NGL is a midstream MLP with four business segments operating across major oil and gas regions in the US. Its water solutions segment provides wastewater transportation, treatment, and disposal services using a design, build, own, operate model. This includes 21 disposal wells with 380,000 bpd capacity, 3 treatment facilities that can recycle 80,000 bpd of water, and a private R&D facility. Horizontal drilling is a major driver of wastewater production, while disposal wells are typically the most cost effective management option depending on local geology and regulations. NGL aims to grow its water handling capacity in key regions to support increasing drilling activity.
5th Annual Produced Water Quality Recycling and Reuse 2016marketinglbcg
After extensive rounds of conversations with operators and vendors across the Bakken, DJ, Powder River, Niobrara and Uinta Basins, the highly anticipated 5th Annual Produced Water Quality Recycling & Reuse 2016 returns to Denver in October.
Presentation slides from a professional development seminar on the industrial multisector general permit issued by the Minnesota Pollution Control Agency.
Water Quality Presentation given by Angelo Liberti, Chief of Surface Water Protection, Office of Water Quality, RI DEM at the Shellfish Management Plan March Stakeholder meeting.
5th Annual Produced Water Quality Recycling and Reuse 2016marketinglbcg
After extensive rounds of conversations with operators and vendors across the Bakken, DJ, Powder River, Niobrara and Uinta Basins, the highly anticipated 5th Annual Produced Water Quality Recycling & Reuse 2016 returns to Denver in October.
Presentation slides from a professional development seminar on the industrial multisector general permit issued by the Minnesota Pollution Control Agency.
Water Quality Presentation given by Angelo Liberti, Chief of Surface Water Protection, Office of Water Quality, RI DEM at the Shellfish Management Plan March Stakeholder meeting.
Presentation at the 2011 USGBC Illinois Chapter Credential Maintenance Day by Rob Young and Scott Bowman. Using the LEED Platinum Wellmark BCBS Headquarters in Des Moines, Iowa as a case study, the presenters provide factors related to rainwater capture systems, how LEED credits relate, demonstrate the system from design through start-up, and discusses pros and cons of rainwater capture and flushing systems.
WWTS Sanctuary Belize Marina Village Request for proposal[mm2][fc3][final]Frank Costanzo Connelly
UNEP CSPAW compliant Waste Water Treatment package system for the Sanctuary Belize Marina Village mixed use development in Belize, Central America. This captured effluent system RFP is located on the eco-sensitive Sapodilla Lagoon and open Caribbean and is the first of its kind in performance, compliance with national and international guidelines and technology transfers to a Belize non-profit conservation land trust for maintenance and management.
CAI is improving the quality of life worldwide by providing custom fabricated modular power generation systems that are easy to install, have a small footprint and provide continuous power.
In Situ Oil Sands SOR Reduction Initiativephilbrown49
Brochure of the In Situ Oil Sands SOR Reduction Initiative 2013.
http://www.oil-sands-sor-reduction-2013.com/
The mission of the In Situ Oil Sands SOR Reduction Initiative 2013 is to uncover the latest steam injection techniques, recovery technologies, water treatment technologies and production techniques through knowledge sharing between industry innovators. The conference will see experienced operators delivering presentations on their successes and failures on trials for novel steam generation and oil recovery practices.
Renewable Natural Gas - Biogas Cleaning and Upgrading 101LPE Learning Center
Full proceedings at: http://www.extension.org/72772 With depressed electrical prices for produced biogas, many projects are now moving towards business models predicated on production of renewable natural gas (RNG). In order to produce RNG, projects must first clean and upgrade raw biogas to pipeline and/or transportation fuel quality through the use of various engineering approaches. In this presentation, an overview of available and emerging biogas cleaning and upgrading technologies are discussed, highlighting positives, negatives and costs.
The Impact of Cleantech on Oil and Gas OperationsNow Dentons
This presentation deals with the impact of cleantech on the economics of oil and gas operations. It covers and in-depth look at the cleantech industry as it relates to oil and gas, shale gas, hydraulic fracturing, disposal of waste fracturing fluid, water use in the oil sands, as well as the future of water management in Alberta and the oil sands.
Presentation at the 2011 USGBC Illinois Chapter Credential Maintenance Day by Rob Young and Scott Bowman. Using the LEED Platinum Wellmark BCBS Headquarters in Des Moines, Iowa as a case study, the presenters provide factors related to rainwater capture systems, how LEED credits relate, demonstrate the system from design through start-up, and discusses pros and cons of rainwater capture and flushing systems.
WWTS Sanctuary Belize Marina Village Request for proposal[mm2][fc3][final]Frank Costanzo Connelly
UNEP CSPAW compliant Waste Water Treatment package system for the Sanctuary Belize Marina Village mixed use development in Belize, Central America. This captured effluent system RFP is located on the eco-sensitive Sapodilla Lagoon and open Caribbean and is the first of its kind in performance, compliance with national and international guidelines and technology transfers to a Belize non-profit conservation land trust for maintenance and management.
