The changing face of Queensland's petroleum industry

2011 ◽  
Vol 51 (1) ◽  
pp. 225 ◽  
Author(s):  
Alison Troup ◽  
Peter Green

The cycles and related changes in exploration targets identified in this study show the evolution of the Queensland petroleum industry from conventional petroleum to coal seam gas dominance. Delineation of these cycles was undertaken using petroleum exploration well data, and production and reserves statistics. Although the cycles are defined on the basis of exploration activity, there is a very different history in the types of targets and commodities explored for in the Bowen-Surat and Cooper-Eromanga basins. Trends in exploration success have been influenced by technology improvements, better understanding of target reservoirs, proximity to infrastructure, government policy and world oil prices. Four distinct exploration cycles have been identified from the data. During the first cycle (1959–74) exploration focused predominantly on the shallower Jurassic-aged reservoirs in the Bowen-Surat basins resulting in the discovery of most of the major conventional oil and gas fields. The second cycle (1979–89) saw exploration begin in earnest in the Cooper-Eromanga basins and a switch to predominantly Triassic-aged reservoirs in the Bowen-Surat basins. The first coal seam gas exploration wells were drilled during this cycle. The third cycle (1990–99) shows a decrease in the number of conventional petroleum wells across both regions and the beginning of the switch to the present dominance of coal seam gas. The fourth cycle (2000–present) shows a significant decrease in the number of conventional exploration wells drilled across both regions, but an increase in the success rates. All conventional discoveries in the Bowen-Surat basins during cycle four have been in Permian-aged reservoirs, reflecting a change in the exploration focus to deeper parts of the Bowen Basin. Coal seam gas exploration has expanded significantly, with the Walloon Coal Measures being targeted, resulting in nearly four coal seam gas wells drilled for each conventional petroleum exploration well state-wide since 2000. Examination of coal seam gas exploration highlights the many false starts since the first well was drilled in 1980. Exploration has shifted from area to area as companies tested different exploration concepts and completion techniques. The most obvious shift has been from Permian-aged targets of the Bowen Basin into the Jurassic-aged Walloon Coal Measures in the Surat and Clarence-Moreton basins, as its prospectivity was realised.

2000 ◽  
Vol 40 (1) ◽  
pp. 86
Author(s):  
S.G. Scott ◽  
P. Crosdale

The Queensland coal seam gas industry has grown over the last 12 years. During this time the vast majority of exploration wells have targeted the Late Permian coal measures in the Bowen and Galilee Basins. These formations have been the major target because they contain coals with a vitrinite reflectance ranging above 0.7%. This range has always been seen as the main period for methane generation.As well as containing vast quantities of Permian coal, Queensland also has vast quantities of Middle Jurassic coals within its Mesozoic Basins. These coals have received little-to-no exploration for their coal seam gas potential as they have always been interpreted as being immature for gas generation.Over 550 petroleum exploration wells drilled in the Mesozoic Surat Basin of eastern Queensland were reviewed to determine the coal volume of the intersected Walloon Coal Measures. A significant number have intersected large volumes of sub-bituminous to high volatile bituminous coals, in seams ranging up to 11.7 m in thickness. While the individual seams are not laterally persistent, the coal packages can be traced over hundreds of kilometres of the eastern Surat Basin.While only one well has tested the gas content, gas quality and saturation of the Walloon Coal Measures, numerous water bores have reported gas flows from the zone, and petroleum wells intersecting the formation have recorded high mud gas readings during drilling.The relatively shallow depth of the unit over much of the basin, the thickness of the coal packages, the proximity to major gas trunk pipelines and markets make the Walloon Coal Measures an ideal target for the next generation of coal seam gas explorers.


2010 ◽  
Vol 50 (2) ◽  
pp. 736 ◽  
Author(s):  
Raymond Johnson ◽  
Brent Glassborow ◽  
Jeremy Meyer ◽  
Michael Scott ◽  
Ashish Datey ◽  
...  

