Transcript REDUCING THE ENVIRONMENTAL IMPACT OF FRACKING

HYDRAULIC FRACTURING
and Smart Water Management
Eli Gruber, President & CEO
Ecologix Environmental Systems
About Ecologix
ABOUT ECOLOGIX
Ecologix designs and integrates water & wastewater treatment solutions
for industries and municipalities
SERVICES PROVIDED TO OUR CLIENTS:

Treatability studies

Engineering

Design

Fabrication

Installation

Start-Up & Training

System Operation
About Ecologix
WHO WE SERVE
INDUSTRIES

Oil & Gas

Automotive

Food & Beverage

Mining

Municipalities

Pulp & Paper

Petrochemical

Utilities
a little about
HYDRAULIC FRACTURING
The Industry
U.S. DOMESTIC ENERGY BOOM
 US is #1 natural gas
producer in the world
 US oil production
9 million bbl/day,
(almost 50% of daily
domestic consumption)
The Industry
WATER USAGE IN FRACKING
 Avg. 60,000 – 120,000 bbl/well
 Water sourced from aquifers,
rivers, lakes
 30,000bbl flows back
 90% of water ends up in
disposal wells
The Industry
HOW FRACKING WORKS
The Industry
HOW FRACKING WORKS
The Industry
HOW FRACKING WORKS
A mix of water, sand and
chemicals including
crosslinkers, breakers, friction
reducers is injected under
high pressure to fracture the
rock
Thousands of vertical joints
in rock strata connect,
allowing drilling fluids to
seep toward the surface
The Industry
HOW FRACKING WORKS
Top Concerns
TWO SIDES OF THE ISSUE
SURFACE DISCHARGE
Treat to municipal standards
DIRECT REUSE FOR FRACKING
Treated water used solely for drilling, fracturing operations
This presentation is about this side of the fence
TOP THREE ENVIRONMENTAL
CONCERNS with fracking
Top Concerns
1: FRESH WATER RESOURCES
FACTS
 One well requires between 3 – 5 million gallons of water
 Water sourced from rivers, lakes, aquifers
IMPLICATIONS
 Over-withdrawal threatens longevity of water sources
 Arid regions face water shortages
Top Concerns
2: ROAD WEAR, NOISE, TRAFFIC
FACTS
 One truck carries 130bbl
 Approx. 600 one-way truck trips per well for
fresh water delivery
 Additional 175 one-way trips to dispose of
flowback water
 400+ trips for produced water disposal
IMPLICATIONS
 Noise, pollution, road wear
 2012, Pennsylvania estimated $265 million on
road repairs in the Marcellus
Top Concerns
3: WASTEWATER DISPOSAL
FACTS
 144,000 Class II wells in United States
 Disposing of 730 billion gallons of brine per year
IMPLICATIONS
 Environmentalist concern with ground tremors
managing water to
RESOLVE THE CONCERNS
Water Management
SURVEY SAYS
72% OF INDUSTRY EXPERTS
SAY WATER & WASTEWATER
MANAGEMENT IS THEIR TOP
CONCERN WITH FRACKING
It seems like solving this issue is a good
place to start
Water Management
A COMMON MISCONCEPTION
CAN WATER WITH HIGH TDS
BE USED FOR FRAC FLUID?
A COMMON
MISCONCEPTION IS
THAT SALTY WATER
DOESN’T MIX WELL WITH
FRAC CHEMICALS
80
60
40
20
0
YES
NO
Water Management
MISCONCEPTIONS DEBUNKED
Society of Petroleum Engineers study
(SPE 163824, February 2013) shows:
 TDS up to 285,000 mg/L can be used
to make frac fluid
 Fluid consisted of:
 CMHPG Gum (Guar Gum)
 Zirconium-based Crosslinker
 Sodium Chlorite Breaker
 Breaker Catalyst
 Non-emulsified Surfactant
HALLIBURTON STUDY
In 2012, Halliburton experimented using produced water with
TDS levels of up to 285,000ppm, here are the results:
 100% success rate over 59 wells and 260 stages
 No production decrease vs. fresh water
 Avg. savings per well $70K-$100K, mostly due to reduced
truck movements
The Bottom Line:
 TDS Removal – why pay to remove TDS when you can
adjust fluid composition at a fraction of the cost?
 TSS Removal – Proppant permeability increases by 20%
when TSS is removed
PRODUCED WATER ANALYSIS
Parameter
Raw Sample
