Unconventional Energy Resources

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Unconventional Energy Resources ( unconventional-energy-resources )

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geothermal energy production. By switching the focus and producing even higher water volumes, make possible geothermal sites using the Bakken, Red River, Madison and Cedar Hills formations. Finding companies to work with on demonstration of equipment is difficult. Denbury Resources is one company which has done so multiple times, allowing for comparison of various companiesÕ equipment for the same field conditions both in the Williston Basin and central Mississippi. GosnoldÕs 2011/2013 pre- sentations compared output efficiency and cost for the power production equipment available. In the U.S. with the 30% ITC and 10 cent power the pay- back is typically less than 5 years. As the MWs produced increases, the price/kilowatt hour needed drops to as low as 5 cents. High water cut is also found to the west in Montana, where Gary Carlson (Carlson and Birkby 2013) reported on work underway on the Fort Peck Reservation. The area has a significant number of wells where coproduced geothermal energy has po- tential. Some 760 BHTs have been analyzed to date with the highest temperature recorded at 278°F (137°C); nearly 90 BHTs are equal or greater than 200°F (93°C). In addition to working with existing wells, the project seeks to identify the geothermal potential in undrilled areas on the Reservation. Economic analysis toward power generation and greenhouse heating options are part of the project. To the north yet into central Alaska, Karl (2013) of Chena Hot Springs gave a rousing pre- sentation involving several new geothermal appli- cations currently in use at the resort in Alaska. Beside approximately 400 kW power generation from two PWPS PureCycle units, Chena uses hot water for heating buildings, greenhouse support, and a 15 short ton (15.2 metric tonnes) absorption chiller for temperature control inside their Ice Museum. A new 300 kW screw expander designed by Kerry and produced by Kaishan Compressor Company is being installed to increase on-site production of additional electricity. Chena Power is also completing two mobile ORC demonstrations in Utah that can be used in oil and gas fields. Heading south to a warmer climate, Cutright (2013) of the BEG spoke on the state-wide database of well temperature being compiled and that will be available in September, 2013. He discussed data analysis results, site identification, economics of geothermal and its competitiveness, and alternative heat extraction fluids such as CO2. The largest area of higher geothermal gradients was shown to be along the Balcones fault system and to the east and south. Other local areas of interest included the Crockett and Val Verde County area, the Trans- Pecos region along the border with Mexico, the deepest part of the Delaware Basin, a portion of the Texas Panhandle, and in the Fort Worth Basin. The use of CO2 for heat transport was contin- ued by Dunn (2013) (Enhanced Energy Group) as he spoke on its use in enhanced oil recovery and its potential use in engineered geothermal systems. He contrasted the use of CO2 and water for heat transport. CO2 has advantages over water in fields with reduced natural fluids. A current problem is that the quantities of CO2 required makes cost a major factor. New technology is reducing the cost to produce the CO2 and designed for large-scale pro- duction of 2–12 MW of electricity generated while consuming the CO2 in the geothermal reservoir. It can also be used for enhanced oil recovery and is beneficial for a combined geothermal/oil operation. On the water side of things, Erdahl (2013) presented information on re-using produced oilfield water, not only in geothermal development, but also in the impact on hydraulic fracturing. He reviewed aspects of macro market trends, economic analysis, and the growth of water usage in the oil and gas industry. He contrasted some of the differences such as cost of water usage between the geothermal and oil and gas industry. Turning to other topics, energy financing for geothermal power was presented by Daniel East (2013) of The Carlyle Group. He spoke on the var- ious types of energy-related projects that the Group supports, with their focus on mezzanine financing. He discussed the typical geothermal project life cy- cle as it presently exists. Electrical connectivity and various legal issues helped to round out the broad arena of topics. Schue (2013) focused on Texas regulation of geothermal and the various agencies involved. This included past laws enacted by state legislation that defined geothermal as a mineral. He also listed the tax codes that allow certain amounts of oil and gas to be ‘‘incidentally produced’’ from a geothermal well exempt from production taxes. He spoke on various legal issues of mineral ownership along with un- knowns involving rule of capture with regards to heat. Schue also presented information on various legislative actions underway along with Electric Reliability Council of Texas (ERCOT) and their concern on having reliable power generation, a plus for geothermal as a baseload energy resource. American Association of Petroleum Geologists, Energy Minerals Division

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