The dynamic economic evaluation method of shale gas resources

Abstract

ABSTRACT: At present, most shale gas exploration and development areas in China are difficult to provide sufficient and effective production data to support economic evaluation, since they are still in the initial stage of low exploration level. In addition, ecological and environmental factors are not taken into account in the evaluation process, which does not meet the needs of green energy development of China. Aiming at above problems, the dynamic economic evaluation method of shale gas resources based on calculus principle is proposed. The Arps hyperbolic decreasing curve model will be used in the evaluation of single shale gas well production, which can evaluate single well production of shale gas by fitting the existing dynamic production data to generate the production decreasing curve. Therefore, the variation regularity of the cumulative production of single well shale gas within the study area can be obtained by the model mentioned above. According to the variation regularity of the cumulative production obtained from the Arps hyperbolic decreasing curve model, the recovery period of single well cost, ultimate economic life and the ultimate economic resource can be evaluated dynamically by analyzing the variation regularity of the cumulative sales revenue and cumulative input cost of single shale gas well. Then the evaluation result can be further extend to the whole evaluation areas, in order to analyze shale gas resources ’ economic value in evaluation regions under different shale gas price conditions. The results of the above evaluation methods are not only conducive to improving the economic benefits of relative shale gas development enterprises, but also provide a basis for the national energy strategy deployment.© 2019 China Geology Editorial Office.

Keywords

• Shale gas
• Evaluation method
• Economic resources
• Single well cost
• Economic life