Results of the Gulf of Mexico Gas Hydrate Joint Industry Project Leg II Drilling Expedition: Impact on Global Energy Development T. Collett, U.S. Geological Survey R. Boswell, U.S. Department of Energy PETROTECH 2010 October 31 through November 3, 2010 New Delhi, India ID : 329-PT2007

The primary objective of this project is to collect data, and develop models, tools and processes that allow for the better characterization of natural gas hydrates in marine environments. With a goal to further understand the nature and mitigation of gas hydrate-related drilling hazards and to assess the energy resource potential of gas hydrates in nature. Gulf of Mexico Gas Hydrate Joint Industry Project

1.International Gas Hydrate Research 2.The Gas Hydrate Petroleum System 3.The Gulf of Mexico JIP Leg II Results  Operations  Green Canyon 955  Walker Ridge Summary Presentation Outline

Gulf of Mexico JIP Mallik 98/02/07/08 ODP 204 IODP 311 North Slope, Alaska India ODP 164 Binghamton University Colorado School of Mines Fugro-McClelland, Inc. GAIL Ltd Geological Survey of Canada Geotek Ltd Idaho National Laboratory Integrated Ocean Drilling Program JOI, Inc. Lamont-Doherty Earth Obs Ministry of Petrol and Natural Gas McGill University DOE-NETL Chevron US DOE/NETL ConocoPhillips Statoil Total E&P Schlumberger Minerals Management Service Japan Oil Gas Minerals National Corporation Reliance Industries Ltd Korea National Corporation US Geological Survey AOA Geophysics Lamont Doherty Earth Observatory WesternGeco Naval Research Laboratory Rice University Natl Inst of Oceanography Natl Inst of Ocean Tech Ocean Drilling Limited Oregon State University Oil and Natural Gas Corp Ltd OIL India Ltd Pacific Northwest Natl Lab Reliance Industries Limited Schlumberger Technical University of Berlin Texas A&M University University of California, SD University of Cardiff University of New Hampshire Universität Bremen University of Rhode Island U.S. Department of Energy U.S. Geological Survey U.S. NSF Woods Hole Ocean Inst International Gas Hydrate Research UBGH 1 & 2 GMGS X01 99/00 MITI 05 Toai-oki Kumano-nada BP/DOE/USGS/Univ Alaska ConocoPhillips/DOE North Slope Borough/DOE BLM/USGS Gumusut Shell; Sabah, Malaysia

Controls on the Occurrence Gas Hydrate -Gas Hydrate Petroleum System- -Formation temperature -Formation pressure -Pore water salinity -Gas chemistry -Availability of gas and water (source) -Gas and water migration pathways -Presence of reservoir rocks -Trap and seals

The Gas Hydrates Resource Pyramid Distribution of huge in-place resource increasing in-place decreasing reservoir quality increasing technical challenges decreasing % recoverable Gas Hydrate sample – 2002 Mallik Gas Hydrate Production Test Mallik GH-saturated fractured clays – Bay of Bengal Massive GH seafloor mound – Gulf of Mexico GH-saturated turbidite – Nankai trough GH-Saturated conglomerate – NW Canada (Mallik) A B A C B D D C E Boswell and Collett, 2006 Data Sources A: Collett, 1993; Collett, 1995 B: MMS, 2008 C: Unassessed (India, Korea expeditions) D: Unassessed E: Collett, 1995

Chevron/DOE Gulf of Mexico Gas Hydrates Joint Industry Project JIP Members Participating Groups Helix Q4000 Alaminos Canyon Block 21 May, 2009

AC-21 WR-313 GC-955 X X KC-195 AT kilometers Shedd, et al., 2009 X JIP Leg I drill site (2005) JIP Leg II drill site (2009) JIP Leg II Expedition Spring days: 3 sites: 7 wells: 15,300 ft drilled-logged C = continuous; Combo = combination; D = discontinuous; P = patchy

GOM JIP Leg II: Geologic Settings

GOM JIP Leg II featured a state-of-the-art LWD bottom hole assembly 23.2’ x 8.375” SonicVision 18.3’ x 7.5” PeriScope 32’ x 8.25” TeleScope 25.2’ x 8.25” EcoScope 10’ x 8.25” GeoVision 6.75” x 8.50” Hole opener 31’ x 6.5” MP3 6.75” PDC bit LWD tools by Schlumberger There were no tool failures requiring retrieval of the drill string on JIP Leg II

Green Canyon 955

Sand reservoir Source Migration pathways (blocked?) Closure Seal Now Time 1 Time 1+ Base of gas hydrate stability

Amplitude P Impedance GH Saturation Gas Hydrate Saturation from Compressional Impedance

Time C Now C X Time X ? Green Canyon 955 Sand reservoir Source Migration pathways (blocked?) Closure Seal GC 955 Site Elements I H Q

GC955-Q GC955-H ©2009 WesternGeco Used by Permission GR RES

Green Canyon 995-H Downhole Log Data

4 ft 9 ft 88 ft Green Canyon 995-H

General model for GC955 H “H”-accumulation Map view of H-fault block from previous slide with proposed thickness

Sand Shale GAS WATER GAS HYDRATE? WATER GAS G H BGHS Walker Ridge 313 Site Elements © 2009 WesternGeco Used by Permission ORANGE BLUE GREEN

Pre-Drill Seismic Prediction gas hydrate saturation Blue Horizon Orange Horizon Above BGHS Below BGHS Above BGHS Below BGHS H G H G WR 313 Acoustic (seismic) impedance derived gas hydrate saturation (%)

WR 313 Results © 2009 WesternGeco Used by Permission

Walker Ridge 313 Drilling Results WR313-G WR313-H Blue Orange Blue Green

Walker Ridge 313 Drilling Results WR313-G WR313-H BlueOrange

Log Summary – WR313-H Target Horizon 14 ft 23 ft Orange

WR313 Orange Narrow (from McConnell et al. ): This is over a narrow time window on Orange as seen in the H well. Likely levee marginal to a largely- shale-filled channel WR313 Gas Hydrate Reservoir Model

I WR313 Orange Gas Hydrate Reservoir Model

Summary The occurrence and concentration of gas hydrates is partly controlled by the nature of the host sediments. With hydrate saturations in sandstone reservoirs considerably higher than those in clay dominated sediments. The occurrence of highly concentrated gas hydrate accumulations in both marine and permafrost environments have confirmed that gas hydrates may represent an important energy resource for the future. The occurrence of gas hydrates in a definable petroleum system provides us with a gas hydrate exploration model. Recent gas hydrate assessments have focused on understanding the geologic controls on the occurrence and potential production of gas hydrates.