Get documents about "Phase I Budget - Energy and Geoscience Institute - University of Utah
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Underway
Principal Investigator
Dr. Shu Jiang China Shale Gas and
Email
sjiang@egi.utah.edu
Shale Oil Plays | Phase 1
Purpose
Identify, characterize, and contrast marine and lacustrine shale plays
in China.
QEMSCAN®
Project Scope
1. Distribution of
petroliferous
sedimentary
basins in China
China shale mineralogy and their hydro-
carbon system
characteristics
Sponsor Cost
$64,550 (USD) 2. Distribution
of marine and
Start Date lacustrine source
Q1 2011 rocks in different
tectonic settings
Duration 3. Define potential shale gas and shale oil plays in China
18 months
4. Regional mapping of geologic, geochemical, and geomechanical
attributes
5. Identify key parameters of shale plays in both marine and lacus-
trine setting
Email
EGIDirector@egi.utah.edu 6. Ascertain the controlling factors on the distribution of shale plays
7. Evaluate tectonic, sedimentary, geochemical and geomechanical
Phone overprints on shale attributes through time and space
801- 585-9137
8. Predictive models for China marine and lacustrine shale plays.
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Proposal: China Shale Gas and Shale Oil Plays
Phase 1
Phase I Project Schedule and Action Plan (1.5 years)
1. 1/1/2011, project start;
2. 1/2011, collect data (published and other non-proprietary Chinese literatures or
reports, collaboration with Chinese universities and Sinopec and PetroChina to get
outcrop, core, and well data, journal articles, books, EGI previous reports, etc.);
3. 2/2011-8/2011, regional mapping of shale attribute distribution in time and space;
4. 9/2011, midterm meeting;
5. 10/2011-6/2012, integrated geologic, geochemical and geo-mechanical character-
ization of marine and lacustrine shales in China;
6. 6/2012, final meeting.
Phase I Deliverables
1. Hard copy, digital summary report and presentations;
2. Geologic, geochemical, outcrop, core and other data for study areas;
3. GIS based reports.
Phase 1 Key Staff
Staff Function
Shu
Jiang
(Ph.D.) PI,
China
regional
study
and
data
collection
John
McLennan
(Ph.D.) Shale
geomechanics
and
fracture
Gregory
Nash
(Ph.D.) Satellite
imaging
of
shales
Dung
Trung
Tran
(Ph.D.) Shale
mineralogy,
petrophysics
Christopher
Kesler
(B.A.) GIS
mapping
and
play
ranking
Nick
Dahdah
(M.A.) Geochemistry
and
QEMSCAN®
sample
test
Clay
Jones
(M.Sc.) X-‐Ray
and
petrography
Tyler
Scott
(Student) Data
mining
and
geological
mapping
Chuanyan
Huang
(Ph.D.) China
regional
shale
mapping
Gang
Xue
(Ph.D.,
visiting
scientist) Southern
China
shale
gas
geology
Tom
Anderson
(M.Sc.) Senior
Advisor
to
project
Jinchuan
Zhang
(Chinese
professor) Consulting
(leading
scientist
of
shale
gas
in
China)
Hua
Wang
(Chinese
professor) Consulting
(leading
basin
analysis
expert
in
China)
Jessica
Allen
(Ph.D.,
now
with
Chevron) QEMSCAN®
test
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Proposal: China Shale Gas and Shale Oil Plays
Phase 1
Phase I Budget
$64,550 (USD) per sponsor.
Introduction
Technological innovations in exploration, horizontal drilling, and well stimulation
(hydraulic fracturing) have transformed shale formations from marginal producers to
substantial contributors to the energy supply portfolio. Development of shale gas and
shale oil (e.g. Bakken oil) in the US continues to draw great interest. Shale accounts for
approximately 20% of US gas supply and shale oil also increased significant oil produc-
tion from shales. China has a similar amount of shale gas reserve as the U.S. The recov-
erable shale gas resources in China are predicated to be about 26*1012 m3 (918Tcf ).
Also, most potential shale plays in China are located in thinly-populated areas com-
pared with Europe. In these senses, the favorable significant amount of undeveloped
shale gas and shale oil potential opens new opportunities for Chinese and foreign oil
companies. Shale oil was preliminarily studied by Chinese and was focused on fractured
shale reservoirs in lacustrine Bohai Bay basin. Shale gas and shale oil will play a major
role in China’s future natural gas and oil production, China plans commercial shale gas
production will start from 2015 and the goal of production capability from 10-15 lead-
ing shale gas fields will reach 15-30 Bcm (530-1060Bcf ) in China in 2020.
