Chevron Introduction to Engineering Design

Section: 003

Design Project #2 “The Undercut Squad”

Daniel Jerrehian: dwj5182@psu.edu

Jason Baldwin: jzb65@psu.edu

Chufeng Wang: cqw5448@psu.edu

Matthew Benfer: mab6757@psu.edu

Submitted to: Wallace M. Catanach, III, PE

Date: 12/12/16

Table of Contents

1.0 Introduction

2.0 Mission Statement

3.0 Executive Summary

4.0 Customer Needs Analysis

● 4.1 Customer Requirements

● 4.2 Hierarchy of Customer Needs

5.0 External Research

● 5.1 Current Uses

● 5.2 Global Marketplace

6.0 AHP

7.0 Concepts

8.0 Final specifications

8.1 Cost Model

8.2 Final Design

9.0 Conclusions

10.0 References

1.0 Introduction

Since the invention of the first successful oil rig in 1859, the United States has been

dependent upon oil and natural gas as their primary source of energy. The demand for these

resources has been rapidly increasing since their discovery, making these amenities even more

valuable. Today, one of the primary ways to drill oil is through hydraulic fracturing, the process

of injecting liquid at high pressure into subterranean rock in order to extract oil and natural gas.

With the frequent drilling that occurs in the United States, there is a large amount of shale

cuttings that emerge as a by-product to fracturing. In the past, this excess shale rock has been put

to waste and has not been used in more efficient ways; there must be an efficient way to utilize

the excess rock shales. In order to conquer this feat, Chevron hired our team to design a method

of recycling and reusing these shale drill cuttings. Our team, the Undercut Squad, began our

project by developing an organized schedule in the form of a GANTT chart, giving us a specific

timeframe for each step of the design process. Utilizing the steps of the engineering process we

learned in class, we began researching and developing ideas. After extensive research, our team

finalized the concepts and discovered an effective way to utilize the excess shale cuttings from

hydraulic fracturing.

2.0 Mission Statement

Our mission is to provide the world with an effective and environmentally effective way

to reuse shale drill cuttings that emerge from the hydraulic fracturing process. We strive to make

our design efficient, cost effective, and environmentally friendly. Our method will also aim to

create a significant amount of jobs, if possible. With all of the research and ideas at our disposal,

we hope to provide Chevron the best possible solution to this challenge.

3.0 Executive Summary

This report was commissioned to examine why an efficient and eco-friendly use for shale

drill cuttings has not been developed since the invention of hydraulic fracturing and provide a

realistic and systematic solution to this environmental problem. For this project, our team

focused on creating an environmentally friendly and efficient way to reuse such drill cuttings,

particularly the by product of shale. As fracking has become one of the most common forms of

drilling, shale, as well as other earth material, collects in large quantities during digging; “over

two million tons of drill cuttings were sent to landfills [in Pennsylvania alone last year]”

(Cusick).

Our task is to find a solution and completely revolutionize the byproducts of the

hydraulic fracturing industry. Through extensive research, our team discovered that shale is an

extremely similar material to clay and serves as an additive to cement. This allowed us develop

five specific ideas in which the drill cuttings could be reused: vases and/or house decorations,

kitchenware, jewelry, residential flood barriers, and city sidewalks. Through an AHP diagram,

the group concluded that kitchenware, including plates, bowls, coffee mugs etc, was the optimal

choice. Not only was it the most cost efficient, but it also had the highest environmental footprint

rating, proving how eco-friendly the idea is.

The prototype design was accompanied by several risks. For instance, shale drill cuttings

often contain a large quantity of hydrocarbons and other chemicals, which must be “lowered

within the governing bodies standards [before] reuse” (Drilling). After conducting research on

how to purify the kitchenware, we discovered industrial porcelain enamel is “used to protect

surfaces from chemical attack and physical damage” (Morillon). The group then began designing

full 3D models on Solidworks and began developing the final product. The final proposal for the

shale cuttings will be presented to Chevron on December 7th, 2016.

4.0 Customer Needs Analysis

Various criteria must be met to ensure an environmentally friendly, efficient solution. The

challenge we were given was quite open-ended; we made sure to meet the following criteria

Chevron instructed:

4.1 Customer Requirements

● Process is cost effective

● Process is energy efficient and environmentally friendly

● No waste produced from the repurposing process

● Design requires little to no maintenance after being produced

4.2 Hierarchy of Customer Needs

Our team simply ranked the above 4 requirements from most important to least

important, with 1 being most important and 4 being least important. The results are as follows:

1. No waste produced from the repurposing process.

2. Process is cost effective.

3. Process is energy efficient and environmentally friendly.

4. Design requires little to no maintenance after being produced.

5.0 External Research

Shale drill cuttings are broken bits of solid material removed from a borehole through

hydraulic fracturing. These shale cuttings are often analyzed to make a mud log, a record of the

subsurface materials penetrated throughout the fracking process at various depths. Our team did

extensive research on some existing uses of shale drill cuttings in order to assist us in our

brainstorming process.

