Whose O&G Wells Have Geothermal Potential?

All Alberta oil and gas wells as of October 31, 2016, have been assessed for their geothermal potential (through a study facilitated by CanGEA).  There were more than 60,000 wells identified (out of nearly 600,000 wellbores in the province).

The wells are grouped into those with potential for Direct Heat (>60c), Industrial Heat (>90c) and Power Generation (>120c).  The communities near the wells are also listed.

The interactive dashboard below allows you to evaluate where the >60,000 wells with geothermal potential are located and identify their possible application.

(Best viewed on a tablet or PC. Use the “Full Page” diagonal arrow for full screen.)

Fuzeium took an additional step to link the study’s results to the operators/licensees who own the wells.

  • The following static images show the companies with the most wells in each geothermal category.
  • You can subscribe to Fuzeium’s Well Intelligence subscription to interact with the dashboard and identify all companies.

The potential for Direct HeatCanadian Natural Resources has the most wells.

The potential for Industrial HeatTourmaline Oil has the most wells.

The potential for Power Generation – Direct Energy has the most wells.

*All information is provided subject to our Terms of Use, including disclaimer of warranties and limitations on liability. © Fuzeium Innovations Inc. To provide feedback, contact us at info@fuzeium.com

Fuzeium, A Winning Spark at SPARX Pitch Competition – Jun 2017

We very much enjoyed competing within a strong cohort of competitors at the SPARX pitch competition in Calgary (at the Global Petroleum Show 2017).

And we are honored to be selected as one of the winners for our approach to enabling Alberta Oil & Gas market intelligence through dashboards.

The SPARX 2017 Theme:
“This competition is targeted at ENTREPRENEURS who have business or technical innovations relevant to the energy sector that are either CLEANER or LEANER (ie. HR, envirotech, cleantech, safety, health, management consultants, etc.) & can be used by all types of companies – not just the energy sector.”

The Fuzeium “Pitch” Being Delivered to Judges and General Audience

Demos & Conversations At the Kiosk

Cenovus Drilled the Most Wells in Alberta Between Jun 26, 2016-Jun 21, 2017

Despite the difficult operating environment in the oil and gas industry, Cenovus has continued to actively drill and produce in Alberta.

As forecasted in their corporate update of Jun 20, 2017, Cenovus has estimated total production to be 482 Mboe (482,000 boe) by the end of 2017. See excerpt below.

While the production estimate includes the assets they’ve purchased from Conoco-Phillips, we at Fuzeium were curious as to what kind of drilling program they’ve had in Alberta.

Between Jun 26, 2016, and Jun 21, 2017, Cenovus and Cenovus FCCL drilled 562 wells, which is more than their next competitor CNRL (438 Alberta wells drilled) and significantly more than the top 10 (licensee) average of 190 (Alberta wells drilled).  Cenovus’s drilling operations accounted for about 14% of total drilling activity in Alberta during that period.

Cenovus’s drilling activity in 2017 relates to 195 licenses issued since the beginning of the year. Their licensing is split between their Heavy Oil assets (Foster Creek/ Christina Lake) and their Crude Oil assets in South East Alberta.

In short, Cenovus has been the most active licensee in terms of drilling wells in Alberta from Jun 2016 to Jun 2017.

* the maps above were derived from Fuzeium’s Well Intelligence dashboards for Alberta, which interprets public data from the AER.

*All information is provided subject to our Terms of Use, including disclaimer of warranties and limitations on liability. © Fuzeium Innovations Inc. To provide feedback, contact us at info@fuzeium.com


Hotspots for Geothermal “Direct Heat” in Alberta (e.g. greenhouses)

According to an industry study of Alberta’s geothermal potential,  numerous communities have oil and gas wells with temperatures above 90c and are also within 10kms of a municipality.  At that temperature and proximity, there is potential to use geothermal capabilities for generating direct heat.

* The table of communities to the right reflects the top 15 (by well count).  Use the dashboard below to explore for more.
* The well data used in the study were current to Oct 31, 2016.
* New wells would have been drilled since and are not part of the study.

