Transcript A Perspective on Water in the E&P Industry

A Perspective on Water in the
E&P Industry
Ed Steele
Swift Worldwide Resources
17th Annual International Petroleum &
Biofuels Environmental Conference
San Antonio, TX
State of the Art Oilfield – Circa ???
Water Management Strategy
•
Short Term
− Perform comprehensive Hydrology Study
− Address immediate program needs
− Assess current infrastructure capability
− Identify and assess cost-effective water treatment technologies
− Optimize logistics and contracts
− Develop options as appraisal program further defines water requirements
•
Long Term
− Define “water needs” forecast
− Develop Technology Plan
− Develop sourcing/disposal options
− Plan and implement long term solution
What is Flowback?
Chloride
14
15
13
12
9
10
11
8
7
6
5
4
3
2
1
35000
30000
25000
20000
15000
10000
5000
0
0
Chloride (mg/L)
Flowback chemical
data from the
Woodford Shale
Flow back Duration (days)
TDS
Iron
Flow back Duration (days)
Flow back Duration (days)
15
13
14
11
12
9
10
8
7
6
5
4
3
14
15
12
13
9
10
11
8
7
6
5
4
3
2
1
0
2
10000
60,000
40,000
20,000
0
1
20000
120,000
100,000
80,000
0
Iron (ug/L)
30000
0
TDS (mg/L)
40000
Water Production – Tight Gas Sandstone
Flowback - Post Stimulation
Water Flowback Profile
200
36000
180
32000
28000
140
24000
BWPH
120
20000
100
16000
80
70 bph after 7 days
60
12000
40
8000
20
4000
0
0
0
5
10
15
20
25
30
Flowvback days
TW George A 8H flowback
Estimated Profile with hyperbolic fit
Cum Flowback Water
Total Flowack Water (Bbls)
160
Well #1 - Woodford Shale
Flowback
0.3
Flowback Rate
% rec
200
0.25
0.2
150
0.15
100
0.1
50
0.05
0
0
0
50
100
150
200
Time (hours)
250
300
350
% rec
Flowback Rate (bbl/hr)
250
Sample Prior to Reuse
Use of Flowback and/or Produced Water for New
Hydraulic Fracturing Operations
• Mostly being done in Pennsylvania at present – but some other locations
as well
Concerns
• Scaling
• Corrosion
• Souring
• Formation Plugging
• Premature Gelling
A FEW TREATMENT CONSIDERATIONS
• Fresh Water vs. Clean Brine
• Simplicity vs. Complexity
• What Constituents Require Treatment?
• Water Quality Variability
• Upfront Frac Water Treatment
• Centralized vs. Mobile
• Energy/Chemical Costs/Issues
• Solid Waste/Emissions
Water use in Haynesville
Shale Area
Fracturing
Projected Use
Irrigation and Livestock
0.1%
Aquaculture
4.0%
8.6%
Pow er
Generation
13.6%
Total Water Use in
Haynesville Area:
2.14 Billion Barrels per
Year
Public Supply
46.3%
Industrial and
Mining
27.5%
Sources: 1) USGA “Water Use in Louisiana, 2005”, 2) TWDB Water Use Database, 2004
Beneficial Use?
