API Upstream Standards for Safe Shale Gas

Operations – How API Standards can support

and contribute for a safe operation – US case

Roland Goodman
Manager, Upstream Standards
American Petroleum Institute
[email protected]

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 Topics
 Hydraulic fracturing (HF) and shale gas overview

 HF basics

 API standards program and HF-related documents

 Conclusions

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 Shale Gas Drilling Technologies

 Hydraulic fracturing is a well completion technology for

the development of unconventional resources such as
natural gas that is trapped in shale rock formations. It
is used to create a fracture network through which oil
and gas can migrate to the wellbore.

 Horizontal drilling is a technique where the well is

drilled first vertically and then horizontal to surface.

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 Shale Resources – Lower 48 U.S. States

Current Shale Resources

Prospective Shale Resources

Basins

Stacked Resources

Shallowest/ Youngest
Mid-Depth/ Mid-Age
Deepest/Oldest

Current and prospective resources and basins in the continental US

 U.S. Shale Gas Resources

 Prior to 2005, shale gas constituted 4% of U.S. gas

production.

 Shale production is projected to increase from 30% of

total U.S. gas production in 2010 to 49% by 2035.

 Current U.S. domestic production and reserves are

now displacing gas and oil imports.

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 U.S. Petroleum & Natural Gas Production

 The U.S. has been a net energy importer since 1953

(66 years).

 Current U.S. domestic production will lead to the U.S. being

a net energy exporter in 2020.

 In 2018, tight oil (shale) development accounted for 50% of

U.S. crude oil production and 68% of U.S. natural gas
production.

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 U.S. Natural Gas Production
Dry natural gas production
trillion cubic feet

50 2018
History Projections
45
40
35
30
In trillion cubic feet
25
20
15
10
5
0
2000 2010 2020 2030 2040 2050

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 U.S. Crude Oil Production
Source: U.S. Energy Information Administration
million barrels per day

25
2018

History Projections
20

15

10 Shale oil

5 Alaska
Gulf of Mexico
Other
0
2000 2010 2020 2030 2040 2050
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API Background

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 About API
 API is an industry trade association representing all
segments of the oil and natural gas industry.

 Over 660 member companies involved in all aspects of the

oil and natural gas industry.

 Over 700 committees and task forces covering various

advocacy and technical issues.

 Staff of ~275 located in Washington, DC and in 34 states.

 International offices in Brazil, China, Singapore, and the UAE.

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 About API
 API is accredited by the American National Standards
Institute (ANSI) and must comply with the following:
 openness, balance, consensus, due process;
 standards undergo regular review (5 years minimum);
 regular program audits (conducted by ANSI);
 transparent process (anyone can comment on any
document).

 All comments must be considered.

 API corporate membership is not required.

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 Value of API Standards

 Improves safety and reliability.

 Improves equipment interchangeability.

 Reduces compliance costs.

 Reduces procurement costs.

 Foundation for company standards.

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 Use of API Standards

 National Technology Transfer and Advancement Act (NTTAA):

 NTTAA requires Federal Agencies to use voluntary consensus
standards, encourages participation;
 API standards are cited in regulations by U.S. regulatory agencies
including BSEE, DOT, EPA, OSHA, SEC, and USCG;
 130 API standards are cited 460 times in U.S. Federal Regulations.

 API Standards also widely cited by States:

 216 API standards are cited 4035 times in U.S. State Regulations.

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Shale Gas/HF-related Standards

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API RP 100-1

 Scope – contains recommended practices

for onshore well construction and fracture
stimulation design and execution as it
relates to well integrity and fracture
containment.

 The goals are to design a well plan that

isolates and protects groundwater from
drilling and fracturing operations and use
well equipment that can meet the
expected fracture load requirements.

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 API RP 100-1
 Well integrity: the design and installation of well equipment to a
standard that
 protects and isolates useable quality groundwater,
 delivers and executes a hydraulic fracture treatment, and
 contains and isolates the produced fluids.

 Fracture containment: the design and execution of hydraulic fracturing

treatments to contain the resulting fracture within a prescribed
geologic interval encompassing
 existing formation parameters and their associated range of
uncertainties,
 well barriers and integrity created during well construction, and
 controllable fracture design and execution parameters.
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 API RP 100-1

 This document is not a detailed well construction or fracture design

manual.

 While industry-wide practices concerning well construction are similar,

there are considerable variations in the details of individual well design
and construction due to varying geologic, environmental, regulatory,
and operation requirements.

 Proven practices are the result of operators gaining localized and

specific knowledge based on experience, along with the development
and improvements associated with technology.

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Well Production Casing

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Each well contains multiple layers of casing and cementing
to protect groundwater

Well design and construction has four main components.

1. Conductor casing (isolate shallow groundwater and surface sediments).
2. Surface casing (isolate groundwater aquifers).
3. Intermediate casing (isolate subsurface formations, protect from pressure).
4. Production casing (isolate production zone).

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Understanding Fracturing Fluids

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API RP 100-2
 Scope – provides proven practices
applicable to the planning and operation
of wells, and hydraulically fractured wells.

 Topics covered include recommendations

for managing environmental aspects
during planning, site selection, logistics,
mobilization, rig-up, and demobilization,
and stimulation operations.

 Includes guidance on managing

environmental aspects during well
construction.

