Growth sectors

UNCONVENTIONAL GAS
RESOURCES FOR THE FUTURE
Unconventional gas l Exploration & Production l November 2011

An abundant and widespread resource

challenges

Unconventional gas (UCG) resources – coalbed methane, shale gas and tight gas – are abundant and found on every
continent. Their volume is comparable to that of conventional gas.

World gas RESOURCES by GAS type

Recoverable Resources,Tcf
Source: World Energy Outlook 2009

Denmark PolAND
Nordjylland Chelm
Nordsjælland Werbkowice

FRANCE
North America Montélimar EUROPE Asia &
4,436 & CIS pacific
8,219 5,087
United States Algeria
Barnett Shale Timimoun China
Ahnet Sulige
AFRIca &
Middle east
7,686

Latin america AustraliA

Conventional gas 2,326 Gladstone LNG project
Tight gas ArgentinA
Coalbed methane La Escalonada
Rincon La Ceniza
Shale gas Aguada de Castro
Pampa Las Yeguas II
Cerro Las Minas
Cerro Partido
TOTAL San Roque
Conv. Non conv. Aguada Pichana
14,325
13,427
3,887
3,180
3,360
TOTAL’S ASSETS
Project / development / production phase Exploration phase

A 
ccording to the International Energy
Agency (IEA), the volume of shale
gas, tight gas and coalbed methane
resources is currently estimated at 380,000 billion
cubic meters (Gm3), equivalent to about 50% of
global gas resources.
Shale gas accounts for the biggest share of
these resources. The fact that gas shales (the
source rock that gives rise to this unconventional
resource) are much more extensive than traditio-
nal gas reservoirs and present on every continent
considerably enhances the exploration outlook.
Rising demand
Unconventional gas has the potential to contribute
significantly to the replacement of gas resources.
With production rising at an average annual rate
of 3% over the past thirty years, natural gas has
grown faster than any other fossil energy.
There are still huge volumes of gas in the ground.
At the current rate of consumption, known
resources would meet global needs for more
than fifty years. The extremely high potential
of unconventional gas should extend lastingly
the petroleum industry’s capacity to meet global
demand – especially the foreseeable growth in
natural gas’s share in electric power generation

2
Unconventional gas l Exploration & Production l November 2011

Total, a world-class player

challenges

Total has been active for the past decade in the exploitation of tight gas resources, and has recently invested in the
development of shale gas and coalbed methane.

A 
lready involved in the production of tight
gas, Total has recently invested in the
development of shale gas and coalbed
methane by forming partnerships with operators
who have earned a solid reputation for expertise
in this field.
TIGHT GAS
AGUADA PICHANA, ARGENTINa
Total is the second-largest gas producer in
Argentina and operator on the Aguada Pichana
field in the Neuquén basin. The field is char-
acterized by highly complex geology with both
conventional and tight gas reservoirs.
In 2008, Total deployed a large-scale pilot to
monitor the fracturing of these wells in order to
test various microseismic acquisition designs.
SHALE GAS
BARNETT SHALE, UNITED STATES
In early 2010, Total acquired an interest in the Barnett
Shale assets of the U.S.-based Chesapeake
Energy Corp., the country’s second-largest
Drilling site,
producer of natural gas and the world’s leading Aguada Pichana
producer of shale gas. The Barnett Shale is
America’s largest shale gas play. Its 1,900 wells
are currently producing 31 million cubic
meters (1,100 million cubic feet) per day,
representing nearly 8% of America’s aggregate
shale gas production.
COALBED METHANE
GLADSTONE LNG PROJECT, AUSTRALIA
Santos (operator, 30%) and its partners Total
(27.5%), Petronas (27.5%) and Kogas (15%) an-
nounced in early 2011 their decision to go ahead
with the Gladstone LNG project, which represents
an investment of US$16 billion (prior to the start
of LNG deliveries). This huge integrated project
located in Queensland (eastern Australia) spans
the extraction of coalbed methane (or coal seam
gas), transmission via a 420-kilometer pipeline,
and construction of a liquefaction plant on Curtis
Island, in Gladstone Harbor

THE AMERICAN BOOM

U.S. production The United States pioneered the monetization of un-

conventional gas and remains the leader in this sector.
30
The exploitation of tight gas and coalbed methane
25 resources began in the 1970s to offset the decline in
conventional gas reserves.
20
Tcf per year

