China-US Shale Gas Training Program

1. Santa Clara Energy Partners
China – US Shale Gas Training Program
Workshop 1: Characterization and Assessment
April 22 and 23, 2013

2. Agenda
1. Water assessment
2. Characterization of current resource
3. Technical review
4. Santa Clara Energy

3. Assessment
• The 12th
5 year plan set aggressive goals for gas production:
– 6.5 billion cubic meters in 2015
– 100 billion cubic meters 2020.
• Incentive: 0.4 yuan per cubic meter developed between 2012-2015
• To meet this goal will require:
– Significant drilling program(10,000m3)
• 1,800 wells in production by 2015
• 28,000 wells completed to reach 2020
– Significant amount of water:
• 15,000,000,000 cubic meters -2015 goal
• 250,000,000,000 cubic meters - 2020 goal

4. Assessment
• Quantity
– Current industrial water consumption in China – 150 billion m3/year
– To reach 2015 goal will require 10% of current industrial use
– To reach 2020 goal will require more than 150% of current industrial
use
• Options
– Different basins face different challenges
– Oil field
• Produced water – +10 barrels water per barrel of oil
• Flow back – 15 to 50%

5. Characterization Water
Fundamentals
• The same amount of water exist today as when the planet
was formed
• The water used during a frac carries the materials into the
formation. It may be treated to minimize four problems:
scale, fouling, corrosion, microbiological growth
• Water is treated using many well known technologies with
few new, innovative technologies

6. Considerations when designing
treatment program
Contaminants:
– Suspended materials
• Oil
• Organics
• Minerals and metals
• Bacteria and other microbiology
– Dissolved materials
• Minerals
• Metals
• Salts
– Specific minerals:
• Phosphorus
• Organic
An independent review (Colorado School of Mines) identified 34
fundamental treatment technologies and 21 integrated
systems.

7. Major types of
water treatment equipment

8. Considerations when designing
treatment program
• Produced water options- reuse/recycle/disposal
• Quality requirements for the feed and product waters
• Infrastructure requirements
• Commercial status of technology
• Removal efficiencies
• Recovery
• Energy consumption
• Chemical demand
• Life cycle and costs
• O&M considerations

9. Summary
• Key success factors:
– Build a plan that can be executed - site specific conditions and economics
dictate
– Build a plan that is flexible - the industry continues to improve current process
and develop new technologies
– Lab scale testing should be followed by field scale testing prior to full
implementation
– Use local resources as much as possible
– Follow up and measurement are CRITICAL

10. Santa Clara Energy – Value
Data paired with Information
Knowledge paired with a need
A Decision is made
Implementation and Action
Follow up and measurement

11. Santa Clara Energy –
The right partner can make all the difference
• Santa Clara Energy is a consultancy offering strategic, technical and
management advice to the water and petroleum sectors. Specific skill sets are:
• Water treatment experience in both the petroleum and industrial sectors
• International business management
• Technical knowledge, tools and expertise to design and manage implementation
of water treatment solutions
• Work across the globe to identify best in class technologies but work locally to
implement, measure and manage