THANK YOU
Carnegie Mellon University
February 19, 2014
Natural Gas
An Inside Perspective
Courtesy: IPS Engineering EPC
THANK YOU
James M. Bright, P.E.
Senior Engineer
• BS in Civil Engineering
West Virginia University
• Life long connection ...
THANK YOU
IPS Engineering EPC
• A preferred provider of value-added, safety first
Engineering, Procurement, and Constructi...
Clean, Abundant, and Versatile
Natural Gas - Premier fuel for our century
• Electricity generation, heating, domestic use
...
Environmental Impact
Methane + 2 Oxygen = 2 (Water) + Carbon Dioxide
CH4 + 2 (O2) = 2 ( H2O ) + CO2
Natural Gas – 97% to 9...
THANK YOU
Shale Gas 101
Courtesy: IPS Engineering EPC
Shale Gas – A Global Energy Opportunity
North America
1,931 trillion cubic feet
South America
1,300 trillion cubic feet
Af...
Shale Gas Revolution Across the U.S.
Source: Energy Information Administration
The Marcellus Shale: An Introduction
Marcellus Shale outcrop along State Route 174,
south of Slate Hill Rd in Marcellus, N...
Marcellus Shale Geographic Footprint
The Utica Shale: Companion to Marcellus
• Lies below the Marcellus
• Bigger, deeper, and denser shale
• One of the newest ...
PA Well Count
OH Well Count
WV Well Count
Legend
Marcellus Shale Formation
Wet Gas Region
“Wet” and “Dry” Gas Regions
Sources: Pace Global; Equitable Resources, Mar...
THANK YOUThe Economics of Shale Gas
Courtesy: IPS Engineering EPC
“Decoupling” of Oil and Gas Prices
Natural Gas Industry Segments
Exploration and
Production
• Gas Field Exploration
• Well Drilling and
Hydraulic Fracturing
...
Upstream Segment
Steps in Drilling
Horizontal Drilling on a Well Pad
• More efficient production, smaller
footprint.
• Conductor, surface c...
Hydraulic Fracturing
• Industrial process - properly cased well
along with proper containment at the
surface is critical
•...
Environmental Protection
Well Casing
• Multiple layers of steel and cement
ensure redundant protection
• Conductor and Sur...
Environmental Protection
Hydraulic Fracturing
• Used for more than 65 years; Over
1 million wells in 27 states since 1947
...
Gallons per million BTU
Range Mid-point
Deep shale natural gas 0.60 – 5.80 3
Nuclear 8 – 14 11
Conventional oil 8 – 20 14
...
Site Restoration
The Well Site
• The property is contoured and
landscaped as closely as possible
to return to pre-drilling...
Midstream Segment
Courtesy: IPS Engineering EPC
Focus on Midstream
• A Gathering Line - defined by PA state law as
a pipeline used to transport natural gas from a
product...
Gas Processing
Gas Separation, Dehydration, and
Fractionation
• NE Marcellus gas is “dry”
SW Marcellus and Utica gas is ‘w...
Compression Systems
Compressor Stations
• State of the art sound attenuation
• Highest standards for welding,
fabrication,...
Downstream Segment
Focus on Downstream
Transmission Pipelines
• Critical link between production and
consumers
• Statistically, pipelines are...
Intra-state Pipelines
State Regulation of Pipeline Safety
• Just as with midstream pipelines, downstream
transmission line...
Gas Conditioning
Pipeline Quality Gas
• Gas Conditioning usually occurs at
the compressor station discharge
• Removal of r...
Measurement and Regulation (M&R)
Accuracy is critical
• Measurement is the company
cash register
• Gas quality and composi...
Odorization
Leak detection
• Odorization gives Natural Gas
its distinctive smell
• Mercaptans are a family of
sulfur conta...
THANK YOUEconomic Impact
Courtesy: Ecobag
Economic Impact for Our Region
Income to Local Landowners
and Businesses
• More than 4,500 wells drilled from
2010 through...
Natural Gas Job Phase
Pre-drilling
(Exploration)
• Geologic studies, permitting, water
management, engineering/design,
sit...
Diverse Job Opportunities
Professional Functions Identified in MSC Survey
Source: MSC Membership Survey, May 2013
Fast Fac...
Marcellus Shale Coalition
Courtesy: IPS Engineering EPC
Benefits for All
• We are committed to being
responsible members of the
communities in which we work.
