Exploring The Use Of Water Treatment Systems For Immediate ... · Iron, Manganese, Heavy metals •...

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Exploring The Use Of Water Treatment Systems For Immediate Water Reuse To Reduce Transportation, Storage and Disposal Costs – A U.S. Perspective and Market Update COPYRIGHT 2015 CAP RESOURCES 1 Laura Capper President, CAP Resources [email protected] www.cap-res.com

Transcript of Exploring The Use Of Water Treatment Systems For Immediate ... · Iron, Manganese, Heavy metals •...

Page 1: Exploring The Use Of Water Treatment Systems For Immediate ... · Iron, Manganese, Heavy metals • Reactive with O2, solids may plug formation • Crosslinking • Equipment reliability

Exploring The Use Of Water Treatment Systems For Immediate Water Reuse To Reduce Transportation, Storage and Disposal Costs – A U.S. Perspective and Market Update

COPYRIGHT 2015 CAP RESOURCES 1

Laura CapperPresident, CAP [email protected]

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Complexity Drivers

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Surfa

ce a

rea

of p

lay

impa

cted

by d

roug

ht

Drought impact is unpredictable, and has increased

Source: The Future of Water in Unconventional Oil and Gas - Water Management Opportunities/ Strategies

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A highly heterogeneous landscape in many basins

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Typical TDS Variance / well over Time

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Ref: SPE 125740, Blauch, et.al. 2009

TDS Levels (Mg/L)Climb dramatically over the first year of production

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Now Consider Water Mgmt Throughout the Field Life

Hold-by-production drilling and experimentation. Operators want to hold as many leases as possible by production. They also start to assess the productivity of the acreage position.

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Modest water for frac’ing,Modest re-use and injection

Source: The Future of Water in Unconventional Oil and Gas - Water Management Opportunities/ Strategies

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Exploitation and OptimizationExploitation and optimization. most acreage is held by production, boundaries of productive acreage are established, and operators start to drill more multi-well pads in order to enjoy economies of scale

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Tremendous fracwaterrequirements,Modest re-use and injection

Source: The Future of Water in Unconventional Oil and Gas - Water Management Opportunities/ Strategies

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Mature Field Operation

Mature field operation. With drilling and completion programs completed, and wells drilled on optimal spacing, focus shifts to well maintenance, artificial lift optimization, secondary recovery, and tertiary recovery.

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Source: The Future of Water in Unconventional Oil and Gas - Water Management Opportunities/ Strategies

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Case Study – Low Salinity Basins (U.S. Central Rockies)

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General Comparisons – Other Basins

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Regional TDS Comparisons, Produced Water

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90K

9K4K

10K

10K18K

35K

20K

Source: Dwayne Dalrymple, 19 February 2013 as published in Oil and Gas Facilities Magazine, April 2013

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Produced Water Salinity Ranges

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Source: Dwayne Dalrymple, 19 February 2013 as published in Oil and Gas Facilities Magazine, April 2013

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Treatment Requirements

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Why Treat?Bacteria• Reduces viscosity• SRBs / H2S Production• Biofilm / equipment Fouling• Emulsions• Equipment corrosion• Plug formationsTSS• Equipment clogging• Reservoir clogging• AppearanceChlorides• HydrationpH• Inadvertent crosslinking• HydrationBicarbonates• Buffering• Crosslinking impact• Scaling

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Calcium and Magnesium• Scaling• Friction Reducer effectiveness• Borate cross links• Contribute to Norm Concentration• Increases HP needsIron, Manganese, Heavy metals• Reactive with O2, solids may plug

formation• Crosslinking• Equipment reliabilityPhosphates• CrosslinkingSulfates• Crosslinking• Scale Precipitation

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Representative Flowback

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Uinta Piceance Basin Shale, Water Quality

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Typical Treatment

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Aggregation of Anecdotal Treatment Requirements

