a challenge for the future Prof Dr Nicolae

- a challenge for the future - Prof. Dr. Nicolae Anastasiu Cor. Member of Romanian Academy Prof. N. Anastasiu Workshop – Shale Gas – EU – Oct. 9 th 2012

Contents, • Introduction 1. Unconventional Resources Types 2. Investigation methods 3. Unconventional Gas Description 4. Case Studies – Eastern Europe 5. Outcrops and wells – the Carpathians 6. Gas Shales features – the Carpathians • Conclusions Prof. N. Anastasiu Workshop – Shale Gas – EU – Oct. 9 th 2012

Introd 1. UR. T ypes 2. Methods 3. UGDescrip 4. Case. East. Eur 5. Out-Wells Data 6. GS features Conclusion. SWOT Bio-gas=conv Conventional versus unconventional! What is difference? Petroleum system means: -Source rock for HC; Shales -Reservoir, sandstones and limestones -Seal; shales or salt -Trap Thermo-gas=unconv Thermo-Gas Reservoir=unconv. Prof. N. Anastasiu modified Workshop – Shale Gas – EU – Oct. 9 th 2012

Introd 1. UR. T ypes 2. Methode 3. UGDescrip 4. Case. East. Eur 5. Out-Wells Data 6. GS features Conclusion. SWOT Unconventional resources – a future alternative Oil sands - Mc. Murray Fm. model –Canada, Atabaska Gas shales – Barnett, Marcellus, Utica models Tight sand (tight gas) Methane Hydrate ( in sediments – sea, and ocean) Coal Bed Methane (CBM) = Coalbed gas = Coal seam gas (CSG) Production in 2010 was 283 billion cubic feet per day A new technology ! Prof. N. Anastasiu Workshop – Shale Gas – EU – Oct. 9 th 2012

Introd 1. UR. T ypes 2. Methode 3. UGDescrip 4. Case. East. Eur 5. Out-Wells Data 6. GS features Conclusion. SWOT Shale Gas in place, by Rogner (AWR) - 2009 Tcm 34 35 30 24 25 19 20 Tight 15 CBM 11 Shale Mean of estimate 9 10 5 0 27, 2 8, 8 11, 6 12, 5 (364, 9) U. S. A. Canada Europe China Implied rest of world Prof. N. Anastasiu Workshop – Shale Gas – EU – Oct. 9 th 2012

Introd 1. UR. T ypes 2. Methode 3. UGDescrip Conventional plays 4. Case. East. Eur 5. Out-Wells Data 6. GS features Conclusion. SWOT Unconventional plays Accumulations in medium to highly porous reservoir with sufficient permeability to allow gas to flow to Wellbore Deposits of natural gas found in relatively impermeable rock formations (tight sands, shale and coal beds) Vertical or horizontal completions Key technologies are horizontal drilling and modern fraccing techniques Production from formation matrix, natural flow Production from natural and induced fractures (e. g shales are the source rock) Permeability and porosity determine production rates and estimated ultimate recoveries Total organic carbon (TOC), thermal maturity and mineralogy determine reservoir and ultimate completion Development plans on a field basis Development plans on a well by well Prof. N. Anastasiu Workshop – Shale Gas – EU – Oct. 9 th 2012

Introd 1. UR. T ypes 2. Methode Objectives and methods An example 3. UGDescrip 4. Case. East. Eur 5. Out-Wells Data 6. GS features Conclusion. SWOT Investigation related to GS will be by outcrops records. . . and description, related to: 1. Map location 2. Topo. . . GPS position (Lat/Long/Elev) 3. Facies descriptions 4. Boundaries, extension 5. Sampling Prof. N. Anastasiu Workshop – Shale Gas – EU – Oct. 9 th 2012

Introd 1. UR. T ypes 2. Methods 3. UGDescrip 4. Case. East. Eur 5. Out-Wells Data 6. GS features Conclusion. SWOT Investigation by Core and Well Log –records (to use in sequence analysis) Wells Logs Prof. N. Anastasiu Workshop – Shale Gas – EU – Oct. 9 th 2012

Introd 1. UR. T ypes 2. Methods 3. UGDescrip 4. Case. East. Eur 5. Out-Wells Data 6. GS features Conclusion. SWOT Oil sands (bituminous sands) Location : Canada, Kazakhstan, Rusia, Madagascar, SUA; Fort Mc. Murray = 3 400 km 2 Reserves: Canada, Alberta: 177 Md barili, Status: semisolide, viscosity is high (10 000 centipoise) = extra heavy oil Exploitation: open pit (quarry); or pit by hundred meters - green house effect. Production: in 2006 = 1, 26 mil barili/zi (44% from total in Canada; 80 new Projects) Profit = 21, 75 $/barili (conventional oil=12, 41$/baril) Secondary recovery- heavy metals: vanadiu, nickel, plumb, zinc, cobalt, mercur, crom, cadmiu, seleniu, cupru, mangan. Prof. N. Anastasiu Workshop – Shale Gas – EU – Oct. 9 th 2012

