An Integrated Model for Optimizing Shale Gas Development Planning

Abstract Optimized development planning for large shale gas resource plays requires robust methods and models which incorporate both subsurface parameters and surface constraints. This paper presents a model which determines the optimal number of resource development blocks and facilities to achieve a defined annual natural gas production target. The field development planning model is established to determine the optimal number of development blocks to achieve the defined production target while considering subsurface parameters and surface constraints. Subsurface parameters include type curves, shrinkage, products yields, and gas heat content. Surface parameters and constraints include the number of available blocks, well pads, surface infrastructure, and facility capacities. The model then determines the optimal number of primary facilities (i.e. gas separation plants) and secondary facilities (i.e. compression stations) while considering distance proximity. The sequential order of the development blocks is determined based on subsurface ranking of de-risking strategy. Through the application of this model, development of large shale resource plays is optimized. Outputs include the number of resource blocks for development, number of well pads and associated wells, and necessary primary and secondary facilities, inclusive of location and operational year, along with the associated capacity utilization rate of each primary and secondary facility. With the number of wells determined, combined with the aforementioned infrastructure requirements, the production profile for each block and the aggregate development may be determined. Through this model, an enhanced shale development plan is determined to efficiently utilize necessary and available resources so as to maximize economic value for the developer. This development model is independent from existing software applications. As an essential development planning tool, model outputs may be used as inputs into a petroleum economics model for further economic analysis to inform management decision making. Essential benefits derived from this model include enhanced development planning efficiency and improved strategic decision making. Use of this model may be further expanded to aid in cost reduction and reserves enhancement initiatives.