Recycling produced water and brackish groundwater in the oil field 2014

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Recycling produced water and brackish groundwater in Texas

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  • Queen City Report Completed this month
  • Yikes!That’s a lot of brackish groundwater.The trouble – both volumes are rough estimates for the state.Operates need more detailed information about both quantity and quality in the vicinity of their leases.
  • At their Irion County oil field, Apache had a large acreage position with ready access to brackish water in the Santa Rosa aquifer and a high level of drilling activity. This made building a large treating and recycling facility economic. They can store up to 500,000 bbls at this facility.The cost of disposing water from Apache's Barnhart area ranges from $2/bbl to $2.50/bbl, while the cost of recycling water is around 29¢/bbl.
  • Fountain Quails facility in Parker County.Authorized in late 2009 to treat up to 30,000 bbls/day.About 80% is reused.
  • Efficiency is where the profit will be in operating a oil field water recycling facility.Smart logistics, careful process monitoring and reliable communications will be key.
  • Recycling produced water and brackish groundwater in the oil field 2014

    1. 1. RECYCLING PRODUCED WATER AND BRACKISH GROUNDWATER IN THE OIL FIELD 2014 By Doug Hall, W D Hall Company Austin, Texas
    2. 2. Press Coverage on Water in Texas – lots! W D Hall Company, Austin, Texas 2 ―Texas must limit agricultural water use‖ Houston Chronicle, May 29, 2012 ―The new oil is water‖ Odessa American Online, April 6, 2014 ―Report: Fracking colliding with other water uses during drought‖ San Antonio Express News, February 5, 2014 ―Texas Legislature: Group pursues reuse of water from fracking‖ San Angelo Stand Times, Feb 16, 2013
    3. 3. What is Produced Water and WHY should we recycle it? • Product of oil and gas extraction • “brine” and “formation water” • Largest waste product (BKT website) W D Hall Company, Austin, Texas 3
    4. 4. Whatis Produced Water and WHYshould we recycle it? (cont.) 1. It’s one of the very few ways we can actually add water to the local hydrologic system! 2. We don’t have to pump seawater from the coast! 3. We need more water. 4. Water is getting more expensive. W D Hall Company, Austin, Texas 4
    5. 5. Why Will the Price of Clean Water Continue to Increase in Texas? W D Hall Company, Austin, Texas 5 1. New water supplies 2. System expansion 3. System repairs 4. Drought Fees Supply and demand economics: Water is a commodity = water markets
    6. 6. 82% Population Growth by 2060 (TWDB2012) W D Hall Company, Austin, Texas 6
    7. 7. Regions with Water Shortages in 2060 (TWDB2012) • Lubbock ~ 2,400,000 ac-ft/yr (irrigation) • Dallas/Fort Worth ~ 1,500,000 ac-ft/yr • Houston ~ 1,200,000 ac-ft/yr • Rio Grande Valley ~ 750,000 ac-ft/yr • San Antonio ~ 600,000 ac-ft/yr • Austin ~ 400,000 ac-ft/yr (if no new water supplies are developed) W D Hall Company, Austin, Texas 7
    8. 8. Droughts W D Hall Company, Austin, Texas 8
    9. 9. W D Hall Company, Austin, Texas 9 (Beach, James, 2012)
    10. 10. W D Hall Company, Austin, Texas 10 (FNI Water, 2012)
    11. 11. Oil and Gas Wells in Texas – the Source of Produced Water Green=oil well Red=gas well W D Hall Company, Austin, Texas 11
    12. 12. Produced Water Reuse (Michael Sims,RRC, 2013) W D Hall Company, Austin, Texas 12
    13. 13. Treatment for Reuse of Produced Water in the Oil Field Level 1 – Gravity separation from the oil and gas Level 2 – Separation, filtration, flotation, EC to remove solids, TSS, particles, oils, bacteria, frac chemicals • Results = clean brine • Very high TDS water (>200,000 mg/l) may be acceptable for reuse Level 3 – Getting the salt out (RO, ED, EDR, Distillation) Equipment and power costs increase as you reduce TDS levels. Many more possible uses for this water. W D Hall Company, Austin, Texas 1 3
