Harnessing the Indian Shale Gas Potential Strategic Concerns & Points to ponder Dr.V.K.Rao IUGF2013

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    17-Dec-2015

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  • Slide 1
  • Harnessing the Indian Shale Gas Potential Strategic Concerns & Points to ponder Dr.V.K.Rao IUGF2013
  • Slide 2
  • Disclaimer The views and opinions expressed in the presentation material are of speaker/author only and not necessarily of the Organisation he is working
  • Slide 3
  • Concept Transformation In pursuit of conventional Oil/Gas Exploration over the years, Geologists regarded Shales as: Source Rock by virtue of the richness of organic material content, its thermal maturity, hydrocarbon generation potential and geographic spread over large areas Cap Rock by virtue of their impermeable nature and compactness thus acting as good seal
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  • 3856 4569 2587 3962 5661 1381 1069 1225 624 1042 1404 396 World Shale Gas Potential (Tcf) Rogner,HH Modified Total: 22,016 Tcf GIP
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  • Middle East,,Former Soviet Union &Asia Pacific are excluded
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  • Strategic Compulsions Rapidly growing Gas markets Widening Demand-Supply gap India has high Natural Gas prices Increasing dependency on LNG imports Nascent CBM industry Rising Energy Consumption Transnational Pipelines- indecisions & impediments Rising Energy Import bills with alarming consequences
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  • In Asia-Pacific Region the gas market rise is around 6.5% p.a. The world average is around 2.5 % only While the India Gas market rise is more than 7% India-Gas Market Rise
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  • EXPANDING GAP. Supply cannot outpace Growing Demand Natural Gas MMSCMD 426 303 155 136
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  • The Indian Energy Scenerio Indias Energy Consumption has been increasing at a rapid rate due to population growth and economic development(GDP Growth rate @8% pa) Coal,Oil and Gas are Primary Energy sources Although intense efforts are made to increase indigenous Oil/Gas production,we could meet only
  • Shale Characteristics of Cambay Basin FormationThickness(m)TOC(%)VRo(%)Gas Conc. Bcf/mi2 Kerogen Type Olpad340-27001.5-4.00.60-0.75No DataII & III Older Cambay Shale 500-19001.5-4.00.75-1.20231 *II & III Younger Cambay Shale 520-15001.00-4.000.75-0.85231 *II & III Kalol200-300No Data0.75No Data Tarapur60-4001.00-1.20.53No DataII & III * Source: US EIA Report Discovered oil & Gas Fields and Proven Source Rock Potential Area (Sq Kms)No. of Oil & Gas fields Inplace HC Volumes(MMT) O+OEG Source Rock Sequences Depth Range (m) Prognosticated Resource Potential (TCF) 51000>1102050 Cambay Shales Tarapur shales 1500-2500 217
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  • Shale Charecteristics of Krishna-Godavari Basin FormationThickness(m)TOC(%)VRo(%)Gas Conc. Bcf/mi2 Kerogen Type Vadaparru >4002.00-3.00??No DataII & III Palakollu >5000.60-23.0??0.35-0.40No DataII & III Raghavapuram >18001.00-4.000.90-1.30143 *II & III Kommugudem >9001.20- 30.00?? 1.00-1.30156 *II & III * Source: US EIA Report
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  • Shale characteristics of Assam-Arakan Basin Formation/Gp.Thickness(m)TOC(%)VRo(%)Gas Conc. Bcf/mi2 Kerogen Type Upper Disang 250-4001.69-4.000.90-1.94120II & III Kopili >5001.00-6.200.92-1.44No DataII & III Jenam 900-12002.50-4.500.64-1.20No DataII & III Bhuban 800-10000.31-1.360.90-1.00120II & III Bokabil 400-10000.64-2.400.57-0.62No DataII & III * Source: US EIA Report
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  • Shale Characteristics of Cauvery Basin FormationThickness(m)TOC(%)VRo(%)Gas Conc. Bcf/mi2 Kerogen Type Karaikal 250-7500.31-2.781.15-1.20143 *II & III Portnovo 200-3400.31-4.760.65-0.79No DataII & III Kudavasal 800-11001.68-2.000.34-0.55143*II & III Sattapadi 300-5001.50-1.751.00-1.12No DataII & III * Source: US EIA Report
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  • Gondwana Basins Lower Permian to Triassic age Gondwana sediments consisting of fluviatile to Lacustrine deposits of sandstones, shales and coal measures Resource play is Barren Measure shales TOC : 4-10% T max : 440-480 VRo : 1-1.2% Kerogen : Type III
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  • Shale Characteristics of Barren Measure Fm. Sub Basin.Thickness(m)TOC(%)VRo(%)Gas Conc. Bcf/mi2 Kerogen Type South Rewa 150-8005.06- 14.72?? 0.40-0.60123 * III Damodar 900-10004.00- 10.00?? 1.00-1.20123 * III Karanpura 450-500ONGC Drilled Pilot wells in Damodar & Karanpura Sub Basins Pranhita Godavari 400-5005.00-6.410.67-1.00No Data III * Source: US EIA Report
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  • Shales in Stratigraphy Ganorgarh and Sirbu shales Chakaria Olive shales