Shale gas production was initiated in the 1990s,

spearheaded by small independent producers. The
15 more recent arrival of industry heavyweights proficient
in advanced production technologies has spurred
10 growth in production. The share of shale gas in U.S.
gas output is projected to rise quickly from its current
5 14% of natural gas production (65 million cubic
meters/yr) to 20%, then jump to 45% by 2035.
0
Producing unconventional gas from the Marcellus
90

Shale will create 100,000 new jobs over the next

95

00

05

10

15

20

25

30

35
19

19

20

20

20

20

20

20

20

20

10 years. It is estimated that 150 different profes-

sions will be involved in the operations. In Quebec,
Shale gas Tight gas plans point to the creation of 5,000 jobs for 150 wells
per year.
Coal bed methane Conventional gas Source: EIA, Annual Energy Outlook 2011

3
Unconventional gas l Exploration & Production l November 2011
Unique production characteristics
PRODUCTION
Unconventional gas is trapped in deposits with atypical geological locations and characteristics. Releasing the gas to
allow recovery requires a specific set of production techniques.
T 
hese resources are trapped in subsurface
formations called “reservoir rock” Despite
the word’s connotation, however, these
are not huge, continuous “pools” but rather mi-
nuscule pores between the grains that make up
the rock matrix.
Atypical deposits
The characteristics of unconventional gas depos-
its make for uncommonly difficult recovery:
• Tight gas is trapped in reservoirs characterized
by very low porosity and permeability: the rock
pores that contain the gas are minuscule, and
their interconnections are so limited that the gas
can only migrate with difficulty.
• Shale gas is extracted from a geological layer
known as the “source rock” rather than from a
conventional petroleum reservoir structure. This
clay-rich sedimentary rock has naturally low per-
meability. The gas it contains is either adsorbed
(i.e., closely “inserted”) into the organic matter
or in a free state in the void spaces (pores) of
the rock.
geological traps
The unique feature of unconventional gas is its geological location: it is found in highly compact reservoirs, source rock and coal seams.
• Coalbed methane is trapped in coal seams. The
gas is adsorbed onto the surface of the coal,
which is an excellent “storage vessel”: it can
contain two to three times as much gas per unit
of rock volume than conventional gas deposits.
Permeability challenges
Permeability is one of the parameters that distin-
guish conventional from unconventional gas res-
ervoirs.
The unit used to measure it is the Darcy. A good-
quality hydrocarbon trap will have permeability of
1 Darcy or more, while tight gas reservoirs, more
compact than brick, may have permeability of only
a few dozen microDarcy.
The permeability values of gas shales are even
lower – as little as one one-thousandth of the per-
meability of tight gas formations. The unit here is
the nanoDarcy.
APPROPRIATE PRODUCTION METHODS
Production methods must overcome these low
permeability conditions and facilitate the gas’s
4
migration into the borehole and to the surface.
Total has a proven track record in the use of both
horizontal drilling and hydraulic stimulation – the
technologies of choice for this context.
• Horizontal wells optimize the drainage of the
deposit
• Hydraulic fracturing or “fracking” of the rock in-
creases its permeability. Injecting highly pres-
surized water into the rock creates a network
of cracks through which the gas can migrate
to the wells.
For coalbed methane, recovery is less technology-
intensive than producing the other types of
unconventional gas, but it does require a specific
approach: the pressure in the coal seam must be
reduced in order to free the gas. This is achieved
by pumping out the water that is present in the
coalbed’s natural fracture system
Focus
The main types of UCG
The term “unconventional gas” covers three main types
of natural gas resources: shale gas, tight gas and
coalbed methane. Conventional and unconventional
gases differ not by their chemical compositions (all
these resources are natural gas), but rather by the
geological characteristics of their reservoir rock.
What is a source rock?
The source rock is the geological layer in which oil
and gas are generated. It formed when sediments
were deposited on the bottom of oceans or lakes, then
gradually covered over by additional sediment layers.
As they became more deeply buried, the sediments
were consolidated into rock, and the organic matter
was transformed into hydrocarbons. Over time,
the hydrocarbons were gradually expelled from
the source rock. Most of the oil and gas migrated
upward through the pores and cracks of the surroun-
ding rock, sometimes reaching the surface, but some
was trapped under an impermeable rock barrier
or top seal. With time, the hydrocarbon accumulation
developed into a petroleum reservoir, the target of
conventional oil and gas exploration.
In the case of gas shale, some or all of the gas
released during the transformation of the biomatter
stayed in place. To be a candidate for gas extraction,
source rocks must have reached sufficient maturity
to generate the gas, without yet having expelled it.t
Unconventional gas l Exploration & Production l November 2011

Shale gas: a step-by-step appraisal

E x pL O R A T I O N

Total has five to six years to conduct a step-by-step appraisal of the potential of a permit. The results of each step will
determine whether the investigation will proceed.

