Shale Shaker V71N3 May-June 2020

Shale Shaker V71N3 May-June 2020

$15.00 U.S.

V OLUME 71 N UMBER 3 T HE J OURNAL OF THE O KLAHOMA C ITY G EOLOGICAL S OCIETY ~ May | June 2020 ~

The Texaco Kohpay L 16-WS: The Osage Microgranite Revisited

My Favorite Thin Section: Of Stylolites and Pores

And Much More.

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The Journal of the Oklahoma City Geological Society Volume 71 Number 3

The Shale Shaker The Shale Shaker is published under the oversight of members of the OCGS Publications Committee, who are responsible for all of the editorial and technical content. Publication production assistance provided by: ART DIRECTOR, PRODUCTION AND DESIGN Theresa Andrews, Visual Concepts and Design, Inc. [email protected]

OCGS Board Officers President – Patrick Kamann [email protected] Vice President – Mallory Zelawski [email protected] Treasurer – Drew Dressler [email protected] Secretary – Cole Hinds [email protected] Education Chair – Rosie Gilbert [email protected] Social Chair – Galen Miller [email protected] Social Media Chair – Britni Watson [email protected] Website Chair – Julian Michaels [email protected] Publications Chair – Dan Costello [email protected] Past President – Steve Ladner [email protected] Councilor – Doug Bellis doug.bellis@warwick-energy Membership Chair – Mark Oerkerman [email protected]

Directors Lesley Evans [email protected]

AAPG House of Delegates John Brett [email protected] AAPG Mid-Continent Section Representative Michael Bone [email protected]

OCGS OFFICES 3409 S. Broadway, Suite 804 Edmond, OK 73013 Phone: (405) 235-3648 | Fax: (405) 235-1766 Website: www.ocgs.org Staff Michelle Hone [email protected]

May ~ June 2020 | Page 99

The Journal of the Oklahoma City Geological Society Table of Contents

126

My Favorite Thin Section: Of Stylolites and Pores; David Hull, Devon Energy

Shale Shaker Features

102 COVID-19 Update; Patrick Kamann, President, OCGS Board of Directors

130

State of the Industry; Dan Costello

134

Advertisers Index

103

What's Next; Dan Costello, Editor

104

OCGS Membership & New Members

104

OCGS Up-Coming Events

105

2020 Centennial Sponsorship Announcement

106

Seismic Activity; Andrew Cullen, Warwick Energy

108

The Texaco Kohpay L 16-WS: The Osage Microgranite Revisited; Matt Hamilton, University of Oklahoma, School of Geosciences; Barry L. Weaver, University of Oklahoma, School of Geosciences; R. Douglas Elmore, University of Oklahoma, School of Geosciences

COVER PHOTO: Photomicrograph of Osage Microgranite (Central Osage Co., OK). Photo courtesy of Matt Hamilton.

Page 100 | Volume 71 Number 3

C

C R A W L E Y P E T R O L E U M

Turning Prospects into Production

105 N. Hudson, Suite 800 Oklahoma City, OK 73102 (405) 232-9700

Allen Peacock [email protected]

May ~ June 2020 | Page 101

Letter from the OCGS President

By: Patrick Kamann, President, OCGS Board of Directors

COVID-19 Update

February. Additionally, OPEC+ promised to cut just under 10 million barrels a day for May and June. Despite an increase in oil prices there is still much concern in the industry. As I wrote in my last letter, we need to see prices around $50 a barrel in order to drill a profitable well. Additionally, operat - ing costs on some wells are negative with prices in the low 30s. To help confirm this reality, the Oklahoma Corporation Commission on May 26 th agreed to keep an order in place allowing producers the ability to shut in unprofitable wells and still maintain lease rights. Finally, bank- ruptcy remains a concern for many across the industry. Rystad Energy estimated 70 plus companies could be forced into bank- ruptcy in 2020 at a $30 WTI price. The OCGS is still working to navigate around the corona virus. In April the board voted to offer half-priced member - ships to those who have been impacted during this recent crisis. If you did not renew your membership in 2020 or are considering becoming a new member, and you are currently out of work, furloughed, or laid off, we are offering 2020 society memberships for $50. Please email Mi- chelle Hone at [email protected] for more information. Additionally, we have re- started our luncheon series with a virtual