5.1 Current Uses

Cement Additive: To make cement,

crushed limestone and shale are heated to a

temperature that is high enough to evaporate off all

water and break down the limestone into calcium

oxide and carbon dioxide.

Pottery: Shale is used as a raw material for

making many types of pottery. Metamorphic rocks

that are useful to potters include slate, which is

formed from shale. Most clays are sedimentary

deposits, composed of weathered granites and

shale.

Masonry: Design of masonry structural members

begins with a thorough understanding of material

properties. Shale is one of the many materials

presented to simplify the design process. Shale

masonry units are most frequently selected as a

construction material for their aesthetics and long-term performance.

5.2 Global Marketplace

Hydraulic fracturing is often a very specific operation that is particular to a specific

country. With that said, the drilling for oil and gas has it’s own market in terms of sales and

production; although, the excess shale drill cuttings could potentially create their own

marketplace - a form of aid to third world countries.

Chevron maintains a very detailed and humanitarian “human rights policy,” which they

adopted in 2009. Their mission, to achieve “greater awareness of human rights issues throughout

the company and enhances our capabilities to identify and manage human rights across our

business,” directly supports the possibility of providing third world countries with such

kitchenware. Their policy is directly linked to the United Nations Guiding Principles on Business

and Human Rights, allowing them to easily start this campaign or foundation.

Plates, bowls, and mugs could all be shipped to third world countries in need of such

goods. Due to the immense amount of shale that can be mined during cuttings, a portion of these

could be repurposed and sent out. All in all, the shale drill cuttings provides Chevron with a

future market place on the global market, in such a way to help those in need.

6.0 AHP

7.0 Concepts

Through our research, we found that shale is relatively fragile compared to other building

materials. Using this knowledge, we tried to steer away from using shale for construction

purposes. We used the information from our research to compose some baseline ideas that we

can rate by using our AHP. Each concept was ranked against each weighted criteria with a 1 to 5

rating. Our concepts are as follows:

● Vases and/or decorations

● Kitchenware (plates, bowls, coffee mugs etc.)

● Jewelry

● Residential flood barriers

● City sidewalks

Using this concept scoring system, we found that our best concept was to form the shale into

kitchenware (plates, bowls, mugs). While other concepts are also valuable, we feel that ours will

be the most practical of the concepts that we brainstormed.

8.0 Final specifications

8.1 Cost Model

One of the key concerns with making the kitchenware is the ability to transport the shale

cuttings to a factory. With that said, our team devised a way to easily transport the shale while

still generating a profit. For our cost analysis model, we will be using a case study published

Jerry M. Neff, with sponsorship from PERF, a direct partner of Chevron, to calculate our costs

(Neff). This 83 page report provides extensive information about drilling cuttings, including real

measurements from drilling done in the Gulf of Mexico in the year 1998 (Neff). Based on the

study, 43 deep-water wells, meaning a well that drills in water deeper than 1,000 feet, each

generated 14,000,000 pounds of shale byproduct per year. In order to calculate the total amount

of shale byproduct accumulated, our team multiplied the average per well by the 43 deep water

wells used on site. This resulted in a total of 602,000,000 pounds of byproduct for the entire

year. In order to calculate the amount of shale drilled per day, we divided this yearly total by

365, to determine the average per day; this resulted in a total of 1,649,315 pounds of shale

collected per day. Ignoring the costs that Chevron already must pay to bring the excess shale to

land, (shale cannot simply be dumped back into the ocean due to the chemicals and hazards of

freshly drilled shale) (Neff), we discovered the average daily dump truck rental costs $600.

Through research and estimation, we concluded that the average bowl, plate, or mug weighs

about 1.2 pounds. A normal sized dump truck can carry about 20,000 lbs of material; in this case

being the shale. Using this logic, 16,666 kitchenware items could be transported per day, with

one dump truck load. In term, dividing the average 1,649,315 pounds of shale per day, by 20,000

lbs capacity per dump truck signifies that 82 trucks are needed to transport all of the shale per

day; this results in a total of $49,200 for transportation costs. Although this number may seem

high, with the resale value of these fine pieces of kitchenware, Chevron will not only break even

but receive an additional profit. By dividing the total transportation costs ($49,200) by the

number of kitchenware items (16,666), to break even, Chevron must expect that it will cost them

$2.95 for transportations costs to break even. This number only takes into account the price per

plate for transportation costs.

After transporting the shale, we decided it would be most efficient and cost effective for

Chevron to sell the material as a distributor. As the cost for transportation to break even is $2.95,

we decided that since the normal price of a plate ranges between $8-10, a distribution price of $4

for the amount of shale per plate. Overall, this is most cost effective and would give a 33.3%

margin per plate.

The following table is based off of the case study we used to calculate our cost model.

