DE-FC26-01NT41332

Goal
The goal of this project is to characterize the large in-place methane hydrate resource on the Alaska North Slope (ANS) and to conduct field and lab studies to determine the potential for methane, produced from hydrate, to become a viable part of the overall energy supply.

Performers

• BP Exploration Alaska, Inc. (BPXA) ? providing access to data and selected field areas as well as project management, geological, and geophysical expertise.
• ASRC Energy Services ? providing geologic, engineering, operations, and project management expertise.
• University of Alaska?Fairbanks (UAF) ? conducting laboratory studies of previously poorly known reservoir parameters, including relative permeability.
• University of Arizona, Tucson (UA) ? conducted regional geologic studies to ascertain the geometry and controls over the gas hydrate stability zone and the potential reservoirs within.
• United States Geological Survey (USGS) ? providing a wide range of data acquisition, operational, geologic, geophysical, geochemistry, and geomechanical expertise to the project as well as significant contributions to overall project planning and coordination.
• Interpretation Services (IS) ? worked with the USGS to identify and characterize hydrate reservoirs from 3-D seismic data.
• Ryder-Scott Company (RS) ? providing reservoir simulation and engineering expertise to evaluate the potential production response from various potential well sites and production techniques, as well as planning of potential long-term production testing scenarios.
• APA Petroleum Engineering ? providing operations expertise and economics modeling capabilities to support the analyses of alternative production scenarios and candidate well locations.
• Fekete ? providing reservoir simulation and engineering expertise to evaluate the potential production response from various potential well sites and production techniques.
• Lawrence Berkeley National Laboratory (LBNL) ? providing reservoir simulation and engineering expertise to evaluate the potential production response from potential well sites and production techniques, as well as computed tomography (CT) scanning capabilities for use in the characterization of cores from the Mt. Elbert stratigraphic test well.
• National Energy Technology Laboratory (NETL) ? providing sedimentology and mineralogical sampling of cores from the Mt. Elbert stratigraphic test well; reservoir simulation and engineering expertise to evaluate the potential production response from various potential well sites; and production techniques through code comparison study and thermal property analyses of cores taken at the Mt. Elbert site.
• GeoTek ? providing high-resolution digital scanning of cores from the Mt. Elbert stratigraphic test well.
• Omni Laboratories ? providing well operations support as well as reservoir property and core analyses from the Mt. Elbert stratigraphic test well.
• Oregon State University ? providing pore water and microbiological analyses of samples collected during drilling and coring of the Mt. Elbert site.
• Isotech Laboratories ? providing gas geochemistry for samples from the Mt. Elbert stratigraphic test well.
• Texas A&M University ? providing detailed interpretation of electromagnetic propagation tool (EPT) logs collected from the Mt. Elbert stratigraphic test well.

Background
Recent assessments produced by the U.S. Geological Survey (USGS) estimated that 85 trillion cubic feet (tcf) of undiscovered, technically recoverable gas resources exist within gas hydrates in northern Alaska. Past USGS assessments indicated 40 tcf of the resource may exist within hydrate deposits below existing oil and gas production facilities. In 2001, BP Exploration Alaska Inc. proposed a state-of-the-art 3-D seismic survey over its Milne Point production unit to provide a starting point for a full evaluation of the feasibility of commercial production from Arctic hydrates.

Efforts under this project are broken into several operational phases. Phase 1 focused on the evaluation and development of lab, modeling, and field techniques and technologies required for assessment of ANS hydrates and for conducting field-based operations planned in later project phases. Phase 2 focused on actual assessment of ANS hydrate resources and the operational planning for future field testing. These initial phases implemented fully integrated, detailed geophysical interpretation and modeling; regional geologic characterization of prospective hydrate-bearing units; and advanced reservoir and economic modeling to select a location for drilling, coring, and potential production testing. Phase 3 concentrates on activities necessary to achieve a long-term, depressurization-based, field test of methane production from an ANS hydrate reservoir. To date (Phase 3A), this has included the drilling, logging and coring of a stratigraphic hydrate test well in the Milne Point Unit as a mechanism to verify reservoir characterizations and to test techniques and technologies necessary to prepare for a long-term production test in Phase 3B.