CAI is improving the quality of life worldwide by providing custom fabricated modular power generation systems that are easy to install, have a small footprint and provide continuous power.
In Situ Oil Sands SOR Reduction Initiativephilbrown49
Brochure of the In Situ Oil Sands SOR Reduction Initiative 2013.
http://www.oil-sands-sor-reduction-2013.com/
The mission of the In Situ Oil Sands SOR Reduction Initiative 2013 is to uncover the latest steam injection techniques, recovery technologies, water treatment technologies and production techniques through knowledge sharing between industry innovators. The conference will see experienced operators delivering presentations on their successes and failures on trials for novel steam generation and oil recovery practices.
Renewable Natural Gas - Biogas Cleaning and Upgrading 101LPE Learning Center
Full proceedings at: http://www.extension.org/72772 With depressed electrical prices for produced biogas, many projects are now moving towards business models predicated on production of renewable natural gas (RNG). In order to produce RNG, projects must first clean and upgrade raw biogas to pipeline and/or transportation fuel quality through the use of various engineering approaches. In this presentation, an overview of available and emerging biogas cleaning and upgrading technologies are discussed, highlighting positives, negatives and costs.
The Impact of Cleantech on Oil and Gas OperationsNow Dentons
This presentation deals with the impact of cleantech on the economics of oil and gas operations. It covers and in-depth look at the cleantech industry as it relates to oil and gas, shale gas, hydraulic fracturing, disposal of waste fracturing fluid, water use in the oil sands, as well as the future of water management in Alberta and the oil sands.
Water supplies in the Permian Basin are tightening. 240 counties in Texas are now designated as primary natural disaster areas due to drought. Water recycling technologies are numerous with rapid innovation.We’ve catalogued over 50 different processes used to purify wastewater. There is no one-size-fits-all solution. Freshwater availability, waste disposal costs, and fracturing fluid specifications are just a sample of factors that influence decisions. In this presentation, delivered at the DUG Permian Basin Conference on May 21, 2014, Wilson Perumal & Company Consultant John Hughes presents key elements to consider when developing a comprehensive water management strategy.
Dwindling availability of water, combined with increases and competition in demand, climate change impacts, trends toward true cost water pricing, among other “drivers,” necessitates that urban water planning incorporate consideration of strategies for use, conservation, and reuse of treated wastewater and stormwater. Three innovative initiatives will be discussed as illustrations of “win-win” approaches that achieve effective water management (urban water security/sustainability) while facilitating economic development.
Water Conservation Finds It’s Home in Integrated Resources Planning. Presented by Richard Harris, Manager of Water Conservation, East Bay Municipal Utility District, California at Texas Water Foundation, Central Texas Water Conservation Symposium February 26, 2013
Urban Planning Design Considerations for Better Water Quality, Bill Hunt NC S...Fu Michael Justin
Provided by NC State University
Lead Instructor:
Bill Hunt, PE, Extension Specialist,
Urban Stormwater Management, BAE
208 Weaver Labs, Box 7625
Raleigh, NC 27695-7625
Oil wells in the Bakken produce more than just oil - they also produce salty formation water (typically 1-3 barrels per barrel of oil). Until now, the oilfield's answer to this problem has been to dilute the formation water with fresh water, at up to 50 barrels per day. This is an expensive proposition and it consumes a precious natural resource.
Global Green Products has developed a patented product called Water-Tek that drastically reduces that fresh water consumption (by up to 80%) and is biodegradable, non-toxic, non-hazardous, and hypoallergenic.
Our innovative green chemistry has already conserved millions of barrels of fresh water in the Bakken and saved operators tens of millions of dollars. Less fresh water downhole means less produced water, a reduction in waste water disposal, and an increase in deferred production.
Contact us today to see how Water-Tek can significantly impact your production budget!
globalgreenproducts.com
Organics Recycling Through Residuals Treatment at MWRA’s Deer Island Treatmen...MassRecycle .
Organics Workshop- Mixed Organics Streams as Feedstock and Products, Dave Duest from the Massachusetts Water Resources Authority shares demonstrates how the Deer Island Treatment Plant processes organics into renewable fuel for energy recovery.
