Shale oil is a synthetic unconventional oil that is obtained from oil shale by thermal treatment. The resulting oil is either used as fuel or processed and used in the same areas as traditional crude oil.
The bulk of the world's shale oil reserves are located in the United States. This is about 24.7 trillion tons. Sufficiently extensive reserves of oil shale are at the disposal of Russia and China. In America, it was the extraction of oil shale that brought the oil industry to a new stage of development. The largest deposit is located in North and South Dakota. It's called Bakken. It is here that the cost of shale oil in the US is the lowest, thanks to the most advanced production technology at the moment. In addition to the Bakken field, there are a number of large fields in the United States, which are located in the states of Texas and New Mexico.
Russia accounts for about 7% of world reserves. the Bazhenov Formation (Western Siberia) is considered. In these places, oil shale deposits occupy a vast territory comparable in area to the state of Texas and the Gulf of Mexico combined.In China, the main shale reserves are concentrated in the provinces in the northeastern part of the country and in one of the largest industrial centers - Fushun, which is located in close proximity to the border with Korea.
Also among the countries successfully engaged in the extraction of oil shale, the following can be distinguished:
- Israel (which is becoming the main center for the extraction of oil from shale in the Middle East),
- Jordan,
- Morocco,
- Australia,
- Argentina,
- Estonia,
- Brazil.
How shale oil is produced
- Open pit or mine mining with further processing in reactor plants, where oil shale is subjected to pyrolysis without air access, which leads to the release of resin from the rock. This method was actively used in the USSR, is used in Brazil, China. Its main disadvantage is its high cost, which leads to a high price of the final product. In addition, when using this option for oil production, there is a problem of releasing a large amount of carbon dioxide during the extraction of shale resin from the rock. The release of large portions of carbon dioxide into the atmosphere threatens to significantly worsen the environmental situation, and the issue of its disposal has not yet been resolved;
- Extraction of oil directly from the reservoir. This happens through the drilling of horizontal wells, which leads to numerous hydraulic fracturing. Often there is a need for thermal or chemical heating of the formation. This leads to a significant increase in the cost of production of this type of oil compared to traditional, regardless of the development and improvement of the technologies used. An important problem that arises when using this method is the rapid rate of decrease in the volume of the extracted product (in 400 days of operation, the volumes can decrease by 80%). To solve this problem, wells in the fields are introduced in stages.
The mining technology has a number of nuances that must be taken into account:
- the field must be located close to consumers, since shale gas is not transported through high pressure gas pipelines;
- it is possible to develop shale deposits in densely populated areas;
- when mining shale, there is no loss of greenhouse gas, but methane is lost, which in the end still leads to an increase in the greenhouse effect;
- the use of the hydraulic fracturing method implies the presence of a large amount of water near the deposits. To perform one hydraulic fracturing, a mixture of water, sand and chemicals weighing 7,500 tons is made. After carrying out the work, all waste dirty water accumulates in the area of the deposits and causes significant harm to the environment;
- shale wells have a short life;
- the use of chemicals in the preparation of mixtures for hydraulic fracturing has severe environmental consequences;
- the extraction of this raw material will be profitable only in terms of demand for products, if the world oil price is at a sufficiently high level.
Differences from conventional mining
Traditional oil impregnates rocks that have a porous structure. The pores and cracks in the rocks are interconnected. Sometimes this type of oil is spilled on the surface of the earth or freely moves along its reservoir at depth. The pressure that is exerted from above by another rock on the oil-bearing formation causes the oil to be squeezed out to the surface as it freely flows to the well through the formation. Approximately 20% of the oil reserve is recovered from the reservoir in this way. When the flow of oil is reduced, the application of various measures aimed at increasing production begins. For example, hydraulic fracturing, when pumping water into a well leads to pressure on the rock around the wellbore.
Shale oil is located in the rock that precedes the oil reservoir. The lack of connection between the cavities does not allow oil to move freely. Having drilled a well, it is impossible to immediately obtain the required volumes of oil from it. The use of various technologies and processes, such as rock heating or the use of directed explosions, leads to a significant increase in the cost of the extraction process, which is reflected in the final cost of this product.
In addition, the need to drill more and more new wells constantly arises, since the well gives only the volume that was affected by the measures taken, the rest of the oil will remain untouched until the next well is drilled and the same set of procedures is carried out. One well works with a good return for no more than a year, while every month the oil yield is reduced.
