Mitchell honored for contribution to shale gas revolution

In this, the branded "unconventional resources" issue of Oil & Gas Financial Journal, it seems only fitting to dedicate this column to George P. Mitchell, the man credited with pioneering hydraulic fracturing—the technology that has unlocked shale gas and revolutionized the oil and gas industry.

At its recent "Global Unconventional Gas 2010" conference in Amsterdam on June 16, the Gas Technology Institute (GTI), a research, development, and training organization serving the global natural gas and energy industry, presented the legendary Houston oilman with its Lifetime Achievement Award.

What started with Mitchell's vision and passion for unconventional development has spread to application to other gas shales throughout North America and Europe. It was only fitting then, that he received the prestigious honor in the presence of energy professionals from around the globe.

Mitchell, a petroleum engineer with geology training from Texas A&M University and founder of Mitchell Energy & Development Corp., long believed that natural gas could be extracted from shale. Long before anyone else ever thought it possible.

As head of his own oil company, Mitchell was not satisfied to see his oil wells go to waste in the event of flow shortages. His plan to drill for hydrocarbons in the rocks of the Barnett Shale was puzzling to the engineers who cautioned Mitchell about the likely futility of their efforts, but Mitchell persisted.

The company went on to test various processes of hydraulic fracturing. Production from many of the thirty-something test wells was short of covering operational costs, but Mitchell believed in the technology and continued in his quest. He focused on the test results yielding the greatest returns; he analyzed and retested until eventually, the first successful use of hydraulic fracturing to drill into shale for natural gas was completed. Many industry experts now believe the Barnett Shale may be the largest onshore natural gas field in the United States, containing more than an estimated 26 trillion cubic feet of natural gas.

In 2002, Devon Energy Corp. acquired Mitchell Energy & Development Corp. and added the horizontal drilling to its repertoire as a way to make shale gas wells even more productive.

In the few short years since then, technology has continued to improve, drilling techniques have continued to advance, and horizontal drilling has become a tool for many exploration and production companies in search of unconventional resources.

The two techniques have changed the face of the oil and gas industry. The revolutionary tactics are now being adapted and applied in other unconventional shale gas plays including the Marcellus, Woodford, Fayetteville, Haynesville, and others. The possibilities now are seemingly endless.

At the awards ceremony, GTI called Mitchell "an inspiration to all those who are building on his legacy to make the unconventional conventional."

Upon receiving his award Mitchell commented, "I'm truly honored to be receiving the Lifetime Achievement Award from the Gas Technology Institute. I believe that the United States should examine all forms of natural gas in order to ease our dependence on coal and foreign oil."

Less than a decade ago, many believed the US would run low on gas supply. A bleak outlook of large LNG imports has now been transformed into a game-changing projection of ample gas supply for the next 100 years. The sustainable and affordable energy source opens up a world of possibilities on how natural gas is used and has truly transformed the US energy picture.

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