Green Completions

Green CompletionsGreen CompletionsLessons LearnedLessons Learned

from Natural Gas STARfrom Natural Gas STAR

Producers Technology Transfer WorkshopProducers Technology Transfer Workshop

ExxonMobil Production Company,ExxonMobil Production Company,American Petroleum Institute and American Petroleum Institute and EPA’s Natural Gas STAR ProgramEPA’s Natural Gas STAR Program

September 21, 2004September 21, 2004

Page 2Reducing Emissions, Increasing Efficiency, Maximizing Profits

Green Completions: AgendaGreen Completions: Agenda

Methane LossesMethane Losses Methane Recovery Methane Recovery Is Recovery Profitable?Is Recovery Profitable? Industry ExperienceIndustry Experience Discussion QuestionsDiscussion Questions


Methane Loss During Well CompletionsMethane Loss During Well Completions It is necessary to clean out the well bore and It is necessary to clean out the well bore and

formation surrounding perforationsformation surrounding perforations After new well completionAfter new well completion After well workoversAfter well workovers

Produce the well to an open pit or tankage to Produce the well to an open pit or tankage to collect sand, cuttings and reservoir fluids for collect sand, cuttings and reservoir fluids for disposaldisposal

Vent or flare the natural gas producedVent or flare the natural gas produced Venting may lead to dangerous gas buildupVenting may lead to dangerous gas buildup Flaring is preferred where no fire hazard or Flaring is preferred where no fire hazard or

nuisancenuisance


Methane Losses: Methane Losses: Well Completions and WorkoversWell Completions and Workovers

EIA reported annual losses due to flaring and EIA reported annual losses due to flaring and venting from onshore gas well completion, venting from onshore gas well completion, workovers and blowdowns to be 76 Bcfworkovers and blowdowns to be 76 Bcf

Estimated 45 billion cubic feet (Bcf) of natural gas Estimated 45 billion cubic feet (Bcf) of natural gas lost annually due to well completions and lost annually due to well completions and workoversworkovers11

Note:Note:- 11Percentage that is flared and vented is not knownPercentage that is flared and vented is not known- Value of natural gas at $3/McfValue of natural gas at $3/Mcf- Value of condensate at $22/bblValue of condensate at $22/bbl

Annual Natural Gas Venting and Flaring

Venting and Venting and Flaring from Flaring from Well Well Completions Completions and and Workovers Workovers 59%59%

Venting from Venting from Blowdowns, Blowdowns, 41%41%

Estimated a total of Estimated a total of 480,000 barrels (Bbl) 480,000 barrels (Bbl) condensate lost annually condensate lost annually due to venting and flaring due to venting and flaring

A total of $145 million A total of $145 million lost due to well lost due to well completions and completions and workoversworkovers


Methane Recovery by Green CompletionsMethane Recovery by Green Completions Recover natural gas and condensate produced Recover natural gas and condensate produced

during well completions or workoversduring well completions or workovers Estimated 24 Bcf of natural gas can be Estimated 24 Bcf of natural gas can be

recovered annually using Green Completionsrecovered annually using Green Completions Use portable equipment to process gas and Use portable equipment to process gas and

condensate suitable for salescondensate suitable for sales Direct recovered gas through permanent Direct recovered gas through permanent

dehydrator and meter to sales line, reducing dehydrator and meter to sales line, reducing venting and flaringventing and flaring


Green Completions: EquipmentGreen Completions: Equipment

Truck- or trailer- mounted Truck- or trailer- mounted equipment to capture equipment to capture produced gas during produced gas during cleanupcleanup Sand trapSand trap Three-phase separatorThree-phase separator

Use portable desiccant Use portable desiccant dehydrator for workovers dehydrator for workovers requiring glycol requiring glycol dehydrator maintenancedehydrator maintenance Temporary, Mobile Surface Temporary, Mobile Surface

Facilities, Source: BPFacilities, Source: BP


Green Completions: PreconditionsGreen Completions: Preconditions Permanent equipment on site before Permanent equipment on site before

cleanupcleanup Piping to well headPiping to well head DehydratorDehydrator Lease meterLease meter Stock tankStock tank

Sales line gas can be used for energy and/ Sales line gas can be used for energy and/ or gas lift in low pressure wellsor gas lift in low pressure wells


Green Completions: Green Completions: Low Pressure WellsLow Pressure Wells

Portable Compressors, Separator and Portable Compressors, Separator and Other Equipment on a trailerOther Equipment on a trailer

Source: HeraldSource: Herald

Use portable compressors when pressure in Use portable compressors when pressure in well is low well is low

Artificial gas lift to clear Artificial gas lift to clear fluidsfluids

Boost gas to sales lineBoost gas to sales line Higher cost to amortize Higher cost to amortize

investmentinvestment


Green Completions: BenefitsGreen Completions: Benefits Reduced methane emissions during Reduced methane emissions during

completions and workoverscompletions and workovers Sales revenue from recovered gas and Sales revenue from recovered gas and

condensatecondensate Improved relations with state agencies and Improved relations with state agencies and

public neighborspublic neighbors Improved safetyImproved safety Reduced disposal costsReduced disposal costs


