and Smart Water Management

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and Smart Water Management HYDRAULIC FRACTURING Eli Gruber, President & CEO Ecologix Environmental Systems

description

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: - PowerPoint PPT Presentation

Transcript of and Smart Water Management

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and Smart Water Management

HYDRAULIC FRACTURING

Eli Gruber, President & CEOEcologix Environmental Systems

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Abou

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ABOUT ECOLOGIX

SERVICES PROVIDED TO OUR CLIENTS: Treatability studies Engineering Design Fabrication Installation Start-Up & Training System Operation

Ecologix designs and integrates water & wastewater treatment solutions for industries and municipalities

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WHO WE SERVE

INDUSTRIES Oil & Gas Automotive Food & Beverage Mining Municipalities Pulp & Paper Petrochemical Utilities

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a little aboutHYDRAULIC FRACTURING

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The

Indu

stryU.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)

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The

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stryWATER 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

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HOW FRACKING WORKSTh

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HOW FRACKING WORKSTh

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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

HOW FRACKING WORKSTh

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HOW FRACKING WORKSTh

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Top

Conc

ernsTWO SIDES OF THE ISSUE

Treat to municipal standardsSURFACE DISCHARGE

DIRECT REUSE FOR FRACKING

Treated water used solely for drilling, fracturing operations

This presentation is about this side of the fence

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TOP THREE ENVIRONMENTAL CONCERNS with fracking

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Top

Conc

erns1: 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

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Top

Conc

erns2: 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

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Top

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FACTS 144,000 Class II wells in United States Disposing of 730 billion gallons of brine per

year

IMPLICATIONS Environmentalist concern with ground

tremors

3: WASTEWATER DISPOSAL

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managing water to RESOLVE THE CONCERNS

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Wat

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Man

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entSURVEY 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

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A COMMON MISCONCEPTION

A COMMON MISCONCEPTION IS THAT SALTY WATER DOESN’T MIX WELL WITH FRAC CHEMICALS

YES NO0

1020304050607080

CAN WATER WITH HIGH TDS BE USED FOR FRAC FLUID?

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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

MISCONCEPTIONS DEBUNKEDW

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HALLIBURTON STUDYIn 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

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Parameter Raw Sample Treated Sample % ChangepH 4.83 8 +65.63

Conductivity 257 258 +0.39

Chloride 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 +1.75Magnesium 4,347 3,148 -27.58Sodium 70,342 75,517 +7.36Strontium 2,204 2,020 -8.39Iron 34.6 0.26 -99.25TDS 267,588 273,552 +2.23

Turbidity 182 15.4 -91.54

TSS 10,623 92 -99.13

PRODUCED WATER ANALYSIS

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Raw Produced Water Treated Produced Water

VISUAL COMPARISON

TDS still273,000mg/

L

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FLUID COMPOSITIONW

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Data Source: http://www.all-llc.com/publicdownloads/ALLFayettevilleFracFINAL.pdf

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CARRIER CHEMICALS (0.49%)W

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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

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TSS REDUCES PERMEABILITYW

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Fracture permeability suffers with presence of TSS

image source: Halliburton

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TSS IMPEDES WELL PRODUCTIVITYW

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Treated produced water maintains about 20% more permeability

data source: Halliburton

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FRESH WATER CAUSES CLAY SWELLINGW

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Formations with smectite clays swellwhen 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”11. Krueger, R.F. (1986): An Overview of Formation Damage and Well Productivity in Oilfield Operation, Journal of Petroleum Technology, Vol. 38, pp. 131–152.

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ase WELL PRODUCTIVITY

Fresh Water Brine Water0

50,000

100,000

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200,000

LOSS IN PRODUCTIVITY FROM CLAY SWELLING

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

Is the loss in revenues worth the risk?

How about a 10% or 25% reduction due to clay swelling? That’s millions of dollars stuck in the well!

