water management at ascent - lbcg...company overview 2 who we are… • ascent resources is a...
TRANSCRIPT
![Page 1: Water Management at Ascent - LBCG...Company Overview 2 Who we are… • Ascent Resources is a leading upstream E&P oil and gas company • Our assets are located in the Appalachian](https://reader035.vdocuments.us/reader035/viewer/2022080718/5f789cd1ed96236b7e53a70b/html5/thumbnails/1.jpg)
Water Management at Ascent Stephanie R. Timmermeyer, Consultant for Ascent Resources
March 30, 2017
![Page 2: Water Management at Ascent - LBCG...Company Overview 2 Who we are… • Ascent Resources is a leading upstream E&P oil and gas company • Our assets are located in the Appalachian](https://reader035.vdocuments.us/reader035/viewer/2022080718/5f789cd1ed96236b7e53a70b/html5/thumbnails/2.jpg)
Company Overview
2
Who we are… • Ascent Resources is a leading upstream E&P oil and gas company • Our assets are located in the Appalachian basin with premier acreage in the southern Utica shale • Highly experienced and talented organization
How we got here… • Ascent Resources’ roots go back to 2013 • Utica acreage was acquired primarily in 2013 and 2014
through acquisitions from RHDK, EnerVest, Hess, XTO and SWEPI
Where we are… • Headquartered in Oklahoma City, OK ~ 180 employees • Field office in Cambridge, OH ~ 60 local Ohio employees
Ascent Resources Cambridge Ohio Office
![Page 3: Water Management at Ascent - LBCG...Company Overview 2 Who we are… • Ascent Resources is a leading upstream E&P oil and gas company • Our assets are located in the Appalachian](https://reader035.vdocuments.us/reader035/viewer/2022080718/5f789cd1ed96236b7e53a70b/html5/thumbnails/3.jpg)
Table of Contents
1) Before Reuse a) Challenges for Reuse b) Problem Solving
2) Execution a) Economics b) On-site Treatment c) Planning/Logistics Requirements
3) Results/Savings
3
![Page 4: Water Management at Ascent - LBCG...Company Overview 2 Who we are… • Ascent Resources is a leading upstream E&P oil and gas company • Our assets are located in the Appalachian](https://reader035.vdocuments.us/reader035/viewer/2022080718/5f789cd1ed96236b7e53a70b/html5/thumbnails/4.jpg)
Before Reuse
• All managed water was sent to injection wells for disposal
• Specific per barrel price for each Ohio county we operated in which included hauling and disposal
• Dispatch was managed by a third party company
• Ascent decided to undertake a review of our water management practices
Source:fractracker.org
![Page 5: Water Management at Ascent - LBCG...Company Overview 2 Who we are… • Ascent Resources is a leading upstream E&P oil and gas company • Our assets are located in the Appalachian](https://reader035.vdocuments.us/reader035/viewer/2022080718/5f789cd1ed96236b7e53a70b/html5/thumbnails/5.jpg)
Challenges
• Use of vendors, lack of control
• Anticipating potential safety concerns in advance
• Friction reducer effectiveness • Requires closely monitoring pressure spikes
• Frac company would need samples of production water to change the chemical design for each well utilizing reuse.
![Page 6: Water Management at Ascent - LBCG...Company Overview 2 Who we are… • Ascent Resources is a leading upstream E&P oil and gas company • Our assets are located in the Appalachian](https://reader035.vdocuments.us/reader035/viewer/2022080718/5f789cd1ed96236b7e53a70b/html5/thumbnails/6.jpg)
Problem Solving
• Reviewed Needs for logistics, compliance, safety • Internalize dispatch • Water Tracking Software • Reuse Program on frac
• Reuse management onsite • Condensate Avoidance
• Reviewed Economics • Refine Operational Areas for better pricing • Bid disposal and hauling separate • One price for injection regardless of fluid
weight
![Page 7: Water Management at Ascent - LBCG...Company Overview 2 Who we are… • Ascent Resources is a leading upstream E&P oil and gas company • Our assets are located in the Appalachian](https://reader035.vdocuments.us/reader035/viewer/2022080718/5f789cd1ed96236b7e53a70b/html5/thumbnails/7.jpg)
EXECUTION
![Page 8: Water Management at Ascent - LBCG...Company Overview 2 Who we are… • Ascent Resources is a leading upstream E&P oil and gas company • Our assets are located in the Appalachian](https://reader035.vdocuments.us/reader035/viewer/2022080718/5f789cd1ed96236b7e53a70b/html5/thumbnails/8.jpg)
Economics
• Broke operational areas into Zones • Based on water production volume and proximity of other pads
• Hauling prices were gathered from each Zone to several injection locations as well as to any other Zone (for reuse costing comparison)
• Because most injection wells in Ohio are located on the Western edge of our operational area, transportation would most always be cheaper to another Zone for reuse instead of injection.
