Objective: Determine the most feasible method of shale oil production, analyzing subsurface designs, reservoir characteristics, surface processing facilities, and project scheduling.
Location: Often located in areas like the Colorado Rocky Mountains, characterized by low population and significant natural habitats.
Production Methods
Above Ground Retorting
Process: Involves mining the ore, using well-known technology.
Environmental Impact: Large environmental footprint due to open mines, emissions, and the "popcorn effect".
In-Situ Conversion
Process: Underground conversion of kerogen to oil and gas.
Step 1: Heating kerogen in the ground to convert it into oil and gas.
Step 2: Construction of a freeze wall and water removal to prevent environmental impact.
Step 3: Production of hydrocarbons from the kerogen conversion.
Step 4: Processing and transportation of the produced oil and gas.
Environmental Impact: Lower environmental impact compared to above ground retorting. This method is being explored by companies like Shell Oil with projects such as the Mahogany Project.
Technical Details
Reservoir Temperature Profile
Analysis: Unsteady state 1D temperature profile created using tools like ANSYS.
Heater Placement: Heaters spaced 60 feet apart, with 25 heaters per acre.
Initial Reservoir Temperature: 150°F.
Boundary Conditions: Include freeze walls to prevent large environmental impacts.
Well and Freeze Wall Construction
Drilling Costs: Approximately $26.4 million for 250 heater wells and 80 producer wells per 10-acre plot, with each well costing around $80,000.
Freeze Wall Construction: Double wall pipes placed 8 feet apart, using calcium chloride brine at -10°F to create an impermeable barrier.
Economic Analysis
Production Schedule: Production planned on a 10-acre tract basis, with a target of 40,000 barrels per day per tract, and a new tract added every year.
Revenue Projections:
Crude oil sales: Estimated at $130,680,000.
Gas sales: Estimated at $35,640,000.
Gas to power plant: Estimated at $420,000.
Total Piping Cost: Estimated at $173,840,000.
Environmental Considerations
Location Impact: Significant impact on natural habitats due to large land clearings and drilling activities.
Emissions: Choice of power plant and on-site processing can affect emissions levels.
Project Scheduling
Site Preparation: Includes drilling wells, freeze wall formation, and water removal.
Production Phase: Involves continuous refrigeration and heating, water injection, and site reclamation.
Infrastructure and Logistics
Pipelines: Necessary for transporting the produced oil and gas to market.
Surface Processing Facilities: Required for oil and gas separation and further processing.