Amount of shale drilled per deep-water well per year 14,000,000 pounds

Number of deep-water wells 43

Amount of shale material per year: 602,000,000 pounds

Amount of shale material per day: 1,649,315 pounds

Cost of dump truck per day: $600

Number of dump trucks needed: 82

Total transportation costs: $49,200

Price per area of plate material to break even: $2.95

Total profit per plate material: $1.05 (36% margin)

8.2 Final Design

Plate: (solid works model w/dimensions)

Bowl:

Mug:

9.0 Conclusion After hours of research, brainstorming, and concept scoring, our team finally came to

what we believe to be the most practical way of recycling shale drill cuttings. We started with

Chevron’s few requirements and converted them into our own criteria that we would eventually

use in our AHP. From there, we conducted research on current uses of shale in the pottery and

masonry industry, and being used as an additive to cement. This set a foundation for us to

brainstorm our five concepts, and eventually come to a conclusion on our design. Primarily, we

believed it would financially benefit Chevron most to act as a distributor and sell the material to

pottery factories, in order for them to turn it into kitchenware and put out on the market to sell.

As a secondary (but less cost effective) idea, we proposed Chevron could send this kitchenware

to less fortunate 3rd world countries. We chose this to not only improve relations between

Chevron and other countries, but more importantly help out people who really need it. Through

this project, we realized that cost effectiveness is important, however it should not always be the

limiting factor. Our team greatly enjoyed this challenge and would like to thank Chevron for

giving us the opportunity to propose a solution.

10.0 References : Cusick, Marie. "Project Would Bring 400,000 Tons of Drilling Waste to Pa.’s ‘Grand Canyon’." NPR . NPR, 13 July 2015. Web. 04 Dec. 2016. "Drilling Waste Management Fact Sheet: Land Application." Drilling Waste Management Fact Sheet: Land Application . N.p., n.d. Web. 04 Dec. 2016. Morillon, A., J. F. Vidalie, U. S. Hamzah, S. Suripno, and E. K. Hadinoto, 2002, "Drilling and Waste Management", SPE 73931, presented at the SPE International Conference on Health, Safety, and the Environment in Oil and Gas Exploration and Production, March 20–22, 2002.

Neff, Jerry. "Composition, Environmental Fates, and Biological Effect of Water Based Drilling and Cuttings Discharged to the Marine Environment." Composition, Environmental Fates, and Biological Effect of Water Based Drilling Muds and Cuttings Discharged to the Marine Environment (n.d.): 1-83. PERF . Jan. 2005. Web. 4 Dec. 2016. 1. Cuttings and waste injection, shale fracturing pressure decline, and domain mapping Shokanov, T. (M-I SWACO, A Schlumberger Company, United States); Ronderos, J. Source: Society of Petroleum Engineers - Canadian Unconventional Resources Conference 2011, CURC 2011 , v 1, p 779-790, 2011, Society of Petroleum Engineers - Canadian Unconventional Resources Conference 2011, CURC 2011 Database: Compendex Compilation and indexing terms, Copyright 2016 Elsevier Inc. Data Provider: Engineering Village

2. Use of drill cuttings for improved design of hydraulic fracturing jobs in horizontal wells Ortega, Camilo (Schulich School of Engineeering, University of Calgary, Canada); Aguilera, Roberto Source: Society of Petroleum Engineers - SPE Americas Unconventional Resources Conference 2012 , p 465-485, 2012, Society of Petroleum Engineers - SPE Americas Unconventional Resources Conference 2012 Database: Compendex Compilation and indexing terms, Copyright 2016 Elsevier Inc. Data Provider: Engineering Village

● Glauser, W. "New Legitimacy to Concerns about Fracking and Health." CANADIAN

MEDICAL ASSOCIATION JOURNAL , vol. 186, no. 8, 2014., pp. E245-E246doi:10.1503/cmaj.109-4725.

● Fracking Waste Fills WV Landfills Under New Rule: Environmentalists Concerned , vol. 44, Jade Media Partners, 2013.

1. Engineers improve recycling system used in fracking to save water and energy Freeman, Benny (University of Texas at Austin, McKetta Department of Chemical Engineering, 200 E. Dean Keeton Street, Stop C0400, Austin, TX 78712-1589, United States) Source: Membrane Technology , v 2013, n 10, p 7, October 2013 Database: Compendex Compilation and indexing terms, Copyright 2016 Elsevier Inc. Data Provider: Engineering Village

2. Fracking and water supplies Pritchard, S. Source: International Water Power and Dam Construction , v 66, n 5, p 32-4, May 2014 Database: Inspec

Copyright 2015, The Institution of Engineering and Technology Data Provider: Engineering Village 3. Behen, Linda. "fracking." The Catholic Library World , vol. 84, no. 3, 2014., pp. 222 4. Brasch, Walter M. Fracking Pennsylvania: Flirting with Disaster , Greeley & Stone, Carmichael, Calif, 2013.