A N A DA R KO P E T R O L E U M C O R P O R AT I O N
INTERNATIONAL SHALE FACT SHEET
NYSE: APC
ANADARKO IS … PROVIDING FOR TODAY, INNOVATING FOR TOMORROW
Anadarko Petroleum Corporation’s mission is to deliver a competitive and sustainable rate of return to shareholders
by exploring for, acquiring and developing oil and natural gas resources vital to the world’s health and welfare. As
of year-end 2013, the company had approximately 2.79 billion barrels-equivalent of proved reserves, making it one
of the world’s largest independent exploration and production companies.
Development of Oil & Natural Gas from Shale Formations
Substantial deposits of oil and natural gas are trapped in deep shale reservoirs – hard dense
deposits of fine-grained sedimentary rock formed from ancient sea basins millions of years ago.
These reservoirs are typically nearly 2 kilometers below the surface level. Natural gas extracted
from shale rock formations has become the fastest-growing source of gas in the U.S., and an IHS
study projects that natural gas developed through the use of hydraulic fracturing will rise to more
than 75 percent of the domestic supply by 2035.
The International Energy
Agency estimates that
global recoverable shale
gas resources stand at
7,345 trillion cubic feet.
Although exploration and development of shale resources outside the U.S. are still in the early stages,
Anadarko is exploring ways to apply its expertise in unconventional and shale resource development to
international and frontier growth areas.
Convergence of Technology
Kickoff Point
Entry Point
~2,000 meters
Lateral Length
Hydraulic fracturing has been used in the oil and natural gas industry since
the 1940s, producing more than 600 trillion cubic feet of natural gas and 7
billion barrels of oil. Combined with modern horizontal drilling technology,
this “unconventional” development has unlocked vast U.S. shale reserves,
launching a renaissance in oil and natural gas production, supporting
millions of jobs and generating economic growth. Without these advanced
technologies, the U.S. would lose 45 percent of its domestic natural gas
production and 17 percent of oil production within five years.*
Horizontal Drilling
Horizontal drilling dates back to the early 1900s and allows access to greater
lengths of hydrocarbon-bearing formations, which in turn, enables producers
to maximize the wellbore’s contact with the productive formation from fewer
wells above ground.
*Source: API
INTE GR IT Y A N D T RU S T
S E R VA N T L E A D E R S H I P
COMMERCIA L F OCUS
OP EN COMMUNIC ATION
P EOPLE A N D PA S S I ON
A na d a r ko Pe t r ol e um C o rpo rati o n
Hydraulic Fracturing
10
Hydraulic fracturing has been used more than 1.2 million times to safely
enhance the production of oil and natural gas from dense shale formations in
the U.S. This technology is generally applied to formations that are more than
two kilometers below the surface (1,000 to 4,000 meters). Hydraulic fracturing
uses a mixture of water, sand and additives to create fissures in targeted
10
formations to enable the oil and natural gas to flow through the wellbore to
the surface. This process typically takes three to five days in a well’s 30-year
A
production life.
A
The Depth is Equal to 5.5
Empire State Buildings
1. PR
Sit
Shale Gas
450-700 Ft.
Multiple Layers of Steel
Encased in Cement
Protect Ground Water
The
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1. PROCESS STEP:
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Shale Gas
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Benefits of Horizontal Drilling & Hydraulic Fracturing
Conventional Gas
The Concern:
use
oth
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“Shale gas drilling takes up a larger land-use footprint than
•Significantly Decreased Surface Area: The average well site today is 30 percent smaller pro
does conventional energy production.”
than it was in 1970, and an average well can now access up to 60 times more oil and natural 10
The
gas producing formation than was previously possible.
The Facts:
‡Lan
‡Shale gas production requires a drastically smaller land•Reduced Carbon Emissions: Greatly improved equipment, engine efficiency and evolving gas
use footprint than conventional natural gas drilling and
A
technologies are resulting in less energy consumption per unit of fuel produced, thus lowering other forms of energy production, such as solar and
1. PROCESS STEP:
2. PROCESS STEP:
wind power.
Rec
air emissions per unit of energy produced.
Shale Gas
SiteConventional
development
Vertical
drillin
Gas and preparation ‡Current common practice is to drill multiple
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•Fewer Wells: Today, oil and natural gas companies can access roughly 10 times the amount from one vertical well. This allows for higher natural gasloc
Wind
production from each well and a smaller
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The
Concern:
The
Concern:
am
of energy from one-tenth the number of wells drilled compared conventional vertical drilling. “Shale gas drilling takes up a larger land-use footprint than
“Hydraulic fracturing
‡C
o
More oil and natural gas from fewer wells means fewer disturbances to the land, and less
does conventional
energy production.”
pad
The Context:
Hydraulic fracturing occurs at a
water 10
being consumed, transported and/or used.