The development of shale deposits leads to a number of environmental problems:
- huge water consumption(in the production of one barrel of oil, 2 to 7 barrels of water are used). This is the main disadvantage for the environment and the most obvious disadvantage of the development of this method of oil production. So, when water is evaporated from the rock, from the point of view of ecology, there is an irretrievable loss of resources;
- high level of energy intensity of the process extraction of oil shale. This problem is partially solved by the introduction of systems for constant circulation of the coolant and the use of own reserves of deposits;
- greenhouse gas emissions. The emission level is reduced due to the efficient use of carbon monoxide in the form of heat carriers and the installation of soot traps.
Classmates
2 Comments
Of course, shale oil is a good source of income, especially in countries where the production of traditional energy sources is limited. However, before performing work on the extraction of shale, it is necessary to take care of the ecology of the planet and our future everywhere. It is enough to invest part of the income in the development of a project that makes it possible to make shale mining in much more humane ways.
I see only disadvantages in this method of oil extraction. High water costs, air and water pollution. Which leads our planet to destruction. Gradually, fish, marine microorganisms will die out and the greenhouse effect will set in. In addition, shale oil costs much more than ordinary oil, it will not work to sell it for export. As for me, it is worth abandoning such a dangerous type of extraction of useful minerals altogether.
Atlantis hold the sky...
Shale oil is a mineral obtained from deposits of organic origin, which are products of the transformation of the remains of plant and animal organisms under the influence of geological factors.There are two types of shale oil reserves. The first type is conventional light oil found in tight reservoirs. It is extracted by drilling horizontal wells and hydraulic fracturing. In the United States, this type of oil is designated by the term "tight oil" (tight - low permeability).
The second type of shale oil is shale oil, which is obtained from the kerogen found in the shale rock. Kerogen is a substance that has not yet become oil, but is in the process of becoming oil. In order to accelerate this transformation, kerogen must be thermally treated; thermal treatment decomposes it into its constituents. The extraction of such oil is an expensive pleasure, because it is not enough just to “heat” the wells (which is difficult in itself), but also to create “freezing” ones around.
There are two ways to extract shale oil. The first is open pit mining. Oil-saturated rock is mined using drilling and blasting operations, loaded in the face and fed through the shaft to the surface, where it is processed at special installations with the release of oil fractions.
The second involves drilling horizontal wells followed by multiple hydraulic fracturing. To fracture the reservoir, mixtures of water, sand and chemicals are introduced into gas-bearing rocks under enormous pressure (500-1500 atm). The main danger to the environment is the use of a large amount of chemicals that are mixed with water and sand. The chemical mixture impregnates the rock, which leads to the contamination of large areas, as well as groundwater.
Both methods are highly costly. The cost price of the first is 90-100 dollars per barrel, the second is 50-60 dollars.
"Classic" oil extracted in Russia costs about $15 per barrel. In Saudi Arabia - 8
The largest shale oil production sites in the US
- Bakken. State of North Dakota (3.65 billion barrels)
- Eagle Ford. Texas (3 billion barrels).
- Monterey. Central California (600 million barrels)
The world owes the shale revolution to George Mitchell
Everyone has heard about the “shale revolution” and “shale boom” in the United States, however, few people know how it is produced and whether its threat to “classic” oil is so great.
Types of shale oil
Shale oil is a mineral and, like "classic" oil, is formed from organic residues that have come under the influence of certain geological factors.
In the modern energy industry, depending on the method of production, two types of shale oil are distinguished:
- Tight Oil
This type of oil consists of light fractions and is found in reservoirs with low permeability, which is the reason for the name. For the production of low-permeability oil, the technology of hydraulic fracturing and drilling of horizontal wells is used.
- Shale Oil
Shale oil is produced from kerogen, a special substance found in shale rock. In fact, kerogen is a substance that turns into ordinary oil. To speed up this process, it is subjected to heat treatment right in the well, as a result of which shale oil is obtained.
Shale oil production
The most widespread are two methods of shale oil production:
- Getting shale oil on the surface
With this method, the oil-bearing rock is fed up, where it is processed in special installations, in which it is separated into oil fractions.
- Getting shale oil at depth
This method is used when oil-bearing rocks occur at great depths. For this, the technology of drilling horizontal wells is used, into which water is supplied under pressure. Under the influence of hydraulic shock, the so-called hydraulic fracturing occurs. From the many cracks obtained in the oil-bearing rock, the oil contained in it begins to stand out, which is supplied to the surface.
