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The 3 Pillars of WMS webinar Final

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The 3 Pillars of WMS webinar Final

  1. 1. Surface Field Development and The 3 Pillars of Water Management Strategy Webinar – Sept 19, 2016 Adding Value to your Business Lorenzo Hernandez P. Eng. &
  2. 2. • The Three Pillars of Water Management Strategy – (1 of 4) • Water Balance - The Three Pillars of Water Management Strategy (2 of 4) • Water Chemistry & Treatment - The Three Pillars of Water Management Strategy (3 of 4) • Transportation - The Three Pillars of Water Management Strategy (4 of 4) • The Three Pillars of Water Management Strategy Webinar. https://ca.linkedin.com/in/lorenzohernandezpeng The Series Lorenzo Hernandez P. Eng. / https://ca.linkedin.com/in/lorenzohernandezpeng P2
  3. 3. Where are we?  The potential of Shale gas in Alberta and BC is massive – Many players.  Gap between development, design, and operations.  If common issues are overlooked, water can be a constraint – Not desired.  Issues such as transportation and trucking costs, lack of water storage and supply sources, and water incompatibility are some of the most common problems that any particular operator must face.  A systematic approach will help to close the gaps created between development, design, and operations. That systematic approach is in essence a concise Field Development Plan and Water Management Strategy. Lorenzo Hernandez P. Eng. / https://ca.linkedin.com/in/lorenzohernandezpeng P3
  4. 4. Field Development Plan & Water Management Strategy • Clear Scope of Work • Surface Facilities Development Plan • Evacuation Strategy • Stakeholders engaged • Regulatory Compliance • Project Portfolio BUSINESS PLAN COMPANIES DIRECTIONS MARKETING STRATEGY AREAFIELDDEVELOPMENTPLAN WATER MANAGEMEN TSTRATEGY GAS&OIL FACILITIES PLANNING DRILLINGAND COMPLETION EXECUTION PLAN Lorenzo Hernandez P. Eng. / https://ca.linkedin.com/in/lorenzohernandezpeng P4
  5. 5. KEY COMPONENTS • Volumetric Calculations - forecast. • Development Stage & pace • Risks & Integration Opportunities. • Environment analysis. • Community affairs. • Government and Regulators. • Existing Infrastructure – leverage. • Supply Water Sources. • Disposal Requirements. Field Development Plan - Water Management Strategy Oil / Gas Field Lorenzo Hernandez P. Eng. / https://ca.linkedin.com/in/lorenzohernandezpeng P5
  6. 6. Importance of Front End Development Front End Development Lorenzo Hernandez P. Eng. / https://ca.linkedin.com/in/lorenzohernandezpeng P6
  7. 7. • Identify Opportunities and understand what we get into • Look wide and understand what are feasible options. • Concept Selection / Evaluate best and “doable” options. • Opportunity Framing Session / Execution Strategy. • Risk Analysis and Impact Assessment. • Stakeholder Engagement. • Regulatory Plan PMBOK's Five-Phase Project Lifecycle Lorenzo Hernandez P. Eng. / https://ca.linkedin.com/in/lorenzohernandezpeng P7
  8. 8. FDP and WMS – Flow Diagram - Map Water Plan - Volumetric Assumptions Givens Design Basis Material Balance Risk & Opportunities Project PortfolioTimeline / Schedule & Cost Cost Drilling / Completion Plan Evacuation StrategyTreatment Facilities Requirement Regulation & HSE F D P -1200000.0 -900000.0 -600000.0 -300000.0 0.0 300000.0 600000.0 900000.0 1200000.0 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 2052 2054 2056 2058 2060 2062 2064 2066 2068 2070 2072 2074 2076 2078 2080 2082 2084 2086 WaterBalance(m3) Disposal Make-Up Flowback Produced Water Frac Water Risks Likelihood Low Medium High Impact LowMediumHigh Poor injectivity on disposal wells. Competition for limited water sources Lack of water disposal options increases OPEX Water compatibility issues – Treatment may be required. Water supply contract is not renewed Hydraulic issues for water handling Reduced flexibility of water handling due to lack of storage Transportation of waste streams across a provincial border may pose a public perception risk Produced Water prediction & forecasting Disposal forecast changes over time Lorenzo Hernandez P. Eng. / https://ca.linkedin.com/in/lorenzohernandezpeng P8
  9. 9. Water Management Strategy Process Lorenzo Hernandez P. Eng. / https://ca.linkedin.com/in/lorenzohernandezpeng P9
  10. 10. Influence Interest&Support High Low Low High TRACK (Expectations) COMMUNICATE INVOLVE (Education) ALIGNMENT (Leverage) Stakeholder Engagement Map -Unconventional Upstream Business -Community Relation -Locals, aboriginal -Regulatory & Environmental bodies -Marketing -Government -Government Agencies -JV’s Partners -Service Industry -Existing O&G Industry -Unions/Syndicate -Local Manufacturing Industry -Midstream Business -National O&G Company Lorenzo Hernandez P. Eng. / https://ca.linkedin.com/in/lorenzohernandezpeng P10
