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Hydraulic Fracturing Test Site II (HFTS2) – Delaware Basin
Project Number
DE-FE0031577
Last Reviewed Dated
Goal

The objective of this project is to conduct a field-based hydraulic fracturing research program in the Delaware Basin portion of the Permian Basin in West Texas. This project will advance hydraulic fracturing technology, optimize well spacing, and mitigate environmental impacts of shale development operations. The research will advance our understanding of the hydraulic fracturing process in shale reservoirs, thus enabling the design and execution of effective fracture stages that significantly contribute to production. Improved design and execution of fracture stages will also reduce the number of future infill wells drilled and reduce water volume and energy input. This project will build upon the learnings from the HFTS1 project and advance the understanding of hydraulic fracturing.

Performer

Gas Technology Institute, Des Plaines, IL 60018

Background

The Permian Basin is one of the most prolific oil and natural gas geologic basins in the U.S. It is central to America’s energy resurgence, enabled by development of the shale resources within U.S. geologic basins. The Permian-Delaware Basin produces more than 50,000 barrels of oil per day and is an area of active development. The Permian Basin is approximately 250 miles wide and 300 miles long across West Texas and southeastern New Mexico. It encompasses several sub-basins, including the Delaware Basin and the Midland Basin, where the HFTS1 test site was located. Given the complexity of shale formations, significant geotechnical differences occur within the respective basins over very short distances. The Delaware Basin is a deeper basin than the Midland with vertical well depths up to 10,000 feet. The Delaware Basin is also a geo-pressured basin, adding to the difference between the two basins. From a geologic and geotechnical perspective, industry considers them separate and distinct basins.

Despite the long history of hydraulic fracturing, the optimal number of fracturing stages during multi-stage fracture stimulation in horizontal wells is not known. In addition to the increased expense of multistage fracturing in horizontal wells, increasing the number of fracturing stages does not always correlate with an increase in production. The problem is the application of a uniform fracture stimulation design to all stages with no consideration for geological variations along the wellbore. The result is an inefficient use and a costly waste of energy and water. 

Optimization of the fracturing process requires an understanding of the cause-and-effect relationship between fracturing parameters and local geological properties at a given location along the wellbore. Realizing that the generalized rock mechanics theories and hypotheses are not truly applicable to fractured and laminated shales, quantifiable impacts of a shale’s geomechanical and depositional features are a prerequisite for design and implementation of optimized hydraulic fractures. The overarching goal of this project is to understand and define the relationships of shale geology and fracture dynamics using detailed field data that includes coring of the fracture domain. Analyses of the data will aid in updating fracture design models, and improve the effectiveness of individual hydraulic fracture stages.

Impact

The HFTS2 field test site provides the opportunity to address the "billion-dollar problem," or the optimal development of a "stacked pay" resource which requires simultaneous drilling and completion of tens-of-thousands of wells across multiple geologic horizons. Drilling too many wells results in a waste of resources such as water, steel casings, and other infrastructure while adding to emissions issues and land footprint. Drilling too few wells, from the perspective of well spacing, leaves valuable resources in the ground. Research results from this project are expected to have positive impact on economic, environmental, and resource recovery factors.

Simultaneous drilling and completion of wells in multiple geologic formations can reduce the overall cost of oil and gas production on a per-well basis, thus providing more drilling locations in the future, even at lower oil/gas prices. Continued long-term production adds jobs and increases economic output of the producing region and the U.S. economy as a whole.

The greatest beneficial impact to be derived from the proposed research will be achieved through determination of optimum well spacing and hydraulic fracture design. If the resulting optimization leads to a resource recovery increase of 1%, an additional 1.6 billion barrels of oil could be recovered from the Permian Basin. This optimization further leads to elimination of many wells currently drilled at non-optimum well spacing.

Accomplishments (most recent listed first)
  • The DOE agreement was signed on March 9, 2018.
  • Proposals for a potential site in the Delaware Basin were submitted by Shell and Anadarko.
  • A proposal scoring sheet was created and the proposals were sent to Chevron, Devon, Oxy, COP, XOM, Pioneer, and NETL for review and scoring. The resulting scores for each proposal were approximately equal.
  • GTI contacted both Shell and Anadarko and inquired upon an agreed upon location by the two companies as each shared acreage for their proposed site 50-50 due to a prior acreage deal between the two companies. Via intial discussions, it was agreed by the two companies that the Andaroko site would be the most optiumum and that Anadarko would be the site operator.
  • GTI initiated site agreement negotiations with the Andadarko legal group to finalize the site terms and conditions flowing down the DOE contract requirements.
  • Multiple meetings have taken place between Anadarko, Shell, and GTI to finalize the details of the technical scope of work.
  • Multiple companies (COP, Devon, Chevron, Oxy and others) have been alerted to the experiment with participation agreements to be forwarded upon completion of the site agreement.
Current Status

(June 2018)
The co-operative well agreement with the test site host will be finalized and the NEPA forms will be completed and submitted for approval. GTI will also begin aggressive industry outreach to sign-up industry sponsors. Upon successful completion of the co-op well agreement, NEPA forms, and industry sponsorship, GTI will finalize field data acquisition plans and proceed to field testing, upon approval of the go/no-go decision. A data management plan will be completed.

Project Start
Project End
DOE Contribution

$7,799,052

Performer Contribution

$12,590,025

Contact Information

NETL – Gary Covatch (gary.covatch@netl.doe.gov or 304-285-4589)
GTI – Jordan Ciezobka (Jordan.ciezobka@gastechnology.org or 847-768-0924)