Suggestions on the development strategy of shale gas in China

AbstractFrom the aspects of shale gas resource condition, main exploration and development progress, important breakthrough in key technologies and equipment, this paper systematically summarized and analyzed current situation of shale gas development in China and pointed out five big challenges such as misunderstandings, lower implementation degree and higher economic uncertainty of shale gas resource, and still no breakthrough in exploration and development core technologies and equipment for shale gas buried depth more than 3500 m, higher cost and other non-technical factors that restrict the development pace. Aiming at the above challenges, we put forward five suggestions to promote the shale gas development in China: (1) Make strategies and set goals according to our national conditions and exploration and development stages. That is, make sure to realize shale gas annual production of 20 × 109 m3, and strives to reach 30 × 109 m3. (2) Attach importance to the research of accumulation and enrichment geological theory and exploration & development key engineering technologies for lower production and lower pressure marine shale gas reservoir, and at the same time orderly promote the construction of non-marine shale gas exploration & development demonstration areas. (3) The government should introduce further policies and set special innovation funds to support the companies to carry out research and development of related technologies and equipment, especially to strengthen the research and development of technology, equipment and process for shale gas bellow 3500 m in order to achieve breakthrough in deep shale gas. (4) Continue to promote the geological theory, innovation in technology and management, and strengthen cost control on drilling, fracturing and the whole process in order to realize efficient, economic and scale development of China's shale gas. (5) Reform the mining rights management system, establish information platform of shale gas exploration and development data, and correctly guide the non-oil and gas companies to participate in shale gas exploration and development

Characterizing the characteristics of natural fractures in shale based on the modified petrophysical model

In order to provide technical support for the shale gas exploration and development in the Lower Silurian Longmaxi Formation of the Sichuan Basin, this paper takes the Longmaxi Formation in the Changning and Fuling Shale Gas Fields as the research object to quantitatively characterize the development characteristics of natural fractures in the Longmaxi Formation shale by means of helium pycnometry, X-ray diffraction (XRD), true density testing and other methods, with the aid of the modified petrophysical model. Then, the development types and genetic mechanisms of natural fractures and their influences on shale gas development are discussed. The following research results are obtained. First, the modified petrophysical model can accurately describe the pore system in the Changning shale with a fitting rate of 0.74. Second, the development of natural fractures in shale is different in various regions. The natural fractures in the Changning Shale Gas Field, controlled by basement thrust faults, decollement layers and internal folds, are locally developed and filled with calcareous, and the average fracture porosity is 0.15%. In the Fuling Shale Gas Field, however, natural fractures, mainly controlled by reverse faults and slippage effect, are commonly more developed and unfilled or semi-filled with siliceous, and the average fracture porosity is 1.30%. Third, under the formation conditions, the opening of natural fractures is different. The natural fractures in the Changning Shale Gas Field are basically closed with weaker flowing ability, while those in the Fuling Shale Gas Field are relatively open with stronger flowing ability. Fourth, the occurrence mode of shale gas is influenced by natural fractures, and it is internally dominated by free gas. The initial gas production of shale gas wells is higher. In conclusion, (1) the regression coefficient is introduced to calculate the actual total organic matter content, which promotes the modified petrophysical model to describe matrix pores and fracture pores more accurately; (2) the development of natural fractures in the shale producing pay of the Sichuan Basin is relatively beneficial to shale gas enrichment and exploitation, but the flowing ability of the natural fractures will be weakened under the original formation conditions

Discussion on the exploration & development prospect of shale gas in the Sichuan Basin

