SPRINGER BRIEFS IN ENERGY Michael D. Max Arthur H. Johnson William P. Dillon Natural Gas Hydrate - Arctic Ocean Deepwater Resource Potential SpringerBriefs in Energy For further volumes: http://www.springer.com/series/8903 Michael D. Max · Arthur H. Johnson William P. Dillon Natural Gas Hydrate - Arctic Ocean Deepwater Resource Potential 1 3 Michael D. Max Arthur H. Johnson William P. Dillon Hydrate Energy International, Inc. Kenner, LA USA ISSN 2191-5520 ISSN 2191-5539 (electronic) ISBN 978-3-319-02507-0 ISBN 978-3-319-02508-7 (eBook) DOI 10.1007/978-3-319-02508-7 Springer Cham Heidelberg New York Dordrecht London Library of Congress Control Number: 2013949606 © The Author(s) 2013 This work is subject to copyright. 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Violations are liable to prosecution under the respective Copyright Law. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. While the advice and information in this book are believed to be true and accurate at the date of publication, neither the authors nor the editors nor the publisher can accept any legal responsibility for any errors or omissions that may be made. The publisher makes no warranty, express or implied, with respect to the material contained herein. Printed on acid-free paper Springer is part of Springer Science+Business Media (www.springer.com) Preface Natural gas hydrate (NGH) is the last of the recognized unconventional resources of natural gas and perhaps the greatest. Coalbed methane, for which depressuriza- tion proved to be the critical factor, and tight/shale gas, for which fracking and lateral, long-pay section drilling are key, have radically altered the indigenous gas resource/reserves in the United States. A median global resource potential for high grade NGH sands, which are deepwater host sediments for NGH based on a new petroleum system approach, may have as much as 43,300 trillion cubic feet (TCF) gas-in-place, of which 50 % may be technically recoverable (Johnson 2011). This compares with resource and reserve estimates for coalbed methane of 9,000 TCF, shale gas of 16,000 TCF, and tight gas of 7,400 TCF (NPC 2007). There is increasing evidence that natural gas can be produced from high-grade NGH concentrations (Max et al. 2006) hosted by coarse-grained and sandy sedi- ments using existing conventional oil and gas production technology (Moridis and Kowalsky 2006). In addition, the physical nature and location of NGH may allow much less expensive innovative technology to be used in drilling and other aspects of exploration and production. While the volume of natural gas (NG) contained in the world’s NGH accumulations may greatly exceed that of other NG resources (Collett 2002), a substantial proportion of NGH is present in low-grade accumula- tions (Boswell and Collett 2011) that are unlikely to be developed commercially (Moridis and Sloan 2007) using existing technology and methods. Innovation and new production techniques may also render the natural gas in these low grade NGH deposits commercial, which would have the effect of greatly enlarging the NGH resource base. Many have dismissed oceanic NGH as a gas resource for the far future. However, the world’s first technical production test of oceanic NGH was carried out on the 40 TCF Nankai NGH deposit according to a planned timeline (Kurihara et al. 2011) during March 2013 by JOGMEC (2013). The deposit is scheduled for production in 2018, which is only 5 years from the first production test. This is a development timeline consistent with conventional deepwater field development. Commercial production of NGH off Japan is likely because natural gas produced from the Nankai NGH deposit should compete well with the rather high delivered price of liquefied natural gas (LNG) that has been in the $15–$18 MMcf range in the 2011–2013 time period. We submit that once the Japanese begin to be able to replace gas imports with indigenous production from NGH, this will both affect v vi Preface the world LNG business and stimulate other NGH development. In addition to the Japanese, Korea, India, and China have aggressive NGH exploration programs in which drilling and production tests are scheduled (as of late summer 2013) for 2013 and 2014. Recent development of shale gas in North America has provided a large gas supply that may delay the development of NGH there. In other countries that have NGH potential, however, development of indigenous gas supply for energy secu- rity is a national priority. Although NGH will likely be developed by countries for which NGH is an indigenous potential resource, its commercialization is in its infancy. As development takes place, and new and improved technologies are brought into play, it is possible that NGH may become competitive with other gas resources on a produced price basis. We suggest that commercialization of NGH would have the same disruptive effect on the world gas market that the develop- ment of land-based unconventional resources in North America has achieved since 2005. The Arctic Ocean provides a particularly useful area in which to apply the gen- eral principles of assessing NGH resource potential from the different aspects of the NGH petroleum system. The Arctic Ocean is compact, has a related geologi- cal history for potential host sediments and is a recognized hydrocarbon province, and is affected broadly by the same weather and climate conditions. The principles applied here can be applied along any other continental margin, particularly those that have Pleistocene glacial history, in order to determine NGH potential. References Boswell R, Collett TS (2011) Current perspectives on gas hydrate resources. Energy Environ Sci 4:1206–1215. doi:10.1039/c0ee00203h Collett, T. S. 2002. Energy resource potential of natural gas hydrates: American Association of Petroleum Geologists Bulletin 86, 1971–1992. JOGMEC (2013) News release. Gas production from methane hydrate layers confirmed. www.jogmec.go.jp. Accessed 12 March 2013, p 3 Johnson AH (2011) Global resource potential of gas hydrate—a new calculation. Fire in the ice. NETL, U.S. Department of Energy 11(2):1–4 Kurihara M, Ouchi H, Sato A, Yamamoto K, Noguchi S, Narita J, Nagao N, Masuda Y (2011) Prediction of performance of methane hydrate production tests in the eastern Nankai Trough. Proceedings of the 7th international conference on gas hydrates (ICGH 2011), Edinburgh, Scotland, United Kingdom, 17–21 July 2011, p 16 Max MD, Johnson A , Dillon WP (2006) Economic geology of natural gas hydrate. Springer, Berlin, Dordrecht, p 341 Moridis GJ, Kowalsky M (2006) Gas production from unconfined Class 2 oceanic hydrate accumulations. In: Max MD (ed) Natural gas hydrate: in oceanic and permafrost environ- ments, 2nd edn. Kluwer Academic Publishers (now Springer), London, Boston, Dordrecht, p 249–266 Moridis, G.J. & Sloan, E.D. 2007. Gas production potential of disperse low-saturation hydrateac- coumulations in oceanic sediments. Energy Conversion and Management 48, 1834-1849. NPC. 2007. Topic Paper #29, Unconventional Gas. Working Document of the NPC Global Oil& Gas Study. Team Leader, Holditch, S.A. et al. National Petroleum Council, 52pp.