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Hydraulic Fracturing in New Mexico

Hydraulic Fracturing in New Mexico. Presented by Steve Henke, President New Mexico Oil & Gas Association. What is Hydraulic Fracturing. Long used form of well completion that along with horizontal drilling has been a game changer for natural gas development in the United States.

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Hydraulic Fracturing in New Mexico

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  1. Hydraulic Fracturing in New Mexico Presented by Steve Henke, PresidentNew Mexico Oil & Gas Association

  2. What is Hydraulic Fracturing • Long used form of well completion that along with horizontal drilling has been a game changer for natural gas development in the United States. • Hydraulic fracturing is a process used in nine out of ten natural gas wells in the United States, where water, sand and chemicals are pumped underground to break apart the rock and release the gas or oil. • Horizontal drilling combined with multi-stage hydraulic fracturing has brought the U.S. a 100-year supply of natural gas. • Hydraulic fracturing and horizontal drilling make previously marginal reserves economically recoverable.

  3. Hydraulic Fracturing Job

  4. Water Sources • Surface water • Fresh water wells • Municipal systems • Reuse of flowback • All from permitted sources

  5. Flowback and Disposition Options • Temporary storage (tanks or lined pits) • Treatment at production facilities • Class II disposal wells • Commercial disposal wells • Municipal or commercial treatment plants • All permitted/approved by appropriate regulatory agencies at the state level

  6. Fracturing Fluids • Many different formulationdepending on specifics of formation being completed • Fluids create fissures • Fissures kept open with propant (sand) • Allow natural gas and oil to flow

  7. Regulation • New Mexico Oil Conservation Division • Well Design and Construction • Hydraulic Fracturing Fluid Disclosure • Disposal of Flowback

  8. CBI: Confidential Business Information

  9. Trade Secrets 29 CFR 1910.1200 allows for trade secret protection of certain hydraulic fracturing fluid components

  10. New Mexico’s Experience • San Juan and Permian Basins – Unlocking New Resources • Completed Wells • Gas 28,456 • Oil 24,208 • Water Saving Technologies in San Juan • No evidence linking hydraulic fracturing to ground water contamination • What is appropriate risk management?

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