The Sichuan Basin, a hotspot and one of the most successful areas for shale gas exploration and development, can largely reflect and have a big say in the future prospect of shale gas in China. Through an overall review on the progress in shale gas exploration and development in the Sichuan Basin, we obtained the following findings: (1) the Sichuan Basin has experienced the marine and terrestrial depositional evolution, resulting in the deposition of three types of organic-matter-rich shales (i.e. marine, transitional, and terrestrial), and the occurrence of six sets of favorable shale gas enrichment strata (i.e. the Sinian Doushantuo Fm, the Cambrian Qiongzhusi Fm, the Ordovician Wufeng–Silurian Longmaxi Fm, the Permian Longtan Fm, the Triassic Xujiahe Fm, and the Jurassic Zhiliujing Fm); (2) the five key elements for shale gas accumulation in the Wufeng-Longmaxi Fm are deep-water shelf facies, greater thickness of organic-rich shales, moderate thermal evolution, abundant structural fractures, reservoir overpressure; and (3) the exploration and development of shale gas in this basin still confronts two major challenges, namely, uncertain sweet spots and potential prospect of shale gas, and the immature technologies in the development of shale gas resources at a depth of more than 3500 m. In conclusion, shale gas has been discovered in the Jurassic, Triassic and Cambrian, and preliminary industrial-scale gas has been produced in the Ordovician-Silurian Fm in the Sichuan Basin, indicating a promising prospect there; commercial shale gas can be produced there with an estimated annual gas output of 30–60 billion m3; and shale gas exploration and production experiences in this basin will provide valuable theoretical and technical support for commercial shale gas development in China

Quantitative characterization of fractures and pores in shale beds of the Lower Silurian, Longmaxi Formation, Sichuan Basin

Fractures and pores are important storage and percolation spaces in tight reservoirs, and the identification, characterization and quantitative evaluation on them are the key aspects and difficulties in shale gas reservoir evaluation. In view of this, quantitative evaluation was performed on the fracture porosity of organic-rich shale intervals of Longmaxi Fm, Lower Silurian, Sichuan Basin (Wufeng Fm, Upper Ordovician included), after a dual-porosity medium porosity interpretation model was built on the basis of drilling data of Fuling Gasfield and Changning gas block in the Sichuan Basin. And then, the following conclusions are reached. First, shale fracture porosity interpretation by using dual-porosity medium model is the effective method to evaluate quantitatively the fracture porosity of shale reservoirs, and the development of quantitative characterization techniques of marine shale reservoir spaces. Second, the matrix pore volume of the principal pay zones in this area and its constitution regions are stably distributed with matrix porosity generally in the range of 4.6%–5.4%. And third, the development characteristics of fracture porosity vary largely in different tectonic regions and indifferent wellblocks and intervals even in the same tectonic region, presenting strong heterogeneity in terms of shale reservoir storage and percolation properties. It is indicated by quantitative characterization of fractures and pores that there are two types of shale gas reservoirs in Wufeng Fm – Longmaxi Fm, Sichuan Basin, including matrix porosity + fracture type and matrix porosity type. The former are mainly developed in the areas with special structure settings and they are characterized by developed fracture pores, high gas content, high free gas content, thick pay zones and high single-well production rate. And in the Sichuan Basin, its distribution is possibly in a restricted range. The latter are characterized by high matrix porosity, undeveloped fracture porosity and medium–high single-well production rate. And it is predicted that marine shale gas is predominant in this basin

Development model and identification of evaluation technology for Wufeng Formation–Longmaxi Formation quality shale gas reservoirs in the Sichuan Basin