No shales in the world are the same. Hydrocarbon related shales formed in diverse
paleogeographic settings in China distribute in different kinds of basins, these basins
underwent different tectonic activities. China has more than 600 sedimentary basins
including over 200 hydrocarbon potential basins or sub-basins (Fig.1). China is also
famous for its oil production from lacustrine basins. Conservatively, more than 10 ba-
sins have tremendous untapped shale gas and shale oil potentials in both marine and
lacustrine setting (shown in red stars in Fig.1). Table 1 further lists temporal distribu-
tion of these potential shale gas and shale oil plays spanning from Sinian-Cambrain to
Tertiary. Typical Paleozoic marine shale, Mesozoic transitional shale and Cenozoic lacus-
trine shale can be represented by Sichuan Basin (e.g., Sichuan basin with typical shale
thickness 50-150m, TOC 2-6.6% and Ro 2.5-4%), Turpan-Hami Basin and Bohai Bay Basin
respectively (Fig.2). These shales have been known for their potential as source rocks for
hydrocarbons that migrated into other formations, but have not been considered as in-
situ gas reservoirs before. Actually, Shale beds within these formations are widespread,
egi.utah.edu | EGI ... the science to find energy 3
Proposal: China Shale Gas and Shale Oil Plays
Phase 1
thick, some buried deep enough to generate dry gas, some shallower charged with bio-
gas containing sufficient organic material and fractures to hold significant recoverable
gas reserves. An initial pilot exploration of shale gas in Lower Silurian Longmaxi Forma-
tion in Sichuan Basin has preliminarily proven the potential from earlier drilling analysis,
Figure 1 – Sedimentary basins in China and several potential shale gas and shale oil basins indicated in
red stars.
BBW-Beibuwan Basin, BHB-Bohai Bay Basin, BR-Biru Basin, BS-Baise Basin, CQ-Cuo-Qin Basin, CX-
Chuxiong Basin, DH-Dunhuang Basin, DTH-Dongtinghu Basin, ECS-East China Sea Basin, EJNQYG-
Enjinaqi-Yingen Basin, EL-Erlian Basin, GBDR-Gangba-Dingri Basin, HLE-Hailar Basin, HX-Hexi Basin,
JH-Jianghan Basin, JG-Junggar Basin, JL-Jiaolai Basin, JQ-Jiuquan Basin, KKXL-Kekexili Basin, LL-Lile
Basin, LPSM-Lanping-Simao Basin, MH-Mohe Basin, NHB-Nanhuabei Basin, NX-Nanxiang Basin, NYS-
North Yellow Sea Basin, OD-Ordos Basin, PRB-Pearl River Basin, QDM-Qiaidamu Basin, QS-Qinshui
Basin, QT-Qiangtang Basin, SB-Subei Basin, SC-Sichuan Basin, SJ-Sanjiang Basin, SL-Songliao Basin,
SS-Sanshui Basin, SYS-Southern Yellow Sea Basin, STH-Santanghu Basin, SWDA-Shiwandabie Basin,
TH-Turpan-Harmi Basin, TRM-Tarim Basin, TX-Taixi Basin, WX-Wangxiang Basin, YGH-Yinggehai Basin,
YLYT-Yilan-Yitong Graben, YQ-Yanqi Basin, ZM-Zengmu Basin
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Proposal: China Shale Gas and Shale Oil Plays
Phase 1
Table 1 – Temporal distribution of potential shale gas and shale oil plays in
China (shown in red stars in figure 1)
Basin Temporal
distribution
of
possible
shale
plays
Sichuan
basin
(SC) Sinian-‐Permian
Tarim
basin
(TRM) Cambrian,
Carboniferous,
Triassic,
Jurassic
Junggar
basin
(JG) Carboniferous,
Permian-‐Jurassic
Turpan-‐Hami
basin
(TH) Permian-‐Jurassic
Ordos
basin
(OD) Triassic,
Jurassic
Songliao
basin
(SL) Cretaceous
Bohai
Bay
basin
(BHB) Paleogene
Subei
basin
(SB) Cambrian-‐Triassic
Middle
and
Lower
Yangtze
platform
(MLYZ) Paleozoic
Qiangtang
basin
(QT) Jurassic
Qaidam
(QDM) Jurassic,
Paleogene,
Quaternary
Dunhuang
basin
(DH) Jurrasic-‐Cretaceous
Figure 2 – Typical stratigraphic columns of Sichuan basin, Turpan-Hami basin and Bohai Bay basin for
Paleozoic marine shale, Mesozoic transitional shale and Cenozoic lacustrine shale respectively in China.