Introd 1. UR. T ypes 2. Methods 3. UGDescrip 4. Case. East. Eur 5. Out-Wells Data 6. GS features Conclusion. SWOT Mc. Murray Fm. - Oil sands Alberta Workers. . and machineries Prof. N. Anastasiu Workshop – Shale Gas – EU – Oct. 9 th 2012

Introd 1. UR. T ypes 2. Methods 3. UGDescrip 4. Case. East. Eur 5. Out-Wells Data 6. GS features Conclusion. SWOT from Gas shales to Shale gas Location: in 48 de basins, 32 countries, cu 70 de shale formations: USA, Canada, Rusia, Venezuela, Australia, Argentina, China, Egipt…. . tens to hundred km 2. Reserves: 15 Tmc mondial, UE=2, 4 Tmc, China (36, 1 Tmc), SUA (24, 4 Tmc) si Argentina (21, 9 Tmc). Status: v. low permeability-10 nanodarcy, porosity is low, brittle rocks. Depth (burrial condition): 3000 -3500 m, with slates, and black shales. Exploitation by drilling, and wells – horisontal, and hydraulic fracturing. Production: 11 Tcf (cca 4 Md m 3 --2020 in the world; in SUA, 2010 – 20% din total ; 50% form total for 2035, Prof. N. Anastasiu Workshop – Shale Gas – EU – Oct. 9 th 2012

Introd 1. UR. T ypes Source: EIA Prof. N. Anastasiu 2. Methode 3. UGDescrip 4. Case. East. Eur unconventional 5. Out-Wells Data 6. GS features Conclusion. SWOT conventional Workshop – Shale Gas – EU – Oct. 9 th 2012

Introd 1. UR. T ypes 2. Methods 3. UGDescrip 4. Case. East. Eur 5. Out-Wells Data 6. GS features Conclusion. SWOT Age of Gas Shales formations / Countries/Reserves Reserves: Geological Age mil. y Miocene Cretaceous Jurasic 15 80 150 320 Carbonifer Devonian UK 0, 57 1, 16 2, 35 5, 3 Devonia n shales Trmc 3, 1 - 360 Weald Clay Alum Posidoni Posidon Shale a Shale ia Shale Namuri an marine Shales Sweden Norway Poland Hungary 420 Silurian Cambrian Prof. N. Anastasiu 520 Romani a Ucraine France Germany. Holland Alum shale Bitumin ous Slate 0, 54 1, 19 Miocene Mako Shales Black shalesgraptolit Black es shales Workshop – Shale Gas – EU – Oct. 9 th 2012

Introd 1. UR. T ypes 2. Methods 3. UGDescrip 4. Case. East. Eur 5. Out-Wells Data 6. GS features Conclusion. SWOT Gas Shales – from concept to capitalisation What means Gas Shales? What properties GS have – a condition for succes! Where we can find GS in Romania? - Geological units; - Geological age; - Potential Sedimentary Formations. A potential for shale gas are: Synonym= “șisturile bituminoase = bit. slate”, = argilele bituminoase, = “argilele negre = black shale” = argilite (=slate) etc. și, alte petrotipuri generatoate de hidrocarburi : = “rocile sursă (=source rock)“ sau “rocile mamă“ All with captiv natural gas. Prof. N. Anastasiu Workshop – Shale Gas – EU – Oct. 9 th 2012

Introd 1. UR. T ypes 2. Methods 3. UGDescrip 4. Case. East. Eur 5. Out-Wells Data 6. GS features Conclusion. SWOT Gas Shales – What properties GS have – a condition for success!. - lutit and silt grain size; - bulk and clay mineralogy ; - silica (quartz clasts); . . . hydraulic fracture - organic matter: kerogen, bitumen; - TOC, and Ro=vitrinite reflectance; - marin, lake or delta facies; - permeability and porosity; - petrophysic properties; - thermal maturity - joints-faults: - Geomecanic: Young Modul, Poisson Ratio. Prof. N. Anastasiu Workshop – Shale Gas – EU – Oct. 9 th 2012

