Gas" is on the agenda. What is "Shale gas"? Is
ShaleGas production as easy as you might think? Is it cheap? Do we
have it in our environment? Can we produce? What is the cost of
SaleGas production? What happens to the environment in Shale Gas
gas is basically natural gas. Only the thermal calorific value is a
bit low. Shale gas production is same as Natural gas production by
non-traditional, non-conventional method. The soil structure
"thin-bedded, rich in organic matter", is suitable for
producing oil and gas is called "Shale".
Gas" is the method of taking the Natural Gas which is trapped
between the deep underground rocks. Shale Oil (Shale Petroleum) are
removed by the same methods. ShaleGas and Shale Oil production
technology are not new practice. Since 1947 there has been market
practice in the United States.
the US will build large number of LNG terminals and become one of the
world's largest gas exporters. Rich Shale Gas sources will change the
world gas market prices and balances. Traditional natural gas
deposits are found in separate volumes of crude oil or on crude oil
reserves. Shale Gas is the volume of natural gas trapped in
impervious soil rocks.
Drilling" and "Hydraulic Fracturing" have gained
economic value with the development of the Shale gas producing
natural gas reserves produced by traditional methods suffice for the
world's needs of about next 60 years. With Shale gas to be produced
by non-conventional methods, this period is extended up to 250 years.
has 1.275 Trillion cubic feet (Tcf), US 862 Tcf visible reserves, it
is estimated that Turkey has 15 Tcf Shale Gas reserves.
wells used to drill for Shale gas in environmental technologies
inevitably affect the nearby wildlife. The fluid used during well
excavation and hydraulic cracking consists of 98% of sand and surface
water, and the required contribution of 1-2% consists of chemicals
that will reduce friction during soil excavation. It is not possible
for chemicals to contaminate groundwater if appropriate technologies
are used in deep underground hydraulic cracking. Because the depth of
sand and chemicals is about 3000 meters below ground, far below the
depth of the deepest underground water. Much quantity of fresh water
(about 15-20 thousand m3) is needed during the excavation of each
estimate that Shale Gas may be found in Southeast Anatolia and Thrace
region in Turkey. There is no visible reserve yet proven. It is
necessary to open large number of wells for visible-proven reserve
figures. It is not possible to reach a quick result quickly with 1-2
drilling wells, that is not true.
rapid increase in natural gas prices at international spot markets,
the decline in production from existing sources, the natural gas
depletion, the reduction of traditional natural gas resources that
are easily accessible, and the new developments in Shale gas
production technologies have increased the investment appetite for
oil prices were at US $ 55 per barrel in February 2017 at
international markets. Ref. IndexMundi, Crude Oil (petroleum), Dated
Brent, light blender 38 API fob UK, US Dollars per Barrel
delivery price of Russian natural gas in February 2017 at Germany
border was 6.00 US $ for MMBTU. Ref. IndexMundi. Natural Gas, Russian
Natural Gas price in Germany, US Dollars per Million Metric British
is the current price at Turkish border as they have not sold it to us
under the price they sold to Europe. As long as natural gas is
needed, the prices of natural gas will increase.
also say the price of Natural Gas USA Henry Hub. As of February 2017,
the price for 1000 Sm3 is USD 136 - or USD 3.50 / MMBTU. Ref.
IndexMundi, Natural Gas, Natural Gas terminal spot price at the Henry
Hub in Louisiana, US Dollars per Million Metric British Thermal Unit
the end of 2016, Turkey is 98% dependent on imported natural gas and
92% dependent on imported oil. The most important cause of the
current account deficit is the energy shortage, namely imported
natural gas and imported coal.
Cracking method for Shale gas was introduced with the legal
regulations of the US norms and legislation. US Shale Gas production
was 14 Billion Nm3 in 2005 and 241 Billion Nm3 in 2011. In 2010,
15,467 wells were opened in the US. There will be more encouragement
in this regard during the presidency of Donald Trump.
Shale gas production, 3000-3500 meters depth in the well before the
rock excavated for the production of Shale gas, then it is necessary
1000-1500 meters of horizontal drilling. During the horizontal
drilling, chemical liquid and sand are pressurized, then underground
layer cracking is made in 20-30 different points. 40-50 meter
underground layer is cracked in each crack, then ShaleGas which is
emerging is collected from these cracks into the well.
sand that is added to the water (or liquid) that keeps the formed
cracks open. Shale Gas production wells can be opened at intervals of
about 500 meters in between. It is estimated that the approximate USA
budget price for each Shale Gas production drilling well is between
US $ 200-500 thousand.
also should consider the environmental risks of Shale Gas production
technology. Because of the high pressure liquids used in deep soil
drilling, local small earthquakes can occur, which may trigger big
is also a risk that chemicals may interfere with drinking water when
cracks occur at shallow depths. We notice that 25-75% of the water
injected into the ground is returned to the surface. Returned dirty
water is dangerous which may contaminate domestic use water, and if
serious checks are not carried out, return dirty water may cause
the US natural gas to add up Shale gas production, it can affect
world gas prices, but we do not expect that prices will fall much in
in the US, the trend towards gas fired thermal power plants began
instead of coal-fired power plants.
coal-fired power plants are shutting down, more combined cycle power
plants are commissioning to use more Shale gas. The Shale gas
quantity to export is limited. The average cost per new well to be
opened in the US has increased. Now, with the average production cost
of ShaleGas is over US $ 7 per MMBTU, new wells do not have the
you have Shale Gas in Turkey? We guess, yes it exists, but we do not
know how much yet. We have not yet drilled a significant number of
if we have reserves, it will take at least 8-10 years to find and
exploit it and use it on the market. Significant investments are
needed to transport gas in order to reach the market from the
production well of ShaleGas. Our ball-park guess is that the Shale
gas we produce will reach consumers at a price that is not less than
$ 300 per 1000 cubic meters.
need to set up organizing shipyard zones that will be able to produce
off-shore platforms for overseas off-shore searches in places such as
search- drilling technologies, improvement of drilling rigs, increase
of R&D studies, in shipyards such as in Istanbul Tuzla, İzmir
Aliağa, Antalya, Mersin.
Donald Trump's US presidency, that is to say, over the next 4-8
years, the production of Shale Gas will increase, gas prices will
decrease, conversion to combined cycle power plants and more gas
consumption are expected. First of all, it will occur in the US and
then in other countries with relatively low prices, natural gas will
be replace coal.
will be sold more cheaply at international markets. Carbon emissions
and water vapor will increase the greenhouse effect. Due to energy
policies of President Donald Trump, Renewable energy investments will
unfortunately be reduced first in the US, then perhaps all over the
world. Global warming will eventually increase. Turkish current
account deficit will be even greater if we do not care about.
Direskeneli, is a graduate of METU Mechanical Engineering department
(1973). He worked in public, private enterprises, USA Turkish JV
companies (B&W, CSWI, AEP), in fabrication, basic and detail
design, marketing, sales and project management of thermal power
plants. He is currently working as freelance consultant/ energy
analyst with thermal power plants basic/ detail design software
expertise for private engineering companies, investors, universities
and research institutions. He is a member of ODTÜ Alumni and Chamber
of Turkish Mechanical Engineers Energy Working Group.
07 April 2017