Policies for Unconventional Oil and Gas Resources in China

Regarding the abundant reserves in China, unconventional oil and gas resources has great potential in exploration and development, and may be the significant complement to conventional oil and gas resources. Based on the summary of the reservoir potential and current situation of exploration and development of unconventional oil and gas resources, such as coalbed methane(CBM), shale gas and oil shale, we analyzed the incentive policies proposed to promote the development of unconventional oil and gas industry, including industrial planning, resource management and related tax policy. These policies played an important role in promoting the exploration, development and utilization of unconventional oil and gas resources.

Evaluation of source rocks and prediction of oil and gas resources distribution in Baiyun Sag,Pearl River Mouth Basin,China

By conducting organic geochemical analysis of the samples taken from the drilled wells in Baiyun Sag of Pearl River Mouth Basin,China,the development characteristics of hydrocarbon source rocks in the sag are clarified.Reconstruct the current geothermal field of the sag and restore the tectonic-thermal evolution process to predict the type,scale,and distribution of resources in Baiyun Sag through thermal pressure simulation experiments and numerical simulation.The Baiyun Sag is characterized by the development of Paleogene shallow lacustrine source rocks,which are deposited in a slightly oxidizing environment.The source rocks are mainly composed of terrestrial higher plants,with algae making a certain contribution,and are oil and gas source rocks.Current geothermal field of the sag was reconstructed,in which the range of geothermal gradients is(3.5–5.2)℃/100 m,showing an overall increasing trend from northwest to southeast,with significant differences in geothermal gradients across different sub-sags.Baiyun Sag has undergone two distinct periods of extensional process,the Eocene and Miocene,since the Cenozoic era.These two periods of heating and warming events have been identified,accelerating the maturation and evolution of source rocks.The main body of ancient basal heat flow value reached its highest at 13.82 Ma.The basin modelling results show that the maturity of source rocks is significantly higher in Baiyun main sub-sag than that in other sub-sags.The Eocene Wenchang Formation is currently in the stage of high maturity to over maturity,while the Eocene Enping Formation has reached the stage of maturity to high maturity.The rock thermal simulation experiment shows that the shallow lacustrine mudstone of the Wenchang Formation has a good potential of generating gas from kerogen cracking with high gas yield and long period of gas window.Shallow lacustrine mudstone of the Enping Formation has a good ability to generate light oil,and has ability to generate kerogen cracking gas in the late stage.The gas yield of shallow lacustrine mudstone of the Enping Formation is less than that of shallow lacustrine mudstone of the Wenchang Formation and the delta coal-bearing mudstone of the Enping Formation.The numerical simulation results indicate that the source rocks of Baiyun main sub-sag generate hydrocarbons earlier and have significantly higher hydrocarbon generation intensity than other sub-sags,with an average of about 1200×10^(4)t/km^(2).Oil and gas resources were mainly distributed in Baiyun main sub-sag and the main source rocks are distributed in the 3^(rd)and 4^(th)members of Wenchang Formation.Four favorable zones are selected for the division and evaluation of migration and aggregation units:No.(1)Panyu 30 nose-shaped structural belt,No.(3)Liuhua 29 nose-shaped uplift belt and Liwan 3 nose-shaped uplift belt,No.(2)gentle slope belt of Baiyun east sag,and No.(8)Baiyun 1 low-uplift.

Introduction of geomechanical restoration method and its implications for reservoir assessment of unconventional oil-gas resource in China

New technologies are in urgent need of unconventional hydrocarbon exploration and development in China.This paper provides a brief introduction and analysis of a new three-dimensional(3D)geomechanical restoration method developed in recent years.After an in-depth discussion on the technical principle and specific characteristics of the fields,we designed a feasible workflow for two oil-gas fields with great unconventional oil-gas resource potentials in China(Weiyuan and Jiulongshan oil-gas fields of Sichuan).After discussing the major challenges and limitations of the new technology,we also suggest its research efforts and future application prospect It is shown that the new technology will be an effective method to facilitate the exploration and development of unconventional oil and gas resources in China.

