The Road to Sustainability Emerging Bakken Technologies
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Transcript The Road to Sustainability Emerging Bakken Technologies
Williston Basin Petroleum Conference
North Dakota
May 22, 2012
Recycling of Drilling Waste: The Road to Sustainability
Emerging Bakken Technologies
INTRODUCTION
Oil & Gas Industry
Waste
Generated
Per Well
North
Dakota
– Williston
Basin
2012
2013
Source
Reduction
Exploration
& •production
waste
continues
WB
1094
bbls to be high profile
BAKKEN
SHALE
And
with the new
reserve
pit rule changes 250
• Recycling
Rig
count
230
OB Segment
1227
bbls
The Waste
of
the
CRUSH
THESE
VOLUMES
• Treatment O&G Industry
Louisiana
# of wells
2750
3000+
Brine
1049
bbls
• extremely
Disposal
is
vital
&
approx. 800,000 bbls of E&P waste are generated monthly
TOTAL
3370
bbls
Depths
19000’+
more
than
ever!19000’+
(not including
producedimportant
water)
Industry continues to expand in the Bakken
ORDER
OF WASTE
RESPONSIBILITY
Operator
expectations
for services
are high
Service companies doing all they can to keep up
Texas
volumes of waste generated are unknown
Bulking/Stabilization 1:1
In 2011; 23,000 drilling permits, 2012; annualized 25,000+
R3 – REDUCE, REUSE, RECYCLE
REDUCE
Major
oil and gas companies are taking the lead role
in
operations to protect the environment
Proper segregate and separation of waste;
Reduce the volume by dewatering required
The big push is on efforts to recycle as much as possible
REUSE
Recycling of Drilling Waste
Recover oil and reuse or sell
RECYCLE
The Road to Sustainability
Recycle the treating solids and converting it into a
product for legitimate commercial uses; primarily road
base product
RECYCLING – WHY NOT?
E&P waste recycling is not new
Oil - non renewable resource
Solids - resource as well
Treated solid materials not reused – Why?
FOCUS: Road Construction Products
Requires large volumes
Requires strict engineering specifications
Requires strict environmental specifications
Recyclers have lacked experience
Standardized recycling rules were lacking
Definition of recyclable product unclear
Reluctant Generators
LIABILITY
BAKKEN MARKET / CUSTOMERS
Market for Recycled Road Construction Materials
Understand it
Identify the needs
Development the product
Make the sale… Conceptual
No matter how noble the intent of any
recycling effort, success cannot be
Potential
customers
identified
achieved
without
a
viable
and
State – Dept. of Transportation
continuing
Countiesmarket for the product
Cities
O&G companies
Farmer & Ranchers
Stipulations
Location of product utilization
Sustainable quantity availability
Cost competitive
GOALS
R3 Road Base Product
(Asphalt or Cement Stabilized)
The
safermost
and improved
roadsway
for theto
landowners,
effective
do this O&G
is
operators
to partner with the Operator to
a recycled
baseand
manufacture
less dust than traditional
scoria or road
gravel roads
pads
product for their respective lease
roads,
drill
sites
and/or
public
roads
a cleaner environment through waste minimization,
recycling of spent E&P wastes and minimization and/or
elimination of reserve pits
PRODUCTS - FORMULATIONS
Understand the needs
development of the recycled product
replicate the process in the field full scale
comply
with regulatory
criteria
Mix Design: OB
Drill Cuttings
/ Scoria
/ EA / Cement / Water
comply with
the users directives
Compressive
Strength
120 psi
- Asphalt / Cement Stabilized Base
Hveem Stability
Formulation
Compacted Weight
52
126 lbs/ft2
E&P waste – oil, chloride & water content
course aggregate using localized material
emulsified asphalt
cement
water
CONCEPT – MOBILE RECYCLING
The proposed facility:
designed to be Mobile System and set up at/near the rig site
may serve single or multiple operators
the operator will be the generator and consumer
the volumes will be limited to prevent speculative accumulation
the footprint will be limited in size
the equipment; mechanical separation or thermal desorption
the facility and process will comply to stringent EMS
is SAFE
The recycled product:
will comply with engineering and environmental standards
will comply with Gov’t directives, rules & regulations
will be as good or better than what is currently being used
does WORK
MOBILE FACILITY
OPERATIONS
LAYOUT
Equipment & Process
LOGISTICS
Project Logistics
5-7 active rigs
1,200+ bbls oil base cuttings per well
Operations:
24-hour waste receiving & product manufacturing
Expected Volumes
1,000 bbls (~208yds3/day of inbound waste; 1 yd3 = 4.8 bbls)
1,059 tons (~623 yds3/day of outbound R3 CSB product; 1yds3 = 1.7tons)
R360 Commitments
Certificate of Recycling for volume of waste recycled
Total regulatory & operational reporting disclosure
Customer Commitments
Uses the product and/or provide to other potential users
EQUIPMENT & PERSONNEL
HS & E
Site Specific Safety Plan
Site Specific Environmental Management Plan
Aspects/Impacts Register
Processing Equipment
Front end loader, backhoe, conveyors, pugmill, waste receiving
system, tanks/roll-off bins, light plants, generator
Miscellaneous Equipment
Office & lab, living quarters, potable water tank, site truck w/
portable fuel tank, pumps, air compressor, critical spares inventory,
fuel tank
R3 Team Members - 10
Operations manager, receiver, equipment operator, roustabout
RESULTS
Recycled Product
RESULTS
R3 Roadbase
CONCLUSION
R360 firmly believes that:
E&P waste for recycling must be handled as a waste first
Regulatory landscape must acknowledge that if a waste
is properly recycled that the generator is no longer liable
Genuine recycled products; judged on engineering and
environmental merits
Keys to Success
Ensure that the recycling is legitimate
Ensure that recyclers possess the technical expertise
Ensure that recyclers have substantial financial capacity
Ensure a high level of environmental management systems
Recycling Projects
Will not succeed without market Sustainability
Based on applicable “Engineering and Environmental”
standards
THE ROAD TO SUSTAINABILITY
THANK YOU
Any Questions?