1.5 TO 2 YEARS 1.5 TO 2 YEARS 1 TO 2 YEARS

ENVIRONMENTAL STUDIES

PHASE 1 PHASE 2 PHASE 3

PRELIMINARY STUDIES TECHNICAL FEASIBILITY ECONOMIC FEASIBILITY

APPLICATION
SOURCE ROCK
OK ORGANIC
OK MINERALOGY OK QUANTITY
OK PETROPHYSICAL
OK
FRACTURING
OK DYNAMIC
OK
TECHNICAL
ECONOMIC OK
FOR
TESTS
THICKNESS CONTENT OF GAS CHARACTERISTICS APPRAISAL
FEASIBILITY PRODUCTION
PERMITS

INSUFFICIENT INSUFFICIENT UNSUITABLE INSUFFICIENT UNSUITABLE INCONCLUSIVE INCONCLUSIVE INCONCLUSIVE

HALT
OF
INVESTIGATION
PHASE

At the end of this lengthy evaluation process, Total will decide whether or not to apply for a production permit.

Phase 1: Phase 2: Phase 3:

preliminary studies
This is an initial assessment of the reserve poten-
tial, covering the entire permit acreage.Three pa-
rameters are decisive: the source rock thickness,
its organics content, and its mineral composition,
particularly the proportion of clay, which deter-
mines how the rock will react to fracking.
These preliminary studies focus on:
• Source rock samples taken from surface out-
crops of the rock
• Reprocessing of seismic data acquired many
years ago over the permit area
• Studies of drill cuttings from past drilling opera-
tions on the permit
The pursuit of exploration activities is subject to
the results of the analyses carried out during this
preliminary study phase.
technical feasibility studies
This second phase will establish a quantitative
evaluation of the volume of gas in place in the
source rock. This will entail:
• Drilling vertical wells used to take depth samples
(cores) and measure various physical parame-
ters inside the wells (e.g., rock permeability and
porosity)
• Acquiring seismic data if needed to supplement
the results already obtained in the previous
phase
• In some cases, conducting productivity tests on
the horizontal wells.
Whether or not the operations are pursued will de-
pend on the estimated quantity of gas, the results
of fracturing tests, and the petrophysical charac-
teristics of the deposit.
economic feasibility studies
This final phase of the process will evaluate the
economic profitability of the deposit. The capacity
of the source rock to produce will be assessed by
production tests on one or two wells.
If the results of these tests are encouraging, the
next steps will involve:
• A dynamic appraisal of the deposit, which is vital
to fine-tune estimates of the field’s productivity.
This will involve drilling, and if possible fractur-
ing, one, two or three horizontal wells in the
productive layer, and monitoring their production
pattern for a few weeks.
• Analyses of the conditions for social and envi-
ronmental acceptability, and of the technical and
economic feasibility of a development project