Is Recovery Profitable?Is Recovery Profitable? Partners report recovering 2% to 89% Partners report recovering 2% to 89%

(average of 53%) of total gas produced (average of 53%) of total gas produced during well completions and workoversduring well completions and workovers

Estimated 7 to 12,500 thousand cubic feet Estimated 7 to 12,500 thousand cubic feet (Mcf) (average of 3,000 Mcf) of natural gas (Mcf) (average of 3,000 Mcf) of natural gas can be recovered from each cleanup can be recovered from each cleanup

Estimate 1 to 580 Bbl of condensate can be Estimate 1 to 580 Bbl of condensate can be recovered from each cleanuprecovered from each cleanup

Note: Values for high pressure wellsNote: Values for high pressure wells


BP ExperienceBP Experience Capital investment ~ $1.4 million on portable Capital investment ~ $1.4 million on portable

three phase separators, sand traps and three phase separators, sand traps and tankstanks

Used Green Completions on 106 wells Used Green Completions on 106 wells Total natural gas recovered ~ 350 million Total natural gas recovered ~ 350 million

cubic feet per year (MMcf/yr)cubic feet per year (MMcf/yr) Total condensate recovered ~ 6,700 Bbl/yrTotal condensate recovered ~ 6,700 Bbl/yr


BP ExperienceBP Experience

Total value of natural Total value of natural gas and condensate gas and condensate recovered recovered ~ $840,000 per year~ $840,000 per year

Investment recovered Investment recovered in 2+ yearsin 2+ years

Portable Three Phase Separator, Source: BPPortable Three Phase Separator, Source: BP

Note:Note:- Value of natural gas at $1.99/McfValue of natural gas at $1.99/Mcf- Value of condensate at $22/BblValue of condensate at $22/Bbl


Devon Energy ExperienceDevon Energy Experience Implemented Reduced Emission Completion (REC) Implemented Reduced Emission Completion (REC)

in the Fort Worth Basinin the Fort Worth Basin REC performed on 30 wells at an average REC performed on 30 wells at an average

incremental cost of $8,700incremental cost of $8,700 Average 11,900 Mcf of natural gas sold vs. vented Average 11,900 Mcf of natural gas sold vs. vented

per wellper well Natural gas flow and sales occur 9 days out of 2 to 3 Natural gas flow and sales occur 9 days out of 2 to 3

weeks of well completionweeks of well completion Low pressure gas sent to gas plantLow pressure gas sent to gas plant Conservative net value of gas saved is $50,000 per wellConservative net value of gas saved is $50,000 per well

Expects emission reduction of 1.5 to 2 Bcf in year Expects emission reduction of 1.5 to 2 Bcf in year 20052005


Weatherford Durango ExperienceWeatherford Durango Experience Successfully completed pilot project in the Successfully completed pilot project in the

Fruitland coal formations in Durango, Fruitland coal formations in Durango, ColoradoColorado Well depth: 2,700 to 3,200 feetWell depth: 2,700 to 3,200 feet Pore pressure: estimated at 80 pounds per Pore pressure: estimated at 80 pounds per

square inch gauge (psig)square inch gauge (psig) Well type: coal bed methaneWell type: coal bed methane Hole size: 5 ½ inchesHole size: 5 ½ inches No. of wells: 3 well pilotsNo. of wells: 3 well pilots

Captured 2 MMcf of gas and sold by clientCaptured 2 MMcf of gas and sold by client


Weatherford Portable EquipmentWeatherford Portable Equipment


Weatherford Green CompletionsWeatherford Green Completions Use natural gas from pipeline along with proprietary Use natural gas from pipeline along with proprietary

foaming agent as compressible fluid to initiate foaming agent as compressible fluid to initiate cleanoutcleanout

Cleaning system consists of a wet screw compressor Cleaning system consists of a wet screw compressor in addition to the booster, three phase separator and in addition to the booster, three phase separator and sand trapsand trap Wet screw compressor used when well pressure is less Wet screw compressor used when well pressure is less

than 80 psigthan 80 psig Estimate a clean up pressure of 300 to 400 psig at a Estimate a clean up pressure of 300 to 400 psig at a

well depth of 8000 feetwell depth of 8000 feet Suggests use in all kinds of completion and workover Suggests use in all kinds of completion and workover

cleanup operationscleanup operations


Discussion QuestionsDiscussion Questions

To what extent are you implementing this To what extent are you implementing this opportunity?opportunity?

Can you suggest other approaches for Can you suggest other approaches for reducing well venting?reducing well venting?

How could these opportunities be improved How could these opportunities be improved upon or altered for use in your operation?upon or altered for use in your operation?

What are the barriers (technological, What are the barriers (technological, economic, lack of information, regulatory, economic, lack of information, regulatory, focus, manpower, etc.) that are preventing focus, manpower, etc.) that are preventing you from implementing this practice?you from implementing this practice?

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Green Completions