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Proposal: China Shale Gas and Shale Oil Plays
Phase 1
outcrop investigation and SEM analysis (Fig.3, 4, 5). PetroChina collaborated with EOG,
BJ, and Schlumberger recently hydro-fractured a shale play in Sichuan basin successful-
ly. For shale oil plays, recent oil production from fractured shales in Jiyang sub-basin of
Bohai Bay basin shows great potential. But, so far, only several preliminary studies were
Figure 3 – Shale gas potential from fractured
Lower Silurian Longmaxi Formation, Changx-
in 1 well, Sichuan Basin. (Data courtesy of
WANG Shejiao)
Figure 4 – Shale
outcrop of Long-
maxi Formation
in Lower SIlurian.
Five miles away
from Changxing
1 well, drilled in
Sichuan Basin in
2008. (Courtesy of
WANG Shejiao)
egi.utah.edu | EGI ... the science to find energy 6
Proposal: China Shale Gas and Shale Oil Plays
Phase 1
done in China in the last several years, no
systematic mapping and study have been
conducted for shale gas and shale oil so
far. The little knowledge about shale plays
in China inhibited the current exploration
activities. This project is a comprehensive
regional study of shale gas and shale oil
potential to unveil the properties of China
shale gas and shale oil systems, the pur-
pose is to characterize unique nature of
shales in China and rank the potential gas
shales according to available geologic, Figure 5 – Nano-pores in shale from Sichuan
basin. (From ZOU CAineng, et.al., 2010)
geophysical, geochemical, and
geomechanical data.
Objective
Our plan is to conduct research to better provide knowledge base for shale gas and
shale oil systems in China using synthesizing, empirical analysis from existing datasets,
and the input of new dataset. The main objective is to address the shale distribution,
geologic, geochemical and geo-mechanical properties of marine and lacustrine shales
and their potentials in China and the ultimate goal is to provide sponsors with a shale
gas and shale oil distribution database, shale property parameters and predictive
models for shale plays in China.
Methodology and Approach
The project on shale gas and shale oil plays in China is a comprehensive study. It will
be involved in mass data mining and systematic analysis. The shale gas geology theory
will be employed to study marine and lacustrine basins across China from basin scale
to reservoir scale. Petroleum geology, basin analysis and sequence stratigraphy will also
be integrated in synthesis, interpretation and compiling of data. The data mined from
mass data will be used for constructing tectono-stratigraphic cross-sections, sequence
stratigraphic framework, paleogeographic maps, and characterizing the fundamental
geologic, geochemical, and petrophysical attributes of potential gas shales. Correlation
and contrast of shale attributes between marine and lacustrine basins will tell the dif-
ference in the shale gas or oil potential, distribution and different shale play concepts.
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Proposal: China Shale Gas and Shale Oil Plays
Phase 1
In order to further understand the shale play potential, all the determining factors e.g.
tectonic, geochemical, geo-mechanical and petrophysical parameters in shale plays will
be analyzed to reveal the nature of both marine and lacustrine shales in China.
Project Tasks
The overall tasks are to:
1. Identify potential marine and lacustrine shale gas and shale oil plays in China
2. Characterize basin tectonic history and multi-scale sedimentology and sequence
stratigraphy (for some typical basins), develop tectono-stratigraphic cross section
and stratigraphic charts for shale deposits and their associated overlying and under-
lying strata, define attribute of various play types (marine, lacustrine and transition-
al setting), mineralogy, gas type (thermogenic, biogenic, mixed), and generate type
log, lithofacies and depositional settings;
3. Map the depositional evolution, shale extent, depth, thickness, maturity, organic
richness, porosity, permeability, possible natural fractures distribution or brittleness,
etc.
4. Define the parameters affecting the oil and gas generation, storage and production,
these available parameters could be but not limited to those listed in Table 2;
5. Summarize the unique characteristics of China shale plays (especially lacustrine
shales), their distribution and contrast, and develop predictive geologic models
6. Compare between US and China shale gas and shale oil plays
7. Evaluate tectonic, sedimentary, geochemical and geo-mechanical overprint on shale
properties and potentials.