Unconventional Story： A Future with Shale Gas and Other Unconventional Resources, A Look from Russia

The main achievements in the development of hardly-recoverable resources are currently associated with shale oil and gas. The result of the ＂shale revolution＂ was billions of dollars in losses for oil exporters. The question is how this situation w＇ill be long-lasting or ＂shale bubble＂ will burst. The success of the shale revolution can be not only an economic win or economic defeat of the United States, the question is about reputation as a global political leader and the country＇s ability to solve the most difficult technological problems. Everything at stake to extend the ＂shale gas revolution＂ as it is possible longer, in time to prepare the conditions and technologies for a new energy revolution and to maintain the usual high level of energy consumption. The situation is further complicated by the introduction in the game of OPEC （organization of petroleum exporting countries） causing oil prices dropped below the cost of shale oil. The future of high technology in the production of oil depends on whether exporters and importers to negotiate the best price for oil, to ensure the sustainable development of the world economy.

Geological characteristics of unconventional tight oil reservoir (10^(9) t): A case study of Upper Cretaceous Qingshankou Formation, northern Songliao Basin, NE China

The Daqing exploration area in the northern Songliao Basin has great potential for unconventional oil and gas resources,among which the total resources of tight oil alone exceed 109 t and is regarded as an important resource base of Daqing oilfield.After years of exploration in the Qijia area,Songliao Basin,NE China,tight oil has been found in the Upper Cretaceous Qingshankou Formation.To work out tight oil’s geological characteristics,taking tight oil in Gaotaizi oil layers of the Upper Cretaceous Qingshankou Formation in northern Songliao Basin as an example,this paper systematically analyzed the geological characteristics of unconventional tight oil in Gao3 and Gao4 layers of the Qijia area,based on the data of the geological survey,well drilling journey,well logging,and test.It is that three sets of hydrocarbon source rocks(K2qn1,K2qn2+3,and K2n1)develop in the examined area,and exhibit excellent type I and II kerogens,high organic matter abundance,and moderate maturity.The reservoir is generally composed of thin-bedded mudstone,siltstone,and sandstone,and presents poor porosity(average 8.5 vol.%)and air permeability(average 4 mD).The main reservoir space primarily includes intergranular pores,secondary soluble pores,and intergranular soluble pores.Three types of orifice throats were identified,namely fine throat,extra-fine throat,and micro-fine throat.The siltstone is generally oil-bearing,the reservoirs with slime and calcium become worse oil-bearing,and the mudstone has no obvious oil-bearing characteristics.The brittleness indices of the sandstone in the tight oil reservoir range from 40%to 60%,and those of the mudstone range from 40%to 45%,indicating a better brittleness of the tight oil reservoir.Based on the study of typical core hole data,this paper gives a comprehensive evaluation of the properties of the tight oil and establishes a tight oil single well composite bar chart as well as the initial evaluation system with the core of properties in the tight oil reservoir.This study has theoretical guiding significance and practical application value for tight oil exploration and evaluation in the Qijia area.

Hydrocarbon gas huff-n-puff optimization of multiple horizontal wells with complex fracture networks in the M unconventional reservoir

The oil production of the multi-fractured horizontal wells(MFHWs) declines quickly in unconventional oil reservoirs due to the fast depletion of natural energy. Gas injection has been acknowledged as an effective method to improve oil recovery factor from unconventional oil reservoirs. Hydrocarbon gas huff-n-puff becomes preferable when the CO_(2) source is limited. However, the impact of complex fracture networks and well interference on the EOR performance of multiple MFHWs is still unclear. The optimal gas huff-n-puff parameters are significant for enhancing oil recovery. This work aims to optimize the hydrocarbon gas injection and production parameters for multiple MFHWs with complex fracture networks in unconventional oil reservoirs. Firstly, the numerical model based on unstructured grids is developed to characterize the complex fracture networks and capture the dynamic fracture features.Secondly, the PVT phase behavior simulation was carried out to provide the fluid model for numerical simulation. Thirdly, the optimal parameters for hydrocarbon gas huff-n-puff were obtained. Finally, the dominant factors of hydrocarbon gas huff-n-puff under complex fracture networks are obtained by fuzzy mathematical method. Results reveal that the current pressure of hydrocarbon gas injection can achieve miscible displacement. The optimal injection and production parameters are obtained by single-factor analysis to analyze the effect of individual parameter. Gas injection time is the dominant factor of hydrocarbon gas huff-n-puff in unconventional oil reservoirs with complex fracture networks. This work can offer engineers guidance for hydrocarbon gas huff-n-puff of multiple MFHWs considering the complex fracture networks.