In coal seam gas exploration and appraisal, stress and permeability are often inter-related and play a large role in deliverability, particularly affecting hydraulic fracturing effectiveness. Generally, the structural setting for a coal seam gas (CSG) play can be defined by indirect data such as petroleum wells, core wells, or seismic data; however, the viability of a structure to be highly conducive to CSG development also requires direct measurements to fully define the effects associated with this interdependency of stress and permeability. Unfortunately, this interdependency may not be as apparent during the exploration phase as within the planning, execution and evaluation of a hydraulic fracturing program. We will present data from a limited area of the Surat Basin, in the Walloon coal measures, where initial regional and well data were available to allow drilling to evaluate a small, localised, structural setting for CSG development. While some permeability data were encouraging in the initial program, subsequent drilling indicated that permeability might become variable across this structure. Thus, further investigations were made and included novel, cross-dipole sonic logging in combination with acoustic and more advanced resistivity imaging logs. These data indicated that the stress and permeability azimuths may be aligned to take advantage of hydraulic fracturing. Thus, a hydraulic fracturing program was initiated in this area incorporating diagnostics to understand the potential benefit of this technology. The results of this program, while localised, do indicate that a potential pitfall can exist in some environments where the stress magnitudes along with stress and dominant permeability axes are not ideally positioned to take advantage of hydraulic fracturing. We will show how the data in this case were acquired, evaluated and integrated to support the overall understanding and interpretation of the results. Due to space constraints, this paper focusses primarily on the overall data process and is unable to elaborate fully on all diagnostics used and the fullness of their determinations; however, adequate supporting evidence is supplied in order to illustrate the problems in executing and achieving effective stimulation in similar structural settings.


2010 ◽  
Vol 50 (1) ◽  
pp. 143
Author(s):  
Sue Slater

This paper provides a brief update on some of the key environmental issues that arose during 2009. In Queensland, activity is dominated by coal seam gas projects and specifically coal seam gas (CSG) to liquefied natural gas (LNG) projects. Environmental milestones for these projects are discussed, and the State Government’s response policy and regulation development response is reviewed. The progress of the more conventional LNG projects in Western Australia and the Northern Territory is also discussed. The final report on the mandated ten year review of the Environment Protection and Biodiversity Conservation Act 1999 was released in December 2009. Seventy-one recommendations were made, and some key recommendations related to our industry are discussed here. Climate change has again dominated the media, with the United Nations Climate Change Conference held in Copenhagen in December 2009. In Queensland, the Government released a paper that presented a range of strategies and policies, building on a number of existing schemes and introducing new measures. Gas is identified as a key transitional fuel while low emission coal technology and emerging renewable energy sources are being developed. Greenhouse gas legislation is continuing to be developed across several states, but subordinate legislation is yet to be finalised. In Victoria, submissions on the Greenhouse Gas Geological Sequestration Regulations closed in October 2009, and the Greenhouse Gas Geological Sequestration Act 2008 came into effect on 1 December 2009. In March 2009, ten offshore acreage releases were made under the Commonwealth legislation; however, the closing date for submissions is dependent upon the development of the regulations. South Australia passed an Act amending the Petroleum and Geothermal Act 2000 on 1 October 2009 to allow geosequestration. A number of reviews of the regulatory framework or the administrative systems associated with the upstream oil and gas sector have been completed in the last decade. All these reviews make similar findings and recommendations, and most recently the Jones Report, tabled in Western Australian Parliament on 12 August 2009, found that most key recommendations from previous reports and reviews had not been addressed or properly implemented. There seems to be little point in undertaking regulatory and system reviews that consistently make similar findings, if these findings are never addressed. The hurdles to implementation of key recommendations need to be identified, so that progress can be made in improving the approvals processes for the industry, and improving the environmental outcomes.


2016 ◽  
Vol 56 (2) ◽  
pp. 561 ◽  
Author(s):  
Brian Towler ◽  
Mahshid Firouzi ◽  
Amin Mortezapour ◽  
Paul Hywel-Evans

Bentonite is widely used for plugging shallow water wells in the US. In the past 15 years Chevron has been plugging oil and gas wells with bentonite in the San Joaquin Basin in California, and has successfully plugged about 10,000 wells. In several previous publications the authors’ research team has reported laboratory data to predict pressure containment using bentonite to underpin the fundamentals for plugging both oil and gas wells. The authors propose bentonite as an alternative medium for decommissioning coal seam gas wells in Queensland. Gas producing companies in Queensland are proposing to drill and produce about 40,000 coal seam gas wells in the state, and all of these will have to be plugged eventually. Water wells are shallow and are usually plugged with coarse granulated bentonite that is simply poured down the hole and hydrated. The authors propose a process for compressing bentonite into cylinders of various shapes, which promises to improve the use of bentonite for plugging deeper wells. Oil and gas wells are presently plugged and abandoned with cement. Bentonite has a number of advantages when plugging oil and gas wells. It is cheaper and easier to deploy and it is more reliable than cement. In this extended abstract the application of bentonite for plugging conventional oil and gas and coal seam gas wells will be discussed. The many field trials will be reviewed and the fundamental theory for plugging wells with bentonite will be outlined.