  11. 11. Risks Likelihood Low Medium High Impact LowMediumHigh Poor injectivity on disposal wells. Competition for limited water sources Lack of water disposal options increases OPEX Water compatibility issues – Treatment may be required. Water supply contract is not renewed Hydraulic issues for water handling Reduced flexibility of water handling due to lack of storage Transportation of waste streams across a provincial border may pose a public perception risk Produced Water prediction & forecasting Disposal forecast changes over time Lorenzo Hernandez P. Eng. / https://ca.linkedin.com/in/lorenzohernandezpeng P11
  12. 12. Opportunities Likelihood Low Medium High Impact Low Medium High Water Interconnection between operating areas Make-up water requirement decreases under concurrent development scenario Full integration with existing water facilities Disposal to company owned disposal well or 3rd Party wells. Area and operations well known by company personnel. Potential synergy and integration with neighbouring companies for supply and disposal Lorenzo Hernandez P. Eng. / https://ca.linkedin.com/in/lorenzohernandezpeng P12
  13. 13. Lorenzo Hernandez P. Eng. / https://ca.linkedin.com/in/lorenzohernandezpeng P13
  14. 14. Cumulative Effect over time • Environment-Friendly Field Development Plan. • Feasible and reliable water forecast. • Alignment between Drilling Execution Plan and FDP will benefit with less disposal costs and less required storage capacity. • Exploring the use of removable storage facilities. • Synergies and integration. Lorenzo Hernandez P. Eng. / https://ca.linkedin.com/in/lorenzohernandezpeng P14
  15. 15. STORAGE / TREATMENT / RECYCLING / FACILITY Water Sourcing Make up Water Wastewater Treatment / Disposal Produced Water / Flowback Hydraulic Fracturing Key Input Affect or be affected by: Water forecasting Well Testing & Flowback Frac Design / Reservoir Conditions Volume per Frac. Water chemistry / Reservoir Conditions Treatment / Recycling / Make Up / Disposal Drilling Execution plan Short Term Material Balance Field Development pace Med-Long term material balance Environmental / Regulatory Cumulative Effects Synergies Sourcing & Disposal Non-technical Risk / Considerations Permitting / Schedule / Cost / Others Type of Storage Footprint / Cost / Re-Use Lorenzo Hernandez P. Eng. / https://ca.linkedin.com/in/lorenzohernandezpeng P15
  16. 16. Forecasting – Why so important? • Water produced by wells over life – Big ?? • Required reliable Reservoir Type Curves • Uncertainties Management Skills and tools • Historical data management • Pilot well test and evaluations • Data reconciliation • It is not a guess Lorenzo Hernandez P. Eng. / https://ca.linkedin.com/in/lorenzohernandezpeng P16
  17. 17. Source / Make-Up & Disposal Options • Fresh Water from lakes, rivers and municipal supplies (subjected to Water Withdrawal Bans). • Recycled water from other facilities. • Water from water treatment plant. • licensed disposal wells (well injection) • Treatment & Disposal Facilities • Export for use in other fields / areas. Lorenzo Hernandez P. Eng. / https://ca.linkedin.com/in/lorenzohernandezpeng P17
  18. 18. Synergies and Integration - Leverage • Growing the business in an environmentally-friendly manner. • Concurrent development may reduce the amount of disposal. • Water Facilities Integration – Different areas could be attended by same water infrastructure. • Disposal volumes can be substantially reduced by maximizing water recycling or transferring. Lorenzo Hernandez P. Eng. / https://ca.linkedin.com/in/lorenzohernandezpeng P18
  19. 19. Long Term Water Balance A proper Long Term Water Balance will allow: • To see a longer term forecast & a picture of the entire development plan. • Identify long term required commercial or capital commitments. • Identify major risks and water balance “busts” far enough in the future. • Identify the most feasible and reliable evacuation strategy. -1200000.0 -900000.0 -600000.0 -300000.0 0.0 300000.0 600000.0 900000.0 1200000.0 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 2052 2054 2056 2058 2060 2062 2064 2066 2068 2070 2072 2074 2076 2078 2080 WaterBalance(m3) Disposal Make-Up Flowback Produced Water Frac Water Lorenzo Hernandez P. Eng. / https://ca.linkedin.com/in/lorenzohernandezpeng P19
  20. 20. Medium / Short Term Water Balance A proper Medium / Short Term Water Balance will: • Allow the use of recycled water and supplement as needed with make-up. • Allows us to minimize water disposal. • Water Balance can be optimized working with the Completion schedule. • Allows the opportunity to trade water with other neighbouring companies. Storage Capacity Well Well Well Well Lorenzo Hernandez P. Eng. / https://ca.linkedin.com/in/lorenzohernandezpeng P20