1. Water Disposal – An Assessment of Disposal Wells and Facilities
Eric Peterson
Strategic Planning & Market Analysis
May 2014
2. •Confidential & Proprietary•Confidential & Proprietary
Retail
Propane
15%
Crude
Logistics
48%
Water
Solutions
23%
NGL
14%
NGL Energy Partners Overview
NGL is a midstream MLP with four business
segments operating in multiple oil and gas
producing regions in the United States
− Crude Oil Logistics
− Water Solutions
− NGL Logistics
− Retail Propane
Multiple midstream solutions for upstream
companies
Geographic diversification across the most
active resource / shale regions as well as coast
to coast
Focused on generating stable and repeatable
cash flows
Approximately 2,400 employees
Financial snapshot:
− Market Cap: ~$3.13 billion
− Pro-forma EBITDA: $400 million
(1) Represents estimated pre-G&A pro-forma segment EBITDA for the
fiscal year ending 3/31/2013 and excludes acquisition cost addbacks.
Area of Operations
Contribution by Segment to EBITDA
Eagle Ford
Marcellus
Shale
DJ
Basin
Green River
Basin
Bakken
Shale
Mississippi Lime
Granite Wash
Permian
Basin
Eagle Ford
Marcellus
Shale
DJ
Basin
Green River
Basin
Bakken
Shale
Mississippi Lime
Granite Wash
Permian
Basin
Crude Barges
Water Services
Railcar NGL terminal
Refinery terminal
NGL proprietary terminal
Natural gas liquids segment
NGL leased storage
Assets and marketing presence
Pipeline
Crude oil segment
Crude barge terminal
NGL
Retail Propane > 10 mm gallons
Crude operational area
Crude Barges
Water Services
Railcar NGL terminal
Refinery terminal
NGL proprietary terminal
Natural gas liquids segment
NGL leased storage
Assets and marketing presence
Pipeline
Crude oil segment
Crude barge terminal
NGL
Retail Propane > 10 mm gallons
Crude operational area
2
3. •Confidential & Proprietary•Confidential & Proprietary
Retail
Propane
15%
Crude
Logistics
48%
Water
Solutions
23%
NGL
14%
Segment Contribution to EBITDA
Areas of Operation and InterestSegment Operations
NGL Water Solutions
Provides services for the transportation,
treatment and disposal of wastewater
generated from oil and natural gas production
Design, build, own, operate (DBOO) business
model
Multiple treatment, disposal, and recycling
facilities located in various basins within the
United States
Provides customized water treatment solutions
Operates state-of-the-art R&D facility to
develop solutions and support field operations
Multiple process patents issued with additional
patents currently pending
3
4. •Confidential & Proprietary•Confidential & Proprietary
Size, Scale and Expertise Sets NGL Apart
21 injection well disposal facilities
− 380k bpd total injection capacity
3 centralized treatment/recycle facilities
− 80,000 bpd recycle capacity
− 35MM bbls to date
− 20,000 bpd treat to environmental discharge standard
− 7MM bbls to date
Private R&D Pilot Facility
− Optimize custom treatment solutions (no “one size fits all”)
− Technology neutral
− Physical, chemical, thermal unit process capabilities
− 10,000 square foot warehouse
− State-of-the-art analytical laboratory
− Flow rates up to 10 gpm
− Full time research staff with decades of experience
4
6. •Confidential & Proprietary•Confidential & Proprietary
Observations
6
• High IRR plays incentivize drilling activity
• Horizontal drilling activity is the largest driver of waste water production
• Frac volumes and geology determine flowback volumes
• Treatment, recycle, reuse and/or disposal used for wastewater
management, but typically disposal wells are the most cost effective
when viable
• Disposal well viability hinges on geology, water quality, water quantity
and economics
7. •Confidential & Proprietary•Confidential & Proprietary
7
Source: RBN Energy May 2014
Utica
Marcellus - Dry
Uinta
Dry
Gas
Wet
Gas
Oil
20%
Piceance
Permian
Bakken
DJ -Niobrara
Eagle Ford
48%
Granite Wash
Miss Lime55%
42%
42%
Pinedale
IRR’s of Various Plays – High IRR Drives Drilling Activity
9%
15%
15%
20%
48%
35%
63%55%
45%-
73%
61%
Haynesville
Fayetteville
Barnett
Marcellus - Wet
8. •Confidential & Proprietary•Confidential & Proprietary
U.S. Active Rig Locations – May 21, 2014
Source: RigData
Horizontal
Vertical
Directional
0
200
400
600
800
1,000
1,200
HRZ VER DIR
9. •Confidential & Proprietary•Confidential & Proprietary
Frac Volumes – Horizontal Wells Are Primary Drivers for
Water Supply Growth
9
FracFocus.org Wells Fracked in April-May 2014
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
Vertical Horizontal
FracVolumes(gal)
Millions Average Frac Volumes Used
Weld County
10. •Confidential & Proprietary•Confidential & Proprietary
Frac Water Usage – Volume of frac water injected
drives flowback volume
10
FracFocus.org Hz Wells Fracked in April-May 2014
0
2
4
6
8
10
12
14
16
18
20
FracVolumes(gals)
Millions
Hz Frac Volumes and Flowback % by Play per Well
% Flowback
11. •Confidential & Proprietary•Confidential & Proprietary
Flowback vs Produced Water
11
