Professional Documents
Culture Documents
Richard Dunn,
Vice-President, Government Relations, Encana
COMPANY CONFIDENTIAL
Outline
Scale of resource/Canadian shale gas plays Overview of the resource Technical and economic aspects Responsible shale gas development CAPP Hydraulic Fracturing Practices Encana experience
Western Canada
Significant Unconventional Plays Western Canada Estimated Gas In Place (GIP): Alberta: 3400 Tcf BC: 1200 Tcf Total: 4600 Tcf Total Canadian Production: ~6Tcf/year
Duvernay Shale
Montney Silt
Encana Land
Forecast
48 bcf/d ~50%
Our Strategy
Advancing Resource Play Hub Design and Development
Concentrated resource
+ +
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Pad drilling
Manufacturing process
Resource play hub
Schematic represents ~15 square kilometres of reservoir accessed from a single surface location.
Duvernay
Paleogeography
Horn River
Duvernay
Bakken Marcellus
Ron Blakey
Commercial Demonstration
On going
Geology
Depositional Setting Influence of the Reefs Sedimentation Drivers for Organics Preservation Burial Thermal Maturation Tectonic Setting Basement Tectonics Heat Flow Burial
Reservoir Quality
PHIeff Net Pay Mechanical Stratigraphy Net to gross relationships BVHH (Hydrocarbon PHIH)
Fluids
Map Generative Potential Heat Flow Models Ro Measurements
Drilling Operations
Horn River, BC
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Field Operations
Typical Well Site
12
Courtesy Matters
Its about doing the right thing
Proactive partnership between Encana, its contractors, employees and community Government encourages companies to have Social Responsibility Program Encana program Courtesy Matters to minimize disturbances associated with development activities
Noise Dust Traffic Garbage Know your neighbour
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Conclusions were widely reported in mainstream media Follow Up Consensus: Full life cycle shale gas emissions are ~40% lower than coal Subsequent studies concluded Howarth et al overstated emissions:
Carnegie Mellon University (August 2011) DeutscheBank Climate Advisors (August 2011) University of Maryland (October-December 2011) US Department of Energy , Centre for Transportation Research (November 2011)
http://www.capp.ca/canadaIndustry/naturalGas/ShaleGas/Pages/default.aspx#operating
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Encana Experience
Fracturing Fluid Additive Risk Assessment
Developed a Responsible Products Program Assessed ingredients being used in hydraulic fracturing fluids against government health and environmental criteria
Program has influenced product selection and procurement Eliminated use of diesel, benzene, arsenic, cadmium, chromium, lead & mercury in completions products
16
Encana Experience
Anomalous induced seismicity
Installed microseismic arrays to monitor the events Results of both Encana and the OGCs investigations were consistent:
No event posed risk to public safety, worker safety or the environment Seismic events were contained within the production zone (~2.6 km below surface) Localized and specific to this particular shale gas formation Can be safely managed using prescribed operating practices
Microseismic activity 17
Summary
Canada has a tremendous amount of resource Complex, large scale, high-cost operations Industry develops natural gas resources responsibly and efficiently Ongoing research Addressing operational concerns about hydraulic fracturing through CAPP practices, which is driving the right behaviors Development of greener chemicals Managing anomalous seismic events
Questions?