Introd 1. UR. T ypes 2. Methods 3. UGDescrip 4. Case. East. Eur 5. Out-Wells Data 6. GS features Conclusion. SWOT Where is gas locate? Organic Matter Microporosity, SEM Intergranular space Prof. N. Anastasiu Intracrystal voids Fluoresc enţă UV Microfractures Workshop – Shale Gas – EU – Oct. 9 th 2012

Introd 1. UR. T ypes 2. Methods 3. UGDescrip 4. Case. East. Eur 5. Out-Wells Data 6. GS features Conclusion. SWOT Tight sands (and Tight gas ) very low permeability It is stuck in a very tight formation underground, trapped in unusually impermeable, hard rock, or in a sandstone or limestone formation that is unusually impermeable and non-porous. Location: many countries - USA, Canada, Rusia, Venezuela, Australia, Gas Argentina, China, Egipt…. . on hundred-thousand Sq. Km. Reserves: 100 000 x 109 m 3, in SUA- 1600 reservoires, 900 gas filelds. Status: very low permeability (1 nanodarcy), and effective porosity - in sandstones, limestones. Depth, and burial: 3000 -3500 m, versus conventional gas, la 1000 - 1500 m. Extraction: by secondary recovery, with horisontal drilling, and hydraulic fracturing. Production: in SUA, din 40000 wells = 2 -3 Trilioane cf=0, 8 -1 Md m 3/an. Prof. N. Anastasiu Workshop – Shale Gas – EU – Oct. 9 th 2012

Introd 1. UR. T ypes 2. Methods 3. UGDescrip 4. Case. East. Eur 5. Out-Wells Data 6. GS features Conclusion. SWOT 50 -100 m aquifer Tight gas Prof. N. Anastasiu 3000 m-gas Workshop – Shale Gas – EU – Oct. 9 th 2012

Introd 1. UR. T ypes 2. Methods 3. UGDescrip 4. Case. East. Eur 5. Out-Wells Data 6. GS features Conclusion. SWOT Secondary Recovery: Tight Sands CO 2 De la 30…la 70% We can solve green house effect! Prof. N. Anastasiu Workshop – Shale Gas – EU – Oct. 9 th 2012

1 -C. Or 2 -Pl. Mo. 3 -Pl. Mold. 4 -Dep. Bar. 5 -Dep. Get. 6 -Dep. Pann. 7 -B. Trans. • mobile alpine regions (Carpathian chain and North Dobrogea area), • intermountain basins (Transylvanian and Pannonian basins) • pre-alpine cratons (Moesian, Scythian and Moldavian Platforms). Gas shales oil Gas shales gas Gas shales 6 3 Gas shales 7 1 Gas shales 5 4 2 8 Prof. N. Anastasiu Workshop – Shale Gas – EU – Oct. 9 th 2012

Introd 1. UR. T ypes 2. Methods 3. UGDescrip 4. Case. East. Eur 5. Out-Wells Data 6. GS features Conclusion. SWOT The Eastern Carpathians Olig-Dysodile Oil-Schists Prof. N. Anastasiu Source: Univ. Report-2011/12 Workshop – Shale Gas – EU – Oct. 9 th 2012

I-Research and Prospecting Permit is non-exclusive; It does not assure any further exploration and/or exploitation rights. II – Exploration It is exclusive and It assures the further exploitation rights (preemption right); III - Exploitation Prof. N. Anastasiu Workshop – Shale Gas – EU – Oct. 9 th 2012

Exploration and exploitation stage. Risk and cost. Recognise-research High risk Exploration-Development Evaluation Low risk Europe Decision II USA, China etc Framework development The Carpathians area Decision I Production start Extraction Tests t- Cos Documentation Prospecting Prof. N. Anastasiu Data aquisition Environmental impact –risk studies Regulatory framework and energy policies Workshop – Shale Gas – EU – Oct. 9 th 2012

Equipment and technology Prof. N. Anastasiu Workshop – Shale Gas – EU – Oct. 9 th 2012

Hydraulic ‘ 60 -70 years Fracturing Water Prof. N. Anastasiu Microseism (vibrations) Workshop – Shale Gas – EU – Oct. 9 th 2012

Conventional bio. Gas oil Unconventional – shale gas Aquifer – 150 m water Reservoir conv. Source rock Water - 3000 m Shale thermo-gas reservoir >1000 – 5000 m 3 of water per stage = 2 -3 Olympic pool Prof. N. Anastasiu Workshop – Shale Gas – EU – Oct. 9 th 2012

