Yogesh Kumar Choudhary

Leveraging Emerging Technologies to Increase Production from Unconventional Reservoirs: Case Study of India

With a sustained growth rate of 6.2%, India is set to become the third largest economy following the USA and Chinaby 2035. In accordance with the growth rate, it is estimated that Indias import dependence is likely to increase from the current level of 72% to approximately 90% by 2035. With a large dependency on imports to meet commercial energy requirements, the demand/supply gap in oil and gas in Indiawill inevitably grow.Unconventional energy resources are becoming increasingly more important in the quest for energy security because of the continuing decline of production from proven reserves (4 to 6% decline has been observed in mature fields), accompanied by the increasing price of crude oil and natural gas. Potential sources of unconventional energyin India, proven or speculated, are coalbed methane (CBM), shale oil/gas, tight gas, and gas hydrates. With the recent advancement in 3D seismic analysis and technologies developed to analyze core samples, these have enabled a better understanding of CBM fields and other unconventional reservoirs. Because of the low permeability of these formations, economical production from unconventional reserves can only be obtained using a hydraulic-fracturing stimulation technique. Advancements in fracturing techniques from the conventional “perf-and-plug” method to multistage fracturing have enabled stimulation treatments in long intervals in a rapid and cost-effective manner. The use of advanced and proven numerical simulators in designing hydraulic-fracturing treatments has exponentially increased the success of treatments. Development of cleaner and environmentally acceptable fluids for stimulation treatments has reduced formation damage and is critical for effective stimulation of these unconventional sources of energy. Case studies from Indian fields where such emerging and effective technologies are being implemented are presented. Best practices developed to exploit CBM reservoirs and lessons learned from the mature fields in overcoming several operational challenges are discussed. Introduction India, an emerging economy, has undergone unprecedented levels of economic expansion, along with countries like China, Russia, Mexico, and Brazil. With a gross domestic product (GDP) growth rate of 8.8% in Q1 2010, by 2035 India is set to become the third largest economy following the USA and China, assuming the forecasted compounded annual growth rate (CAGR) of 6.2%. The GDP of India grew from USD 36 billion to 1.25 trillion over the last five decades. This expansion increased primary energy consumption in India by about 5% (CAGR) over the last two decades; whereas, for the rest of the world, this increase was only 2% (CAGR). Indiacomprises 16% of the total world population and,with a CAGR of 1.54%, it is expected to cross 1.5 billion by 2035; therefore, energy will be one of the most critical aspects supporting the economy and human development. According to British Petroleum statistics (BP Statistical Review of World Energy), India has only 0.4% of the world’s proven oil reserves and 0.6% of the world’s natural gas reserves. With the current rate of oil production, these proven reserves will meet the needs of the Indian economy for 20 or more years.The demand/supply mismatch for oil and gas is inevitable, and Indias dependence on imported hydrocarbons is likely to increase from its current level. To cope with increasingly active manufacturing and production sectors, and the rising per capita energy consumption, Indiamust strategically rebuild and shift its energy consumption portfolio. Tackling the energy crisis through judicious use of abundantly available renewable energy resources, such as biomass, solar, and wind energy, and unconventional oil and gas sources, must be given the highest priority. In 2009, only 5.9% of the total energy requirement was met through