It should be noted that the method of using hydraulic fracturing carries a significant risk. The consequence of this technology is soil subsidence, seismic tremors, oil and methane getting into underground groundwater.
The most widespread is the second method of shale oil production.
Both ways of extracting shale oil are by no means cheap. The cost of a barrel of oil produced by the first method is 90-100 dollars, and that produced by hydraulic fracturing is about 50-60 dollars.
5 facts you need to know about shale oil
- Fact one
According to experts, the world's shale oil reserves are about 300 billion barrels, of which 24 billion are in the United States. Given the current level of consumption, these reserves will last more than 300 years.
- Fact two
Shale oil production is not economically viable everywhere. In order for the extraction of shale oil to be economically justified, the oil-bearing rock of the field must contain at least 90 liters of oil in one ton of shale. In addition, the thickness of the oil-bearing formation must be at least 30 meters.
The criterion of 90 liters of oil per ton of rock corresponds to only 1/3 of all shale oil fields, and even less to the criterion of the required reservoir thickness.
- Fact three
The use of modern technologies makes it possible to extract from 0.5 to 1.25 shale oil from one ton of oil-bearing shale rock.
- Fact four
During the first year of operation of a shale well, the volume of oil and gas produced significantly exceeds the volume of production of "classic" fields. After the first year, production drops by 80%.
- Fact five
The largest shale oil field in the world is the Bakken field, North Dakota, USA. Shale oil has been produced at the Bakken site since 2000. The estimated volume of shale oil reserves is 3.65 billion barrels.
Despite more than fifteen years of experience, shale oil production technology is at the initial stage of development. The cost of shale oil, despite the gradual decline, still significantly exceeds the cost of production of "classic" oil. Therefore, in the short term, it is hardly worth waiting for a repeat of the shale revolution in the oil market, as was the case in the gas segment, and shale oil reserves should be regarded as a promising reserve energy resource for the future.
Fortrader
Suite 11, Second Floor, Sound & Vision House, Francis Rachel Str. Victoria Victoria, Mahe, Seychelles
+7 10 248 2640568
The “shale revolution” took place unexpectedly for many. Some "analysts" just a year ago called the possibility of extracting shale oil nothing more than a "bluff". However, now the whole world is watching the fall in the price of oil, and the United States continues to replenish its oil storage. So what is shale oil, what is the technology for its production, and how did the “shale revolution” turn out to be possible?
There are 2 types of so-called "shale" oil. The first one is similar in composition to traditional oil, lies at a depth of 2-3 km. and is produced from low-permeability reservoirs. The production technology is quite complicated, because it requires not traditional vertical, but horizontal drilling over the area of occurrence. In addition, the drilling process is accompanied by hydraulic fracturing of the soil.
The drilling process itself looks like this:
- First, a vertical well is drilled;
- The drill rotates along the formation and drills a horizontal well;
- Then hydraulic fracturing is performed and raw materials are obtained.
The main deposits of such shale oil in the United States are the Bakken and Eagle Ford fields, which actually made the "shale revolution" possible.
The second type of shale oil is even more difficult to produce. Because it needs to be obtained from kerogen, the substance that forms the basis of oil, which is precisely contained in oil shale. Reservoirs with kerogen lie below the level of occurrence of traditional hydrocarbons and in fact are their donors. To obtain oil, kerogen is subjected to heat treatment directly in the shale formation. The resulting substance is raised to the surface, displacing it with an agent substance, and then the rock is cooled.
With such methods of extraction, the problem of ecology remains relevant. After hydraulic fracturing, reagents remain, and a significant amount of methane is also released. In addition, the extraction of shale oil requires a huge amount of water and energy, which significantly increases the required level of investment in field development.
Shale Oil Forecasts
The total amount of shale reserves, according to some estimates, is more than 20 trillion. tons, which exceeds the reserves of traditional hydrocarbons by 12 times. This should be enough for about 300 years. However, only a few countries have a reliable methodology for estimating reserves, so such forecasts can still be considered only very approximate.
The cost of shale oil production is still higher than conventional oil production. It can be said that today the United States has sufficient technology to make shale oil production profitable at $50 per barrel. This is exactly what 2014 and 2015 showed. Only at a price below $40 did American companies begin to “freeze” some wells. For comparison, the approximate cost of conventional oil production in Saudi Arabia is $6 per barrel, in Russia it is $15.
