Breakout Session: Impact of Oil Prices on Water Innovation

Transcription

1 Breakout Session: Impact of Oil Prices on Water Innovation One Company s Perspective The perspectives reflected herein are solely intended to stimulate discussion. They partially reflect the business planning activities supporting the commercialization of Clean Membranes ultrafiltration membrane technology in the oil and gas space. Further, they primarily reflects land based O&G activities. 1 Innovative Water Technology in O&G Clean Membranes pilot trailer at a produced water disposal site in New Mexico, Feb

2 Oil Recovery Approaches 3 Oil Recovery: Conventional & EOR Water use Water use 4 2

3 Oil Recovery: Unconventional Conventional and Unconventional Reservoir Types Water use 5 Treatment Challenges Driving Innovation Conventional: Unconventional: Water sourcing for flooding and EOR Treatmentand and reuse of producedwater (PW) for water flooding Treatment and reuse of PW for EOR Treatment of PW for disposal or discharge Water sourcing for fracturing (fracking) Treatment of frack kflowback and PW for reuse in fracking Treatment of frack flowback and PW for reuse for injection Treatment of PW for disposal or discharge 6 3

4 Demand for Innovative Technology The price of oil may affect the demand for water technology innovation in the following ways: 1) Depends upon the nature and location of the O&G activity, and the level of regulatory oversight. 2) Low oil prices slow investment in capital intensive unconventional O&G development activities, thereby lowering or delaying the demand for technologies that specifically address frack flowback/produced water treatment for reuse in fracking or environmental discharge. 3) Low oil prices may increase demand for technologies that reduce operating /management costs or increase oil recovery in conventional wells where water is used to stimulate increased or continuing production from established fields, e.g., water flooding or EOR. 7 Value of One Innovative Technology Clean Membranes innovative technology meets the demand for reducing OPEX in an environment where declining oil prices squeeze profit margins: Clean Membranes Feed and Filtrate Comparison (Permian Basin Produced Water) 1) Increases the recovery of oil for added value 2) Lowers the cost of treatment for reuse within a field 3) Mk Makes the treatment t tand reuse of produced dwater a costeffective alternative to supplying fresh water for water flooding, EOR or fracking 4) Reduces the volume of produced water disposed of in Class II wells 8 4

5 Application of Conventional Technology Typical Water Management Practice Across Plays:& Gas Produced Water Market Water Reuse (5 65%) for Fracking Frack Flowback and/or Produced Water Oil/Gas/Water Separation Gas Oil Contaminated Water Well Precipitation and Clarification $$ Clear Brine Sludge $$ Landfill Tank Truck Tank Truck Tank Truck $$$ Class II Disposal Well 9 9 Application of Conventional Technology Typical Water Management and Treatment Costs at Two Regional Plays Category Cost (Marcellus) Cost (EagleFord) Truck transport $4.00 $10.00/ bbl $0.50 $1.00/ bbl Class II well disposal $1.00 $1.50/ bbl $0.25 $0.50/ bbl Cost of Fresh Water $0.60 $1.50 Primary treatment: clarification Advanced treatment: iron, scalants, bacteria $3.00/ bbl $2.00/ bbl $2.50/ bbl $0.17/ bbl Total treatment costs $5.50/ bbl $2.50/ bbl 10 5

6 Application of Innovative Technology Clean Membranes Approach to Flowback/ Produced Water Treatment for Reuse Clean Membranes Smart Comb UF membrane technology complements other technologies within an integrated treatment train by recovering free and dispersed oil, concentrating particles >0.02µ, producing clear brine and pretreating effluent in advance of downstream polishing technologies, as necessary 11 Application of Innovative Technology Clean Membranes Treatment Approach for Water Reuse: Gas Produced Water Market Water Reuse (90+%) for Fracking Frack Flowback and/or Produced Water Oil/Gas/Water Separation Gas Oil Contaminated Water Recovered Oil Well CM UF $ Clear Brine Sludge $ Landfill A/O Iron/Scalant Removal Sludge $ Polished Brine

7 Application of Innovative Technology Projected Clean Membranes Water Treatment Costs Applicable Across Shale Plays Category Cost (Marcellus) Cost (Eagle Ford) Truck transport $4.00 $10.00/ bbl $0.50 $1.00/ bbl Class II well disposal $1.00 $1.50/ bbl $0.25 $0.50/ bbl Cost of Fresh Water $0.60 $1.50 CM Ultrafiltration producing clear brine $0.20/ bbl $0.20/ bbl Advanced d treatment: t t $2.00/ bbl $1.00/ bbl iron, scalants, bacteria Total treatment costs $2.20/ bbl $1.20/ bbl Offset by the value of recovered oil 13 Value of Innovative Technology Evaluation of Water Treatment Options Relative to Transport, Disposal & Fresh Water Costs Play Truck and Class II Conventional Clean Well Injection Treatment Membranes & plus $/ bbl De scalant Cost of Fresh water $/ bbl $/ bbl Marcellus $5.60 $12.10 $5.50 $2.20 Eagle Ford $2.25 $3.00 $2.50 $1.20 Offset by the value of recovered oil = Good Option = Best Option 14 7