Formation,evolution,reconstruction of black shales and their influence on shale oil and gas resource

Black shales are important products of material cycling and energy exchange among the lithosphere,atmosphere,hydrosphere,and biosphere.They are widely distributed throughout geological history and provide essential energy and mineral resources for the development of human society.They also record the evolution process of the earth and improve the understanding of the earth.This review focuses on the diagenesis and formation mechanisms of black shales sedimentation,composition,evolution,and reconstruction,which have had a significant impact on the formation and enrichment of shale oil and gas.In terms of sedimentary environment,black shales can be classified into three types:Marine,terrestrial,and marine-terrestrial transitional facies.The formation processes include mechanisms such as eolian input,hypopycnal flow,gravity-driven and offshore bottom currents.From a geological perspective,the formation of black shales is often closely related to global or regional major geological events.The enrichment of organic matter is generally the result of the interaction and coupling of several factors such as primary productivity,water redox condition,and sedimentation rate.In terms of evolution,black shales have undergone diagenetic evolution of inorganic minerals,thermal evolution of organic matter and hydrocarbon generation,interactions between organic matter and inorganic minerals,and pore evolution.In terms of reconstruction,the effects of fold deformation,uplift and erosion,and fracturing have changed the stress state of black shale reservoirs,thereby having a significant impact on the pore structure.Fluid activity promotes the formation of veins,and have changed the material composition,stress structure,and reservoir properties of black shales.Regarding resource effects,the deposition of black shales is fundamental for shale oil and gas resources,the evolution of black shales promotes the shale oil and gas formation and storage,and the reconstruction of black shales would have caused the heterogeneous distribution of oil and gas in shales.Exploring the formation mechanisms and interactions of black shales at different scales is a key to in-depth research on shale formation and evolution,as well as the key to revealing the mechanism controlling shale oil and gas accumulation.The present records can reveal how these processes worked in geological history,and improve our understanding of the coupling mechanisms among regional geological events,black shales evolution,and shale oil and gas formation and enrichment.

Progress in China's Unconventional Oil & Gas Exploration and Development and Theoretical Technologies

The new century has witnessed a strategic breakthrough in unconventional oil ＆ gas.Hydrocarbon accumulated in micro-/nano-scale pore throat shale systems has become an important domain that could replace current oil ＆ gas resources.Unconventional oil ＆ gas plays an increasingly important role in our energy demand.Tight gas,CBM,heavy oil and asphaltic sand have served as a key domain of exploration ＆ development,with tight oil becoming a ＇bright spot＇ domain and shale gas becoming a ＇hotspot＇ domain.China has made great breakthroughs in unconventional oil ＆ gas resources,such as tight gas,shale gas,tight oil and CBM,and great progress in oil shale,gas hydrate,heavy oil and oil sand.China has an estimated（223-263）×10~8t of unconventional oil resources and（890-1260）×l0^（12）m^3 of gas resources.China has made a breakthrough for progress in unconventional oil ＆ gas study.New progress achieved in fine-grained sedimentary studies related to continental open lacustrine basin large-scale shallow-water delta sand bodies,lacustrine basin central sandy clastic flow sediments and marine-continental fine-grained sediments provide a theoretical basis for the formation and distribution of basin central reservoir bodies.Great breakthroughs have been made in unconventional reservoir geology in respect of research methodology ＆ technology,multi-scale data merging and physical simulation of formation conditions.Overall characterization of unconventional reservoirs via multi-method and multi-scale becomes increasingly popular and facilitates the rapid development of unconventional oil ＆ gas geological theory,method and technology.The formation of innovative,continuous hydrocarbon accumulation theory,the establishment of the framework of the unconventional oil ＆ gas geological theory system,and the determination of the implications,geological feature,formation mechanism,distribution rule and core technology of unconventional oil＆ gas geological study lays a theoretical foundation for extensive unconventional oil ＆ gas exploration and development.Theories and technologies of unconventional oil ＆ gas exploration and development developed rapidly,including some key evaluation techniques such as ＇sweet spot zone＇ integrated evaluation and a six-property evaluation technique that uses hydrocarbon source,lithology,physical property,brittleness,hydrocarbon potential and stress anisotropy,and some key development ＆engineering technologies including micro-seismic monitoring,horizontal drilling ＆ completion and ＂factory-like＂ operation pattern, ＂man-made reservoir＂ development,which have facilitated the innovative development of unconventional oil ＆ gas.These breakthroughs define a new understanding in four aspects：①theoretical innovation;② key technologies;③ complete market mechanism and national policy support;and ④ well-developed ground infrastructure,which are significant for prolonging the life cycle of petroleum industry,accelerating the upgrade and development of theories and technologies and altering the global traditional energy structure.