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Treatment Technologies

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Current Practices

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Settling, Clarification or

FiltrationSoftening

PreTreatment – Could be all steps, or just some, order will vary

Flow Back Water

Oil Removal(Oil)

(Sludge, Suspended Solids)

(pH adjustment; antimicrobials) (Hardness, Iron)

Partially Pre-Treat, Dilute and Re-use

Fully Pre-Treat followed by Desalinization

(antimicrobials) Dilution with fresh water

Desalination(antimicrobials)

pH adjustment,anti-scalants Ch

emica

l &

prec

ipita

tion

(initial settling, filtration, DAF, later oxidation, EC)

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No single technology can treat it all:

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KEY

Good Some benefit Little to no benefit Must be removed by Pretreatment First

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Uinta Piceance Basin Shale, Water Quality

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Generally Acceptable Ranges

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Base Treatment Technologies and How they Stack up

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We then mapped typical treatment requirements to generally used, commercially available treatment approaches. Figures refer to how many constituents are treated reasonably well with a given technology. No weighting factors were applied.

*Note: Bacteria are particularly pernicious, and bacteria treatment is dominantly required, although in this chart the primary bacteria treatments show low in the rankings.

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Treatment Prices

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A 2014 View of Pricing (now down 20-30%)

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Bang for the Buck (if all things were equal*)

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* Which they most certainly are not

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The State of “Things”

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U.S. Completion Forecast November 2014 - “Before”

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Source: CAP Resources Annual U.S. Onshore Water Management Spending Outlook (excludes California, Alaska)

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U.S. Completion Forecast September 2015 - “Today”

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Source: CAP Resources Annual U.S. Onshore Water Management Spending Outlook (excludes California, Alaska)

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U.S. Forecast Basis Producing Wells 2014 - “Before”

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Source: CAP Resources Annual U.S. Onshore Water Management Spending Outlook (excludes California, Alaska)

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U.S. Forecast Basis Producing Wells 2015 - “Today”

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Source: CAP Resources Annual U.S. Onshore Water Management Spending Outlook (excludes California, Alaska)

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U.S Volumetric Outlook (Billions Barrels) 2014 – “Before”

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Source: CAP Resources Annual U.S. Onshore Water Management Spending Outlook (excludes California, Alaska)

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U.S Volumetric Outlook (Billions Barrels) 2014 – “Before”

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Source: CAP Resources Annual U.S. Onshore Water Management Spending Outlook (excludes California, Alaska)

Our Challenge: Reduce the volume of disposal water removed from the hydrocycle

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U.S Volumetric Outlook September 2015 - Today

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Source: CAP Resources Annual U.S. Onshore Water Management Spending Outlook (excludes California, Alaska)

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U.S. Water Management Spend 2014 - “Before”

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This was our 0utlook in 2014 - If completion activity stays “steady state”, assuming modest increases in reuse and treatment.

Note that Water Hauling is roughly 70% (GASP!!!) of market spending.

Source: CAP Resources Annual U.S. Onshore Water Management Spending Outlook (excludes California, Alaska)

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U.S. Water Management Spend 2014 - “Before”

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Source: CAP Resources Annual U.S. Onshore Water Management Spending Outlook (excludes California, Alaska)

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U.S. Water Management Spend Sept ‘15 “Today”

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Source: CAP Resources Annual U.S. Onshore Water Management Spending Outlook (excludes California, Alaska)

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Treatment Spending Outlook based on Today’s Market

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Impact of 10% mandated reduction of disposal & injection

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*in reality the ~$8 B increase in water treatment spend would likely be spread across many modalities and for re-use, such as mobile treatment, central facility for reuse, etc.

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In Closing….

"We always overestimate the change that will occur in

the next two years and underestimate the change that

will occur in the next ten. Don't let yourself be lulled into

inaction."

From Bill Gates' book, "The Road Ahead," published in 1996.

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Laura Capper Email: [email protected] President, CAP Resources Tel: +713 569 5002 www.cap-res.com