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Fossil Fuel and Geothermal Energy Sources for Local Use in Alaska Chapter J, Railbelt Nonmarine strata filling the Nenana and Minchumina basins are likely to contain mostly gas-prone coaly source rocks and may have limited potential for shale gas. It is uncertain whether these basins are hot and deep enough to generate significant quantities of thermogenic gas to sustain an economic shale-gas reservoir. Gravity data for both basins suggests that only small areas are deep enough for thermogenic gas, which significantly reduces the aerial extent of potential shale gas source rocks. Gas hydrates. The main occurrences of gas hydrates in nature are in modern marine sediments and in arctic regions with well developed, continuous permafrost. Permafrost is not well developed in the Railbelt Energy Region and, where locally present, is discontinuous. Consequently the potential for economic concentrations of gas hydrates in the region is low. Geothermal resource potential The Railbelt Energy Region has only one recognized thermal spring and several fumarole fields (sheet 2; Motyka and others, 1983). However, the proximity of these potential resources to population centers and infrastructure has led to more exploration and development activity than other regions in the state, including three geothermal lease sales in the Mount Spurr area and a successful geothermal development project at Chena Hot Springs Resort. Geothermal production of electricity at Chena hot springs has attracted attention because of the slightly lower temperature of the resource than most other binary power plants. Historically, ten Chena thermal springs, resulting from circulation of meteoric waters along fractures and faults in intrusive and metamorphic rock units, produced a combined flow rate of 225 gal/min at a maximum discharge temperature of 145°F (63°C) (Motyka and others, 1983). Geothermometry estimated a reservoir temperature between 266°F–293°F (130°C–145°C) (Motyka and others, 1983). More recently, nearly 20 wells have been drilled at Chena Hot Springs to depths of 100–1000 ft to facilitate geothermal energy production and to measure temperatures (hottest being 176.5°F [80.3°C]) and pressures of the shallow geothermal system (Chena Hot Springs Resort, 2009b). There are at least six mapped fumarole fields situated in close proximity to the chain of volcanoes running down the west side of Cook Inlet from Mount Spurr to southwest of Mount Douglas (Motyka and others, 1983). Mount Spurr’s potential for geothermal development has received the most interest over the past 26 years (Wescott and others, 1985) and as a result there have been three State lease sales conducted in 1983, 1986, and 2008. The first two leases attracted bids on three tracts, all of which have expired or been terminated. During the most recent sale, Ormat Technologies, Inc. successfully acquired 15 leases on the south flank of the volcano. With matching State funds, Ormat has recently conducted an exploration program, including airborne geophysics and drilling. In 2011, well difficulties prevented drilling to the planned depth; preliminary data indicate a viable geothermal resource was not identified, although water chemistry and alteration suggest the well may have been peripheral to a hydrothermal system (B. Martini, Ormat, oral comm., 2011). If future drilling is attempted and proves successful, the project would require approximately 40 miles of transmission line to tie into the Beluga power plant. In addition to geologic and economic hurdles, any successful development project would need to address the risk associated with infrastructure on the flanks of an active volcano. The active Augustine volcano in central Cook Inlet has been proposed for state geothermal leasing as recently as 2008. Despite its proximity to population centers on the Kenai Peninsula, leasing has not moved forward, principally due to the lack of any identified hydrothermal resource and concerns over natural hazard risks associated with any infrastructure on the volcanic island. Four wells drilled in the lower Susitna basin in the Willow–Big Lake area registered geothermal gradients of 2.25°F–6.75°F/100 feet (4.1°C–12.3°C/100 meters) in thick Tertiary successions overlying granitic basement rocks (Motyka and others, 1983). One interpretation for this unexpectedly high thermal gradient is a shallow, discontinuous, low-grade geothermal reservoir up to 40 square miles (104 square kilometers) in area (Turner and Wescott, 1982). However, recent re-evaluation of key well data by geologists at DGGS concluded the anomalous bottom hole temperature is most likely a drilling artifact or otherwise erroneous (C. Nye, DGGS, written commun., 2011). RECOMMENDATIONS Conventional oil and gas resource recommendations The Cook Inlet basin has been producing oil and gas for more than 50 years, but there is reason to believe that with continuing investment in second- and third-cycle development projects, several of its largest gas fields may be able to meet regional demand for the immediate and mid-term future. Renewed exploration of undeveloped prospects with known or inferred bypassed gas shows, and focused exploration for stratigraphically trapped gas may yield discoveries that will contribute to meeting long-term demand. This next generation of exploration will require an improved understanding of the stratigraphic architecture and distribution of reservoir quality within the Cook Inlet basin. Continued efforts by geologists at the Department of Natural Resources to publish results of detailed field and subsurface investigations could significantly improve the understanding of the petroleum system. The net effect of better publicly available data and more resolved geologic models is a reduction in risk, possibly enticing additional new exploration investment. Page 107 RailbeltPDF Image | FOSSIL FUEL AND GEOTHERMAL ENERGY SOURCES FOR LOCAL USE
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