The wells associated with those communities above are also mapped to Alberta’s Township range system.  Each circle below give a sense of where the wells are located. These lower temperature wells have a wider dispersion across the province than either the  >120c or >90c wells do.

To recreate and explore the results, simply go to the associated dashboard (click on the image below) and then select the lower right button called “1. Direct Heat within 10kms of Municipality”.

*All information is provided subject to our Terms of Use, including disclaimer of warranties and limitations on liability. © Fuzeium Innovations Inc. To provide feedback, contact us at info@fuzeium.com


Hotspots for Geothermal “Industrial Heat” in Alberta (e.g. timber drying)

According to an industry study of Alberta’s geothermal potential,  numerous communities have oil and gas wells with temperatures above 90c and are also within 10kms of a road network.  At that temperature and proximity, there is potential to use geothermal capabilities for generating industrial heat.

* The table of communities to the right reflects the top 15 (by well count).  Use the dashboard to explore for more.
* The well data used in the study were current to Oct 31, 2016.
* New wells would have been drilled since and are not part of the study.

The wells associated with those communities above are also mapped to Alberta’s Township range system.  Each circle below give a sense of where the wells are located. All are along the western side of the province but are in much greater in number and cover a larger area than the hottest wells do.

To recreate and explore the results, simply go to the associated dashboard (click on the image below) and then select the lower right button called “2. Industrial Heat within 10kms of Road Network”.

*All information is provided subject to our Terms of Use, including disclaimer of warranties and limitations on liability. © Fuzeium Innovations Inc. To provide feedback, contact us at info@fuzeium.com


 

Hotspots for Geothermal “Power Generation” in Alberta

According to an industry study on Alberta’s geothermal potential, the following communities have oil and gas wells with temperatures above 120c and are also within 10kms of a power line or substation.  At that temperature and proximity, there is potential to use geothermal capabilities to generate electricity.


* The range in # of wells above is from 1 (Claresholm) to 54 (Hinton).
* The well data used in the study were current to Oct 31, 2016.
* New wells would have been drilled since and are not part of the study.

The wells associated with those communities above are also mapped to Alberta’s Township range system.  Each circle below give a sense of where the wells are located.  All are along the western side of the province where the wells are the deepest.

To recreate and explore the results, simply go to the associated dashboard (click on the image below) and then select the lower right button called “3. Power Generation within 10kms of Powerline or Substation”.

*All information is provided subject to our Terms of Use, including disclaimer of warranties and limitations on liability. © Fuzeium Innovations Inc. To provide feedback, contact us at info@fuzeium.com


 

It’s So Much More Than a Petroleum Show…

With a theme of developing a leaner and cleaner industry, the SPARX Pitch Competition finalists (at the 2017 Global Petroleum Show) are diverse. They include companies with the ability to improve extraction of oil & gas; reduce emissions;  develop geothermal energy; harness solar energy; gain market intelligence; efficiently acquire services; collaborate with data visualization; improve pipeline integrity. We at Fuzeium are proud to be one of the finalists.


The 13 participants in alphabetical order are:

Agestpc
Patented thermal desorption technology

Blair Air
Air Compressor / Injection Pump for SWEET and SOUR well sites

Borealis Power
Canoe Reach Geothermal Project: The next generation of renewable energy

Finis Energy
The Most Efficient & Cost-EffectiveSolar Power Roof System

Fuzeium Innovations Inc.
Gain Alberta Oil & Gas Market Intelligence Through Online Data Dashboards

Geometric Energy.ca
Shaping a Sustainable Future

H2nano
Clean water, clean industry.  Powered by light.

Pursuit-Technologies
Test reservoir properties for each stage individually with one trip in the well

Riger
For energy service and equipment rentals

RNG International Ltd
Natural gas dehydration systems

Steambooster Technologies
Superheating Steam for SAGD Operations

Vizworx
Geospatial data visualization

Zeel GIS
Helps energy companies tackle their pipeline integrity challenges

*All information is provided subject to our Terms of Use, including disclaimer of warranties and limitations on liability. © Fuzeium Innovations Inc. To provide feedback, contact us at info@fuzeium.com


 

Who’s Been Drill’n for Oil & Gas in Alberta?