    14. 14. Produced Water Treatment Costs for Oil Field Use Level 2 (Pre-treatment) ~ $.50 to $3.00/bbl (clean brine - HF water may not need more treatment) Level 3 (Membrane de-salting) ~ $3.00-$8.00/bbl or Level 3 (Thermal distillation) ~ >$5.00/bbl. W D Hall Company, Austin, Texas 14
    15. 15. Produced Water Disposal Costs The numbers to beat! Disposal wells in Texas ~ $.50/bbl to $2.50/bbl The main driver for not recycling + Plus - $1.00/bbl/hour The main driver for recycling! (loading, unloading and travel time) Location is key! W D Hall Company, Austin, Texas 15
    16. 16. Produced Water Volumes in Texas • Estimated • 650,000 ac-ft/yr (DOE for 2002) • 237,000,000 ac-ft/yr (USBR for 2009) • 775,000 ac-ft/yr (Tintera, 2013) • Calculated based on oil and gas production (2012) • 410,000 ac-ft/yr to 880,000 ac-ft/yr • Reported • 100,000 ac-ft/yr (RRC, 2012) ~1,000,000 ac-ft/yr estimate for Texas The need = better information W D Hall Company, Austin, Texas 16
    17. 17. W D Hall Company, Austin, Texas 17 Brackish Groundwater – a Better Alternative for Now in Texas?
    18. 18. Brackish Groundwater in Texas Orange,yellowandredindicatebrackishgroundwater(TWDB) W D Hall Company, Austin, Texas 18
    19. 19. Brackish Groundwater Depths in Texas (http://ne.water.usgs.gov/ogw/brackishgw/) W D Hall Company, Austin, Texas 19
    20. 20. Brackish Groundwater Use in Texas (HoustonChronicle,November14,2011) W D Hall Company, Austin, Texas 20
    21. 21. Brackish Groundwater Treatment Costs (TWDB2012) Total production costs for desalinating brackish groundwater ranged from: $357 to $666/ac-ft. $.001/gal to $.002/gal $.05/bbl to $.09/bbl (Drinking Water Quality) W D Hall Company, Austin, Texas 21
    22. 22. For Comparison - Cost of Bottled Water • Bottled water about $1.22/gallon nationwide • 300x the cost of a gallon of tap water • For sales of single 16.9oz (500 mL) bottles, though, this cost is much, much higher- about $7.50 per gallon • About $315/bbl! • That’s almost 2,000x the cost of a gallon of tap water and twice the cost of a gallon of regular gasoline. W D Hall Company, Austin, Texas 22
    23. 23. Brackish Groundwater Treatment Costs for Oil Field Use After the first use in fraccing, the cost for treating brackish groundwater is roughly the same as treating produced water (~ $.50 to $3.00/bbl) W D Hall Company, Austin, Texas 23
    24. 24. W D Hall Company, Austin, Texas 24 Estimated Volume of Brackish Groundwater in Texas ________________________________________________________________ _ 2.7 billion acre-feet* (880 trillion gallons) (21 trillion bbls) Of Less than 10,000 mg/l groundwater Only statewide estimate - 2003 (Arroyo, 2012) *(LBG-Guyton, 2003)
    25. 25. W D Hall Company, Austin, Texas 25 Getting better data _________________________________________________________ ____ National Brackish Groundwater Assessment by the USGS Ongoing - Completion Date: September 2016 TWDB - Brackish Resources Aquifers Characterization System: BRACS Ongoing TWDB -http://www.twdb.state.tx.us/innovativewater/bracs/index.asp
    26. 26. W D Hall Company, Austin, Texas 26
    27. 27. Estimated Volumes – Produced Water and Brackish Groundwater Produced Water ~1,000,000 ac-ft/yr Brackish Groundwater ~2.7 billion ac-ft Equal to ~ 2,700 years of Produced Water! W D Hall Company, Austin, Texas 27
    28. 28. Produced Water vs Brackish Groundwater W D Hall Company, Austin, Texas 28 Oil Field Produced Brackish Concerns Water Groundwater Is the local water volume sufficient for reuse? (location sensitive) Some times Most times Concern over conflicting use – municipal? No Possibly Is the local water supply reliable for > 20 years? Uncertain Most likely Ownership Unclear Unclear Cost of sourcing Uncontrollable Controllable