Drilling Mud Composition Water-based drilling mud most commonly consists of: bentonite clay (gel) with additives such as ; barium sulfate (barite), calcium carbonate (chalk) or hematite. Various thickeners are used to influence the viscosity of the fluid, e. g. - -- xanthan gum, guar gum, glycol, carboxymethylcellulose, polyanionic cellulose (PAC), orstarch. In turn, deflocculants are used to reduce viscosity of clay-based muds; anionic polyelectrolytes (e. g. acrylates, polyphosphates, lignosulfonates ; (Lig) ortannic acid derivates such as Quebracho. Prof. N. Anastasiu Workshop – Shale Gas – EU – Oct. 9 th 2012

0, 05 % Aditive products Compound Acids Sodium Common application Helps dissolve minerals and initiate Swimming pool cleaner fissure in rock Allows a delayed breakdown of the Table salt gel polyner Polyacrylamide Minimizes the friction between fluid Water treatment, soil conditioner and pipe Ethylene Glycol Prevents scale deposits in the pipe Automotive anti-freeze, deicing agent, household cleaners Maintains fluid viscosity as temperature inscreases Laundry detergent, hand soap, cosmetics Maintains effectiveness of other components, such as crosslinkers Washing soda, detergent, soap, water softener, glass, ceramics Eliminates bacteria in the water Disinfectant, sterilization of medical and dental equipment Guar Gum Thickens the water to suspend the sand Thickener in cosmetics, baked goods, ice cream, toothpaste, sauces Citric Acid Prevents precipitation of metal oxides Food additive, food and beverages, lemon juice Borate Salts Sodium / Potassium Carbonate Glutaraldehyde Isopropanol Prof. N. Anastasiu Purpose Used to increase the viscosity of the Glass cleaner, antiperspirant, hair fracture fluid coloring Workshop – Shale Gas – EU – Oct. 9 th 2012

Heavy Metals Cu Mn Sc Cd Sr Pb Zn Mo Cr Sb Sn Ag B As Ti Co Ni Be V Bi Ge Ba Ga Zr The Eastern Carpathians, Buzău. Valley 21 -Disodile inf. 14 -Disodile inf. 112 -Disodile inf. Cr 15 -Disodile inf. Co Pb 77 -Disodile inf. Cu 16 -Disodile inf. 10 -Disodile inf. 0 20 40 60 80 100 120 140 160 Vanadiu Crom Nichel Olig-Dysodile Oil-Schists Prof. N. Anastasiu Plumb Cupru Workshop – Shale Gas – EU – Oct. 9 th 2012

Prof. N. Anastasiu Workshop – Shale Gas – EU – Oct. 9 th 2012

Prof. N. Anastasiu Workshop – Shale Gas – EU – Oct. 9 th 2012

Natural rocks radioactivity Natural rocks radioactivity 12 10 ic ph am or ne Ig et M 40 K-% Prof. N. Anastasiu ou s e to n ls es ar Lim M Cl as tic - s an 0 d, sa nd Sh as al es to 4 2 ne 8 6 238 -U 232 -Th Workshop – Shale Gas – EU – Oct. 9 th 2012

Prof. N. Anastasiu Workshop – Shale Gas – EU – Oct. 9 th 2012

Hydraulic fracturing. . . effect. . impact: a microseismicity Prof. N. Anastasiu Workshop – Shale Gas – EU – Oct. 9 th 2012

Prof. N. Anastasiu Workshop – Shale Gas – EU – Oct. 9 th 2012

Seismic scale Prof. N. Anastasiu Workshop – Shale Gas – EU – Oct. 9 th 2012

Monitoring – Norme- regulatory revision Prof. N. Anastasiu Workshop – Shale Gas – EU – Oct. 9 th 2012

Introd 1. UR. T ypes 2. Methods 3. UGDescrip 4. Case. East. Eur 5. Out-Wells Data 6. GS features Conclusion. SWOT A summary The basic conditions thought to account for the genesis, accumulation and preservation of gas shales are present in many European geological units; Many unconv. gas fields have been discovered in these units. There is a good understanding of the geological formations located between 0 and 3500 m, which are mainly of a Neogene age. Less well understood are the geological formations deeper than 3500/4000 m, which are basically pre-Neogene. Many shales with good petrophysical gas reservoir parameters exist from the Paleozoic to the Tertiary. The best is Silurian (Paleozoic) There is a large variety of traps. The predominant type is stratigraphic (lithologic) and structural. The oil and gas fields can be considered as small to medium in size but occurring with a remarkable frequency (comparative with US, China…) Prof. N. Anastasiu Workshop – Shale Gas – EU – Oct. 9 th 2012