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 API RP 100-2

 Provides recommendations on the following topics:

 baseline groundwater sampling  management of solid and liquid
wastes
 source water management
 air emissions
 material selection
 site planning
 transportation of materials and
equipment  training
 storage and management of  noise and visual resources
fluids and chemicals

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 API RP 100-2
 Puts hydraulic fracturing into perspective relative to
drilling, completions, and production lifecycle

 Most aspects are independent of the well stimulation

practice used to improve production

 Describe baseline practices

 Establish consistent terminology

 Recommended practices are site-specific and can vary over

the lifecycle of the well
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API Bulletin 100-3
 Scope – outlines what local communities
and other key stakeholders can expect
from operators.
 Designed to acknowledge challenges and
impacts that occur during the industry’s
presence in a given region.
 Provides flexible and adaptable strategies,
recognizing application will vary from
operator to operator and community to
community.
 Guidelines are intended to support
onshore oil and gas projects for shale
developments; however, are adaptable to
any oil and gas project.
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 API Bulletin 100-3
 Share as a guide for “good neighbor” policies to help
maintain a license to operate.

 Manage expectations for all stakeholders.

 To be used by stakeholders and industry—operators,

contractors, service companies, and local communities and
officials.

 Assist the operator in developing an adaptable and

evergreen engagement plan.

 Build long-lasting, successful relationships within the

communities where the industry operates.

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 API Bulletin 100-3 Guiding Principles
 Integrity – “Companies operating with integrity strive to build
positive and constructive relationships within the community and
accumulate long-term sustainable relationships.”

 Safety & Environmental Responsibility – “Operate daily in a

manner that protects the safety, environment and health of
communities, employees and contractors during the complete
lifecycle of the project.”

 Communicating Effectively – “Communication is a two-way

process of giving and receiving information through a number of
channels…. following basic communication principles to build
credibility and improve dialogue and understanding.”

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 Timeline of a Well
EXPLORATION PLANNING SITE & WELL HYDRAULIC PRODUCTION
3–5 years 12–18 months CONSTRUCTION FRACTURING 30 + Years
2–3 months 3–5 days

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 API RP 51R

 Provides environmentally sound

guidance for domestic onshore oil
and gas operations.

 Includes all production facilities

and waste water handling facilities.

 Coverage begins with design and

construction of access roads and
includes reclamation, abandonment
and restoration operations.

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 API RP 51R
 Key areas of coverage are
 roads;
 Production and injection/disposal wells;
 gathering and system lines;
 production and water handling facilities.

 Includes guidance on
 Protection of the environment;
 personnel selection, training, and qualification;
 protection of public safety;
 respect for property owner rights.
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 API Std 65-2

 Scope – contains practices for

isolating potential flow zones, an
integral element in maintaining well
integrity.

 The focus of this standard is the

prevention of flow through or past
barriers that are installed during
well construction.

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 API Std 65-2
 Describes industry recommended cementing and well construction
techniques to help ensure proper cementing to include:
 planning;
 design;
 testing;
 execution;
 post-cement job analysis and process summary.

 Defines different types of mechanical barriers, including cement as a

barrier.

 Addresses cementing practices and factors that lead to a successful

cementing job.

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 Additional API Upstream Safety Standards
 Spec 14A – Subsurface Safety Valve Equipment

 RP 14B – Design, Installation, Operation, Test, and Redress of Subsurface Safety Valve
Systems

 RP 14C – Analysis, Design, Installation, and Testing of Safety Systems for Offshore
Production Facilities

 RP 14G – Fire Prevention and Control on Fixed Open-Type Offshore Production

Platforms

 RP 14J – Design and Hazards Analysis for Offshore Production Facilities

 Spec 16A – Drill-through Equipment

 Std 16AR – Repair and Remanufacture of Drill-Through Equipment

 Spec 16C – Choke and Kill Equipment

 Spec 16D – Control Systems for Drilling Well Control Equipment and Control Systems
for Diverter Equipment
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 Additional API Upstream Safety Standards
 Std 18LCM – Product Life Cycle Management System Requirements for the Petroleum
and Natural Gas Industries

 RP 49 – Drilling and Well Servicing Operations Involving Hydrogen Sulfide

 Std 53 – Blowout Prevention Equipment Systems for Drilling Wells

 RP 54 – Occupational Safety for Oil and Gas Well Drilling and Servicing Operations

 RP 55 – Oil and Gas Producing and Gas Processing Plant Operations Involving
Hydrogen Sulfide

 RP 59 – Well Control Operations

 RP 64 – Diverter Equipment Systems

 RP 67 – Oilfield Explosives Safety

 RP 74 – Occupational Safety for Onshore Oil and Gas Production Operation

 RP 75 – Development of a Safety and Environmental Management Program for

Offshore Operations and Facilities 33
 Additional API Upstream Safety Standards
 Bull 75L – Development of a Safety and Environmental Management System for
Onshore Oil and Natural Gas Production Operation and Associated Activities

 RP 76 – Contractor Safety Management for Oil and Gas Drilling and Production
Operations

 RP 90 – Annular Casing Pressure Management for Offshore Wells

 RP 90-2 – Annular Casing Pressure Management for Onshore Wells

 RP 96 – Deepwater Well Design and Construction

 Bull 97 – Well Construction Interface Document Guidelines

 RP 98 – Personal Protective Equipment Selection for Oil Spill Responders

 RP 99, Flash Fire Risk Assessment for the Upstream Oil and Gas Industry

 Bull E2 – Management of Naturally Occurring Radioactive Materials (NORM) in Oil and

Gas Production

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 Conclusions

 The shale gas revolution is a true game-changer; U.S. crude oil and
natural gas production continues to grow as a result of the further
development of tight oil resources.

 The U.S. will become a net energy exporter in 2020 and will remain so
through 2050 as a result of large increases in production of crude oil
and natural gas, and increasing energy efficiency.

 API standards represent industry’s collective wisdom on operational

practices, developed and refined over many years, and are an integral
part of API’s hydraulic fracturing program.

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 Questions?

Roland Goodman
Manager, Upstream Standards
American Petroleum Institute
200 Massachusetts Ave., NW
Washington, DC 20001
202-682-8000
[email protected]

www.api.org/Standards

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