Produced Water | Session VI - Ben Sebree
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Transcript of Produced Water | Session VI - Ben Sebree
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PRODUCED WATER:BENEFICIAL CONSEQUENCES &WATER TREATMENT MARKET
OPPORTUNITIES
ATLANTIC COUNCIL CONFERENCE“FOSSIL FUEL PRODUCED WATER: ASSET
OR WASTE?”
WASHINGTON, D.C.JUNE 24-25, 2013
Benjamin W. SebreeSebree & Tintera, LLC.
General Counsel, Texas Water Recycling Association
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The Oil & Gas Industry Saved the Whales
The Automotive Industry Saved New York City &
Recycled Produced Water Will Help Save Texas
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The Oil & Gas Industry Saved the Whales
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How?Beginning in the 1700’s, whale oil was
used as the primary illuminant for lamps.
By 1830, the United States became the pre-eminent whaling nation in the world.
The whaling industry reached its height in 1856, then began to swiftly decline.
Why?
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1859 – Drake drills first significant oil well in Titusville, PA ushering
in modern petroleum era.
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Petroleum and Kerosene Displaced Whale Oil as an Illuminant and Lubricant
Kerosene became available at less than ¼ the cost of whale oil.
Kerosene burned with less odor than whale oil.
By 1860, 40 kerosene plants were in production.
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The Automotive Industry Unexpectedly Saved New York City
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The Great Horse Manure Crisis of 1894
1800: NYC Population ~ 30,000
1900: NYC Population ~ 4.5 million
Horse Population~200K ~5 million manure pounds per day ~1.6 million urine gallons per day
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Massive Waste and Public Health Problem
Cholera Typhoid Typhus Yellow Fever Malaria Mortality Rate
Skyrocketed
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Solution?
Not Governmental Law or Policy
Not Regulation Rather: An
Unintended Consequence of a New Technology – the HORSELESS CARRIAGE
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Produced Water Will Help Save Texas
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Texas Water Crisis
DECREASING WATER SUPPLY
INCREASING POPULATION
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Texas Population Growth
Population is expected to increase from 25.4 to 46.3 million by the year 2060
This represents an 82% increase
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Texas Water Demand Municipal
water demand is expected to see a 73% increase by 2060
Total demand is expected to see a 22% increase by 2060
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Available Water Supplies
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Available Water Supplies
Groundwater storage has been steadily decreasing.
By the year 2060, existing water supplies are expected to decrease by 10%
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Drought
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Drought
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Drought
Precipitation is expected to decrease by more than 1 inch by the year 2050.
Total precipitation is expected to decrease to 0-2 inches per year for most of Texas.
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Desertification
Texas is rapidly undergoing desertification, representing a long term climate shift towards a more arid climate.
The current rate is 10 miles per year, moving east from west Texas.
This process is indicative of more severe droughts to come.
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Water Shortages
By the year 2060, water shortages could account for $116 billion dollars in lost income and 1.1 million lost jobs in the state of Texas alone.
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An Unexpected Benefit and Market Opportunity
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Recycling Produced Water Can Help Solve the Problem
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Texas Water Demand & MARKET OPPORTUNITIES
CATEGORY 2010 2020 2030 2040 2050 2060
MUNICIPAL 4,851,201 5,580,979 6,254,784 6,917,722 7,630,808 8,414,492
MANUFACTURING 1,727,808 2,153,551 2,465,789 2,621,183 2,755,335 2,882,524
MINING 296,230 313,327 296,472 285,002 284,640 292,294
STEAM ELECTRIC 733,179 1,010,555 1,160,401 1,316,577 1,460,483 1,620,411
LIVESTOCK 322,966 336,634 344,242 352,536 361,701 371,923
IRRIGATION 10,079,215 9,643,908 9,299,464 9,024,866 8,697,560 8,370,554
TEXAS TOTAL 18,010,599 19,038,954 19,821,152 20,517,886 21,190,527 21,952,198
2011 REGIONAL WATER PLANSTATE SUMMARY OF WATER DEMAND PROJECTIONS FOR 2010 - 2060 (IN ACFT*)
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Texas Water Shortage
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Water Shortages &MARKET OPPORTUNITIES
Existing water supplies are expected to decrease 10% by the year 2060.
Average Expected Shortfall:2020 = 2.3 Million Acre Feet (7.5 Billion
Gallons)2040 = 2.5 Million Acre Feet (8.15 Billion
Gallons)
Without developing other water supplies, during a severe drought, Texas is expected to have an annual shortage of 8.3 million acre-feet (2.7 trillion gallons).
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Comparisons, Solutions, and Opportunities
Approximate Amount of Fresh & Brackish Water Used per Year for Texas Oil & Gas Production:
1,397,965,619 barrels58,714,555,998 gallons
180,106 acre feet(less than 1% of Total State Water Demand)
Approximate Amount of O&G Produced Water per Year DISPOSED:
7,066,172,806 barrels296,779,257,852 gallons
910,365 acre feet
(Approximately 5% of Total State Water Demand; 2/3rd Recycled Yields 3.3% of Total State Water Demand AND
26% of projected WATER SHORTAGE)
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Texas Water Supply-Demand Gap
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Market Opportunity
2010 2020 2030 2040 2050 20600
5000000
10000000
15000000
20000000
25000000
Projected Water Supply vs. Demand
Demand
Supply
Year
Acr
e-F
eet
per
Yea
r
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Texas Water Supply-Demand Gap
Market Opportunity
2010 2020 2030 2040 2050 20600
5000000
10000000
15000000
20000000
25000000
Projected Water Supply vs. Demand
DemandSupply
Year
Acr
e-F
eet
per
Yea
r
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Solutions & MARKET OPPORTUNITIES
By recycling produced water from oil and gas activities, a significant portion of the projected water shortage can be addressed.
Current produced water rates are ~7 billion barrels per year, or 294 billion gallons.
100% recycled produced water would meet roughly 39% of the PROJECTED WATER SHORTAGE in year 2020.
More realistically, 66% recycled produced water would meet 26% of the PROJECTED WATER SHORTAGE in year 2020.
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Conclusions Produced Water is an Asset.
The Texas Oil & Gas Industry Uses Less Than 1% of Total State Water Demand.
But, It Can Contribute to the Hydrologic Cycle FAR MORE than It Uses.
Recycled Produced Water Can Help Solve the Texas Water Crisis.
If 2/3rds (Reasonably Achievable) of Produced Water in Texas Were Recycled, It Would Yield Approximately:
3.3% of Current State Water Demand26% of Projected State Water Shortage in 2020.
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PRODUCED WATER:
ASSET
BENEFIT
SOLUTION