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Unconventional Energy Resources

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Unconventional Energy Resources ( unconventional-energy-resources )

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Unconventional Energy Resources: 2013 Review about the conference taken by Denise Gatlin and Maria Richards, along with student Stefano Benato, assisted in the writing of this article. For the past 7 years there has been a new focus for the geothermal industry to use the data from oil and gas fields to develop coproduction of all fluids and in turn extract the heat to generate power. Since the first SMU Geothermal Energy Utilization Con- ference in 2006, numerous improvements in tech- nology, resource evaluation, and associated economics have occurred. The paradigm shift from high temperature, hydrothermal system geothermal development in the western U.S., to todayÕs focus including low temperature, coproduction from sed- imentary basins, represents the broader interest in pushing the envelope for producing electricity. The expectation of early adoption by the oil and gas community has fallen short, yet interest and expec- tation that someday it will happen is generally ac- cepted. For the first time, this event combined the surface waste heat to power (WHP) equipment with geothermal energy projects, realizing the need for the oil and gas industry to be able to ‘‘kick the tires’’ on equipment and in the process immediately be able to take advantage of the heat and pressure currently created by their surface equipment. This is of special interest as indicated by Texas Railroad Commissioner David Porter hosting a workshop on using excess natural gas for power on drilling leases, along with discussion of other options for on-site power generation such as waste heat energy capture in December of 2012. Oral Presentations. Opening remarks by the Magu- ire Energy InstituteÕs Bud Weinstein stating ‘‘Heat is a terrible thing to waste!’’ grabbed the attention of attendees and set the ground work for covering all aspects of electrical production from heat sources in oil and gas fields. The source could be from surface equipment, referred to as ‘‘waste-heat,’’ or geo- thermal heat brought to the surface with oil/gas/ water from the reservoir. Federal Energy Regulatory Commission (FERC) Chairman Jon Wellinghoff (2013) im- pressed the attendees during his keynote address with his in-depth knowledge of the geothermal and waste heat resources and applicable technologies. Wellinghoff emphasized FERCÕs focus to open the generation market to small, independent producers as a method to improve U.S. electrical security, consistency, and ability to deal with natural hazards. Use of geothermal resources, in all forms from home loop systems to direct use to electrical production along with the vast applications for waste heat power are seen by Wellinghoff as part of the nec- essary energy mix for the U.S. to meet the projected electricity generation needs for the future. The conference structure took attendees through all aspects of oil and gas field development, representing the vast applications for both geother- mal and waste heat to apply to improved field operations. The Environmentally Friendly Drilling Systems Program (EFD) presenter, David Burnett (2013) explained how societyÕs acceptance of envi- ronmental issues either slows or speeds up changes from innovative technology improvements. Texas A&M University has been the coordinator of the EFD program working with the U.S. DOE, Houston Advanced Research Center, Research Partnership to Secure Energy for America, oil/gas companies, universities, national labs, and environmental orga- nizations to develop and implement improved hydraulic fracturing use of water, and air emissions from drilling. An EFD scorecard was developed to see how any site ranks within the defined criteria. Although geothermal is a smaller industry, as developers move into sedimentary basins for co- produced geothermal or larger scale projects using enhanced geothermal systems, Burnett emphasized the need to engage all stakeholders, public and pri- vate, for successful project completion. [Just as hydraulic fracturing has resulted in public and private push-back in the oil and gas industry, the geothermal sector is not immune to similar events, such as push- back occurring in Hawaii regarding geothermal development – Erdlac comment from Geothermal Energy Association news announcement.] Lukawski (2013), a PhD candidate at Cornell University, compared geothermal drilling to oil and gas drilling costs. Flow rates in geothermal wells can only be dreamt about in most oil and gas environ- ments as they start for geothermal typically in the 10,000 BBLs (1,590 m3) per day range. Well drilling and completion contribute 20–75% of the capital investment in geothermal power plants, with en- hanced geothermal systems requiring the most costly upfront expenditures because of the deeper depths. One difference from oil and gas completions is the cementing of the full annulus because of the pres- sure and flow rates. Yet the study showed that while the cost of drilling has increased for oil and gas wells, geothermal well costs have leveled off because of improvements in drilling techniques for deeper depths, and at shallow depths (<6,000 ft; 1,829 m)

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