MORGANTOWN, WV - "Deeper" and "smarter"
will likely be the watchwords of America's natural gas industry in the
coming years.
Already, more than 70 percent of gas produced in the continental United
States comes from wells deeper than 5,000 feet. But in the not-too-distant
future, as America's demand for clean-burning natural gas increases, drillers
will likely be required to probe much deeper – perhaps 15,000 feet
or more beneath the earth's surface where an estimated 125 trillion cubic
feet of unclaimed natural gas is thought to be trapped.
To help develop the high-tech drilling tools the industry will need to
tackle these deeper deposits, the U.S. Department of Energy Office of
Fossil Energy is kicking off "Project Deep Trek."
The goal is to develop a "smart" drilling system tough enough
to withstand the extreme conditions of deep reservoirs, yet economical
enough to make the gas affordable to produce. The target date for developing
the advanced drilling system is 2010.
The Energy Department's National Energy Technology Laboratory, the research
arm of the department's fossil energy program, has begun asking industry
to propose "Deep Trek" development efforts. The agency is initially
funding the initiative at $10.4 million.
Proposers will have two opportunities this year to respond. The first
will be by April 11, when the department is asking prospective proposers
to submit a "pre-application" – a mini-proposal no longer
than seven pages. After the pre-applications are reviewed, applicants
will be advised as to whether they should submit a more detailed, comprehensive
application due May 30.
The second opportunity will come by November 30, when another set of
"pre-applications" will be due, and comprehensive applications
will be requested by January 13, 2003.
The department will fund three phases of Deep Trek research and development:
feasibility and concept definition (Phase I), prototype development
or research, development and testing (Phase II), and field/system
demonstration and commercialization (Phase III).
Technologies need not go through all three levels of development if they
already have completed several years of research. For instance, technologies
that are proved to be feasible may be eligible for phases II and III.
Others that are more mature may bypass phases I and II and qualify for
a field demonstration. No phase is planned to last longer than four years.
Private partners must contribute a minimum of 20 percent for Phase I
projects, 35 percent for Phase II, and 50 percent for Phase III.
The National Energy Technology Laboratory will coordinate work with private
industry, other national laboratories and universities.
The importance of deeper drilling technologies was underscored in the
1999 report of the National Petroleum Council, entitled "Natural
Gas: Meeting the Challenges of the Nation's Growing Natural Gas Demand."
In the report, the Council stated, "Deep drilling is increasing....Production
from depths deeper than 10,000 feet is expected to increase from 35 percent
in 2000 to 41 percent by 2010. It is important to note, however, that
industry's ability to achieve production from deeper horizons will be
dependent on adequate deep drilling infrastructure and the continued evolution
of technology."
The Council predicted that by 2010, 12 percent of all U.S. gas produced
will have to come from deep formations – those 15,000 feet and deeper.
During this same time frame, production from gas wells less than 10,000
feet deep is expected to decline, as these reservoirs begin to deplete.
According to a study performed by the Energy Department and the U.S.
Geological Survey last year, significant gas resources in the United States
lie 15,000 feet and deeper below the earth=s surface. DOE estimates these
gas resources at about 125 trillion cubic feet – equivalent to about
five years of total U.S. gas consumption.
Tapping into this resource, however, will be daunting and expensive.
In fact, in the few deep wells being drilled today, as much as 50 percent
of the drilling costs is spent on drilling the last 10 to 25 percent of
the wells where rock formations are harder and temperatures are higher.
Today's sensors, drill bits and materials are ineffective when exposed
to harsh, extreme conditions found in deep formations. To help remedy
this situation, technologies pursued in the Deep Trek project include
low-friction, wear-resistant materials and coatings, advanced sensors
and monitoring systems, advanced drilling and completion systems, and
new bit technology that could be integrated into a high-performance, "smart"
system.. The new system is to operate in extreme temperatures (more than
347o F) and pressures (greater than 10,000 pounds per square
inch).
The real advantage of a "smart" system is its ability to report
key measurements – temperature, pressure, moisture, geology, etc.
– as a well is drilled, pinpointing potential trouble spots on a
"real-time" basis. This allows operators to make adjustments
as drilling continues, avoiding costly work stoppages.
For specific information about the solicitation and the IIPS, contact:
Kelly McDonald, Contract Specialist
Phone: (304) 285-4113
E-mail: kelly.mcdonald@netl.doe.gov
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