A Review on Shale Reservoirs as an Unconventional Play--The History,Technology Revolution,Importance to Oil and Gas Industry,and the Development Future

As a milestone of the entire energy industry,unconventional resources have inevitably swept the world in the last decade,and will certainly dominate the global oil and gas industry in the near future.Eventually,the ＂unconventional＂ will become ＂conventional＂.Along with the rapid development,however,some issues have emerged,which are closely related to the viability of unconventional resources development.Under the current circumstances of low crude oil and gas price,coupled with the prominent environmental concerns,the arguments about the development and production of unconventional resources have been recently heated up.This work introduced the fullblown aspects of unconventional resources especially shale reservoirs,by discussing their concepts and definitions,reviewing the shale gas and shale oil development history and necessity,analyzing the shale plays＇ geology and petroleum systems with respects to key hydrocarbon accumulation elements and mechanisms,and summarizing the technology resolution.This study also discussed the relevant key issues,including significant estimation uncertainty of technically recoverable resources,the equivocal understanding of complex geology preventing the production and technologies implementation optimization,the difficulties of experiences and technologies global expanding,and the corresponding risks and uncertainties.In addition,based on the latest production and exploration data,the future perspective of the unconventional resources was depicted from global unconventional resources assessments,technology development,and limitations constraining the development.

Whole petroleum system and ordered distribution pattern of conventional and unconventional oil and gas reservoirs

The classical source-to-trap petroleum system concept only considers the migration and accumulation of conventional oil and gas in traps driven dominantly by buoyance in a basin,although revised and improved,even some new concepts as composite petroleum system,total petroleum system,total composite petroleum system,were proposed,but they do not account for the vast unconventional oil and gas reservoirs within the system,which is not formed and distributed in traps dominantly by buoyancedriven.Therefore,the petroleum system concept is no longer adequate in dealing with all the oil and gas accumulations in a basin where significant amount of the unconventional oil and gas resources are present in addition to the conventional oil and gas accumulations.This paper looked into and analyzed the distribution characteristics of conventional and unconventional oil/gas reservoirs and their differences and correlations in petroliferous basins in China and North America,and then proposed whole petroleum system(WPS)concept,the WPS is defined as a natural system that encompasses all the conventional and unconventional oil and gas,reservoirs and resources originated from organic matter in source rocks,the geological elements and processes involving the formation,evolution,and distribution of these oil and gas,reservoirs and resources.It is found in the WPS that there are three kinds of hydrocarbons dynamic fields,three kinds of original hydrocarbons,three kinds of reservoir rocks,and the coupling of these three essential elements lead to the basic ordered distribution model of shale oil/gas reservoirs contacting or interbeded with tight oil/gas reservoirs and separated conventional oil/gas reservoirs from source rocks upward,which is expressed as“S\T-C”.Abnormal conditions lead to other three special ordered distribution models:The first is that with shale oil/gas reservoirs separated from tight oil/gas reservoirs.The second is that with two direction ordered distributions from source upward and downward.The third is with lateral distribution from source outside.

A"One Engine with Six Gears"System Engineering Methodology for the Economic Development of Unconventional Oil and Gas in China

Unconventional oil and gas resources have become the most important and realistic field for increasing China’s domestic oil and gas reserves and production.At present,the production scale does not match the massive amount of resources and the rapid growth of proven geological reserves.The challenges of technology,cost,management,and methodology restrict large-scale and economic development.Based on successful practices,a"one engine with six gears"system engineering methodology is put forward,which includes life-cycle management,overall synergy,interdisciplinary cross-service integration,marketoriented operation,socialized support,digitalized management,and low-carbon and green development.The methodology has been proved to be effective in multiple unconventional oil and gas national demonstration areas,including the Jimusar continental shale oil demonstration area.Disruptive views are introduced-namely,that unconventional oil and gas do not necessarily yield a low return,nor do they necessarily have a low recovery factor.A determination to achieve economic benefit must be a pervasive underlying goal for managers and experts.Return and recovery factors,as primary focuses,must be adhered to during China’s development of unconventional oil and gas.The required methodology transformation includes a revolution in management systems to significantly decrease cost and increase production,resulting in technological innovation.