2011 ◽  
Vol 51 (2) ◽  
pp. 716
Author(s):  
Peter Smith ◽  
Iain Paton

The large number of wells associated with typical coal seam gas (CSG) developments in Australia has changed the paradigm for field management and optimisation. Real time data access, automation and optimisation—which have been previously considered luxuries in conventional resources—are key to the development and operation of fields, which can easily reach more than 1,000 wells. The particular issue in Australia of the shortage of skilled labour and operators has increased pressure to automate field operations. This extended abstract outlines established best practices for gathering the numerous data types associated with wells and surface equipment, and converting that data into information that can inform the decision processes of engineers and managers alike. There will be analysis made of the existing standard, tools, software and data management systems from the conventional oil and gas industry, as well as how some of these can be ported to the CSG fields. The need to define industry standards that are similar to those developed over many years in the conventional oil and gas industry will be discussed. Case studies from Australia and wider international CSG operations will highlight the innovative solutions that can be realised through an integrated project from downhole to office, and how commercial off the shelf solutions have advantages over customised one-off systems. Furthermore, case studies will be presented from both CSG and conventional fields on how these enabling technologies translate into increased production, efficiencies and lift optimisation and move towards the goal of allowing engineers to make informed decisions as quickly as possible. Unique aspects of CSG operations, which require similarly unique and innovative solutions, will be highlighted in contrast to conventional oil and gas.


1977 ◽  
Vol 85 ◽  
pp. 7-10
Author(s):  
K Ellitsgaard-Rasmussen

In 1976 the first petroleum exploration well was drilled on the shelf off West Greenland. This marked an important stage in the development of petroleum exploration in Greenland folIowing the granting of concessions in April 1975 by the Ministry for Greenland. GGU's Oil and Gas Section was closely involved in the assessment of the drilling programme and in following the operation. Sample material and data were submitted during and after the drilling to the Ministry for Greenland and were studied in the Survey as part of the follow-up procedure. Several members ofthe GGU staff visited the drill ship Pelican during the summer.


2020 ◽  
Author(s):  
Gábor Tari ◽  
Didier Arbouille ◽  
Zsolt Schléder ◽  
Tamás Tóth

Abstract. The concept of structural inversion was introduced in the early 1980s. By definition, an inversion structure forms when a pre-existing extensional (or transtensional) fault controlling a hangingwall basin containing a syn-rift or passive fill sequence subsequently undergoes compression (or transpression) producing partial (or total) extrusion of the basin fill. Inverted structures provide traps for petroleum exploration, typically four-way structural closures. As to the degree of inversion, based on large number of worldwide examples seen in various basins, the most preferred petroleum exploration targets are mild to moderate inversional structures, defined by the location of the null-points. In these instances, the closures have a relatively small vertical amplitude, but simple in a map-view sense and well imaged on seismic reflection data. Also, the closures typically cluster above the extensional depocentres which tend to contain source rocks providing petroleum charge during and after the inversion. Cases for strong or total inversion are generally not that common and typically are not considered as ideal exploration prospects, mostly due to breaching and seismic imaging challenges associated with the trap(s) formed early on in the process of inversion. Also, migration may become tortuous due to the structural complexity or the source rock units may be uplifted above the hydrocarbon generation window effectively terminating the charge once the inversion occurred. For any particular structure the evidence for inversion is typically provided by subsurface data sets such as reflection seismic and well data. However, in many cases the deeper segments of the structure are either poorly imaged by the seismic data and/or have not been penetrated by exploration wells. In these cases the interpretation of any given structure in terms of inversion has to rely on the regional understanding of the basin evolution with evidence for an early phase of substantial crustal extension by normal faulting.


2010 ◽  
Vol 50 (1) ◽  
pp. 35
Author(s):  
Peter Green

Peter Green is the Geoscience Manager: Energy Geoscience in the Geological Survey Queensland and has extensive experience in basin studies, geoscience and the development of petroleum regulation in Queensland. This paper provides a summary of the land releases for petroleum exploration for onshore areas and coastal waters of Australia for 2010. The summaries include upstream petroleum acreage opportunities for the states and the Northern Territory, and geothermal energy exploration opportunities. The rise in interest in export liquefied natural gas projects has ensured petroleum exploration and production has remained strong. Interest in acquiring petroleum acreage to explore for both conventional and non-conventional plays remains high. Australian state and the Northern Territory governments continue to provide access to land and promotional opportunities for companies to undertake exploration and development of our petroleum resources. Acreage on offer provides a mix of exploration opportunities from conventional oil and gas through to the unconventional plays such as shale gas and tight gas. This change in acreage on offer reflects the changing nature of the onshore petroleum industry in Australia.