luncheon in May featuring Craig Barrie from GeoMark. The event was well at- tended with 70 people including 18 inter- national attendees. I would like to thank Craig and GeoMark for a agreeing to do the luncheon virtually. We are continu- ing the virtual luncheon series in June with Susan Morris’ talk “Finding the Oil Within”. We are also going to try to re- start some of our social activities with the Spring Sporting Clay Tournament set for June 19 th . Finally, we had to make some adjustments to our continuing education courses. We have rescheduled the May two day carbonates course with Rick Sarg for November 11 th and 12 th . Please be on the lookout for more information. The George Asquith log analysis course, the Yucel Akkutlu course on applied reservoir engineering, and the Jeff May sequence stratigraphy course have been canceled for 2020. It is unfortunate we had to can- cel these courses; continuing education is a big part of our mission. I apologize for any inconvenience this may have caused. We are still hoping to offer courses in the fall and are actively working with the in- structors and venues to confirm. Please be on the lookout for more information. I want to thank everyone for their patience and understanding during this unprece- dented time. I hope you all are doing well and staying safe.

Patrick Kamann

It has been two months since our last Shale Shaker issue, and a lot has changed across the oil industry. At the time of my last letter on March 27 th , the WTI May contract price was just under $22 a barrel. In April we saw the May WTI contract price slide to negative territory for the first time (-$38.45) as May contract holders, who could not take delivery, were forced to sell as the contract closed. On the same day, the June contract price was in the low twenties and today May 27 th , the July con- tract price is around $32.55. The price of oil has come up as US oil production has dropped 1.6 million barrels per day since a peak of 13.1 million barrels per day in

Weston Resources, Inc. Michael Weston Smith Geologist 2500 South Broadway, Suite 220 Edmond, Oklahoma 73013 (405) 203 6866 [email protected]

DICK HOWELL Sales Manager 405.315.4206 [email protected] www.columbinelogging.com

Page 102 | Volume 71 Number 3

Letter from the Editor

By: Dan Costello, Editor

future is still uncertain, especially over the next 12-24 months. The unconventional side of the indus- try (especially those focused outside the Permian) faces the most headwinds to re- covery. The US Land rig count has dropped 62% since the beginning of the year, with Oklahoma’s rig count dropping 77% over the same time period. Several public com- panies are discussing bankruptcy in order to clean up their balance sheets, with other companies shutting in production which is uneconomic at current prices. As these shut-ins are a new experiment in tight oil reservoirs, there is much uncertainty as to how productive these wells will be when they are turned back online. Due to the high decline rate associated with many unconventional reservoirs, the combined shut-ins and lack of new completions will lead to a steep drop in US tight oil pro- duction. In turn, this could result in prices increasing, which would lead to operators opening wells or bringing others online, and the cycle continues. When oil prices first went negative, there was some discussion about “the end of oil”. While I believe that a green energy future is inevitable and a transition to cleaner fuels is important, this will take

time and we have not seen the end of oil’s importance to the economy. If anything, cheap oil will be more important as the economy recovers. Perhaps we will see a shift back to conventional oil production as investors move away from unconven- tionals. This shift would require geolo- gists to relearn (or learn anew) the skills required to find, map, and produce these conventional hydrocarbons. The OCGS is poised to help with this potential tran- sition, through mentoring and continuing education courses. One of the more interesting developments I have seen recently is a resurgence in interest regarding geothermal energy. As many geologists have been in search of new employment, the geothermal realm appears to be a viable place to apply the skills that many have used for developing unconventional assets. Geothermal energy requires analysis of basin-scale faulting, basement heat flow, and geomechanics, all of which have been used to delineate and optimize development of tight oil plays. It will be interesting to follow these developments and others. As the past five months have shown, there could/will be other changes coming that we couldn’t have predicted!

Dan Costello What’s Next?