Introd 1. UR. T ypes 2. Methods 3. UGDescrip 4. Case. East. Eur 5. Out-Wells Data 6. GS features Conclusion. SWOT The questions confronting the explorationist are: 1. where are these new fields located ? 2. how can they be discovered? 3. would these be commercial discoveries? 1. The best opportunities are in deeper than 1, 500 – 2 000 m seated gas shales reservoirs onshore and offshore. 2. By data accumulated up to the present (reconsideration old data according to new concept - processes, sequence stratigraphy…depositional systems…. ) 3. The new possibilities offered by modern seismic techniques in the field of data acquisition and data processing (3 D and soft…. . ), improvement of new log operations…. 3. A refined geological interpretation…… can lead to new commercial discoveries everywhere in the world. Prof. N. Anastasiu Workshop – Shale Gas – EU – Oct. 9 th 2012

References, Anastasiu N. , Branzila M. , Filipescu S. , Roban R. , Seghedi A. , - 2011 - Geological Report. Arhiva Dept. Mineralogy. Badics, B. , Vetö. I. , 2012. Source rocks and petroleum systems in the Hungarian part of the Pannonian Basin: The potential for shale gas and shale oil plays. Marine and Petroleum Geology 31, 53 -69. Dicea, O. , 1996, Tectonic setting and hydrocarbon habitat of the Romanian external Carpathians, in Ziegler, P. A. , and Horvath, F. , eds. , Peri-Tethys Memoir 2. Structure and prospects of Alpine basins and forelands: Memoires du Museum National d’Histoire Naturelle 170, Paris, p. 403– 425. Krezsek, C. , 2011. Petroleum System of Romania. AAPG ER Newsletter, June 2011: 4 -7 Krézsek, C. , Bally, A. W. , 2006. The Transylvanian Basin (Romania) and its relation to the Carpathian fold and thrust belt: insights in gravitational salt tectonics. Marine and Petroleum Geology 23, 405– 442. Krézsek, C. , Filipescu, S. , Silye, L, Matencu, L. , Doust, H. , 2010. Miocene facies associations and sedimentary evolution of the Southern Transylvanian Basin (Romania): Implications for hydrocarbon exploration. Marine and Petroleum Geology 27, 191 -214. Krezsek, C. , Lange, S. , Olaru, R. , Ungureanu, C. , Namaz, P. , Dudus, R. , Turi, V. 2012. Non-Conventional Plays in Romania: the Experience of OMV Petrom. SPE 153028, SPE/EAGE European Unconventional Resources Conference and Exhibition, Vienna 20 -22 March, 2012. Mațenco, L. , Krézsek, C. , Merten, S. , Schmid, S. M. , Cloetingh, S. , Andriessen, P. , 2010. Characteristics of collisional orogens with low topographic build‐up: an example from the Carpathians. Terra Nova 22, 155– 165. Seghedi, A. , Vaida, M. , Iordan, M. and Verniers, J. , 2005. Palaeozoic evolution of the Moesian Platform, Romania: an overview. Geologica Belgica, 8: 99 -120. Sachsenhofer, R. F. , Koltun, Y. V. , 2012. Black shales in Ukraine – a review. Marine and Petroleum Geology 31, 125 -136. Ştefănescu, M. , Dicea, O. , Butac, A. , and Ciulavu, D. 2006. Hydrocarbon Geology of the Romanian Carpathians, their foreland the Transylvanian Basin. In: Golonka, J. , Picha, F. (eds. ), The Carpathians and their Foreland: Geology and Hydrocarbon Resources, AAPG Memoir 84: 521‐ 567. Tari, G. , 2005. The divergent continental margins of the Jurassic proto-Pannonian Basin: implications for the petroleum systems of the Vienna Basin and the Moesian Platform. Transactions GCSSEPM Foundation 25 th Annual Research Conference: 955986. Tari, G. , Dicea, O. , Faulkerson, J. , Georgiev, G. , Popov, S. , Stefanescu, M. and Weir, G. 1997. Cimmerian and Alpine stratigraphy and structural evolution of the Moesian Platform (Romania/Bulgaria). In: Andrew G. Robinson (Editor), Regional and Petroleum Geology of the Black Sea and Surrounding Regions. AAPG Memoir 68: 63 -90. Tari, G. , Poprawa, P. , and Krzywiec, P. , 2012. Silurian lithofacies and paleogeography in Central and Eastern Europe: implications for shale-gas expolartion. SPE 151606, SPE/EAGE European Unconventional Resources Conference and Exhibition, Vienna 20 -22 March, 2012. UE-Commission Report – 2012 - Unconventional Gas: Potential Energy Market Impacts in the European Union. Prof. N. Anastasiu Workshop – Shale Gas – EU – Oct. 9 th 2012

Prof. N. Anastasiu Workshop – Shale Gas – EU – Oct. 9 th 2012