Eastern Mountains States Studies

The Marcellus shale is one of the most promising gas plays in the U.S. There are barriers and challenges in the development of this play, in particular with site locations, logistics and water issues. The first step is to identify and define the issues and problems. The RPSEA EFD Team will collaborate with the West Virginia University (WVU) to initiate an environmentally friendly E&P systems program. WVU is the lead organization for the Eastern U.S. Petroleum Technology Transfer Council (PTTC).

The first objective will be to identify needs and barriers associated with unconventional natural gas production in the Eastern mountain states. While this area of the U.S. is the oldest oil and gas producing area in the country, new horizontal drilling and massive, multi-stage hydraulic fracturing technology is entirely new and must be adapted to the specific requirements of the area. The need for light weight drilling rigs, access to well sites, and the use of water resources must be addressed before the shale can be developed.

Water usage and produced water are key issues. For example, as of December 2008, all drilling permits in New York are on hold until water issues are resolved among public, private, and government stakeholders. The barrier to access in New York is not technology but is in getting government agencies and other stakeholders to agree on procedures and practices. (One of the EFD Program’s supporting Agencies is the New York State Energy Research Development Agency.) Management of wastes generated from E&P operations represents a significant cost to those in the industry, costs of treatment. Disposal of produced waters could range from about $0.01 to more than $5 per barrel of produced water, It is necessary that there be cost effective technological solutions that reduce the volume of the waste being disposed.

The overall success of the EFD project depends upon sponsors. The project lead will identify potential EFD sponsors and arrange meetings to facilitate growing the program.

There are two key tasks that will be performed:

• Prepare a white paper (8 to 12 pages) that summarizes the needs and barriers associated with unconventional natural gas development in the Marcellus Shale. List on-going activities that are attempting to address these barriers.
• Hold a series of workshops (total of 3) to transfer technology for the Marcellus Shale to appropriate stakeholders.