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Providing coverage of Alaska and northern Canada's oil and gas industry
April 2003

Vol. 8, No. 17 Week of April 27, 2003

BP quantifies gas hydrates

Using existing shallow seismic data, BP evaluates known gas hydrate structures located underneath existing oilfield infrastructure on Alaska’s North Slope

Patricia Jones

Petroleum News Contributing Writer

In what could be BP Exploration (Alaska)'s first step toward developing a large, unconventional energy resource on the North Slope, the company is leading a phased public-private research project to evaluate gas hydrate reserves near oil field infrastructure.

The initial phase of research — funded by the U.S. Department of Energy, oil and gas producers and academic partners — involves applying existing 3-dimensional seismic data to characterize and quantify gas hydrate resources in the Eileen and Tarn trends near the Milne Point and Kuparuk River oil fields. That phase should be complete by mid- to late 2004.

Should the initial assessment indicate that methane gas from the shallow, frozen hydrate structure could be produced commercially, research could advance to drilling and production testing. A third stage of research “could set the stage for a possible pilot development program,” said Robert Hunter, BP’s gas hydrate project manager.

DOE is providing as much as $13.2 million to fund the research. Industry and academic partners are providing in-kind data and personnel time, potentially bringing the total project cost to $18 million. About $2 million in DOE funding has been approved for the first stage of research.

Hunter described the project during an energy research workshop April 11 at the University of Alaska Fairbanks. He later told Petroleum News that BP has released 3-D seismic data from shallow horizons of its Milne Point unit for the initial evaluation.

“The data are of sufficient quality that we believe we are able to distinguish fluid contacts between free gas and gas hydrate within significant fault compartments,” he said.

Vast resource

Milne Point encompasses the northwestern part of the Eileen Trend, which extends south into the Prudhoe Bay and the Kuparuk River units at a depth of 2,000 to 4,000 feet, just under a layer of permafrost.

Tarn, located southwest of Kuparuk, lies within and below the permafrost layer, at depths of 500 feet to 2,400 feet.

Both contain vast layers of methane gas, contained or trapped by an “ice cage” structure called clathrate.

In a study compiled in the 1990s, the U.S. Geological Survey estimated the Eileen Trend contains 44 trillion cubic feet of gas hydrates, and Tarn holds 60 tcf. It projected the slope-wide gas hydrates resource at 590 tcf.

“These prior resource estimates were only based upon well control and did not utilize seismic data,” Hunter said.

Hydrate structures known

Oil producers have known of gas hydrate structures on the North Slope for years. The Northwest Eileen No. 2 well, drilled in the early 1970s, flow-tested a 20-foot gas hydrate-bearing interval near a depth of 2,100 feet. Gas test-flowed at a maximum rate of 3,960 cubic feet per day, reportedly with a significant nitrogen head, Hunter said.

“While this flow rate is not high, it revealed the potential for methane gas to flow to surface from an Alaskan North Slope gas hydrate-bearing reservoir,” he said. Hunter added depressurization, thermal injection and the use of inhibitors such as methanol may enhance gas hydrate production.

Prudhoe Bay 3-D sought

So far, estimates for Eileen have not been updated, and BP is working to obtain additional shallow seismic data. The company plans to seek Prudhoe Bay unit partner approval to use shallow portions of 3-D surveys within the unit to validate or update USGS estimates.

“More importantly, the reservoir and fluid characterization from these studies will determine the resource distribution and extent of compartmentalization,” Hunter said. “Reservoir models based upon these characterization studies will help validate the regional potential recoverable gas and commercial potential.”

BP eventually may seek similar data from wells near the Eileen trend from Kuparuk River unit owners.

Gas hydrate is "within a high-quality reserve that benefits from existing oil and gas support and infrastructure,” Hunter said.

“We have the resource, the infrastructure and the alignment all occurring at the same time."





Want to know more?

If you’d like to read more about gas hydrates in the Arctic, go to Petroleum News’ Web site and search for some of the articles published on the subject in the newspaper in the last few years.

Web site: www.PetroleumNews.com

2003

• April 13 Tapping hot ice

• April 6 Gas pipeline incentives back in federal energy bill

• March 9 Anadarko’s Arctic platform assembled, Hot Ice drilling to start this month

2002

• Nov. 17 DOE funds CO2 injection research

• Nov. 10 Hot ice project: Anadarko to core hydrate well south of Kuparuk unit

• Nov. 10 Feds hand out $1.17 million in energy grants to UAF researchers

• Oct. 27 A portable exploration solution

• Oct. 20 Anadarko cuts hydrate project back to one well

• Sept. 15 B.C. fishermen land huge energy source

• May 5 BP-led research project investigates gas hydrate production for North Slope

• May 5 CO2 demonstration project proposed at Milne Point

• Aug. 4 Wainwright’s coalbed methane potential huge, could provide local energy

• April 21 ‘Very encouraging’ results from Mackenzie Delta hydrate project

• March 10 Maurer, Anadarko to drill 3 gas hydrate wells on North Slope

2001

• Dec. 30 Turning ice into fire could be key to long-term energy needs (Canada)

• Oct. 28 Some gas hydrate drilling on North Slope funded

• Oct. 28 BP gets partial DOE funding for gas hydrates study

2000

• Sept. 28 Michael Economides says natural gas supplanting oil

• July 28 Murkowski wins authorization for DOE office in Alaska

• May 28 Bill provides money for hydrate gas research


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