• Flowback occurs for the first 7-14 days
• Peak total production tops early but drops by over 80% over the next two weeks
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
1 11 21 31 41 51
%ofTotal5YrWaterProd
WaterVolumes(bpd)
Days Producing
Typical Hz Oil Well Water Production vs. Time
Flow Back
Production
% of Total Volume
12. •Confidential & Proprietary•Confidential & Proprietary
Per Well Water Production of Select Plays –
Horizontal wells onlyWaterProduction(b/d)
Year 1
Year 2
Year 3
Year 4
Year 5
12
13. •Confidential & Proprietary•Confidential & Proprietary
Produced Water Generation in Shale Plays:
Dependent on Geology of Shale Formation
High “Long Term” Produced Water Generating Play
Permian:
− Formation characteristics result in high produced water generation
− Higher volumes of natural formation water present in / near shale
Moderate “Long Term” Produced Water Generating Plays
Eagle Ford Shale
Bakken
− Formation characteristics allow less fluid production per MMCF/bbl
− Relatively dry formation
Low “Long Term” Produced Water Generating Plays
DJ, Utica, Marcellus Shale
Higher water production in South (West Virginia), lower in North (Pennsylvania)
− Shale formation characteristics tend to “trap” fluids
− Very dry formation
− Water is “bound to formation”
Source: CHK
13
14. •Confidential & Proprietary•Confidential & Proprietary
Disposal Wells vs Alternative Methods
Disposal
− Provide producers affordable well-disposal of wastewater
− Water treatment separates solids and hydrocarbons from water prior to
disposal
− Certain facilities are pipeline connected, providing stronger customer
relationship with the producers
Treatment for Re-Use
− Clean water can be re-used by producers for fracking, well drilling and
completion projects
− Offers producers an alternative to fresh water that minimizes the impact on
aquifers, particularly in arid regions of the U.S.
Treatment for Discharge
− Cleans water to environmental discharge water quality
Resource Recovery
− Create high purity brine from oilfield waste water
− Apply crystallization or chlor-alkali process
− Yields valuable chemical products in lieu of waste stream
14
15. •Confidential & Proprietary•Confidential & Proprietary
Disposal Fees – Range from low end of produced water
to high end of flowback
15
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
$1.60
$1.80
$2.00
Eagle Ford Permian DJ Bakken
DisposalFees
Does not include hauling costs which
can range from $2 - $10/bbl
Flowback vs. Produced Water
17. •Confidential & Proprietary•Confidential & Proprietary
17
DJ Basin – 2 recycling facilities and 100k bpd disposal
capacity with another +50k bpd in the next 2 years
Water Facilities
Growth Sites
Hz Wells
30 Day IP Rate
18. •Confidential & Proprietary•Confidential & Proprietary
Permian Basin – 75k bpd disposal capacity with an
additional +80k bpd expected over the next year
18
Water Facilities
Growth Sites
Hz Wells
30 Day IP Rate
19. •Confidential & Proprietary•Confidential & Proprietary
Eagle Ford – 220k bpd disposal capacity with an
additional +120k bpd expected in the next 3 years
19
Water Facilities
Growth Sites
Hz Wells
30 Day IP Rate
20. •Confidential & Proprietary•Confidential & Proprietary
Conclusions
20
• High IRR plays incentivize drilling activity
• Horizontal drilling activity is the largest driver of waste water production
• Frac volumes and geology determine flowback volumes
• Treatment, recycle, reuse and/or disposal used for wastewater
management, but typically disposal wells are the most cost effective
when viable
• Disposal well viability hinges on geology, water quality, water quantity
and economics
• NGL Water Solutions has a DBOO business model that provides
customized wastewater management solutions
21. •Confidential & Proprietary•Confidential & Proprietary
Eric Peterson
Strategic Planning & Market Analysis
epeterson@highsierraenergy.com
21
Contact Information
Greg Blais
VP – Business Development
gblais@highsierraenergy.com
Editor's Notes
4 groups, were a big company, major presence, here to talk about water
Customized solutions provider, DBOO, one size doesn’t fit all, you save capacitla, we build it and operate
In major growing shale plays
21 wells, handel 380 bpd, (show passion for it) we have a 100MM water business, treatment is a big part of the game, one of few companies that can handle that amount of volume in treatment and recycling
R&D Facility sets us apart from anyone else – no one else does R&D like we do
Tech nuetral, so we are not married to any given product or technology, we bring in water from around North america to develop customized solutions
Range of IRRs reflects various sub-regions within each plays
Higher the IRR, the higher the drilling activity
Drilling is primariliy Hz
Geology Matters!
Part of the reason we are all over these plays is because the largest part of disposal cost comes from transportation. A large footprint alleviates that