WVU to Help Optimize Natural Gas Production

Wheeling WV  Intelligencer
31 January 2011
By Casey Junkins

WHEELING - Reports show the Marcellus Shale natural gas rush sweeping across West Virginia could bring billions of dollars and thousands of new jobs to the state over the next several years.

Now, the state's largest academic institution is looking to help "optimize gas production in the region," as West Virginia University's College of Engineering and Mineral Resources is using data-intensive science in an effort to save time and resources during gas development.

To help fund the research, WVU is receiving a $354,000 grant from the nonprofit Gas Technology Institute.

Shahab Mohaghegh, a professor in the university's Department of Petroleum and Natural Gas Engineering, said the technology being applied is "new and unconventional."

"This is very new technology that has been extensively and exclusively used here at WVU," he said. "People in the industry are quite interested to see how our research in this area progresses."

Mohaghegh is leading a team of researchers in applying the latest technology to reservoir modeling. He is schooled in the application of artificial intelligence and data mining in the petroleum industry.

According to Mohaghegh, Intelligent Reservoir Modeling - a process that allows drilling companies to prepare more effective and efficient drilling plans - approaches the reservoir simulation and modeling from the opposite angle. Using this new technology leads to savings of both time and research resources to obtain accurate predictive models. Over time, more wells and more historical data enhance the results of the model.

By knowing precisely where the gas is and the best way to retrieve it, natural gas drillers like Chesapeake Energy, AB Resources, Trans Energy and others will have a better chance to gather the fuel, thus optimizing production.

As West Virginia legislators consider ways to regulate the Marcellus play - including possibly raising fees for drilling wells from $600 to $15,000 - many Northern Panhandle residents are collecting sums of money via lease and production payments reaching as much as $5,000 per acre and 19-20 percent, respectively. Some legislators are concerned that having one Department of Environmental Protection inspector for every 4,917 wells places an unrealistic burden on the inspectors.

However, other legislators and industry leaders believe raising the cost of permits from $600 to $15,000 will destroy the industry by discouraging new development.

The Gas Technology Institute, which sponsored the $354,000, has more than 65 years experience in the development and deployment of technology solutions. GTI programs have resulted in nearly 500 products, 750 licenses and more than 1,200 associated patents.

Mary Dillion, communications specialist for WVU's College of Engineering and Mineral Resources, said she was "not at liberty to say" who was partnering with the university in conducting the research. Mohaghegh did not immediately return calls seeking additional comment.