advancing produced water reuse through infrastructure logistics …€¦ · holly johnson churman,...
TRANSCRIPT
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Holly Johnson Churman, P.E.
November 16, 2018
Advancing produced water reuse through infrastructure
logistics and economics
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Agenda
• Produced Water Overview
• Challenges and Opportunities
• Oilfield Water Management
• Decision-making
• Case Example
• Conclusions
• Questions
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Produced Water in New Mexico
Zemlick 2018
Oil production occurs in key regions
of New Mexico, and generates
significant volumes of produced
water that must be managed.
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Produced Water
• Complex composition
• Flows and volumes vary
• Impacts infrastructure
• Scaling
• Corrosion
• Erosion
• Fouling
• Hydrogen sulfide gas production
Candia 2015
Produced water originates in underground formations and is brought to the
surface during oil and gas production.
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Reuse and Water Resource Conservation
Large water volumes are needed for hydraulic fracturing.
Reusing produced water for fracking reduces demand on local water supplies.
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Reuse and Transportation Costs
• 50% reduction in water-related
truck travel (10 million fewer miles
per year)
• Average reduction of 30,000 tons
of greenhouse gases per year
• Treatment of 95% of water on site
minimizes need for disposal wells
Antero 2018, Rassenfoss 2017
Effective produced water management could reduce truck traffic, preserve
roadways, and minimize greenhouse gas emissions.
Example: Antero Clearwater Facility & Landfill, Pennsboro, WV
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Disposal and Induced Seismicity Risk
Snee and Zoback 2018
Minimizing produced water disposal reduces induced seismicity risk.
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Produced Water Reuse
Reuse Opportunities
• Oilfield operations
• Industrial operations
• Agriculture
• Hydrological use
• Roadways
• Domestic/drinking water
• Secondary use
Implementation Challenges
• Engineering
• Logistics
• Economics
• Perception
• Health and safety risk
There are many options for produced water reuse, but important challenges
are impeding their implementation.
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Oilfield Water Cycle
U.S. EPA 2016, Walsh 2013
Field Development
(Walsh 2013)
Stage 1:
Remote, isolated wells.
Stage 2:
Well clusters with some
infield drilling and
completions.
Stage 3:
Extensive in-field
development.
Water affects oilfield logistics, and becomes more complex as fields develop.
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Water Management Decision-making
Source
Store
Treat
Convey
Reuse
Dispose
All produced water management decisions come with costs.
Economics enables options comparison and arrival at appropriate solutions.
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What have we done before?
Trade-off evaluations can be time-consuming, cumbersome, and incomplete.
Methods
• Rigorous designs
• In-house models
• Consulting studies
Challenges
• Quality of information
• Geographic specificity
• Operating time horizons
• Integration of disparate factors
Sensitivities
• Oil price
• Drilling Schedule
• Good and service cost fluctuations
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What can we accomplish today?
Wells to Central - Trucking Wells to SWDs - Trucking Central to SWD - TruckingWells to Central - Pipeline
Economic modeling allows for rapid, equivalent, and relevant options analysis.
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Assets:
• 12 Production Wells
• 3 Salt water disposal wells
(SWDs)
• 1 Centralized Treatment Plant
Treatment Assumptions:
• 50% uncertainty applied
• Mobile $2 - $6 per barrel
• Centralized $0.75 - $2.25/bbl
Other Logistics Assumptions:
• 30-year project lifespan
• Injection Cost $0.30/bbl
• Trucking Cost $75 per hour
• Reuse savings $0.65/bbl
Example: Infield Development
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Results
Years 0 – 5:• SWDs are most economical for
produced water disposal.
• Centralized + pipe < mobile.
Years 5 – 15:• Centralized + pipe < mobile.
• Centralized + pipeline competes
with SWDs when trucking costs
are low.
Strategy:• Phased approach
• Year 1 – 5: SWDs
• Shift to centralized treatment.
• Consider options to reduce
desalination costs.
A phased approach will enable holistic, cost-effective field development.
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Conclusion
• Produced water management is
challenging in New Mexico.
• Infrastructure development can achieve
operational, economic, safety,
environmental, and sustainability goals.
• Sourcing, storage, treatment,
transportation, reuse and disposal
comprise key decisions.
• Current methods are time-consuming,
cumbersome, and incomplete.
• Economic modeling enables rapid,
equivalent, and relevant analysis.
• Economics can drive creative solutions.
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References
Antero Resources. (2018). Antero Clearwater Facility & Landfill.
http://www.anteroresources.com/environmental-safety/antero-clearwater
Candia, E., & Seth, K. (2015). Water Recycling Enhances Well Economics. Retrieved
from https://www.aogr.com/web-exclusives/exclusive-story/water-recycling-enhances-
well-economics.
Rassenfoss, Stephen. (2017). Turning Dirty Produced Water Into Fresh Water and Salt to
Sell. JPT. https://www.spe.org/en/jpt/jpt-article-detail/?art=3519.
Snee, Jens-Erik Lund and Mark D. Zoback (2018). ”State of stress in the Permian Basin,
Texas and New Mexico: Implications for induced seismicity.” The Leading Edge, 37(2),
127–134. https://doi.org/10.1190/tle37020127.1
U.S. Drought Monitor: New Mexico (2018). Retrieved from
https://droughtmonitor.unl.edu/Maps/MapArchive.aspx.
U.S. EPA (2016). Hydraulic Fracturing for Oil and Gas: Impacts from the Hydraulic
Fracturing Water Cycle on Drinking Water Resources in the United States (Final Report).
U.S. Environmental Protection Agency, Washington, DC, EPA/600/R-16/236F.
Zemlick, Katie et al. (2018) Environ. Res. Lett. 13 024008.
http://iopscience.iop.org/article/10.1088/1748-9326/aa9e54.