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Release Date: September 23, 2002

 
New DOE Projects to Develop High-Tech Drilling Systems to Tap Deep Natural Gas
Projects are Latest in DOE's 'Deep Trek' Research Program

MORGANTOWN, WV - Five new research projects that, if successful, could give drillers new tools to unlock natural gas supplies 20,000 feet or more beneath the earth's surface have been selected by the U.S. Department of Energy.

The projects are part of a new Energy Department effort called "Deep Trek." Carried out by the department's Office of Fossil Energy, the research program will assist industry in developing high-tech "smart" drilling systems 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 systems is 2010.

DOE is contributing slightly more than $5 million toward the projects. Winning organizations will fund roughly $3 million. Projects will run anywhere from one to three years.

The advantage of a "smart" drilling system is its ability to report key measurements -- temperature, pressure, moisture, geology -- as a well is drilled. "Smart" systems can identify potential trouble spots on a "real-time" basis, allowing operators to make adjustments without interrupting drilling and incurring costly work stoppages.

With shallow natural gas reserves already being harvested and the easiest-to-produce gas-bearing deposits nearing depletion, the trend has been to drill deeper. Thanks to technological advancements of the late 1980s to the mid-1990s, the National Petroleum Council indicates 72 percent of gas produced in the continental United States in 1998 came from wells deeper than 5,000 feet.

In a 1999 report to the Secretary of Energy, the council notes, "Deep drilling is increasing....Productions 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."

Only seven percent of the nation's natural gas in 1998 came from deep formations 15,000 feet and deeper. DOE expects that a full 12 percent will have to come from these formations by 2010 just to keep up with demand.

According to a study by DOE and the U.S. Geological Survey last year, significant gas reserves in the United States lie 15,000 feet and deeper below the earth's surface. Tapping into this resource is daunting and expensive. As much as 50 percent of drilling costs are spent on the last 10 to 25 percent of deep wells where rock formations are harder and temperatures are hotter.

The winning projects, briefly profiled below, will be managed by DOE's National Energy Technology Laboratory.

  • APS Technology Inc., Cromwell, CT, plans to develop a two-component system that monitors and controls drilling vibrations in "smart" drilling technologies. Drillstring vibration causes premature failure of equipment that reduces the depth and speed at which a well is drilled. A multi-axis active damper will be used to minimize harmful vibrations that will extend the life of the drill bit and other components and improve the rate of penetration. A real-time system that monitors 3-axis vibrations and related measurements will be used to assess the vibration environment and adjust the damper accordingly.

    Total project cost: $2.24 million
    DOE share: $1.36 million; Applicant share: $881,050
    Project duration: 36 months
 
  • E-Spectrum Technologies, San Antonio, TX, proposes to develop a communications system that allows well operators to receive vital measurements while a well is being drilled, which improves drilling, and consequently, production. The system would directly control adjustable downhole tools and make changes in drilling in real time, greatly improving a well's future production level. E-Spectrum will build and field-test a prototype of a wireless electromagnetic telemetry system for use in high-temperature (392 oF) drilling beyond 20,000 feet. The system will be composed of a surface unit receiver/transmitter, downhole data-acquisition module, downhole repeater module, and a downhole receiver/transmitter module. The project is slated to run in three phases.

    Total Phase I cost: $858,928
    DOE share: $683,879; Applicant share: $175,049
    Phase I duration: 11 months
 
  • Pennsylvania State University, University Park, PA, and Quality Tubing Inc., Houston, TX, will develop a continuous microwave process to make seamless coiled tubing and drill pipes efficiently and economically. Improving the performance, life cycle and rate of penetration of these materials would allow deeper wells to be drilled. Drill mud, which contains drilling fluids, causes erosion and leaks that weaken conventionally welded drill pipes, causing them to fail.

    Total project cost: $1.8 million
    DOE share: $1.2 million; Applicant share: $670,000
    Project duration: 36 months
 
  • Pinnacle Technologies, San Francisco, CA, will review current and past stimulation techniques for deep-well completions to develop data that help minimize the uncertainty and increase the success in drilling deep formations. Information will be obtained through literature reviews, interviews with operators, service companies and consultants, evaluations of rock mechanics and fracture growth in deep formations and assessments of stimulation techniques in three to five gas wells. A comprehensive report will be assembled and given to the gas industry through publications and workshops. The project is slated to run in three phases.

    Total Phase I cost: $225,000
    DOE share: $180,000; Applicant share: $45,000
    Phase I duration: 12 months
 
  • Terra Tek, Salt Lake City, UT, will develop and test prototypes of novel drill bits and advances in high-temperature, high-pressure fluids suited for slow, deep-drilling operations. With its private industry partners, Terra Tek will characterize technologies, develop and supply new bit prototypes and drilling fluids, and field test prototypes. Researchers will benchmark the performance of emerging products by conducting drilling tests in its laboratory. Joining Terra Tek will be the University of Tulsa, Hughes Christensen, BP America, Conoco, INTEQ Drilling Fluids, Marathon Oil Co., ExxonMobil and National Oilwell.

    Total project cost: $2.9 million
    DOE share: $1.7 million; Applicant share: $1.2 million
    Project duration: 36 months
 

Contact: David Anna, DOE/NETL, 412-386-4646
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