    29. 29. Questions about Using Brackish Groundwater Check these out early- • What is the quantity of brackish groundwater required? For how long? • Who owns the brackish groundwater? • Is the brackish groundwater planned for a future municipal supply? • What are the pumping costs now and in the future? • Will pumping from the brackish aquifer adversely impact overlying freshwater aquifers? • Will the water quality (salinity) change during pumping? Deteriorate? (Maliva, et al, 2014) W D Hall Company, Austin, Texas 29
    30. 30. W D Hall Company, Austin, Texas 30 Vision of a Stationary, Water Recycling Facility for the Oil Field
    31. 31. Produced Water Recycling Facility – Irion County W D Hall Company, Austin, Texas 31
    32. 32. Produced Water Recycling Facility – Parker County W D Hall Company, Austin, Texas 32 (Slutz, et al, 2012)
    33. 33. What might a Stationary Produced and/or Brackish Water Recycling Facility look like? • Location – close to produced water generators (> 100 wells) from single or multiple E&P operators and treated water users (within approx. 15 mile radius) • Easy access to brackish groundwater • Size – 100 to 200 acres; security fencing • Lined ponds and tanks for water storage (500,000 bbls or more); berms for water control W D Hall Company, Austin, Texas 33
    34. 34. Facilities and Equipment • truck loading/ unloading and washing • oil recovery equipment • treatment equipment (able to treat at least 30,000 to 50,000 bpd) • office and laboratory • maintenance shop • living accommodations • communication towers • water pumps and pipelines • chemical storage sheds • fresh water well • brackish water well • SWD well • And a waste storage area W D Hall Company, Austin, Texas 34
    35. 35. Logistical Management / Process Monitoring • Smart logistical management and process monitoring (software) • in-out water volumes • inventory • lab analysis and results • storage and transport/ distribution services • equipment performance • Reliable communications for reporting for business, technical, and regulatory needs W D Hall Company, Austin, Texas 35
    36. 36. Potential Benefits of Operating a Centralized PW/BW Recycling Facility • Lower water acquisition, hauling and management costs for E&P operators • Fixed infrastructure costs • Economies of scale, leverage buying power • Efficiency – fewer staff W D Hall Company, Austin, Texas 36
    37. 37. Potential Benefits of Operating a Centralized PW/BW Recycling Facility (cont.) • Drought resistant, reduced competition for fresh groundwater • Public safety – fewer trucks, fewer spills • Eagle Ford Study: Pre-planning and establishing a centralized recycling system • 1400 wells planned over a 5 year period • Cost savings of 44 % (Robart, 2012) W D Hall Company, Austin, Texas 37
    38. 38. RisksAssociated with Operating a Centralized PW/BW Recycling Facility • Price of oil drops eliminating sources of produced water; Operators hesitant to sign up for long-term • Unexpected regulatory changes; Could be caught up in local politics • Brackish groundwater has less volume or poorer quality than anticipated W D Hall Company, Austin, Texas 38
    39. 39. RisksAssociated with Operating a Centralized PW/BW Recycling Facility (cont.) • Complicated contracts • Competition with abundant, cheap SWDs • Wrong location (proximity to sources, users, brackish groundwater) • Wrong technology for treatment W D Hall Company, Austin, Texas 39
    40. 40. Summary • Produced water can’t be relied on to supply adequate drilling and frac supply in most fields • Existing fresh water sources will be in great demand; cost is rising • A combination of produced water and brackish groundwater is a better, cheaper choice for use in future drilling and frac operations • When to start using brackish groundwater? Now. W D Hall Company, Austin, Texas 40
    41. 41. W D Hall Company, Austin, Texas 41 “When the well is dry, we know the worth of water.‖ —Benjamin Franklin, Poor Richard's Almanac, 1746 Thank You For more information / brainstorming: Doug Hall W D Hall Company Austin, Texas 512-306-8444

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