Who’s been drilling in Alberta? Well, it is a moving target, but this dashboard shows the last 14 days.

Click on the dashboard below to find out.
(Use the “Full Page” diagonal arrow for full screen.)

How to....

And if you want more detail over the last year and see who the drilling contractors were, subscribe to Fuzeium’s Well Intelligence module.

You’ll be able to access a drilling activity dashboard that looks something like the following, which was captured as just an image on Jun 2, 2017.

Definition and Interpretation:  

  • The data used is AER ST 49 – Daily Drilling Activity (spudding of new wells).
  • Interpretation of the source data is done by Fuzeium using a variety of data integration and visualization techniques.

*All information is provided subject to our Terms of Use, including disclaimer of warranties and limitations on liability. © Fuzeium Innovations Inc. To provide feedback, contact us at info@fuzeium.com

 

 

The Impact of Lexin Resources’ Wells on Alberta’s Orphan Wells Count

The purpose of this article is to identify the impact of Lexin Resources' well inventory on the list of Alberta orphan wells, as published by the Orphan Wells Association (OWA) in March 2017.

This analysis is prompted by recent articles in the Calgary Herald (up to March 31), which refer to Lexin Resources as being shut down and put into receivership by the Alberta Energy Regulator (AER).

This analysis is a snapshot in time and because the number of wells and their status may change over time, this article refers to the counts in the past tense. Please note the disclaimer at the bottom of this post.

The Context of Alberta Orphan Wells:

  • There were 4948 orphan wells in Alberta as of March 2017. Most of those (4250) were classified as having a next step "To Abandon". This means they are to be permanently cut and capped (sealed).
  • The remaining 698 wells were classified as having the next step "To Reclaim". This means the land surrounding the well is to be remediated and reclaimed.
  • The blue circles on the map above show a broad distribution of orphan wells across Alberta, with pockets of concentration evident.
  • To have a well properly "Abandoned" and "Reclaimed" (in AER parlance) is a good thing; it's like saying the well has been properly decommissioned.
  • The OWA does this work on behalf of the industry when well licensees (companies) become defunct (such as going bankrupt). In other words, the wells have become ownerless and the OWA steps in to guide them through end-of-life.
  • The total number of orphan wells in Alberta increased from 1961 wells in Sep 2016 to 4948 wells in Mar 2017, a 152% increase over that period.

Lexin's Orphan Wells: 

  • The AER stated on March 21  that "care and custody of Lexin’s assets remain with the Orphan Well Association and identified working interest participants."
  • The orange circles on the maps above approximate the location of the wells. This is done by identifying Lexin's wells in each Alberta township and then plotting a circle in the centre of those townships (ie. based on the AB Township Survey). The bigger the circle, the greater the number of Lexin wells in the township.
  • The large increase in Alberta's orphan wells in March was mainly due to Lexin's 2113 wells (representing ~43% of the total amount.)
  • All of Lexin's wells appear to be classified by the OWA as having a next step "To Abandon".
  • The majority of Lexin's wells were located south of Calgary, though there were a few pockets elsewhere in the province.
  • The chart below indicates that Lexin's amount of orphan wells "To Abandon" is significantly more than the next highest, that being 274 wells, once belonging to Canadian Coyote Energy.
  • The Alberta Energy Regulator (AER) has indicated that some of Lexin's wells could eventually be transferred to other operating companies. As in, some of the wells will not remain orphan wells and will take on new owners.

Definitions and Interpretation: 

  • *Orphan Wells" are wells associated with Defunct Companies, which "are licensees that are deemed defaulting working interest participants by the AER pursuant to Section 70(2)(b)(iii) of the Oil and Gas Conservation Act."
  • The OWA provide updates to their data about once a quarter.