Downhole Microseismic Source Location Based on a Multi-Dimensional DIRECT Algorithm for Unconventional Oil and Gas Reservoir Exploration

Downhole microseismic data has the significant advantages of high signal-to-noise ratio and well-developed P and S waves and the core component of microseismic monitoring is microseismic event location associated with hydraulic fracturing in a relatively high confidence level and accuracy.In this study,we present a multidimensional DIRECT inversion method for microseismic locations and applicability tests over modeling data based on a downhole microseismic monitoring system.Synthetic tests inidcate that the objective function of locations can be defined as a multi-dimensional matrix space by employing the global optimization DIRECT algorithm,because it can be run without the initial value and objective function derivation,and the discretely scattered objective points lead to an expeditious contraction of objective functions in each dimension.This study shows that the DIRECT algorithm can be extensively applied in real downhole microseismic monitoring data from hydraulic fracturing completions.Therefore,the methodology,based on a multidimensional DIRECT algorithm,can provide significant high accuracy and convergent efficiency as well as robust computation for interpretable spatiotemporal microseismic evolution,which is more suitable for real-time processing of a large amount of downhole microseismic monitoring data.

Distribution and potential of global oil and gas resources

Using conventional and unconventional oil and gas resource evaluation methods with play as a unit, this study evaluates the oil and gas geology and resource potential of conventional oil and gas resources and seven types of unconventional resources in the global major oil and gas basins(excluding China). For the first time, resource evaluation data with independent intellectual property rights has been obtained. According to evaluation and calculation, the global recoverable conventional oil resources are 5 350.0×108 t, the recoverable condensate oil resources are 496.2×108 t, and the recoverable natural gas resources are 588.4×1012 m3. The remaining oil and gas 2 P recoverable reserves are 4 212.6×108 t, the reserve growth of oil and gas fields are 1 531.7×108 t. The undiscovered oil and gas recoverable resources are 3 065.5×108 t. The global unconventional oil recoverable resources are 4 209.4×108 t and the unconventional natural gas recoverable resources are 195.4×1012 m3. The evaluation results show that the global conventional and unconventional oil and gas resources are still abundant.

Re-recognition of “unconventional” in unconventional oil and gas

Taking the Wufeng–Longmaxi shale gas in the Sichuan Basin as a typical example,based on the new progress in exploration and development,this study re-examines the"unconventional"of unconventional oil and gas from two aspects:oil and gas formation and accumulation mechanisms,and main features of oil and gas layers.The oil and gas of continuous accumulation and distribution from integrated source and reservoir is unconventional oil and gas,and the study focusing on shale oil and gas in comparison with conventional oil and gas has made progress in five aspects:(1)Unconventional oil and gas have source-reservoir-in-one and in-situ accumulation;according to the theory of continuous oil and gas accumulation,the accumulation power of oil and gas is overpressure and diffusion;for conventional oil and gas,the source and reservoir are different formations,the trapping accumulation is its theoretical foundation,and the accumulation power is characterized by buoyancy and capillary force.(2)The unconventional oil and gas reservoirs are mainly formed in the low-energy oxygen-anaerobic environment,dominantly semi-deep to deep shelf facies and the semi-deep to deep lake facies,simple in lithology,rich in organic matter and clay minerals;conventional oil and gas mainly occur in coarse-grained sedimentary rocks formed in high-energy waters with complex lithology.(3)The unconventional oil and gas reservoirs have mainly nano-scale pores,of which organic matter pores take a considerable proportion;conventional oil and gas reservoirs mainly have micron-millimeter pores and no organic matter pores.(4)Unconventional shale oil and gas reservoirs have oil and gas in uniform distribution,high oil and gas saturation,low or no water content,and no obvious oil and gas water boundary;conventional oil and gas reservoirs have oil and gas of complex properties,moderate oil and gas saturation,slightly higher water content,and obvious oil,gas and water boundaries.(5)Organic-rich shale is the main target of unconventional oil and gas exploration;the sedimentary environment controls high organic matter abundance zone and organic matter content controls oil and gas abundance;positive structure and high porosity control the yields of shale wells;bedding and fracture development are important factors deciding high yield.

