David Jeffers ChampionX

1. Confidential Information – May not be copied or distributed outside of ChampionX. Copyright 2022. All rights reserved.
Dave Jeffers
May 2022
DOING THE RIGHT THING
Water Management
Life Cycle of Water

2. The Life Cycle of Water
Canadian Shale Water Management 2022
David Jeffers
May 16-17, 2022
Canadian Water Management Lead

3. 3
 Lifecycle
• Focus on Fracturing
 Problematic
Conditions
 Levels of Need
 What is Next
 Case Study
 Improving ESG – Why
 Questions
Fracturing and Re-Use
Content Overview
Fracturing
Fluid
Protect the
Environment
Formation &
Asset Protection
Flow Back/
Produced Water
Water
Storage
Fresh Water
Reuse
Return
(Disposal)
Recycle
Frac/Completion

4. 4
Energy and Water are Interdependent
Oil & Gas companies cannot plan for oil and
gas production without having a plan for the
water needed for production and the water that
is produced as it comes to the surface

5. 5
 Defined as formation water included in oil and gas production
 Saline brine at equilibrium in a subsurface environment
 Can consist of varying minerology – Not all waters are equal
 Consistencies exist where problems exist
 Biogenic Theory or Abiogenic Theory is irrelevant when we discuss
water
Lifecycle
Produced Water

6. 6
Lifecycle
Produced Water is defined as the water that accompanies Oil and
Gas as it comes to the surface
 In North American production the water cut can vary from 0.01% to 99.99%

7. 7
 Scale
 Emulsion
 Corrosion
 Microbial Attack
 Formation Performance
 Premature Decline
Water is responsible for most problematic conditions
Lifecycle

8. 8
Things to think about
 What’s in it?
 How will this effect the:
• Formation
• Asset
• Environment
 How much Produced Water
can be used?
 How “clean” should it be?
 How should it be stored?
Total Water Management for Energy

9. 9
 If initiated with fresh water, identify clay threats, microbial threats,
compatibility, etc.
 Flowback fresh with combined production waters associated changes
everything –don’t be surprised – we have intentionally disrupted the
equilibrium
 Production water entrained in saleable materials – wet gas or wet oil
 Disposal or re-use
 Flowback combined with production – Start over.
Lifecycle
Produced Water - Problems

10. 1 0
 Polyacrylamides – Friction Reducer used
to help put sand in place during fracturing
Major Obstacles -Divalent Cations Fe, Ba
etc.
 Microbial – bacteria can have impacts on
many levels – H2S, Organic biomass, MIC
 Corrosion –pH, CO2 , H2S, O2,Under
deposit
 Mineral Scales – typically Ba, CaCO3,
CaSo4,
 Each contribute to premature decline or
asset devaluation
Basic problems

11. 1 1
 Fresh Water is now traded – Nasdaq
water futures / NYSE
 Water has never been traded this way
before
 Why? How scarce is water? Canada has
lots of it….don’t we? We really haven't
been paying attention.
 Columbia River Water Treaty example –
1961
 Wall Street spends millions to buy up
Washington state water (Seattle Times
Oct 27, 2019)
 What is the future need for water in the
USA?
Preservation of Fresh Water

12. 1 2
 AER Numbers
 Fresh water use has increased 30%
since 2016
 Operators used only 12% of their
allocated non saline water
 14 million cubic meters of water
used for fracturing in 2020
 Less than 1% of water was reused
or produced water
Produced Water or Flow Back Water

13. 1 3
 Recycled water has a lot of solids
 The interferences we spoke about
cause us to use more expensive
fracturing suites
 Do we understand the costs
associated?
Why don’t we use more produced water?

14. 1 4
 ChampionX teamed up with Refresh Resources on a North American
and International patent No: 480566-1 CX Ref. No. CX21.14US-PSP
 Water remediation, mitigation, cleaning, solids removal, water
preparation is now reality
 Improve your capital asset performance
 Significant impact on your ESG score
 Reduce reliance on fresh water
 Drive disposal costs down.
 Non invasive – spare your liner!
Strategic Partnerships

15. 1 5
 Societal Demand
 CO2 Emissions
 Water
 Waste Management
 Addressing Climate
 Shareholder to
stakeholder capitalism
Environmental
ESG – Environmental, Social, Governance
Social
 Societal Demand
 Diversity
 Inclusion
 Fair
Pay/Benefits/Training
Governance (Corporate)
 Reshaping finance
 Addressing the P&L
 Community Involvement
 Top to Bottom Compensation
 Customer Satisfaction

16. 1 6
 Vacuum trucks
 Dispose 100% of the water (re-use was down
to ~30%)
 1200 truck trips to dispose water
 6-10 workers with mops, squeegees, shovels
 4 weeks process
Current Process
Case Study – 60,000 m3 Pond Clean Up

17. 1 7
 Reduce safety hazard from manual
labor
 Reduce tear risk on expensive liner
 Avoid >100 ton of CO2 from trucking
 Significant fracking cost & operation
improvement
 Retain 99% water for reuse
 No fresh water sourcing
 Use 10,000 m3 less water
 Lower demand for FR
 Lower demand for Biocide
 Brought to production quicker
Case Study – 60,000 m3 Pond Clean Up
Improvement

18. 1 8
 Chemical additive to bind and
float solids
 Vacuum trucks
 Separate and remove solid float
 Dispose 1% as slurry
 1 week process
 <50% of traditional process cost
Patented Process w/ Refresh
Case Study – 60,000 m3 Pond Clean Up

19. 1 9
 Reduction of traffic
 Decrease odours
 Healthier environment
 Lower use of fresh water
• Potable
• Livestock water
• Duck habitat
• Wildlife management
• Fish habitat – spawning ground
• Irrigation
Doing The Right Thing
Community

20. 2 0
 Take steps in continual
improvement in all aspects of
operations including safety
and environment
 Ability to assist in the world
becoming a better place
 The general public needs to
know how much good we do!
Oil and Gas / Fracturing
We are not the bad guys
Change The Narrative