Meanwhile, technologies are constantly evolving and the cost of oil shale production will only fall in the coming years. Already, the United States has gone from being an energy importer to being the world's largest exporter, with storage at record levels in 2015. At the same time, China and some European countries begin to breathe in the back of the Americans. Among those who are actively interested in shale oil are industry giants - BP, Shell, Total, PetroChina.
The forecast for oil shale production does not add optimism to traditional oil market participants. In the future, production will grow by tens of percent annually. It was in order to delay this sprint that Saudi Arabia made attempts to manipulate prices in 2014.
What does this mean for Russia?
According to some reports, Russia has the largest reserves (up to 75 billion barrels) of shale oil in the world, which are located in the so-called Bazhenov formation in Western Siberia. The problem is the lack of cheap mining technology. At the moment, the cost of producing one barrel of oil for the Siberian and Arctic fields is estimated by experts at $70, which is significantly higher than the market price. At the same time, the lack of technological support at the current moment does not allow predicting the development of such projects in the near future. Relatively successful attempts to extract shale oil in Russia have been made by Surgutneftegaz, Gazprom Neft, Rosneft and LUKOIL, but there is no need to talk about mass production yet.
In the last 10 years, the established global hydrocarbon production system has been literally blown up by the emergence of new technologies for the development of shale oil and gas fields. A new concept has emerged in the media: shale revolution. The birthplace of this revolution was USA, and it is there that we see its most impressive results. Shale oil and shale gas in the United States allowed this country to overtake Russia in terms of total hydrocarbon production, reduce the cost of fuel domestically and become an exporter of gas and oil.
Huge reserves of oil shale have been explored in many countries of the world, and their development can completely change the world map of energy production.
The richest shale oil reserves in the world are located in Russia(Place of Birth Bazhenov suite and Achimov Formation in Western Siberia).
USA have the second largest proven oil shale reserves. Large deposits of shale oil and even more shale gas have been discovered in China. The Argentine formation Vaca Muerta oil field is considered very promising. Oil shale only of this field in 8 times increase oil reserves in South America.
The distribution of the largest shale oil reserves in the world (as of 2013) is presented in the following table:
The table uses the generally accepted unit of measure for oil production - the US oil barrel, containing approximately 159 liters.
Shale oil: production technology
Shale oil deposits have been known since the 19th century. However, attempts at their industrial development were fruitless for a long time. Vertical oil wells, through which production is carried out from conventional oil fields, on shale did not give an economically justified flow rate (oil flow). The fact is that shale oil deposits are very different from ordinary ones.
Both types of oil reserves are formed from organic residues.
However, traditional oil fields arise if there are collectors- Rocks that are highly permeable to oil, through which oil can move. Such a collector must be covered "tire"- a poorly permeable rock layer. Then, under the tire, a traditional oil deposit is formed. But such deposits contain a very small part of the total oil reserves on Earth - according to various estimates, only from 1 to 3 percent. Much more significant oil reserves are concentrated in low-permeability shale rocks. But it was not possible to extract oil from there for a long time.
The breakthrough came when the American George Mitchell managed to apply a combination of two mining technologies - horizontal (or inclined) drilling and hydraulic fracturing (fracking).
The essence of technology is this. First, a vertical well is drilled until it reaches the oil shale layer. In this layer, the drilling direction changes to horizontal, which creates a horizontal section of the well. Then, an aqueous solution of special chemicals is pumped into the well under high pressure along with sand. Hydraulic fracturing occurs: fluid under pressure breaks the oil reservoir. Due to the cracks formed during the rupture, an artificial permeable reservoir is created. In order for there to be more cracks, the process is carried out in several stages. Through these cracks, oil and natural gas trapped in the rock begin to flow into the well. And the sand does not allow the cracks to close again.
Why is Greenpeace against shale gas and oil production?
A report with the same title was released by the world-famous environmental organization Greenpeace. June 10, 2014. Greenpeace does not oppose shale oil production per se. Greenpeace declares environmental danger fracking. The identified environmental impacts of fracking raise questions.
Does humanity need oil at this price?