Data Sources
Seismic, well logs, geochemical and petrophysical data will mainly from:
1. Published and other non-proprietary literature (mainly Chinese literature of reports,
journal articles, book volumes, conference proceedings, university dissertations, etc.)
2. New data from China (outcrop, core, well and geologic data through collaboration
with research institutes of PetroChina and Sinopec, universities and local geologic
surveys in China, etc.)
3. EGI previous research reports
4. Sponsor’s datasets
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Proposal: China Shale Gas and Shale Oil Plays
Phase 1
Table 2 – Geological, geochemical and geomechanical parameters
determining potential shale gas and shale oil plays and production.
Number Category Parameter
1 Age
2 Depositional
environment
3 Rock
type
4 Heterogeneity
5 Pore
structure
Geologic
6 Clay
type
7 Fracture
network
8 Area
9 Depth
range
10 Thickness
11 Porosity
12 Permeability
13 Petrophysical Saturations
14 Mineralogy
15 Clay
16 Density
17 Kerogen
type
18 Total
Organic
Carbon
(TOC)
19 Geochemical Rock
Eval
Pyrolysis
20 Tmax
21 Isotope
22 Vitrinite
reflectance
(Ro)
23 Young's
Modulus
24 Poisson's
Ratio
Geomechanical
25 Stress
26 Shear
modulus
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Proposal: China Shale Gas and Shale Oil Plays
Phase 1
Deliverables for Phase I
1. ArcGIS based reports and PDF or other digital format, as appropriate;
2. Hard copy and digital summary report;
3. Geologic, geochemical, outcrop, core and well data for study areas;
4. Project review (MS PowerPoint) and final meeting/workshop.
The detailed deliverables include but not limited to:
• Potential shale gas and shale oil plays map (age, formation, and areal extent).
• Paleogeographic maps for potential shale gas and shale oil formations
• Integrated representative stratigraphic columns (including lithology, petroleum
system elements and tectonic events, potential shale reservoirs in marine and lacus-
trine settings) for around ten basins.
• Regional tectono-stratigraphic cross sections
• Shale plays attribute data and maps (geochemical data contours, thickness, depth)
• Key factors that determines shale gas and shale oil potential in both marine and
lacustrine setting
• Unique models by integrating shale attributes (geologic, geochemical and geo-me-
chanical, etc.) for marine and lacustrine shale plays in China.
NOTE: Actual research project plan and deliverables may vary based on input from initial research
project sponsors.
Budget
$64,550 (USD) per sponsor.
Project Time Line
The duration of Project Phase I (Regional geologic characteristics of shale gas and shale
oil plays) will starting as soon as signed contracts from the sponsoring companies are
received (after January 2011) for a period of 18 months.
Three project meetings will be held during the Phase I study. The first meeting was held
in Salt Lake City in January 2011 for project kickoff. The second meeting was held in
China in October 2011 for the midterm project review. The final meeting and delivery of
the project report will be in June 2012, in Salt Lake City.
egi.utah.edu | EGI ... the science to find energy 10
Proposal: China Shale Gas and Shale Oil Plays
Phase 1
Key Staff and Functions for Phase I
Dr. Shu Jiang (EGI), Principal Investigator (Regional geologic mapping, tectonic and
sedimentary study of gas shale, Chinese literature translation, etc.)
Dr. John McLennan (EGI), Shale geomechanics and petrophysics
Dr. Gregory Nash (EGI), Satellite Imaging, geospatial data analysis
Dr. Dung Trung Tran (EGI), Shale mineralogy, petrophysics
Chris Kesler (EGI), ArcGIS specialist, GIS mapping
Nick Dahdah (EGI), Geochemistry, QEMSCAN® samples
Clay Jones (EGI), X-ray, petrography
Dr. Chuanyan Huang, China regional shale mapping
Dr. Gang Xue (EGI visiting scientist), Southern China shale gas geology
Tom Anderson (EGI), Senior Advisor to the project
Dr. Jinchuan Zhang, Professor from China University of Geosciences at Beijing, shale gas
leading scientist, consulting and contributing partial data
Hua Wang (Chinese Professor, Consulting), basin analysis leading scientist
Dr. Jessica Allen (now with Chevron), QEMSCAN® test
Two graduate students from the University of Utah (G&G and Engineering) and two
students from China University of Geosciences, assistance, data analysis, mapping, and
geologic and geomechanical characterization
egi.utah.edu | EGI ... the science to find energy 11