Potential Uses
•
Livestock
•
Habitat Restoration
•
Crop Irrigation
•
Dust Control
•
Fire Control
•
Road Deicing
•
Aquifer Supplementation
•
Drinking Water
•
Equipment Washing
Industry Concerns
•
Liability
•
Sustainability
One Treatment Answer for All is Unlikely
Typical Produced WaterTDS Levels – Selected Areas
• Powder River CBM – 1200 mg/l
• San Juan CBM – 4500 mg/l
• Greater Green River – 8000 mg/l
• Fayetteville Shale – 25,000 mg/l
• Barnett Shale – 60,000 mg/l
• Woodford Shale – 110,000 mg/l
• Haynesville Shale – 120,000 mg/l
• Permian Basin – 140,000 mg/l
• Marcellus Shale – 180,000 mg/l
Well #1
Frac Water Req'd =
Operating at Current State with no Water Treatment
140000 bbls
Bbl
$/Bbl
$
%
$
0.30 /b
Fresh
H2O Pit
Comment
140000 bbls
Transport
Transport
Trucking
Inc Fresh
water equip
Frac Vol
Treating
Cost
Flowback
Disposal
Cost
140000 $
140000 $
0.30
0.41
42000
56700
0
140000
0 $
49000 $
-
2.50
0
Fresh Cost
Trucking
Inc Fresh
water equip
Frac Vol
Treating
Cost
Flowback
Disposal
Cost
0
140000
122500
39200 $
9800 $
2.54
2.50
goal seek
$
30240
56700
%
Disposal
Fresh
H2O Pit
Comment
Purchase of Fresh Water
Transport to Location - Pumps/hoses
Capex assoc'd with incremental
equipment..Lined flowtank rental is $100/D.
Frac Tank rental is $55/D. Flowback only = 14
days.
Fresh Water
100800 bbls
$ 0.30 /b
$
140000 bbls
35% Flowback
H2O Recovered to
Treatment
Transport
Technology
Shale Well to
Frac
49000 bbls
80% What water technology will recover
35% Flowback Amount
35% Disposal Cost = $2.5/B to haul & dispose
24500
Transport
$
0.41 /b
$
10,000
inc. equip cost
39200 bbls
Fresh Water
Water Costs Assoc with Frac:
BE Case @ 80% Flowback Recovery
Fresh Water
Transport
Disposal Cost
Incrmental Equip
Treating Cost
$250.00
$200.00
$ 122.50
$ 24.50
50
2.23
Incrmental Equip
$
-
$ 10.00
60
70
80
90
100
2.32
2.39
2.44
2.48
2.51
Treating Cost
$
-
$ 99.76
Total
$ 221.20
$ 221.20
$150.00
Disposal
9800
bbls
In order to Break even, the
treating cost must be less than
or equal to:
$ 2.54 per bbl
$221,200
$1.58 $/B
$0 <---Needs to be zero to BE
Water Treating Costs….Value….
Current State
Technology
Fresh Water
$ 42.00 $ 30.24
Transport
$ 56.70 $ 56.70
Transport
0.41 /b
80%
Recovery
99760
Disposal Cost
2.50 /b
Cost includes
disposal
$1.58 $/B
10000
0
Total
2.09
49000 bbls
$
Operating with Water Treatment
140000 bbls
Bbl
$/Bbl
100800 $ 0.30
140000 $ 0.41
Treating % Treating Cost/bbl
0
10
-0.06
20
1.37
30
1.85
Shale Well to
Frac
0.41 /b
0% Assume
Tech can
recover 90% of water
35% Flowback
Amount
Disposal Cost = $2.5/B to haul & dispose.
$0.75/b if use company that does not own their
35% own well.
$221,200
Arkoma - Well No. 2
Frac Water Req'd =
$
35% H2O
Recovered
0
0
Total
40
Purchase of Fresh Water. Raw water - price per
barrel. From surface ponds / landowner price.
Based on recent bid. Equip cost for setting up
pumps / hoses to get water to location. Not
trucking!
Cost $
Fresh Cost
Flwbck
H2O Pit
Fresh Water
140000 bbls
$122.50
$99.76
$10.00
$24.50
$100.00
$56.70
$50.00
$56.70
$42.00
$30.24
Current State
Technology
$-
Vision for the Future
Maximize Frac Water and Produced Water Reuse – Where It
Makes Sense
Source Water from Brackish and Saline Aquifers – Where
Possible
Maybe Treated Mine Water
Improved/Less Expensive Friction Reducers
Industry Cooperation
Public – Private Partnerships
Greener Additives/Methods
Improved/Simpler Technologies for Treatment
Increased Production and Better Economics
WATER ON MARS!