In 2012, China's first national shale gas demonstrations areas were set up in the Sichuan Basin. After 10 years' construction and practice, the giant marine shale gas area of 10 × 1012 m3 level is built up in the Sichuan Basin, and shale gas steps into a new stage of large-scale benefit exploration and development. In order to systematically summarize the achievements in shale gas exploration and development and provide guidance and reference for the exploration and development of deep shale gas and shale oil & gas in other areas, this paper systematically summarizes the main characteristics, development models and key identification and evaluation technologies for quality reservoirs of Wufeng Formation–Longmaxi Formation shale gas by analyzing the electric property, lithofacies, reservoir parameters and microscopic porosity of key wells in the basin. And the following research results are obtained. First, biogenetic siliceous shale, calcareous shale and mixed shale are main lithofacies types in quality shale gas reservoirs, and they are formed in the environment of semi-deep and deep water continental shelf. Their lateral distribution is controlled by the paleogeomorphology and their vertical development is influenced by provenance, redox condition and paleo productivity. They are 25–90 m thick. Second, in the quality shale gas reservoirs develop organic pores, inorganic pore and microfractures (including lamina/bedding fractures), among which, organic pore is one of the main reservoir spaces and microfracture is not only indispensable reservoir space, but also production pathway. The reservoir space of shale gas is overall micro-nano pore, and macropores play an important role in shale gas enrichment. Third, three development models of quality reservoir are established, including sedimentary type, diagenesis type and reworking type. The sedimentary type is the foundation. Multiple quality reservoirs are developed in the high U/Th interval of graptolite belt at the bottom of Longmaxi Formation, and their thickness is mainly controlled by paleogeomorphology and especially greater in the depression area. The diagenesis type is divided into three forms, i.e., syngenetic-early diagenetic rigid support, middle-late diagenetic mineral-organic matter transformation, and overpressure relief compaction. The reworking type is dominated by quality reservoirs with microfractures. Fourth, the core technologies for identifying and evaluating quality shale gas reservoir include large-size core and rock slice observation, high-accuracy rock mineral identification, experimental gas content test and simulation, SEM microscopic characterization, 3D microscopic pore reconstruction, comprehensive geophysical interpretation and prediction and big data analysis. In conclusion, nearly 10 years' research and practice achievements in demonstration area construction can deepen the understanding on domestic quality shale gas reservoirs, promote the effective development of the theories and technologies related to shale gas reservoirs, improve the prediction accuracy of shale gas sweet spot zones/intervals, and expand the shale gas exploration and development achievements of demonstration areas

Progress, challenges and prospects of shale gas exploration in the Wufeng–Longmaxi reservoirs in the Sichuan Basin

The Sichuan Basin is a major target for shale gas exploration in present China because of its rich gas stored in abundant black shales with multiple bed series. For further guidance or reference, field exploration and development practices in the shale reservoirs Upper Ordovician Wufeng–Lower Silurian Longmaxi shale reservoirs were studied in terms of development stages and progress, favorable conditions for shale gas accumulation, bottlenecking issues on theories and technologies related to shale gas development, and so on. The following findings were obtained. (1) Shale with rich organic matters originated from the deep shelf has a good quality and great thickness in the continuous beds. The relatively stable wide buffer zones in synclines (anticlines) provides favorable conditions for shale gas accumulation and preservation with well-developed micro-fractures and overpressure as necessary factors for a great potential of high shale gas productivity. (2) The bottlenecking technical issues restricting the shale gas industrial development in this study area include the following aspects: understandings of rich-organic matter shale sedimentary facies and modes, shale reservoir diagenetic process and evaluation systems, shale gas generation and accumulation mechanism, geophysical logging identification and prediction of shale gas layers, low resource utilization rate, great uncertainty of shale gas development, no technological breakthrough in the exploration of shale gas reservoirs buried deeper than 3500 m. In conclusion, this study area will be the major target for the shale gas exploration and development in China in a rather long period in the future. Keywords: Sichuan Basin, Upper Ordovician Wufeng–Lower Silurian Longmaxi, Shale gas, Exploration and development, Progress, Challenge, Prospec

Factors controlling microfractures in black shale: A case study of Ordovician Wufeng Formation–Silurian Longmaxi Formation in Shuanghe Profile, Changning area, Sichuan Basin, SW China