Potential Impact
This project will be a critical first step in determining the commercial viability of methane production from arctic hydrate deposits. The project will greatly advance the tools and techniques used to delineate specific hydrate prospects and to model the potential productivity and commercial viability of those prospects. The project could also (assuming continuation through all project phases) provide the first extended production testing of a U.S. gas hydrate reservoir and yield insight into the relative merit of various contemplated production and stimulation methods for gas hydrate.

Accomplishments

Field Testing (Phase 3)

• Completion of detailed evaluation and ranking of potential ANS field test locations and the development of a framework of options and production testing methodologies for long-term production test sites, including well completion and test design scenarios.
• Analysis of data from the 2007 Mt. Elbert stratigraphic test well including publication of the scientific results as a special volume of the Journal of Marine and Petroleum Geology (Vol. 28, Issue 2, Feb 2011).
• Completion of a vertical stratigraphic test well (the ?Mt. Elbert? prospect) including petrophysical analyses, full core throughout the hydrate stability zone, a full suite of wireline logs, and short-duration testing with the Modular Formation Dynamics Tester. Highlights include:
  • Four-hundred and thirty feet of core collected (100 feet hydrate bearing).
  • Confirmation of the existence of 60?75% hydrate saturation within reservoir quality sands in target intervals and validation of methods used to identify potential hydrate occurrence.
  • Confirmation of the formation?s ability to yield gas from hydrate through pressure reduction, but with indication that chemical or thermal stimulation may be required for long-term production.
  • A large volume of samples and data from the drilling, logging, and coring operations were distributed to participating researchers from around the world.
• Completion of seismic analyses, site characterization and selection, and development of detailed scientific and operational plans for drilling, logging and coring for the Mt. Elbert stratigraphic test well.

Assessment and Planning (Phases 1 and 2)

• Economic analysis of hydrate field development scenarios that indicate the potential commercial viability of hydrate development.
• Delineation and characterization and assessment of regional resource potential for 14 discrete gas hydrate accumulations within the Milne Point area containing up to 600 BCF of gas in-place,
• Confirmation of up to 33 tcf of regional hydrate resource potential in place in the Eileen trend.
• Development of geophysical modeling enabling the correlation of seismic attributes with hydrate reservoir parameters such as zone thickness and hydrate saturation.
• Regional structural mapping of reservoir units, the mapping of shallow fault offsets, and the determination of syndepositional faulting and fault-seal potential.
• Fabrication of a laboratory facility to measure the relative permeability of typical sandstone reservoir rock to gas and water under a range of hydrate saturations.
• Adaptation of the commercial modeling package, CMG STARS, to provide reservoir modeling capabilities for hydrate prospects, and use of the model to determine the production potential of gas hydrate settings.
• Analysis of Milne Point Unit (MPU) seismic data and integration with MPU well log data and publicly available well data from the surrounding Prudhoe Bay and Kuparuk River production units.

Current Status (May 2012)
Efforts under Phases 1 ? 3A have been completed and the project is currently in a holding pattern awaiting decisions on potential continuation into the final production testing phase (Phase 3B). Evaluation of issues surrounding the ability, under this project, to access and conduct the planned long term, depressurization-based, test of methane production from a gas hydrate reservoir at a preferred field test location, within the Prudhoe Bay Unit on the Alaska North Slope, are ongoing. DOE and the performer continue to pursue all options by which the planned long term production testing activities can be carried out.

Project Start: September 30, 2001
Project End: March 31, 2014

Project Cost Information:
Phase 1: DOE Contribution: $ 2,611,828, Recipient Contribution: $5,396,234
Phase 2: DOE Contribution: $ 870,485, Recipient Contribution: $100,775
Phase 3A: DOE Contribution: $6,337,103, Recipient Contribution: $316,628
Planned Phase 3B: DOE Contribution: $10,415,920, Recipient Contribution: $220,711

Planned Total Funding (if project continues through all project phases):
DOE Contribution: $20,235,336 ($9,819,416 to date), Recipient Contribution: $6,034,348

Contact Information:
NETL  – Rick Baker (richard.baker@netl.doe.gov or 304-285-4714)
NETL ? Ray Boswell Hydrate Program Technology Manager (ray.boswell@netl.doe.gov or 304-285-4541)
BP Exploration Alaska ? Stephen Lewis (stephen.lewis2@bp.com or 907-564-5878)
If you are unable to reach the above personnel, please contact the content manager.

