FOSSIL FUEL AND GEOTHERMAL ENERGY SOURCES FOR LOCAL USE

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Fossil Fuel and Geothermal Energy Sources for Local Use in Alaska Chapter E, Copper River–Chugach the upper Cenozoic Yakataga Formation, local sandstones in the upper part of the mid-Cenozoic Poul Creek Formation, and nonmarine to deltaic sandstones of the lower Cenozoic Kulthieth and Tokun Formations (Risley and others, 1992; Larson and Martin, 1998). In the part of the Gulf of Alaska basin in the Copper River–Chugach Energy Region, the reservoir quality of these formations is variable. The Yakataga Formation consists of poorly sorted glaciomarine beds with unstable mineralogy, but is known to maintain local zones of good porosity and permeability at depths below 11,000 feet in offshore wells (Larson and Martin, 1998). The Kulthieth Formation contains abundant sandstone with poor to moderate reservoir properties farther east in the Southeast Energy Region, but in the Copper River–Chugach Energy Region, it consists almost exclusively of fine-grained, non-reservoir rocks (or perhaps unconventional reservoirs). Finally, only locally does the Poul Creek Formation contain potential reservoir sandstones; it consists in large part of highly deformed silty to shaly rocks like those hosting the oil seeps and shallow fractured reservoir at Katalla. On the favorable side, the Kulthieth and Poul Creek Formations have the advantage that they also contain source rocks, increasing the likelihood that any potential reservoir sandstones may have received hydrocarbon charge. Traps. Both the Copper River basin and the northern Gulf of Alaska basin have been strongly affected by faulting and folding accompanying compressional and strike-slip tectonics, creating numerous fold and fault structures that have the potential to trap hydrocarbons. Additional traps may be stratigraphic in nature, established by lateral variations in thickness, grain size, permeability, and other sedimentary characteristics inherent in these geologically complex settings. However, repetitive deformation commonly forms complicated structures that can create exploration and development challenges and limit accumulation sizes. Although several structures in the Gulf of Alaska were unsuccessfully tested by exploration wells, many promising and large structures remain undrilled (Risley and others, 1992). Summary of conventional oil and gas resource potential. Only a limited number of exploration wells have been drilled in the Copper River basin, yet none have resulted in commercial discoveries. Although oil potential appears to be low (Magoon and others, 1996), natural gas seeps and significant gas shows during exploration drilling suggest the area has some potential to host a functional petroleum system. Available subsurface data are sparse and more information is required to reliably assess the basins potential (Thomas and others, 2004). Major seeps of both oil and gas are present on the northern margin of the Yakutat terrane, indicating that the northern Gulf of Alaska basin does contain a viable petroleum system. Despite the lack of any commercial discoveries to date, potential remains for future production of conventional hydrocarbons. Many large structural and stratigraphic traps likely remain undrilled and the province is underexplored relative to comparable oil-bearing basins in North America. The most recent available estimates of technically recoverable resources from the Gulf of Alaska region report a mean value of 630 million barrels of oil and 4.65 trillion cubic feet of natural gas (MMS, 2006a, 2006b). These numbers reflect undiscovered, hypothetical resources that have not been confirmed by drilling, and the actual amount that could be discovered and produced may be significantly smaller when filtered against the high costs of offshore development. Nevertheless, the large estimates reflect the overall promising nature of the region for future hydrocarbon exploration. Unconventional oil and gas resource potential Coalbed methane. The most significant known coal resources in the Copper River–Chugach Energy Region primarily occurs in the Bering River coal field, where coal-bearing strata are common in the Paleogene Kushtaka Formation (Kulthieth Formation). In the Carbon Creek area of the field, coal seams are commonly 5 to 10 feet thick, with seams locally ranging up to 30 to 60 feet thick. Coal rank ranges from subbituminous to anthracite and is of sufficient grade to produce coalbed methane. However, many of the coal-bearing strata are part of a regional fold and thrust belt and coals are locally laterally discontinuous due to stratigraphic pinch-out or structural truncation. The structural complexity of high-rank coals in the Bering River field would present a challenge to effective production of significant coalbed methane resources. Other known coal deposits in the region consist of small, scattered exposures of lignite along the foothills of the Alaska Range and in the Copper River Basin. The reported low maturity of these coals indicate they are unlikely to have natural fractures (cleats) that are necessary for successful coalbed methane production. Tight gas sands. Published data suggest upper Mesozoic and lower Cenozoic sandstones are likely to form conventional reservoirs capable of producing some hydrocarbons in the Copper River–Chugach Energy Region. Many of the Mesozoic sandstones in the Copper River region, in particular the Nelchina, Staniukovich, and Naknek Formations, have been relatively deeply buried and have undergone significant compaction and cementation. If these units were sufficiently charged from nearby source rocks, they may serve as potential tight gas reservoirs. Extensive regional fractures have been observed in outcrops of some of the Mesozoic sandstones, particularly the Naknek Formation. These fractures are typical of tight gas sands and may well signal the presence of an unconventional, fractured reservoir. In the Gulf of Alaska region, the Eocene Kulthieth Formation may locally have potential as a tight gas sand. It consists of relatively thick nonmarine to deltaic sandstones with variable reservoir quality. While much of the unit has fair Page 47 Copper River–Chugach

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