• We strive to attra...
Dialogue & Education
• Coalition meetings with legislative and executive officials:
‒ PA Department of Environmental Prote...
Research Collaborative
Industry
• Nationally recognized
technical experts
from trade
associations
Academia • Leaders from
...
THANK YOU !
J.M.Bright, P.E.
of 44

Natural Gas an Inside Propective 2-19-14

Published on: Mar 3, 2016
Source: www.slideshare.net


Transcripts - Natural Gas an Inside Propective 2-19-14

  • 1. THANK YOU Carnegie Mellon University February 19, 2014 Natural Gas An Inside Perspective Courtesy: IPS Engineering EPC
  • 2. THANK YOU James M. Bright, P.E. Senior Engineer • BS in Civil Engineering West Virginia University • Life long connection with the natural gas industry • Career experience includes: – Facility planning and design – Hydraulic flow modeling – Structural analysis and design – Surveying – Construction inspection – Project management “Effective communication is the key to excellence in Engineering” Courtesy: IPS Engineering EPC
  • 3. THANK YOU IPS Engineering EPC • A preferred provider of value-added, safety first Engineering, Procurement, and Construction services for the hydrocarbon industry. • Privately owned and based in Tulsa, OK • Formed in June 2009. • Venture capitol provided by the PLH Group • 2013 annual revenues totaled $89 million • Proud member of the Marcellus Shale Coalition Courtesy: IPS Engineering EPC
  • 4. Clean, Abundant, and Versatile Natural Gas - Premier fuel for our century • Electricity generation, heating, domestic use • Combined heat and power applications (COGEN) • Light and heavy duty transportation fuel • Feedstock for industries (NGL) • Exports (LNG) Courtesy: IPS Engineering EPC
  • 5. Environmental Impact Methane + 2 Oxygen = 2 (Water) + Carbon Dioxide CH4 + 2 (O2) = 2 ( H2O ) + CO2 Natural Gas – 97% to 99% methane • Methane (C1) - The simplest, cleanest hydrocarbon • Has the least carbon footprint of any fossil fuel Courtesy: IPS Engineering EPC
  • 6. THANK YOU Shale Gas 101 Courtesy: IPS Engineering EPC
  • 7. Shale Gas – A Global Energy Opportunity North America 1,931 trillion cubic feet South America 1,300 trillion cubic feet Africa 1,100 trillion cubic feet Europe 700 trillion cubic feet
  • 8. Shale Gas Revolution Across the U.S. Source: Energy Information Administration
  • 9. The Marcellus Shale: An Introduction Marcellus Shale outcrop along State Route 174, south of Slate Hill Rd in Marcellus, NY What is the Marcellus Shale? - Geological formation formed by the accumulation of sediment on a sea floor about 400 million years ago. - Pressure and heat, over geologic time, have produced an organic-rich, black shale. - Begins in the Catskill Mountains, stretches west toward Marcellus, NY, and then southwest across PA, WV, and OH. Why is it Important? - Success of other shale plays has allowed companies to transfer horizontal drilling and technology to other areas. - Proximity to high-demand markets along the East Coast make it an attractive target for energy development.
  • 10. Marcellus Shale Geographic Footprint
  • 11. The Utica Shale: Companion to Marcellus • Lies below the Marcellus • Bigger, deeper, and denser shale • One of the newest U.S. unconventional energy sources • Rich in natural gas liquids (NGL) • Particularly accessible in OH • Success in the Marcellus has led to success in the Utica • Devonian Shale is yet another Northeastern play
  • 12. PA Well Count
  • 13. OH Well Count
  • 14. WV Well Count
  • 15. Legend Marcellus Shale Formation Wet Gas Region “Wet” and “Dry” Gas Regions Sources: Pace Global; Equitable Resources, MarkWest, Atlas Energy, Range Resources, and Caiman Energy.