2006 ◽  
Vol 46 (1) ◽  
pp. 525
Author(s):  
P.M. Green ◽  
S.G. Matheson ◽  
K.D. Ralph ◽  
M.E. Thompson ◽  
T.J. Brain

up-to-date legislative environment for the petroleum industry in that State. The legislation specifically addressed issues in relation to upstream competition for exploration acreage and provided for storage of petroleum for a third party. It implemented the coal seam gas regime which provides a mechanism for the optimisation of the State’s coal seam gas and petroleum resources. The rights of existing holders of petroleum tenure were protected through the continuation of the Petroleum Act 1923 for selected authorities to prospect and petroleum leases. A new safety regime was implemented with the aim of addressing and managing risk rather than the emphasis being on the prescriptive compliance with Regulations. The safety regime covered all aspects of petroleum, from its production, transportation and use. The implementation of the new legislation required the development of work procedures to assist with uniform decision-making under the new legislation. This is particularly important owing to the continuation of the Petroleum Act 1923.


2006 ◽  
Vol 46 (1) ◽  
pp. 367 ◽  
Author(s):  
R.W. Day ◽  
R.F. Prefontaine ◽  
P.A.J. Bubendorfer ◽  
M.H. Oberhardt ◽  
B.J. Pinder ◽  
...  

In 2001, Arrow Energy NL, a fledgling coal seam gas (CSG) explorer, drilled the first wells of a multi-well exploration program in two Authorities To Prospect (ATP) permits—ATPs 683P and 676P—that covered an area totalling 13,817 km2 of the Jurassic Walloon Coal Measures in the eastern Surat Basin. The objective was to discover significant CSG resources and, if successful, to commercialise to reserve status. Early exploration success in 2002 saw the discovery of the Kogan North and Tipton West CSG fields. This paper reviews the discovery and subsequent appraisal and development work that Arrow Energy has completed to establish production from these fields.By 2004, Arrow Energy had independently certified Probablereserves in the Kogan North field of 85 PJ, and Possible reserves of 157 PJ. Results from a five-well CSG pilot operation demonstrated the feasibility of commercial gas flow rates sufficiently to justify commercialising CSG from the Walloon Coal Measures in the Kogan North field. Under the terms of a staged development agreement, CS Energy Ltd—Queensland’s largest electricity generator—farmed into the Kogan North Project to earn a 50% interest in PL194 and an adjoining portion of ATP 676P by funding A$13.1 million of the project’s development and appraisalcosts. The funds provided by CS Energy covered the majority of the development costs required for Arrow’s Kogan North development project. The initial gas sales contract from Kogan North will supply sales gas of 4 PJ/a for 15 years to CS Energy from March 2006. Arrow Energy retains the remaining 50% interest and operates the project.With 25 PJ Probable, 90 PJ Probable and 1,980 PJ Possiblegas reserves certified independently, the Tipton West field could potentially be one of the largest onshore gas fields in eastern Australia. Final appraisal of the Tipton West field is currently underway with financial close on the development expected in late 2005. Beach Petroleum Ltd has entered into an agreement to fund the A$35 million required for upstream developmentto supply the initial 10 PJ/a sales gas from the field in 2007, in exchange for 40% interest in th Dalby block of ATP683P. Arrow Energy retains the remaining 60% interest and operates the project.Diligent environmental and land management systems are required with the development of any CSG field. For example, formation water produced from CSG activities needs to be managed effectively. To deal with this water Arrow Energy is developing and implementing several innovative strategies, including forced evaporation dams, water supply to local coal-washing plants and trialling desalination plants to provide drinking water for nearby towns, aquaculture and stock watering.Arrow Energy has also implemented a Cultural Heritage Management Plan within the development areas in cooperation with the local indigenous claimant groups, the Western Wakka Wakka and the Barunggam peoples. The plan was designed to minimise risk of any disturbance to indigenous artefacts and areas of significance during the exploration, construction and ongoing operations associated with the development of both gas fields.The discovery and future development of the Kogan North and Tipton West fields has been achieved by using an appropriate mix of geological evaluation, efficient drilling techniques, innovative well completion methods and successful marketing strategies, integrated with cooperative environmental and cultural heritage management systems.


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