When shale oil is produced on a commercial scale, millions of tons of an aqueous solution of chemicals are pumped into the well for hydraulic fracturing. This solution contains a huge amount of substances hazardous to humans (up to 700 names). There are present:
- carcinogens that cause cancer
- mutagens causing unpredictable gene mutations
- substances harmful to the human endocrine system
- substances that the human body cannot eliminate naturally
After pumping underground, the solution is additionally contaminated with methane poisonous to humans and radioactive substances of rocks. And now this deadly mixture begins to seep to the surface of the earth along with methane, which cannot be pumped out through the well. Along the way, the solution passes through aquifers, poisoning the water. In the United States, after the shale revolution, drinking water from the tap can be set on fire in oil production sites - it is so mixed with methane. Due to poisoning with methane and other toxic substances, the inhabitants of such areas lose their health.
In addition, the fracking process consumes an enormous amount of fresh water. But the problem of shortage of drinking water is becoming more acute every year. And not only in Asia and Africa - in the richest US state of California, there is a real threat of imposing restrictions on water consumption. Naturally, local residents of areas where shale oil and gas production is underway or planned are protesting against the use of fracking technology. The governments of some countries (Netherlands, France, Bulgaria) have issued laws to completely ban this technology.
Shale revolution: hopes and disappointments
The only country where the shale revolution really took place is USA. In 2002, horizontal drilling fracking technology was first applied, after which the production of shale oil and gas in the United States skyrocketed.
In 2009, the United States overtook Russia in natural gas production, and in terms of oil production, it approached Saudi Arabia, the world leader in its export.
For the first time in 40 years, the United States began exporting energy. However, after the fall in oil prices in the autumn, it became clear that the American oil shale companies will face great difficulties. Some companies may leave the market altogether.
Economic hardships associated with high cost obtaining shale oil. A shale well immediately after hydraulic fracturing begins to give commercial returns - a flow rate. But this process ends very quickly - often a well on shale is depleted within a year. Sometimes it is possible to pump oil out for two or three years, but after a year of operation, production drops by 40 percent at best. In addition, oil can be extracted from a shale deposit far from completely (the percentage of extraction is much lower than for conventional deposits). Therefore, it is necessary to drill new and new wells, and this costs a lot of money (average costs - 8.5 million dollars per well). For example, let's take data for 2012: the USA drilled 45468 wells during this year, and all other countries of the world (with the exception of Canada) - only 3921. The fact that shale oil almost always contains dissolved natural gas also increases the cost. Because of this, it needs additional processing before transportation. Otherwise, the oil becomes explosive (and cases of explosions of shale oil tanks are already known).
Recently, some experts have begun to talk about the artificial underestimation of the cost of shale oil production by American companies. The goal is to inflate the shale boom to increase government support and lending to foreign lenders. Underestimation of costs and large differences in the parameters of shale deposits have led to the fact that most forecasts about the development of shale oil production in other countries turned out to be erroneous.
The United States has actively promoted the idea of developing shale oil in Europe. It was believed that as a result, Europe could gain independence from Russian gas supplies. The largest reserves of shale oil in Europe have been explored in Poland, which is why test drilling began there, investing about a billion dollars. Was drilled 69 wells, but not a single well was suitable for commercial production.
Quite large reserves of shale hydrocarbons have been discovered in Ukraine. However, all explored deposits are located in the area Donbass.
Not a single company undertakes to plan any work there in the light of the events of the last year. China had grandiose plans for shale gas production. But even there, in recent years, they have been strongly adjusted downward due to the unresolved problem of water shortage, which is very acute in China.
Outlook and forecasts
In addition to the high cost, one of the main restrictions on the increase in shale oil production is the high consumption fresh water. Currently, the lack of fresh water is becoming a problem for the entire planet. For this reason, shale oil remains inaccessible in many countries where significant reserves have been explored. China, Jordan, Mongolia, Israel due to lack of water, they cannot start developing their shale oil.
But there is hope for a solution to the problem: Israel has begun developing a waterless technology for extracting shale oil.
In case of success (according to the forecast, the results of the work will be known by 2020 year) and all environmental restrictions will be lifted. The new technology could become more economical than conventional oil and gas production. Then a new world shale boom.
Currently, the cost of producing shale oil is several times higher than that of conventional oil. The Gulf countries are ready for further price cuts down to $40 per barrel. With such prices, shale oil cannot compete.
- As of April 2015, for the first time in the last decade, the growth of shale oil production in the United States has stopped, and production has even declined at some fields.
- Since the end of 2014, the intensity of horizontal drilling has also decreased in the United States.
We can say that at the moment shale oil is losing the war to traditional fields. However, the emergence of new technologies can change everything.