Design and impact estimation of a reform program of China's tax and fee policies for low-grade oil and gas resources

With China＇s rapid economic development,it is important to formulate reasonable and feasible tax and fee policies to promote the development and utilization of low-grade oil and gas resources to guarantee China＇s energy supply security.In this paper,by analyzing major problems of China＇s current tax and fee policies for oil and gas resources,a reform program for low-grade oil and gas resources is designed from the aspects of tax/fee items and tax/fee rates.The impacts of this reform program on China and China＇s oil companies during the ＂Twelfth Five-Year Plan＂ are investigated according to the related data in 2008.The results show that the proposed tax and fee reform program will lower the tax burden of oil companies,promote the development of low-grade oil and gas resources,and increase China＇s GDP and national fiscal revenue.Besides that,it will bring positive social effects by increasing employment opportunities.

Proppant transport in rough fractures of unconventional oil and gas reservoirs

A method to generate fractures with rough surfaces was proposed according to the fractal interpolation theory.Considering the particle-particle,particle-wall and particle-fluid interactions,a proppant-fracturing fluid two-phase flow model based on computational fluid dynamics(CFD)-discrete element method(DEM)coupling was established.The simulation results were verified with relevant experimental data.It was proved that the model can match transport and accumulation of proppants in rough fractures well.Several cases of numerical simulations were carried out.Compared with proppant transport in smooth flat fractures,bulge on the rough fracture wall affects transport and settlement of proppants significantly in proppant transportation in rough fractures.The higher the roughness of fracture,the faster the settlement of proppant particles near the fracture inlet,the shorter the horizontal transport distance,and the more likely to accumulate near the fracture inlet to form a sand plugging in a short time.Fracture wall roughness could control the migration path of fracturing fluid to a certain degree and change the path of proppant filling in the fracture.On the one hand,the rough wall bulge raises the proppant transport path and the proppants flow out of the fracture,reducing the proppant sweep area.On the other hand,the sand-carrying fluid is prone to change flow direction near the contact point of bulge,thus expanding the proppant sweep area.

The “fracture-controlled reserves” based stimulation technology for unconventional oil and gas reservoirs

To solve the problems facing the economic development of unconventional oil and gas, a new concept and corresponding technology system of reservoir stimulation based on "fracture-controlled reserves" are put forward. The "fracture-controlled reserves" stimulation technology is to realize the three-dimensional producing and economic and efficient development of unconventional hydrocarbon resources by forming a fracture system that well matches "sweet spots" and "non-sweet spots". The technical route of the stimulation technology is "three optimizations and controls", that is, control the scope of sand body through optimizing well spacing, control the recoverable reserves through optimizing fracture system, and control the single well production reduction through optimizing energy complement method. The "fracture-controlled reserves" stimulation emphasizes the maximization of the initial stimulation coefficient, the integration of energy replenishment, stimulation and production, and prolonging the re-fracturing cycle or avoiding re-fracturing. It aims at realizing the three-dimensional full producing and efficient development of reservoir in vertical and horizontal directions and achieving the large-scale, sustainable and high profitable development of unconventional oil and gas resources. The stimulation technology was used to perform 20 pilot projects in five typical tight-oil, shale gas blocks in China. The fracturing and producing effects of tight oil improved and the commercial development for shale gas was realized.

Deepwater and Deep Layers： the Strategic Choices for China＇s Oil and Gas Resources Development

On December 2, 2017, the 2nd Seminar on the Development Strategy of China＇s Oil and Gas Resources was held in Beijing. This seminar was hosted by the Strategic Research Center for Oil and Gas Resources, Ministry of Land （MLR） and Resources and sponsored by both the CNOOC Exploration Department and the School of Ocean and Earth Sciences of Tongji University. With the theme of ＂deepwater and deep-layer oil and gas resources and development strategy＂,