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TREATING WATER FOR REUSE

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TREATMENT PROCESS

SolidsScreening

WaterConditioning

OilRecovery

ChemicalPrecipitation

PhysicalSeparation

Polishing/ Filtration

Disinfection/ Oxidation

Reduce Surface Tension

Enhance Stratification

Colloidal SolidsDissolved Metals

Sulfates/Sulfides

Trea

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Oxidation

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CHEMICAL TREATMENTCoagulationNeutralizes negatively charged particles causing them to agglomerate

FlocculationForms bridges between the coagulated particles, generating large solids that can settle or floatSeparationremoving formed sludge from the water, through either settlement or flotation

Raw Coagulated Flocculated Separated

Coagulated water turns orange when using Iron-based chemistry

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PHYSICAL SEPARATIONDISSOLVED AIR FLOTATION (DAF) Micro-bubbles attach to sludge and float Skimmer removes sludge from water Clean water flows out of system

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900gpm (31,000 bbl/day) processing capability

INTEGRATED TREATMENT SYSTEM

Set-up as centralized treatment plant

ITS - 900

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MOBILE CHEMICAL TREATMENT - MCT

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MOBILE DISSOLVED AIR FLOTATION - MD

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500 gpm (17,000bbl/day)

NEXT-GENERATION HYBRID ITS-500

Moves from well to well for on-the-fly treatment

Combines chemical and physical treatment units

Standardized on Honeywell Instrumentation

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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

CHLORINE DIOXIDE (ClO2)

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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

Sulfate SulfideSRB

SULFATE REDUCING BACTERIA

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TRADITIONAL vs. SMART WATER MANAGEMENT

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Drilling Site

Fresh Water

Disposal Well

Traditional Water Management

Strategy

Fresh water haulers truck 80,000bbl to the drilling site (615 truck loads)

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

Producing Well

60,000bbl produced water is hauled away for disposal (460 truck loads)

60,000bbl

80,000bbl

20,000bbl

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Drilling Site

Fresh Water

Disposal Well

Smart Water Management

Strategy

Water is treated and combined to make 80,000bbl of usable water

20,000bbl of flowback water is hauled from the new well pad to the recycling facility

60,000bbl of produced water is hauled to the recycling facility

A mobile water recycling facility is introduced, eliminating the need for fresh water and disposal wells

Recycling eliminates fresh water use and reduces truck movements

Producing Well

X

X

60,000bbl

Recycling Facility20,000bbl

80,000bbl

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ase HYPOTHETICAL BUSINESS CASE

– FRESH WATER USE + DISPOSAL

TOTAL WATER MANAGEMENT COST$164,000 + $200,000 = $364,000/well

20,000bbl of flowback and 60,000bbl of produced water from nearby wells is hauled for disposalDisposal cost per bbl = $0.90 + $1.60

(for hauling) $2.50/bbl x 80,000bbl = $200,000

80,000bbl of fresh water required to frac a wellFresh water cost per bbl = $0.45 + $1.60

(for hauling)$2.05/bbl x 80,000bbl = $164,000

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ase HYPOTHETICAL BUSINESS CASE

– BRINE WATER RECYCLING & REUSE

TOTAL WATER MANAGEMENT COST$184,000/well

Frac a well with 60,000bbl produced water + 20,000bbl flowbackTreated water cost per bbl = $1.50 + $0.80

(for hauling)$2.30/bbl x 80,000bbl = $184,000

Assuming treating and replenishing brine water costs $1.50/bbl and water hauling is cut by 50%

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Busin

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ase RECYCLED BRINE WATER vs. FRESH

WATER

Fresh Water Recycled Brine Water

0100200300400

COST COMPARISON

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:

$200,000 per well

COMBINED BENEFITS OF USING TREATED BRINE WATER = $380,000 per well

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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

RECAPCo

nclu

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WHERE WE OPERATE

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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

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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

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QUESTIONS OR COMMENTS?

888-326-2020 | 678-514-2100www.EcologixSystems.com

@EcologixSystems