Treated Sample
% Change
pH
4.83
8
+65.63
Conductivity
257
258
+0.39
163,637
164,951
+0.80
Sulfate
40
38
+5.00
Boron
20.3
16.6
-18.28
Barium
5.69
6.03
+5.98
Calcium
29,222
28,845
+1.29
Potassium
1,660
1,689
+1.75
Magnesium
4,347
3,148
-27.58
Sodium
70,342
75,517
+7.36
Strontium
2,204
2,020
-8.39
Iron
34.6
0.26
-99.25
TDS
267,588
273,552
+2.23
182
15.4
-91.54
10,623
92
-99.13
Chloride
Turbidity
TSS
VISUAL COMPARISON
TDS still
273,000mg/L
Raw Produced Water
Treated Produced Water
Water Management
FLUID COMPOSITION
Data Source:
http://www.all-llc.com/publicdownloads/ALLFayettevilleFracFINAL.pdf
Water Management
CARRIER CHEMICALS (0.49%)
 Total additives amount to 4,900ppm
 Gelling agents, friction reducers, and
crosslinkers amount to 735ppm
 Even low levels of TSS (colloidal
solids) will cause unwanted friction,
fouling, and loss of well productivity
Water Management
TSS REDUCES PERMEABILITY
 Fracture permeability suffers with presence of TSS
image source: Halliburton
Water Management
TSS IMPEDES WELL PRODUCTIVITY
 Treated produced
water maintains
about 20% more
permeability
data source: Halliburton
Water Management
FRESH WATER CAUSES CLAY SWELLING
 Formations with smectite clays swell
when fresh water is introduced
 Swelling clay can result in a 2-40%
reduction in well productivity
 “In heavy oil recovery, incompatible
fluids are often injected into
hydrocarbon reservoirs, which cause
clay swelling and thus impair the
formation permeability”1
1. Krueger, R.F. (1986): An Overview of Formation Damage and Well Productivity in Oilfield Operation, Journal
of Petroleum Technology, Vol. 38, pp. 131–152.
Business Case
WELL PRODUCTIVITY
 In a shale formation with some content
of clay, assume a 2% reduction in
productivity due to clay swelling
 A well that produces $10 million a year
would lose $200,000
LOSS IN PRODUCTIVITY
FROM CLAY SWELLING
200,000
150,000
 How about a 10% or 25% reduction
due to clay swelling? That’s millions
of dollars stuck in the well!
100,000
50,000
0
Is the loss in revenues worth
the risk?
Fresh
Water
Brine
Water
TREATING WATER FOR REUSE
Treat for Reuse
TREATMENT PROCESS
Solids
Screening
Oil
Recovery
Reduce
Surface Tension
Chemical
Precipitation
Colloidal Solids
Physical
Separation
Sulfates/Sulfides
Dissolved Metals
Water
Conditioning
Oxidation
Polishing/
Filtration
Enhance
Stratification
Disinfection/
Oxidation
CHEMICAL TREATMENT
Coagulation
Neutralizes negatively charged particles causing them to agglomerate
Flocculation
Forms bridges between the coagulated particles, generating large solids that can settle or float
Separation
removing formed sludge from
the water, through either
settlement or flotation
Coagulated water turns
orange when using
Iron-based chemistry
Raw
Coagulated
Flocculated
Separated
PHYSICAL SEPARATION
DISSOLVED AIR FLOTATION (DAF)
 Micro-bubbles attach to sludge and float
 Skimmer removes sludge from water
 Clean water flows out of system
INTEGRATED TREATMENT SYSTEM
ITS - 900
900gpm (31,000 bbl/day) processing capability
Set-up as centralized treatment plant
MOBILE CHEMICAL TREATMENT - MCT
MOBILE DISSOLVED AIR FLOTATION - MD
NEXT-GENERATION HYBRID ITS-500
500 gpm (17,000bbl/day)
Combines chemical and physical treatment units
Moves from well to well for on-the-fly treatment
Standardized on Honeywell Instrumentation
CHLORINE DIOXIDE (ClO2)
ClO2 is a powerful disinfectant that reacts rapidly via
oxidation to provide effective micro-biocidal impact
It delivers broad spectrum performance against
bacteria, fungi, algae, viruses, and parasitic
microorganisms
In Oil & Gas, ClO2 reduces bio-fouling, oxidizes
hydrogen sulfide and iron sulfide