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  • FormationThickness(m) TOC % VRo % Kerogen Type Chakaria Olive shale 320 0.60-6.04 No Data II & III Hinota shale 90 0.56-3.89II & III Rewa shale 225 0.07-0.40II&III Pulkova shale 210 35.0-37.85II & III Suket shale 100 0.04-0.37No DataII & III Ganurgarh Shale 75 No Data Shale characteristics of Vindhyan Basin
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  • Why are they Vary? Various Agencies have projected the Resources based on their perceptions of Indian Shales. Thus The resource prognostications are varied and are subjective. Lack of Shale gas specific laboratory investigations/data Crucial parameters on Indian shales in terms of their heterogeneity, gas content, TOC, VRo, diagenesis, brittleness etc are not available Shale isopachs, dispositions and TOC,VRo and Gas concentration maps are not prepared for many potential basins No pilot wells /parametric wells are drilled to explore shale gas in all our basins
  • Slide 34
  • Commendatory Factors Thick shale sequences in Sedimentary basinal areas Comparable TOC & VRo values to producing US Basins Proven source rock characteristics for discovered oil& Gas fields in producing Basins Demonstrated case studies of shale gas finds Estimated Resource Potential - Substancial Rapidly growing economy
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  • Eagle Woodford Haynes Fayettelle Marcellus Barnett Cambay Assam Arakan Gondwana Vindhya Bengal KG Cauvery Analogy of USA & Indian Basins
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  • Shale Gas: Risking Parameters
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  • Analogy with US Basins
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  • Do we require a Separate Shale Gas Policy? (Vertical Operational window) Specific Operational window in terms of subsurface vertical depth for shales would be indicated (Draft Policy) The occurrence of geologic Formations in the subsurface are governed by many factors notable among them are: - Dip of the Formation - Fault patterns - Facies changes - Intertonguing features - Erosional aspects - Transgressive &regressive environs These factors affect the subsurface formations over geographic areas it is difficult to understand how the vertical operational window for Shales would be defined /delineated in a given block area. Thus the statement is geologically untenable
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  • Do we require a Separate Shale Gas Policy? (Multiple policy regimes) Different policy regimes govern different operators for simultaneous exploration & exploitation of conventional & unconventional hydrocarbons in the same block area (Draft Policy ) Geologic formations can occur intertwined or shale/sand /siltstone alterations within a given interval It is difficult to foresee how simultaneous operations by different operators can take place under different regulatory & fiscal regimes. This is technically untenable concept
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  • Do we require a Separate Shale Gas Policy? (Focussing priorities) Major Concerns in Shale Gas Exploration pertain to three significant aspects Viz; - Environmental Externalities - Water management - Land acquisition Shale Gas exploration can be permitted in any exploration block(NELP or Pre-NELP) subject to strict compliance of environmental externalities and adherence of the laws of land Innovative policies Viz; Equity to Land owners It is time that the Policies be focussed on maximising the exploration and attendant discoveries rather than maximising on profits
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  • Learning from International Licensing Regimes No specific federal shale gas extraction policy exists in USA nor in Poland, Germany, France However various environmental acts exist The authorities are responsible for regulating oil /Gas exploration activities to oversee many related aspects viz:Well spacing, Hydraulic fracturing, Water management environmental code etc In many countries exploring shale gas, the authorisation & permit is governed by legislation for E & P activities (conventional & unconventional) In short, shale Gas exploration need not have any separate Policy or bid round, as it is an integral activity of hydrocarbon exploration
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  • Closing Remarks India has strategic compulsion to explore and develop shale gas dictated by its widening gap between supply and demand due to rising energy consumption and economic development The thick shale sequences with proven source rock characteristics in many sedimentary basinal areas is indicative of huge shale gas potential. The Resource estimates vary based on different perceptions of Indian Shales contributed by lack of sufficient shale gas specific data.This data gap needs to be filled up fast The focus should be to accelerate Shale gas exploration in the country by forging partnership with technologically advanced explorers Separate shale gas exploration policy may not be needed as shale gas exploration is an integral part of