the kinds of things that you've seen in the news.
And so I just thought I'd bring this up because there is a natural explanation for the kinds of things that you've seen in the news.
And so I just thought I'd bring this up because there is a natural explanation for the kinds of things that you've seen in the news.
And so I just thought I'd bring this up because there is a natural explanation for the kinds of things that you've seen in the news.
And so I just thought I'd bring this up because there is a natural explanation for the kinds of things that you've seen in the news.
When we talk about this enormous explosion of potential around natural gas and oil, it's hard to separate surface activity from that.
When we talk about this enormous explosion of potential around natural gas and oil, it's hard to separate surface activity from that.
When we talk about this enormous explosion of potential around natural gas and oil, it's hard to separate surface activity from that.
When we talk about this enormous explosion of potential around natural gas and oil, it's hard to separate surface activity from that.
When we talk about this enormous explosion of potential around natural gas and oil, it's hard to separate surface activity from that.
You can see that the way that these wells are drilled is in an array, right?
You can see that the way that these wells are drilled is in an array, right?
And that array is that way because this is not like a conventional oil field,
And that array is that way because this is not like a conventional oil field,
where you're sticking a straw into a pressurized vessel and it comes up.
You're actually creating your reservoir by fracking it, and so there's potential for a lot of activity at the surface.
You're actually creating your reservoir by fracking it, and so there's potential for a lot of activity at the surface.
You're actually creating your reservoir by fracking it, and so there's potential for a lot of activity at the surface.
You're actually creating your reservoir by fracking it, and so there's potential for a lot of activity at the surface.
You're actually creating your reservoir by fracking it, and so there's potential for a lot of activity at the surface.
And there are best practices that we can deploy as a nation to make sure that we minimize our footprint,
And there are best practices that we can deploy as a nation to make sure that we minimize our footprint,
And there are best practices that we can deploy as a nation to make sure that we minimize our footprint,
and industry is working diligently to implement those best practices on the widest possible scale
and industry is working diligently to implement those best practices on the widest possible scale
so that the industrialized footprint becomes as small as possible.
So as this conference is about hydraulic fracturing and long lateral drilling, it could stray into this realm -
So as this conference is about hydraulic fracturing and long lateral drilling, it could stray into this realm -
So as this conference is about hydraulic fracturing and long lateral drilling, it could stray into this realm -
So as this conference is about hydraulic fracturing and long lateral drilling, it could stray into this realm -
and I think legitimately, and so let's have patience. OK?
and I think legitimately, and so let's have patience. OK?
So with that, I'll introduce Mike Worden from the BLM, who will speak to you about their roles and responsibilities.
So with that, I'll introduce Mike Worden from the BLM, who will speak to you about their roles and responsibilities.
So with that, I'll introduce Mike Worden from the BLM, who will speak to you about their roles and responsibilities.
So with that, I'll introduce Mike Worden from the BLM, who will speak to you about their roles and responsibilities.
So with that, I'll introduce Mike Worden from the BLM, who will speak to you about their roles and responsibilities.
So with that, I'll introduce Mike Worden from the BLM, who will speak to you about their roles and responsibilities.