SULFATE REDUCING BACTERIA
Sulfate-reducing bacteria (SRB) produces hydrogen sulfide
Crude oil that contains hydrogen sulfide has reduced commercial value
Hydrogen sulfide makes the separation of water from oil less efficient, and ferrous
sulfide precipitates can clog drilling and pumping equipment
SRB are the most potent contributors to the anaerobic corrosion of metal, which
causes costly failures of equipment and pipelines
SRB
Sulfate
Sulfide
TRADITIONAL vs. SMART
WATER MANAGEMENT
Disposal Well
Traditional Water
Management Strategy
60,000bbl produced water
is hauled away for disposal
(460 truck loads)
Drilling Site
20,000bbl
Fresh water haulers truck
80,000bbl to the drilling site
(615 truck loads)
Producing Well
60,000bbl
80,000bbl
Fresh Water
Within the first few days of
productivity 20,000bbl of
flowback water is hauled to
the disposal site
(150 truck loads)
Overall, 160,000bbl of
water is hauled over 1,200
truck trips for one well
Disposal Well
X
20,000bbl
Recycling Facility
Drilling Site
80,000bbl
Producing Well
60,000bbl
X
Fresh Water
Smart Water
Management Strategy
A mobile water recycling
facility is introduced,
eliminating the need for
fresh water and disposal
wells
60,000bbl of produced
water is hauled to the
recycling facility
20,000bbl of flowback
water is hauled from the
new well pad to the
recycling facility
Water is treated and
combined to make
80,000bbl of usable water
Recycling eliminates fresh
water use and reduces
truck movements
Business Case
HYPOTHETICAL BUSINESS CASE
– FRESH WATER USE + DISPOSAL
80,000bbl of fresh water required to frac a well
Fresh water cost per bbl = $0.45 + $1.60
(for hauling)
$2.05/bbl x 80,000bbl = $164,000
20,000bbl of flowback and 60,000bbl of produced water
from nearby wells is hauled for disposal
Disposal cost per bbl = $0.90 + $1.60
(for hauling)
$2.50/bbl x 80,000bbl = $200,000
TOTAL WATER MANAGEMENT COST
$164,000 + $200,000 = $364,000/well
Business Case
HYPOTHETICAL BUSINESS CASE
– BRINE WATER RECYCLING & REUSE
Assuming treating and replenishing brine water costs $1.50/bbl
and water hauling is cut by 50%
Frac a well with 60,000bbl produced water + 20,000bbl flowback
Treated water cost per bbl = $1.50 + $0.80
(for hauling)
$2.30/bbl x 80,000bbl = $184,000
TOTAL WATER MANAGEMENT COST
$184,000/well
Business Case
RECYCLED BRINE WATER vs. FRESH WATER
Fresh water cost per well:
$364,000
Recycled water cost per well:
$184,000
$364,000 - $184,000 =
$180,000 per well
Possible loss of productivity
from use of fresh water:
COST COMPARISON
400
200
0
Fresh Water
Recycled
Brine Water
$200,000 per well
COMBINED BENEFITS OF USING TREATED BRINE WATER =
$380,000 per well
Conclusion
RECAP
 By recycling frac water, fresh water can be left for other purposes
 TSS removal is the key to reuse
 Brine water prevents clay from swelling, resulting in higher well productivity
 Water reuse eliminates 100s of truck loads per well
Proper water management vs. purchasing/transporting fresh water can result in
$100,000’s of savings per well + increase well productivity + reduced truck traffic
+ better stewardship of the environment + better community relationships
WHERE WE OPERATE
SOUTH TEXAS - EAGLE FORD
WHO: SM Energy (NYSE: SM)
WHAT: ITS-900 System
Processing 30,000bbl/day
WHERE: Carrizo Springs, Texas
WHEN: Summer 2013
WHY: Remove Oil, TSS, Iron and
Disinfect to prepare water for
reuse
BRITISH COLUMBIA – MONTNEY REGION
WHAT: ITS-900 System
Processing 30,000bbl/day
WHERE: Dawson Creek, BC
WHEN: Summer 2013
WHY: Remove Oil and TSS in shale
frac water to prepare water
for reuse
QUESTIONS OR COMMENTS?
888-326-2020 | 678-514-2100
www.EcologixSystems.com
@EcologixSystems