Additional Information:
In addition to the information provided here, a full listing of project related publications and presentations as well as a listing of funded students can be found in the Methane Hydrate Program Bibliography [PDF].

Semi-Annual Report [PDF-3.14MB] - October 2011 - March 2012

Semi-Annual Report [PDF-3.14MB] - April - September 2011

Semi-Annual Report [PDF-3.14MB] - April - September 2010

Semi-Annual Report [PDF-3.77MB] - October 2009 - March 2010

BPXA Status Meeting Presentation - Hunter [PDF-6.01MB] - January 2009

BPXA Status Meeting Presentation - Hancock [PDF-669KB] - January, 2009

BPXA Status Meeting Presentation - Wilson [PDF-5.40MB] - January, 2009

2008 ICGH Paper - Investigation of Gas Hydrate-Bearing Sandstone Reservoirs at the "Mount Elbert" Stratigraphic Test Well, Milne Point, Alaska [PDF]

2008 ICGH Paper - Analyses of Production Tests and MDT Tests Conducted in Mallik and Alaska Methane Hydrate Reservoirs: What Can We Learn from These Well Tests? [PDF]

2008 ICGH Paper - Preliminary Assessment of Hydrocarbon Gas Sources from the Mt. Elbert No. 1 Gas Hydrate Test Well, Milne Pt. Alaska [PDF]

2008 ICGH Paper - An International Effort to Compare Gas Hydrate Reservoir Simulators [PDF]

2008 ICGH Paper - Analysis of Modular Dynamic Formation Test Results from the Mount Elbert-01 Stratigraphic Test Well, Milne Point Unit, North Slope Alaska [PDF]

Alaska Gas Hydrate Research and Stratigraphic Test Preliminary Results [PDF-1.84MB] - Robert B. Hunter, Scott A. Digert, Ray Boswell, and Timothy S. Collett - March, 2008

A listing of the available well log data from BP-DOE-US "Mount Elbert" test - Digital well log data acquired at the February 2007 gas hydrates test well at Milne Point, Alaska are now available. Data include Gamma ray, neutron porosity, density porosity, three-dimensional high resolution resistivity, acoustics including compressional- and shear-wave data, and nuclear magnetic resonance.

ANS Stratigraphic Test Well - February, 2007

BP Drills Alaska North Slope Gas Hydrate Test Well to Assess Potential Energy Resource  [external site] February 20, 2007 BP Press Release

Topical Report - June 2005:  Drilling and Data Acquisition and Planning [PDF-8092KB]

Technical Report  - October 2003: Natural Gas Hydrate Characterization - Prudhoe Bay [PDF-4906KB]

Semi-Annual Report [PDF-3.56MB] - April, 2009 - September 2009

Semi-Annual Report [PDF-14.6MB] - October, 2008 - March 2009

Semi-Annual Report [PDF-1.25MB] - March, 2008 - September, 2008

Semi-Annual Report [PDF-11.9MB] - October, 2007 - March, 2008

Technical Report - September 2007:  Twentieth Quarterly Report [PDF-16.02MB] - July - September, 2007

Technical Report - June 2007:  Nineteenth Quarterly Report [PDF-3.23MB] - April - June, 2007

Technical Report - March 2007:  Eighteenth Quarterly Report [PDF-33.98MB] - January - March, 2007

Technical Report - December 2006:  Seventeenth Quarterly Report [PDF-10.5MB]

Technical Report - September 2006:  Sixteenth Quarterly Report [PDF-1.04MB]

Technical Report - June 2006:  Fifteenth Quarterly Report (Ten-Fourteen Waived) Inclusive of January 2005 - June 2006  [PDF-7.3MB]

Technical Report - July 2005:  Eighth and Ninth Quarterly Report [PDF-7524KB]

Poster - Use of Seismic Attributes and Modeling [PDF-3705KB] - North Slope, Alaska