Disclaimer: The graphs and statistics above are intended as factual descriptions, without making any judgments regarding the parties involved. The information is offered as educational material only and is not guaranteed to be accurate. The source of the raw data is the OWA.

___________________

To see numerous interactive dashboards on the subject, please see this link.

*All information is provided subject to our Terms of Use, including disclaimer of warranties and limitations on liability. © Fuzeium Innovations Inc. To provide feedback, contact us at info@fuzeium.com


Digital Data Enables A Renewable Energy: Geothermal / “Earth Heat”

I have written about digital data as an unnatural resource and its importance to Canada’s Innovation Agenda.  In this article, I want to draw attention to how digital data can enable a burgeoning, renewable energy industry in Canada: geothermal.

The Canadian Federal Government recently acknowledged in its 2017 budget that “Geothermal energy is one renewable energy source with the potential to reliably meet a portion of Canada’s heating and electricity generation needs….”  Coupled with incentives now offered by the government to encourage investment, the Candian geothermal industry is hopeful it can successfully develop the resource on behalf of Canadians.

According to the industry association, CanGEA, “Geothermal energy is a clean source of reliable electricity and large scale direct use of the hot water derived from the earth that can help solve some of Canada’s greatest challenges, namely providing energy security, economic growth and reducing our CO2 emissions.”

“In its simplest terms, geothermal means earth-heat. It is related to the thermal energy of Earth’s interior. On a large scale, the intensity of this thermal energy increases with depth, that is, the temperature of the Earth increases as we travel closer to its centre.

This means that in order to tap into that “earth heat” one has to drill into the earth.  But isn’t that what the oil and gas industry has been doing for decades, albeit for hydrocarbon extraction?  In the province of Alberta alone, there are about 430,000 physical surface locations where wells have been drilled for oil and gas.  Not all of them function anymore and in some cases, the equipment is gone and the land reclaimed.  But the landscape is very much dotted with thousands of structures like these, some working away, some sitting inactive.

Can we tell if these wells are suitable for geothermal energy? By looking at these pictures alone, unfortunately, there is no way to know. That’s because there are many factors that influence decision making. These include but are not limited to, the location of the well; depth of the well; the temperature at the bottom of the well; the physical characteristics and conditions of the well; the status of the well license; the owner of the well license; the well’s age; its proximity to electrical infrastructure and communities; the land leaseholder; existing well liabilities;  regulations; the economics to build and operate, and so on.

Complicating matters, there is no one repository of all that data, so multiple sources have to be integrated in a meaningful way and analyzed. Fortunately, we are at a point in time where capabilities are coalescing to enable such decision-making.  Much data is available from government agencies; geological data is in abundance; commercial oil and gas data is more prevalent; data integration and analytical tools are more sophisticated.  These capabilities, when effectively combined, help reduce large data sets through filters, so that candidate wells can be identified.  The following is a concept illustration of the approach for Alberta, but the method would be applicable to other jurisdictions.

Many wells have potential, regardless of their stage of life (e.g. whether they are actively producing oil or gas, they are inactive, or decommissioned etc).  But there are cautionary flags raised by some who say there are numerous challenges that will impede progress, such as the condition of the well and its associated liabilities for decommissioning. This perspective was captured in a recent CBC article on the subject.   But even if a particular well is not suitable for geothermal, the data stemming from the well and its area (surface and subsurface) might inform prospective developers and investors on where to drill new wells.  In other words, digital data that’s accumulated in and around a well has value on its own for identifying geothermal potential.

Innovation has always stood at a crossroads; this is no different for exploiting geothermal in Canada.  What’s needed are guide books that set the direction and identify what to look for along the way.  CanGEA has been building those resources for over a decade and it will continue to do so on behalf of the industry.  And increasingly, we will see digital capabilities emerge as an enabler to finding and exploiting “earth heat” as a renewable energy source.

*All information is provided subject to our Terms of Use, including disclaimer of warranties and limitations on liability. © Fuzeium Innovations Inc. To provide feedback, contact us at info@fuzeium.com