Fractures;extraction:
1 mm wide shale The
‡Land useShale
by energy
gas,Facts:
conventional
The Facts:
depth of approximately 7,0008,000 Ft.
gas, wind, solar. (see graphic A)
‡Vertical drilling is a
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gas production requires a drastically smaller landuse footprint than conventional natural gas drilling and
‡Groundwater is pro
Recommended Industry Best Practices:
other forms of energy production, such as solar and
1. PROCESS STEP:
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he few extremely
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Conventional Gas
‡Current common practice is to drill multiple horizontal wells
on groundwater.
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ontinue to maximize the number of vertical
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production from each well and a smaller
land-use
footprint.
The Concern:
The
Concern:
pad to further reduce the total land-useaquifers
footprint.are typical
“Shale gas drilling takes up a larger land-use footprint than
“Hydraulic fracturing can have adverse effects on drinking
water.”and the
formations
does conventional energy production.”
The Context:
‡Shale
A
Drilling
Shale Gas
Site development and preparation
Vertical drilling and effect on drinking water
use by energy extraction: shale gas,
The conventional
Facts:
The Context:
gas, wind, solar. (see graphic A)
‡Vertical drilling is a well-established practice and millions
of wells
have b
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istance
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‡Shale gas production requires a drastically smaller landZLWKQRVLJQL¿FDQWLVVXHV
target shale format
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a Pcombination
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roper well-bore
de
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other forms of energy production, such as solar and
For illustrative purposes only.
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Recommended Indu
on groundwater.
a minimum.
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‡Study local geology
‡Most wells
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ontinue to maximize the number of vertical
natural-gas
producing
shale
formations
are
3,000
to 4,500 metres
per
well
production from each well and a smaller land-use footprint.
drinking
water
sour
There
is no
ph
pad to further reduce the total land-use aquifers
footprint.are typically less than 300 metres underground.
well site prioristonot
drip
formations and the aquifers; therefore fresh water contamination
‡Land
The Facts:
*Source:
IGU, Shale
Conventional
Gas Gas, The Facts About the Environmental Concerns
Environmental Commitment
The Context:
Anadarko is committed to preserving the
environment, safeguarding water supplies,
Land use by energy extraction: shale gas, conventional
protecting wildlife and supporting the communities
where we work to produce the energy
gas, wind, solar. (see graphic A)
resources the world needs.
‡
For illustrative purposes only.
Recommended
Industry Best Practices:
Solar
‡Select,
‡Where
The Context:
‡D
istance
between the wellhead, aquifer and
target shale formation.
‡Proper
well-bore design. (see graphic B)
plan and operate well sites in a manner in which
and land use impacts
are kept requirements
to
We areWind
committed to constructing eachlocal
wellcommunity
in accordance
regulatory
and
a minimum.
industry standards to protect water resources
–
both
at
the
surface
and
underground.
Continue to maximize the number of vertical wells per well
pad to further reduce the total land-use footprint.
Anadarko’s sophisticated well construction
is designed with multiple layers of steel pipe
and cement set below the deepest known groundwater and cemented all the way to the
surface to protect groundwater sources.
‡
For illustrative purposes only.
Solar
The company
conducts extensive environmental studies and works with the appropriate
stakeholders to gain understanding of the environmental and cultural considerations of an
area. Then, Anadarko creates a balanced plan to protect the locations in which it operates
and applies the strictest of standards: the individual country’s regulations, international
standards or Anadarko’s own policies and principles.
Recommended Industry Best Practices:
‡Study
local geology to identify sub-surface
drinking water sources within 250 metres of
well site prior to drilling.
‡Where
water sources exist within 250
metres of the well site, test water before,
during and after drilling to monitor
water integrity.
‡Quality
assurance programs to ensure
proper well-bore design, construction
practices are followed and well integrity
•Publiclyduring
sharesthe
all life
fracofingredients testing is undertaken
the well.
on a per-well basis
rigorous
oversight
of subanytime, in •Available
to anyone,
contractors, quality
assurance programs,
real time
contractual expectations, auditing and
training to ensure standards
are met.
www.FracFocus.org
‡Maintain
‡S
et
water sourc
metres of the well s
during and after dri
water integrity.
‡Quality
assurance
proper well-bore de
practices are follow
testing is undertake
the well.
‡Maintain
rigorous o
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contractors, quality
700m
contractual expecta
C
training to ensure Cs
C
‡S
et minimum well d
1400m
C
2100m
S
C
D
F
2800m
3500m
4200m
minimum well depths.
Please view the Forward-Looking Statement and Cautionary Note to Investors under the Legal Notice tab at www.anadarko.com
For illustrative purposes only.
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