Water Use and Conservation in Barnett Shale Energy Development

Transcription

1 Water Use and Conservation in Barnett Shale Energy Development OIPA Symposium Oklahoma City, OK April 3, 2008 Tom Hayes, GTI Managing Director Barnett Shale Water Conservation and Management Committee

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4 How Is Water Impacted by Natural Gas Industry Energy Development? How much water is used in Barnett natural gas development? Where does the industry currently obtain water? How does this water demand compare with other water users? What can industry do to develop opportunities to minimize impacts to freshwater supplies?

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7 Barnett Shale Water Conservation and Management Committee Consortium of Approximately 14 Energy Companies Operating in the Barnett Shale Initiated in March of 2006 Completed the Charter (Mission & Goals) Status: Collecting Information on Industry Water Use Review of Reuse/Recycle Technologies Completed Planning Phase Initiating Phase One

8 14 Signed Companies Chesapeake ConocoPhillips Denbury Devon EOG Encana Harding J-W Operating Marathon Oil Pitts Oil Quicksilver Range Resources Williams Prod. XTO Energy

9 Mission Develop best management practices (BMP s) for the Barnett Shale development in the Fort Worth Basin to ensure that water is managed in an efficient and responsible manner.

10 To Achieve the Mission Define best methods and technologies currently used for water management during drilling, completion and production operations Promote a Balanced Approach: Efficient and responsible management of water Conservation (through reuse, recycle, alternate sources of water, etc.) Environmental Protection / Safety Outreach Utilize New Technology (where needed)

11 Accomplishments Established the BSWCMC mission and goals designed to conserve freshwater Developed a water use database among the major energy developers Obtained information from experts on six treatment systems for water reuse Completed a water use report that compares current and future water use needs in the Barnett Shale. Prioritized goals and initiated planning of the program to be conducted with support of BSWCMC companies in 2007 and 2008.

12 Report: Assessment of Fresh Water Use in the Barnett Shale Region Initiated by the Barnett Shale Water Conservation and Management Committee (BSWCMC) Survey of 16 Producer Companies Representing >80% of Barnett Shale Energy Development Scope: Surface Water and Groundwater Status: Report is Completed - Available at Data from this Effort Was Shared with the Texas Water Development Board for their Assessment of Groundwater Use* * Available at

13 Water Uses in Barnett Shale Natural Gas Development Main categories of use include drilling and hydraulic fracturing (frac jobs). Surface water and groundwater are used because of their availability and suitable quality for well development. Following drilling, fracturing is a necessary step required to stimulate natural gas production. Minimal re-fracturing is projected for the Barnett shale production wells.

14 How Much Water Per Well? Over 90% of wells drilled are horizontal wells. Each well requires about 3 million gallons for completion (drilling and fracturing) Nearly 90% of this water is used for hydraulic fracturing Water introduced into the well for fracturing flows back out over a day period; this stream is called flowback water. Some of the flowback water can potentially be recovered for reuse.

15 Natural Gas Industry Water Use in the Barnett Shale 10% <1% 89% Total Water Projected Use = 10,905 Ac-Ft (2006 Estimate) Frac Jobs Drilling Other

16 Water Sources Projected to be Used in the Barnett Shale by Eight Companies 43% <1% 56% Total 2006 Water Use = 10,905 Ac-Ft/yr Daily Use = 9.7 MG Groundwater Surface Water Reuse and Recycle

17 Barnett Shale Wells Represented in the Survey Tarrant Johnson Parker Wise Denton Erath Hood Total Constructed Wells = 713 (2005 Estimate for 15 Companies)

18 Barnett Shale Wells Represented in the Survey Tarrant Johnson Parker Wise Denton Erath Hood Bosque Hill Somervell Total Constructed Wells = 1202 (2006 Estimate for 15 Companies)

19 Total Water Used for Barnett Shale Natural Gas Development Annual Water Use, Acre-Feet Surface Water Ground Water Total Fresh Water Year

20 Freshwater Users in the Barnett Shale Region (Projected) Natural Gas Development 0 Municipal Steam Electric Irrigation Manufac turing Livestock Mining Barnett Drilling Annual Water Use 1000 s Acre-Feet

21 Opportunities Pursued by Barnett Shale Companies to Reduce Freshwater Demand for Energy Development Flowback Water Reuse for Frac Jobs May Represent a Significant Opportunity Develop Water Treatment Technologies for Flowback Water Reuse. Existing Demonstrations: High Efficiency Water Distillation Deoiling and Membrane Processing Evaluate Alternate Sources for Industry Uses Develop Best Practices for Regional Water Handling and Management

22 Conclusions from the BSWCMC Water Availability Assessment Report Present and future freshwater demands by Barnett Shale Producers are modest compared to those of other users of the 17 counties of the Barnett Region: Proportion of Total Fresh Water Use < 0.5% in 2005 and < 1.7% in 2010 Proportion of Groundwater Use < 2.5% in 2005 and < 9.7% in The industry is not a permanent user: Water use declines as drilling declines The industry is investigating opportunities to reduce its freshwater use through reuse, recycle and utilization of alternate water supplies.

23 Treatment Technologies Reviewed by BSWCMC Fountain Quail Intevras Triad Texas A&M

24 Characteristics of the Future Program Best Management Practices (BMP s) Technology Development Performance Reliability & Cost Reduced Freshwater Demands Through: Reuse Recycle Alternate Water Sources Deployment of Treatment Systems Information Sharing/Dissemination to Stakeholders

25 Devon Field Demonstration: Evaporation / Condensation

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29 EnCana Field Demonstration: Ultrafiltration / Reverse Osmosis

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37 Issues to be Addressed Cost Mobility Effectiveness in Reducing Freshwater Demand Environmental Compliance / Safety Reduced Environmental Impact Regional Implementation Stakeholder Acceptance Technical / Economic / Practical Feasibility

38 Examples of Potential Products from the BSWCMC Program Demographic Information Reports on the Nature of Water Use in the Barnett Technical Reports and Manuals Current Best Management Practices Improved Methods of Conservation Manuals of Practice for Technology Deployment Commercially Available Water Treatment Systems for Improved Reuse and Recycle of Water Improved Water Treatment Technologies Workshops for Tech Transfer

39 For more information Contact Tom Hayes ( )