  21. 21. Water Sampling and Analysis Identify Primary Problems Scope Water Treatment Solutions •Representative •Good Sampling Practices & Procedures •Approved Sampling Stations •Approved and Recognized Analyst •Salinity / TDS •Oil Carryover •Bacteria •Scaling (mixing) •Corrosion •Reservoir incompatibility •Control Water Solubility •Water Dilution •Filtration •Inhibitors •Avoid Mixing Waters From the top to the bottom Lorenzo Hernandez P. Eng. / https://ca.linkedin.com/in/lorenzohernandezpeng P21
  22. 22. Water Treatment Challenges • Engaging reliable companies to address compatibility issues and identify cost-effective solutions. • Reliable subsurface data. • Chemical Injection and Treatment Locations. • Alignment the water treatment location and capability to where the issue in the water cycle is. • Finding a mix of chemicals that work with the lower quality water instead of building an expensive water treatment plan. Lorenzo Hernandez P. Eng. / https://ca.linkedin.com/in/lorenzohernandezpeng P22
  23. 23. Types of Water Treatment • Internal Treatment – use of water treatment chemicals such as scale inhibitors, corrosion inhibitors, dispersants, biocides, others. • External Treatment – use of Water Treatment systems such as filters, softeners, evaporators, membranes, electrocoagulators, clarifiers, and also deoiling systems such as API separators, IGF, DGF, ORF Lorenzo Hernandez P. Eng. / https://ca.linkedin.com/in/lorenzohernandezpeng P23
  24. 24. Water Treatment Technologies Commonly Used in Hydraulic Fracturing • Coagulation • Flocculation • Clarification/Settling • Filtration/ORFs • Ion Exchange • Reverse Osmosis • Ultrafiltration • Nanofiltration • MVC Evaporators • Crystallizers • Dissolved Gas Flotation • Ceramic Membranes • Electrocoagulation Lorenzo Hernandez P. Eng. / https://ca.linkedin.com/in/lorenzohernandezpeng P24
  25. 25. Water volume Water sources Disposal availability Regulatory frame Waterquality Development stage Storage location Environmental frame Cost Safety Pipelines Trucking Railway Lorenzo Hernandez P. Eng. / https://ca.linkedin.com/in/lorenzohernandezpeng P25
  26. 26. Transportation Challenges TRUCKS • Social impact - Community complaints • HSE Risks & exposure • Emissions • Cost structure • Water sources and disposal locations • Regulatory requirements PIPELINES • Cost structure • Pipeline material / corrosion mitigation • Pumping requirements (and power) • Terrain profile – backpressure build up • Gas pockets and liner failures • Right of way not available TRAINS and/or COMBINATION • Hauling costs - Cost structure • Noise associated with rail terminal • Public perception of moving fluids • Social impact - Community complaints Lorenzo Hernandez P. Eng. / https://ca.linkedin.com/in/lorenzohernandezpeng P26
  27. 27. Considerations while selecting Pumping Alternatives STORAGE / TREATMENT / RECYCLING / FACILITY Water Sourcing Make up Water Wastewater Treatment / Disposal Produced Water / Flowback Hydraulic Fracturing • Sourcing and storage location • Interconnection between operational areas • Wellpad water handling philosophy (dedicated or centralized) • Water disposal solution and locations • Fracturing and Completion design (volume per fracturing and pressure) Reservoir conditions. • Type and amount of friction reducers (additive) – Reduce pressure needed to pump. • Cleaning and Flowback process • Pipeline Network availability Lorenzo Hernandez P. Eng. / https://ca.linkedin.com/in/lorenzohernandezpeng P27
  28. 28. • Surface Field Development Plan & Water Management Strategy - 3 Days Course • Lunch & Learn Sessions • Surface Field Development Plan. • Water Management Strategies. • Water Treatment. • Pumping in Unconventional Business Working in Progress For more details please contact: lorenzoh77@shaw.ca Lorenzo Hernandez P. Eng. / https://ca.linkedin.com/in/lorenzohernandezpeng P28
  29. 29. Q & A Thanks Lorenzo Hernandez P. Eng. / https://ca.linkedin.com/in/lorenzohernandezpeng P29
  30. 30. • Surface Field Development Plan (short, medium and long-term planning for Facilities and Pipelines, including compression, gas processing, 2-3 phase separation, pumping, power supply and storage). • Facilities Support for Business Proposal and Opportunities. • Translating Oil, Gas and / or Water Management / Operational issues into clear Scope of Work • Hydraulic Analysis and Engineering Design (Oil, Gas, Water and Multiphase) • Opportunity Framing sessions, Preliminary Designs, Feasibility Studies, Concept Selection, Basis for Design, Project Development Plan, and NTR Risk Assessment. • Risk Analysis (HAZOP, HAZID, What if, TECOP based Project Risk Analysis). • Process Design, Safety in Design. • Equipment sizing (compressors, pumps, separation, metering, others) • Water Management Strategy – Supply, Makeup, Storage, Treatment and Disposal. Short, Medium and Long Term Water Material Balance. Synergies. Lorenzo Hernandez P. Eng. / https://ca.linkedin.com/in/lorenzohernandezpeng P30

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