<www.npc.org/ study_topic_papers/29-ttg-unconventional-gas.pdf>. Acknowledgments Thanks to Tim Collett (U.S. Geological Survey) and Ray Boswell (U.S. Department of Energy), principal among the many colleagues who have brought the unconventional NGH resource from a scientific curiosity to the threshold of responsible commercial development. Special thanks also to Jurgen Meinert (Institute for Geology, University of Tromsø, Norway). vii Contents 1 The Arctic Ocean ............................................ 1 1.1 Tectonics of the Arctic Basin ............................... 3 References .................................................. 6 2 Sediment Delivery Systems; Ice, Rivers and the Continental Margin .................................................... 9 2.1 East Alaska—North American Arctic Islands—Greenland Margin ................................................ 12 2.2 Greenland .............................................. 12 2.3 Barents—Kara Seas Margin ................................ 13 2.3.1 West Barents Margin ............................... 13 2.3.2 NW Barents Margin ................................ 14 2.3.3 St. Anna Trough ................................... 14 2.3.4 Kara Sea—Eastern Margin ........................... 14 2.4 Laptev Sea—West Siberian Arctic Sea Zone ................... 15 2.5 East Siberian Sea Zone .................................... 16 References .................................................. 17 3 Natural Gas Hydrate: Environmentally Responsive Sequestration of Natural Gas .............................................. 19 References .................................................. 23 4 NGH as an Unconventional Energy Resource .................... 25 4.1 Permafrost NGH ......................................... 26 4.1.1 Geologically Trapped ............................... 27 4.1.2 Permafrost-Related, Non-Geologically Trapped .......... 28 4.1.3 Vein-Type Deposits ................................ 28 4.2 Oceanic NGH ........................................... 29 References .................................................. 30 ix x Contents 5 Elements of the NGH Petroleum System ........................ 33 5.1 Sufficient Gas Source/Flux and the BSR ...................... 35 5.2 Migration Pathways/Feeding the Thermodynamic Trap in the GHSZ ............................................ 38 5.3 NGH High-Grade Reservoirs ............................... 40 5.3.1 GHSZ Thickness .................................. 41 5.3.2 Suitable Sediment Hosts (Turbidite Sands) .............. 41 References .................................................. 44 6 Path to NGH Commercialization ............................... 47 References .................................................. 52 7 Gas Production from NGH: We Have All the Basic Tools ........... 55 7.1 Phase 1. Basin Analysis ................................... 57 7.2 Phase 2. Potential Reservoir Localization ..................... 58 7.3 Phase 3. Deposit Characterization and Valuation ................ 58 References .................................................. 59 8 What More Do We Need to Know? ............................. 61 8.1 Exploration Factors ...................................... 62 8.1.1 BSR Identification from Reflection Seismic Data ......... 63 8.1.2 Heat Flow Data/Geothermal Gradients ................. 63 8.1.3 Natural Gas Migration Path Analysis ................... 65 8.1.4 Exploration Drilling ................................ 65 8.2 Production Factors ....................................... 66 8.2.1 Drilling in Preparation for Gas Production .............. 66 8.2.2 Thermodynamic Models for NGH Conversion ........... 66 8.2.3 Geotechnical Models ............................... 67 8.2.4 Flow Assurance ................................... 68 8.2.5 Logistics and Infrastructure .......................... 68 8.3 NGH-Specific Technology Opportunities ..................... 69 8.3.1 Moving to the Seafloor .............................. 71 8.3.2 Drilling and Logging ............................... 71 8.3.3 Undersea Processing and Completions ................. 72 8.3.4 NGH: Specific Vessels/Seismic Survey ................. 72 8.4 Will NGH Deposits Be Commercially Competitive with Conventional Gas? ....................................... 73 References .................................................. 74 9 NGH Likelihood in the Arctic Ocean ........................... 77 References .................................................. 83 Contents xi 10 Estimates of the NGH Resource Base in the Arctic Region ......... 85 References ................................................. 88 11 Oceanic NGH: Low Risk Resource in Fragile Arctic Environment .............................................. 91 11.1 Risk Factors of Conventional Hydrocarbon Production ........ 93 11.2 Inherent Geosafety of NGH Production ..................... 93 References ................................................. 97 12 Economic and Political Factors Bearing on NGH Commercialization ......................................... 99 References ................................................. 101 13 Logistical Factors for Arctic NGH Commercialization ............ 103 References ................................................. 106 14 Natural Gas as Fuel and Renewable Energy Aspects ............. 109 References ................................................. 110 Index ......................................................... 111
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