![Page 9: Water Management at Ascent - LBCG...Company Overview 2 Who we are… • Ascent Resources is a leading upstream E&P oil and gas company • Our assets are located in the Appalachian](https://reader035.vdocuments.us/reader035/viewer/2022080718/5f789cd1ed96236b7e53a70b/html5/thumbnails/9.jpg)
Cost Savings Per Pad
cost for injection + hauling > cost of onsite treatment + hauling
![Page 10: Water Management at Ascent - LBCG...Company Overview 2 Who we are… • Ascent Resources is a leading upstream E&P oil and gas company • Our assets are located in the Appalachian](https://reader035.vdocuments.us/reader035/viewer/2022080718/5f789cd1ed96236b7e53a70b/html5/thumbnails/10.jpg)
On Site Treatment
• Mechanical Filtration
• We trialed several different mechanical filtering options
• Implemented a filter pod system like the picture attached here.
![Page 11: Water Management at Ascent - LBCG...Company Overview 2 Who we are… • Ascent Resources is a leading upstream E&P oil and gas company • Our assets are located in the Appalachian](https://reader035.vdocuments.us/reader035/viewer/2022080718/5f789cd1ed96236b7e53a70b/html5/thumbnails/11.jpg)
Reuse Program
• CURRENT • We are currently blending about 10-15% reuse water on our fracs • Our first priority in reuse is production water • We add in rainwater and processed drilling water as available
• FUTURE • Flowback reuse will require more logistics (higher solids and oil is present) • Planning for a similar setup as the next step in our reuse program
• SAMPLING • Freshwater • Reuse Water
![Page 12: Water Management at Ascent - LBCG...Company Overview 2 Who we are… • Ascent Resources is a leading upstream E&P oil and gas company • Our assets are located in the Appalachian](https://reader035.vdocuments.us/reader035/viewer/2022080718/5f789cd1ed96236b7e53a70b/html5/thumbnails/12.jpg)
Planning/Logistic Requirements
• Reuse requires a lot more upfront planning and logistics coordination.
• Internal Dispatch must constantly monitor the field.
• Effective vendors needed onsite to manage and mitigate potential hazards with incoming production water.
• Pad layout design
• Different mindset for the company
![Page 13: Water Management at Ascent - LBCG...Company Overview 2 Who we are… • Ascent Resources is a leading upstream E&P oil and gas company • Our assets are located in the Appalachian](https://reader035.vdocuments.us/reader035/viewer/2022080718/5f789cd1ed96236b7e53a70b/html5/thumbnails/13.jpg)
Completion Questions/Concerns
• Which type of well would use more reuse water? • Required daily tracking and several trials on dry
gas and wet gas pads • Dry gas pads responded better to reuse than
wet gas pads
• Communication between teams
• When pressure began climbing, consultants first reaction was to cut reuse water
• Required management commitment to prioritize reuse
![Page 14: Water Management at Ascent - LBCG...Company Overview 2 Who we are… • Ascent Resources is a leading upstream E&P oil and gas company • Our assets are located in the Appalachian](https://reader035.vdocuments.us/reader035/viewer/2022080718/5f789cd1ed96236b7e53a70b/html5/thumbnails/14.jpg)
RESULTS/SAVINGS
![Page 15: Water Management at Ascent - LBCG...Company Overview 2 Who we are… • Ascent Resources is a leading upstream E&P oil and gas company • Our assets are located in the Appalachian](https://reader035.vdocuments.us/reader035/viewer/2022080718/5f789cd1ed96236b7e53a70b/html5/thumbnails/15.jpg)
Savings – Injection vs Reuse
• On Site Treatment costs are up to 70% lower than disposal at local injection facilities at pre-bid prices
• Reuse by Ascent and other companies took a huge amount of water off the disposal market every day
• This resulted in a drop in injection prices. • ~30% savings on disposal costs when not going
to reuse.
![Page 16: Water Management at Ascent - LBCG...Company Overview 2 Who we are… • Ascent Resources is a leading upstream E&P oil and gas company • Our assets are located in the Appalachian](https://reader035.vdocuments.us/reader035/viewer/2022080718/5f789cd1ed96236b7e53a70b/html5/thumbnails/16.jpg)
Savings - Hauling
• Hauling costs to disposal dropped 50% on average
• Hauling costs to reuse saved us as much as 65% on pre-bid prices because of the shorter distance to reuse than to disposal
![Page 17: Water Management at Ascent - LBCG...Company Overview 2 Who we are… • Ascent Resources is a leading upstream E&P oil and gas company • Our assets are located in the Appalachian](https://reader035.vdocuments.us/reader035/viewer/2022080718/5f789cd1ed96236b7e53a70b/html5/thumbnails/17.jpg)
Soft Costs
• Training programs
• Tank cleaning at the end of a reuse
• Containment and Spill Avoidance/Response
• LEL/H2S Monitoring
![Page 18: Water Management at Ascent - LBCG...Company Overview 2 Who we are… • Ascent Resources is a leading upstream E&P oil and gas company • Our assets are located in the Appalachian](https://reader035.vdocuments.us/reader035/viewer/2022080718/5f789cd1ed96236b7e53a70b/html5/thumbnails/18.jpg)
Questions?