  • 16. THANK YOUThe Economics of Shale Gas Courtesy: IPS Engineering EPC
  • 17. “Decoupling” of Oil and Gas Prices
  • 18. Natural Gas Industry Segments Exploration and Production • Gas Field Exploration • Well Drilling and Hydraulic Fracturing • Gas Production and Liquids Recovery Gathering and Processing • Gas Collection Systems • Gas Processing - Separation - Dehydration - Fractionation ( NGL) • Compression Transportation and Distribution • Gas Conditioning • Transmission Pipelines • Measurement and Regulation • Odorization • Distribution Pipelines UPSTREAM MIDSTREAM DOWNSTREAM
  • 19. Upstream Segment
  • 20. Steps in Drilling Horizontal Drilling on a Well Pad • More efficient production, smaller footprint. • Conductor, surface casing protect well water source. • Well is drilled vertically and horizontally as much as 6,000 feet. • Wellbore is approximately 20 inches in diameter at its widest. • 5 ac vs. 24 ac = 1 acre when done
  • 21. Hydraulic Fracturing • Industrial process - properly cased well along with proper containment at the surface is critical • Permits from state regulatory agencies required for water withdrawal. • New technologies allow producers to recycle most water • 30 State and federal agencies monitor hydraulic fracturing Steps in Completion
  • 22. Environmental Protection Well Casing • Multiple layers of steel and cement ensure redundant protection • Conductor and Surface casing extend through water table • Cementing to surface for each layer provides stability, protection, and prevents cross flow of hydrocarbons • 25 PA Code, Chapter 78 Oil and Gas Rules, contains strengthened standards
  • 23. Environmental Protection Hydraulic Fracturing • Used for more than 65 years; Over 1 million wells in 27 states since 1947 • Well stimulation began in the 1860’s when nitroglycerin torpedoes were used • 90 percent of oil and gas wells use HF technology today • 99.5 percent water/sand mix • 3 to 5 million gallons of water fractures the shale. • Well casing protects water supply • Revisions to 25 PA Code, Chapter 78 reflect the best practices in well casing
  • 24. Gallons per million BTU Range Mid-point Deep shale natural gas 0.60 – 5.80 3 Nuclear 8 – 14 11 Conventional oil 8 – 20 14 Coal 13 – 32 23 Fuel ethanol from corn 2,510 – 29,100 15,800 Biodiesel from soy 14,000 – 75,000 44,500 Source: Ground Water Protection Council, U.S. Department of Energy Environmental Protection Less Reliance on Water Resources
  • 25. Site Restoration The Well Site • The property is contoured and landscaped as closely as possible to return to pre-drilling conditions. • Property owners generally see: ‒ Short wellheads on a level pad ‒ Minimal equipment ‒ Two to three water storage tanks ‒ Measurement system to monitor gas production Courtesy: Range Resources
  • 26. Midstream Segment Courtesy: IPS Engineering EPC
  • 27. Focus on Midstream • A Gathering Line - defined by PA state law as a pipeline used to transport natural gas from a production facility to a transmission line • Gathering lines generally buried to a depth of 36” or more • Location of pipeline negotiated by property owner and pipeline company • Right of Way agreements – Legally binding documents – Pipeline operator has access to the right of way for construction, operation, maintenance, and repairs • A Right of Way may contain multiple pipelines and is typically 50-75 feet wide • Subject to Pennsylvania PUC regulation Source: MarkWest Energy Partners Courtesy: IPS Engineering EPC
  • 28. Gas Processing Gas Separation, Dehydration, and Fractionation • NE Marcellus gas is “dry” SW Marcellus and Utica gas is ‘wet” • Gas processing turns production gas into “pipeline quality gas” for end users • Filter / Separator removes dirt and free liquids • Dehydration removes water entrained in the production stream ( <7 lbs/MMcf ) • Cryogenic processing separates NGL from production gas and lowers heating value (980 – 1100 BTU/cf) • Fractionation separates NGL into heavier products (ethane, propane, butane) Courtesy: IPS Engineering EPC
  • 29. Compression Systems Compressor Stations • State of the art sound attenuation • Highest standards for welding, fabrication, and material • 24/7 monitoring and control • Automatic safety systems • Annual inspections by regulating entities Compressor Units • High tech integrated control systems • Monitoring and control 24/7 • Made in the USA • Operated and maintained by local workers
  • 30. Downstream Segment
  • 31. Focus on Downstream Transmission Pipelines • Critical link between production and consumers • Statistically, pipelines are the safest transportation mode for natural gas and liquid hydrocarbons Oil transport by truck results in 87 X more deaths and 35 X more fires / explosions than oil pipeline accidents • Designed and built to industry standards • HDD technology minimizes enviro. impact • GIS technology allows for efficient layout and accurate tracking • Interstate pipelines are subject to federal regulation and inspection: DOT PHMSA Source: Pipeline Association for Public Awareness
  • 32. Intra-state Pipelines State Regulation of Pipeline Safety • Just as with midstream pipelines, downstream transmission lines are subject to state regulation – Pennsylvania PUC – Pennsylvania Act 13 – Strengthens environmental and safety laws for oil and gas industry – Pennsylvania Underground Utility Line Protection Law – The One Call System • Third party damage is the greatest threat to pipeline safety – “One Call” participation in PA is mandatory
  • 33. Gas Conditioning Pipeline Quality Gas • Gas Conditioning usually occurs at the compressor station discharge • Removal of residual liquids by coalesors - Glycol Alcohol used in the dehydration process - Compressor lubricating oil • Final polishing before transportation by downstream facilities
  • 34. Measurement and Regulation (M&R) Accuracy is critical • Measurement is the company cash register • Gas quality and composition is recorded at “custody transfer” points by a chromatograph • Regulation can be based on pressure or flow control • Distribution piping is typically low pressure: 25 – 150 psig Courtesy: Valtronics, Inc.