5
Unconventional gas l Exploration & Production l November 2011
Optimizing production
I NN O V A T I O N
Optimizing production means gaining a better understanding of reservoir and source rock geology. It also means
improving the effectiveness of production methods, particularly by applying hydraulic fracturing.
HYDRAULIC FRACTURING
Hydraulic fracturing creates permeability artificially, so the gas can migrate to the borehole.
T 
o appraise the production potential of
source rocks, Total is focusing especially
on how they formed, their composition,
and their porosity and permeability characteristics.
• The first step is to analyze their organic com-
ponents to determine the nature and volume of
hydrocarbons that can be extracted.
• Next comes a study of their sedimentology,
a geological investigation that reconstructs
the conditions under which the deposit
formed,and therefore how its resources can
be extracted.
The facies that are the most porous, the most
permeable, the most organic-rich and the most
brittle will offer the greatest production potential.
Seismic is also utilized to determine the physical
characteristics, architecture and geometry of the
geological layers. The aim here is to characterize
the hardness, porosity and the natural fracture
network of each interval.
PREDICTING GAS FLOW DYNAMICS
Finally, a petrophysical analysis of the reservoir
determines its capacity to store and flow fluids.
The porosity and permeability of the rock and its
saturation with water, gas and oil, are just some of
the parameters measured directly in the field or in
the laboratory.
Total has a number of innovations to its credit,
some of which have patents pending:
• Core sample preservation
• Nanometric-scale measurement of permeability
6
Optimized monitoring
Total’s R&D teams are making a particular effort to opti-
mize frac monitoring, placing the accent on micro-
seismic tools. Two aspects are particularly challenging:
• measuring a very low-intensity signal;
• finding algorithms that can give the most detailed
picture of the fracture network.
A longer-term aim is to develop a method for tracking
the injection fluid as it migrates through the
crack network, because ensuring even distribution
of the proppants (the agents that hold cracks open) is
key to effective fracking performance.
Analyzing core samples helps determine the
petrophysical characteristics of the reservoirs.
• Optimization of measurement instruments (well-
logging tools) and interpretation methods.
Enhancing fracking performance
Achieving the best control of source rock frack-
ing requires a detailed understanding of the rock’s
geomechanical properties.
Total’s investigations in this area aim to character-
ize the mechanical properties of the rock’s mineral
components, then identify fracturing mechanisms
to understand which parameters determine how
the frac propagates.
Only 3D modeling tools will provide the necessary
information by performing a series of several
simulations, each of which introduces variations
in numerous parameters
Unconventional gas l Exploration & Production l November 2011
Exploiting resources responsibly
I NN O V A T I O N
Total is the operator of shale gas exploration permits and makes environmental criteria a central concern when
assessing the feasibility of future production. The Group is already devoting R&D resources to the issue of minimizing
the impact of its future developments.
P 
roducing shale gas actually requires less
water than the quantity needed for con-
ventional oil recovery stimulated by water-
flooding. Even so, achieving further reductions in
water consumption is one of the highest priorities of
Total’s R&D. Several studies are under way:
• To ensure treatment and recycling of 100% of
the produced water
• To enhance the energy efficiency of fracking
• To develop lighter and more effective proppants
• To improve filtration efficiency when treating pro-
duced water with higher saline concentrations.
Most of the technologies needed to treat produced
water from shale gas exploitation are already avail-
able and have been widely proven effective.
Protecting groundwater
Borehole architecture must comply with legisla-
tion and withTotal’s internal guidelines.
The Group has demonstrated the safety of its drill-
ing techniques on numerous projects in the deep
offshore. Additionally, Total’s drilling procedures
include stringent testing of well integrity in the
top part of the borehole (the section in contact
Well cluster
(current configuration)
To reduce the physical footprint of the facilities, wellheads are grouped together in clusters
with 10 to 30 horizontal drains being drilled from a single central site.
with the aquifer). Finally, systems such as a
protective liner set between the soil and the pad
surface, and concrete catch drains with dedicat-
ed pits connected to them to collect runoff and
flush waters, together provide a high degree of
groundwater protection.
Reducing the physical footprint
Total has mastered horizontal drilling techniques
for many years. In the context of UCG production,
the first challenge is to apply existing know-how
to extend the length of the horizontal drains, cur-
rently limited to about 3,000 meters.
Longer drains will have the advantage of lowering
the number of development wells, thus allowing
increased well spacing.
Total’s R&D teams are also studying the feasi-
bility of applying multilateral drain technology in
which several production drains extend out from a
single wellhead.
A further effort to shrink the physical footprint of
shale gas production will entail the development
of streamlined, mobile process units, for water
treatment in particular.
7
Integrating environmental
and social constraints
Total’s approach entails both baseline studies
(i.e., environmental status prior to the start of op-
erations) and environmental and social impact
assessments. Conducted by specialized engi-
neering firms, these studies assess the general
environment of the zone affected by the explo-
ration license. They focus on aspects such as
biodiversity, soils and soil quality, hydrography,
hydrogeology, and landscape description.
This phase of studies and consultation with the
community identifies any potential environmental
or social impacts and issues, along with appro-
priate solutions to propose. All these items are
included in the project cost analysis. They will
factor into the decision on whether or not to go
ahead with the project.
At the end of production, Total will restore the site
to the same environmental condition as the one
described in the baseline study (status of the envi-
ronment prior to the start of operations )
An array
of technologies
Many technologies for produced water treatment are
available and are classified according to type. Process
technologies are adapted to the composition of the
influent water and the target specifications for treated
effluent quality.
Three treatment steps are deployed:
• Removal of solid particles via a series of filtration steps
or by chemical separation
• Removal of hydrocarbons by gravity separation in
sedimentation basins
• Treatment of salinity by reverse osmosis for waters
with lower salt concentrations, or by thermal processes
(more costly) when salt concentrations are higher.
See you on
www.total.com

Design and conception: Dixxit | Photo credits: Florian von der Fecht, Laurent Zylberman, Gilles Leimdorfer, Total | Infographic: Dixxit | © TOTAL November 2011. Certified paper
TOTAL S.A.
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