May you live in interesting times”, goes the old saying. Sounds fun, doesn’t it? As we are all experiencing, however, “inter- esting” is not always good. The oil and gas industry has experienced not one but two “black swan” events over the past couple months with the Saudi-Russia price war affecting supply and the economic shut - down related to COVID-19 dropping de- mand for hydrocarbons. This has led to oil prices plunging into negative territory for the first time since it began trading on the commodities market. There has been some recovery in demand/prices, but the

May ~ June 2020 | Page 103

OCGS Membership & New Members

SOCIETY MEMBERSHIP _____________________________________________________________________________ As of 6/3/2020 OCGS 393 Active 65 Associate 16 Emeritus 10 Honorary 13 Students _____ 497 TOTAL NEW MEMBERS _____________________________________________________________________________

STEVEN SMITH DEVON ENERGY

JAMES KNAPP OKLAHOMA STATE UNIVERSITY

JUNE 17, 2020 WEBINAR WITH SUSAN MORRICE “FINDING THE OIL WITHIN” JUNE 26, 2020 SPORTING CLAY EVENT SEPTEMBER 26, 2020 ANNUAL SHRIMP BOIL AT THE GREENS GOLF AND COUNTRY CLUB

Page 104 | Volume 71 Number 3

May ~ June 2020 | Page 105

Seismic Activity By: Andrew Cullen, Warwick Energy

Observations on Recent Seismicity

Most of the seismicity in the STACK and SCOOP is of relatively low magnitude and can attributed to the implementation of high in- tensity hydraulic fracturing during completions (Cullen, 2020, SE Alpha Swarm, Shale Shaker 71-1. This graph shows the number of seismic events in two-week intervals (yellow) in the core of the SCOOP-STACK in 2020 to May 15, 2020. Also shown are the price of West Texas Intermediate oil and the number of deaths in the USA attributed to the COVID-19 virus. There are 3 important events on this graph: 1) WTI price had been weakening going into March and dropped sharply as OPEC-Plus failed to agree on production cuts Saudi Arabia and Russia. 2) The Saudi’s initiated a price war to gain market share by increasing production. 3) As USACOVID-19 deaths went from 1000 to 2000 per day, the effect on lockdowns on oil consumption by the largest consumer (USA) declined just as more Saudi oil was coming on the market. In Oklahoma industry has responded to low prices with a sharp curtailment of activity that is reflected by a sharp drop in completions-related seismicity.

Page 106 | Volume 71 Number 3

WhatYou Missed

Top SecretWWII project sends Oklahoma drillers into British oilfield, cont. Roughn cks of Sherwood Forest

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@DevonEnergy

May ~ June 2020 | Page 107

By: Matt Hamilton 1 , Barry L.Weaver 1 , and R. Douglas Elmore 1 1 University of Oklahoma, School of Geosciences Oil and Gas Exploration The Texaco Kohpay L 16-WS: The Osage Microgranite Revisited

OVERVIEW The Texaco Kohpay L 16-WS well was drilled in central Osage County in 1963 to a total depth of 2848 feet (868 m), penetrat- ing approximately 30 ft of igneous base- ment (Campbell and Weber, 2006). Three pieces of core from the bottom 5 feet of the well, totaling almost two feet, are cur- rently housed at the Oklahoma Petroleum Information Center (OPIC). This is one of very few cores of northern Oklahoma basement material available from outside of the Tri-State Mineral District and is the only one reported from the Osage Micro- granite (Denison, 1966, 1981). A radio- metric age of 1183 ± 48 million years was determined for this core using the Rb-Sr isotopic system (Denison, 1981; recalcu- lated from Muehlburger et al., 1966, using the updated 87 Rb decay constant). This age is most likely an underestimate – all radio- metric age determinations from northeast Oklahoma basement rocks using U-Pb analyses of zircons indicate ages close to 1370 million years (Bickford et al., 2015), whereas the corresponding Rb-Sr age de- terminations are consistently younger and show a wider range (Denison, 1981). The name of this core appears differently in multiple sources. Muehlberger et al. (1966) report the core as the “Texaco No. 1 Kohpay” whereas it is listed as “Texa- co 16 W.S. Kohpay” by Denison (1966, 1981) and as “Texaco L Kohpay 16WS” by Campbell and Weber (2006). The Oklahoma Geological Survey lists the name as “Texaco Kohpay L 16-WS” (API: 35113069160000) in their oil & gas core >Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40

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