The dominant factors controlling development of microfractures in the black shale and the origin of microfractures in the sweet spot intervals were discussed of the Ordovician Wufeng Formation−Silurian Longmaxi Formation in Shuanghe outcrop profile, Changning, Sichuan Basin. For the target interval, holographic photograph statistics of microscopic composition of 203 big thin sections and 203 small thin sections, TOC content of 110 samples, 110 whole rock X-ray composition, and main trace elements of 103 samples were tested and analyzed. The results show that the microfractures include bedding microfractures and non-bedding microfractures. The bedding microfractures are mostly plane slip microfractures, lamellation microfractures and echelon microfractures. The non-bedding microfractures are largely shear microfractures and tension microfractures. Vertically, the density of microfractures is the highest in SLM1 Member of Longmaxi Formation, decreases from SLM2 Member to SLM5 Member gradually, and drops to the lowest in Wufeng Formation. The microfracture density is positively correlated with siliceous content and negatively correlated with the carbonate content. The finer the grain size of the black shale, the higher the density of the microfractures is. The microfracture density is controlled by biogenic silicon: the higher the content of biogenic silicon, the higher the microfracture density is. Under the effect of ground stress, microfractures appear first in the lamellar interfaces. Regional tectonic movements are the key factor causing the formation of microfractures in the sweet spot interval, diagenetic contraction is the main driving force for lamellation fractures, and the pressurization due to hydrocarbon generation is the major reason for the large-scale development of microcracks. Key words: microfracture, TOC content, lamina, lithology, black shale, Silurian Longmaxi Formation, Ordovician Wufeng Formation, Sichuan Basi

Breakthrough and prospect of shale gas exploration and development in China

In the past five years, shale gas exploration and development has grown in a leaping-forward way in China. Following USA and Canada, China is now the third country where industrial shale gas production is realized, with the cumulative production exceeding 60 × 108 m3 until the end of 2015. In this paper, the main achievements of shale gas exploration and development in China in recent years were reviewed and the future development prospect was analyzed. It is pointed out that shale gas exploration and development in China is, on the whole, still at its early stage. Especially, marine shale gas in the Sichuan Basin has dominated the recent exploration and development. For the realization of shale gas scale development in China, one key point lies in the breakthrough and industrial production of transitional facies and continental facies shale gas. Low–moderate yield of shale gas wells is the normal in China, so it is crucial to develop key exploration and development technologies. Especially, strictly controlling single well investment and significantly reducing cost are the important means to increase shale gas exploration and development benefits. And finally, suggestions were proposed in five aspects. First, continuously strengthen theoretical and technical researches, actively carry out appraisal on shale gas “sweet spots”, and gradually accumulate development basis. Second, stress on primary evaluation of exploration and development, highlight the effective implementation of shale gas resources, and control the rhythm of appraisal drilling and productivity construction. Third, highlight fine description and evaluation of shale gas reservoirs and increase the overall development level. Fourth, intensify the research on exploration and development technologies in order to stand out simple and practical technologies with low costs. And fifth, summarize the experiences in fast growth of shale gas exploration and development, highlight the demonstration and evaluation of key indicators, and try to achieve more breakthroughs and replacement in new areas, new domains and new strata

Shale gas in China: Characteristics, challenges and prospects (I)