  • 35. Odorization Leak detection • Odorization gives Natural Gas its distinctive smell • Mercaptans are a family of sulfur containing hydrocarbons • Methanethiol - CH4S • 49 CFR Part 192.625 mandates odorization • Prepares gas for distribution systems Courtesy: IPS Engineering EPC Courtesy: Valtronics, Inc.
  • 36. THANK YOUEconomic Impact Courtesy: Ecobag
  • 37. Economic Impact for Our Region Income to Local Landowners and Businesses • More than 4,500 wells drilled from 2010 through 2012 • Investment of approximately $32.0 billion • 2013 projection: $13.5 billion - Leasing and bonuses - Exploration - Drilling and completion - Pipelines and processing - Royalties Source: Survey of Marcellus Shale Coalition Board Member Companies
  • 38. Natural Gas Job Phase Pre-drilling (Exploration) • Geologic studies, permitting, water management, engineering/design, site preparation, environmental and safety compliance Drilling (Extraction) • Pipeline, compressor, well facilities construction, Hydraulic Fracturing & completions, water management, environmental and safety compliance Production/ Reclamation • Engineering, site reclamation, environmental and safety compliance Delivery to Market (transport, storage, marketing) • NG Marketers, commodity traders, logistics, storage, accounting, risk management
  • 39. Diverse Job Opportunities Professional Functions Identified in MSC Survey Source: MSC Membership Survey, May 2013 Fast Fact  400+ individuals within nearly 150 different occupations needed to complete and produce gas from a Marcellus Shale well (MSETC, 2010) 30% 20% 13% 11% 8% 4% 4% 3% 3% 2% 1% 1% Equipment Operations Operations and Maintenance Commercial Engineering and Construction Administration Environmental Health & Safety Land Well Services Other Water Management Geology Purchasing
  • 40. Marcellus Shale Coalition Courtesy: IPS Engineering EPC
  • 41. Benefits for All • We are committed to being responsible members of the communities in which we work. • We strive to attract and retain a talented and engaged local workforce. • We conduct our business in a manner that will provide sustainable and broad-based economic, environmentally sensitive, and energy-security benefits for all. Marcellus Shale Coalition Pennsylvania based trade association Courtesy: IPS Engineering EPC
  • 42. Dialogue & Education • Coalition meetings with legislative and executive officials: ‒ PA Department of Environmental Protection ‒ PA Department of Community and Economic Development ‒ Members of U.S. Congress, PA General Assembly • Public speaking engagements and presentations: ‒ Chambers of Commerce ‒ West Virginia University ‒ Federal Reserve Bank ‒ Sierra Club ‒ Pennsylvania Environmental Council • Outreach to: ‒ Agriculture community ‒ Organized labor ‒ Small and mid-sized businesses ‒ Sportsmen’s groups ‒ Local government
  • 43. Research Collaborative Industry • Nationally recognized technical experts from trade associations Academia • Leaders from university research centers Public Sector • Research institutions at state and federal agencies National • Research leaders such as RAND, Brookings, and funders of charitable foundations Research CollaborativeResearch Collaborative
  • 44. THANK YOU ! J.M.Bright, P.E.

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