The main factors controlling the enrichment and high yield of shale gas were analyzed based on the recent research progress of depositional model and reservoir characterization of organic-rich shale in China. The study determines the space-time comparison basis of graptolite sequence in the Upper Ordovician Wufeng Formation–Lower Silurian Longmaxi Formation and proposes the important depositional pattern of marine organic-rich shale: stable ocean basin with low subsidence rate, high sea level, semi-enclosed water body, and low sedimentation rate. Deposited in the stage of Late Ordovician-Early Silurian, the superior shale with thickness of 20−80 m and total organic carbon (TOC) content of 2.0%−8.4% was developed in large deep-water shelf environment which is favorable for black shale development. Based on the comparison among the Jiaoshiba, Changning and Weiyuan shale gas fields, it is believed that reservoirs of scale are mainly controlled by shale rich in biogenic silica and calcium, moderate thermal maturity, high matrix porosity, and abundant fracture. The shales in the Wufeng and Longmaxi formations are characterized by porosity of 3.0%−8.4%, permeability of 0.000 2×10−3−0.500 0×10−3 μm2, stable areal distribution of matrix pore volume and their constituents, great variation in fracture and pore characteristics among different tectonic regions as well as different well fields and different intervals in the same tectonic. The Cambrian Qiongzhusi shale features poor physical properties with the porosity of 1.5%−2.9% and the permeability of 0.001×10−3−0.010×10−3 μm2, resulted from the carbonization of organic matter, high crystallinity of clay minerals and later filling in bioclastic intragranular pores. Four factors controlling the accumulation and high production of shale gas were confirmed: depositional environment, thermal evolution, pore and fracture development, and tectonic preservation condition; two special features were found: high thermal maturity (Ro of 2.0%−3.5%) and overpressure of reservoir (pressure coefficient of 1.3−2.1); and two enrichment modes were summarized: “structural sweet spots” and “continuous sweet area”. Key words: shale gas, organic-rich shale, sedimentary model, reservoir characterization, sweet spot area, Jiaoshiba shale gas field, Changning shale gas field, Weiyuan shale gas fiel

Shale gas in China: Characteristics, challenges and prospects (II)

This paper mainly discusses the industrialization progress, “sweet spot” evaluation criterion, E&P technologies, success experiences, challenges and prospects of China's shale gas. Based on the geologic and engineering parameters of the Fuling, Changning and Weiyuan shale gas fields in the Sichuan Basin, this paper points out that China's shale gas has its particularity. The discoveries of super-giant marine shale gas fields with high evolution degree (Ro=2.0%−3.5%) and ultrahigh pressure (pressure coefficient=1.3−2.1) in southern China is of important scientific significance and practical value to ancient marine shale gas exploration and development to China and even the world. It's proposed that shale gas “sweet spots” must be characterized by high gas content, excellent frackability and good economy etc. The key indicators to determine the shale gas enrichment interval and trajectory of horizontal wells include “four highs”, that is high TOC (>3.0%), high porosity (>3.0%), high gas content (>3.0 m3/t) and high formation pressure (pressure coefficient>1.3), and “two well-developed” (well-developed beddings and well-developed micro-fractures). It's suggested that horizontal well laneway be designed in the middle of high pressure compartment between the Upper Ordovician Wufeng Formation and Lower Silurian Longmaxi Formation. The mode of forming “artificial shale gas reservoir” by “fracturing micro-reservoir group” is proposed and the mechanisms of “closing-in after fracturing, limiting production through pressure control” are revealed. Several key technologies (such as three-dimensional seismic survey and micro-seismic monitoring of fracturing, horizontal wells, “factory-like” or industrialized production mode, etc.) were formed. Some successful experiences (such as “sweet spot” selection, horizontal well laneway control, horizontal length optimization and “factory-like” production mode, etc.) were obtained. The four main challenges to realize large-scale production of shale gas in China include uncertainty of shale gas resources, breakthroughs in key technologies and equipment of shale gas exploration and development below 3 500 m, lower cost of production, as well as water resources and environment protection. It is predicted that the recoverable resources of the Lower Paleozoic marine shale gas in southern China are approximately 8.8×1012 m3, among which the recoverable resources in the Sichuan Basin are 4.5×1012 m3 in the favorable area of 4.0×104 km2. The productivity of (200−300)×108 m3/a is predicted to be realized by 2020 when the integrated revolution of “theory, technology, production and cost” is realized in Chinese shale gas exploration and development. It is expected in the future to be built “Southwest Daqing Oilfield (Gas Daqing)” in Sichuan Basin with conventional and unconventional natural gas production. Key words: shale gas field, economic sweet spot, micro gas reservoir, horizontal well, factory-like production, volume fracturing, development cost, resource potential, favorable targe