Jill Cooper, HSE Manager Reporting & Advocacy

Transcription

1 Jill Cooper, HSE Manager Reporting & Advocacy Groundwater Protection Council Annual Meeting September 29, 2015

2 Oil and Natural Gas: The Life-Cycle of Water 2

3 Putting Water Use in Context Wells will typically produce energy for 30 years Colorado OGCC projects that water usage for oil and natural gas is about 0.1% of total water use in Colorado Sector 7% 8% Breakdown of All Others 0.1% O&G 85% Recreation Agriculture Municipal & Industrial Total of All Others Source: Colorado Oil & Gas Conservation Commission Large Industry Thermoelectric Power Generation 3

4 Oil and Natural Gas Part of the Solution Opportunities Water sourcing, management and disposal Not a significant user of water compared to other sectors Bring trapped water to the surface net gain to the system Collaboration to achieve progress Actions necessary to maximize opportunities Improvements in water treatment technologies Reduced cost of water treatment Laws and regulations that support beneficial reuse of water Entities interested in accepting the treated water Energy Water Initiative a group of companies working together to achieve progress on maximizing opportunities 4

5 Energy Water Initiative (EWI) EWI is a collaborative effort to study, communicate and improve lifecycle water use and management in onshore oil and natural gas exploration and production Technology and knowledge-sharing Recommended management practices and technologies Fact-based information to stakeholders Follows API s anti-trust provisions during all meetings and discussions Anadarko Petroleum Corp. ConocoPhillips Co. QEP Resources, Inc. Apache Corporation Devon Energy Royal Dutch Shell Plc BG Group Hess Corporation Southwestern Energy BP Plc Marathon Oil Corporation Talisman Energy USA, Inc. Chesapeake Energy Newfield Exploration Co. XTO Energy, Inc. Chevron Corporation Pioneer Natural Resources Co. 5

6 EWI Case Studies Project Illustrate the diverse, regional water resource challenges the industry faces Share innovative strategies and lessons learned to: Continually evolve stewardship practices Advance water resources management practices Educate stakeholders about the unique water management challenges across producing regions Share the advancements the industry is proactively achieving to address these challenges 6

7 EWI 2014 Case Study Findings INDUSTRY TRENDS Improving Fracturing Chemistry Innovation in Treatment Technology Increasing Water Conveyance Systems New Water Storage Designs Increasing Transparency Dedicated Water Staff BENEFITS Increasing use of non-fresh water Increasing feasibility of produced water reuse Reducing truck traffic Provides flexibility and reliability when using non-fresh water Improves relationships with stakeholders Improves water management, planning technical support and performance 7

8 TREND 1: Development and improvement in fracturing chemistry enables industry to use non-freshwater Fracturing methods: slickwater versus crosslink Engineers select the method based on multiple variables Water quality and quantity varies Crosslink: higher quality, less volumes Slickwater: lesser quality, higher volumes Reservoir characteristics and well design vary by region and will affect volumes of water 8

9 TREND 1: Development and improvement in fracturing chemistry enables industry to use non-freshwater Water sources vary by region Regulatory programs vary by state Increased use of brackish water in oil and natural gas Innovations in hydraulic fracturing have enabled E&P companies to be less reliant on freshwater sources and expand options in water-stressed areas such as these brackish wells used by Devon Energy. Photos Source: Devon Energy 9

10 TREND 2: Treatment technology innovation continues to make produced water reuse more feasible Increased viability of use of produced water Operators are better able to use lower quality water due to technological improvements Treatment of produced water is an option in certain circumstances Pioneer Natural Resources partnered with a startup company with a new carrier gas extraction (CGE) process that desalinates produced water with less energy and lower operating costs than comparable commercial technology. The first-of-its-kind plant was designed and installed quickly. The plant treats water for reuse, and the CGE process reduces total dissolved solids (TDS) from about 120,000 parts per million (ppm) to about 500 ppm. Photo source: Pioneer Natural Resources USA 10

11 TREND 3: Improvements in water conveyance for gathering and distribution reduce truck traffic Newfield Exploration Pioneer Natural Resources Companies are increasingly using pipelines Decreasing truck traffic, road impact, and safety issues Temporary lines can be used for short term needs Systems need to be flexible Layflat hose provides compact, large capacity pipe 11

12 TREND 4: New water storage designs provide flexibility and reliability in alternate non-freshwater sourcing Steel fracturing tanks, and in ground, modular, lined, and monitored impoundments used to store fresh and produced water New designs provide flexibility for quantity stored Type of storage unit can be influenced by surface owner, regulations and topography Examples of typical in-ground impoundment facilities, one empty (top) and the other filled (bottom). Photos sources: Marathon Oil (top), Pioneer Natural Resources USA (bottom) 12

13 TREND 4: Water storage technologies Industry practices prevent leaks, protect groundwater, and safeguard the environment Advances in the design of large storage systems address variables Slopes, soil composition, moisture control Dual liners, sump, liner thickness, covers, monitoring wells 14

14 TREND 5: Transparency improves relationships with communities, industry and regulators National registry managed by Ground Water Protection Council (GWPC) Over 85,000 disclosures to FracFocus ( ) Hydraulic Fracturing Chemical Disclosure State-by-State 7/1/2014 Chemical Disclosure Required Chemical Disclosure Being Proposed States Currently Using FracFocus States Considering FracFocus 15

15 TREND 5: Transparency improves relationships with communities, industry and regulators Corporate responsibility is reflected in self-imposed measurement and tracking water Increased data gathering and public disclosure Water management strategies can be influenced by landowner agreements State regulations cover all aspects of water management EWI is an example of industry collaboration 16

16 TREND 6: Dedicated water staff within E&P organizations improve water management planning, technical support and performance EWI companies are creating dedicated internal resources and teams to facilitate water management It can range from: Developing a separate entity Centers of excellence Specific water teams Companies are centralizing lessons learned, establishing standards, identify subject matter experts 17

17 EWI Encouraging Research EWI invites universities, agencies, and companies to present on technologies and research Future research can focus on: Advancing treatment technologies and processes Improving on analytical methodologies Enhancing measurement and management of water EWI is encouraging increased research funding into advancing water treatment technology 18

18 Water Programs Can Include: Outreach to build stakeholder confidence Collaboration with other operators Building infrastructure improvements to meet partner needs Innovating for regional water benefits Recycling and reusing to conserve and maximize water Building efficient redundancy and reliability into the system 19

19 1. Manage water to support oil and natural gas production 2. Make beneficial use of all water supplies (fresh, flowback, produced) for full water lifecycle 3. Reduce trucking traffic across region 4. Decrease dependence on saltwater disposal wells 5. Reduce demand for fresh water supplies 6. Maximize use of existing facilities and infrastructure 7. Reduce energy demands 8. Enhance social license and environmental stewardship 20

20 Over 150 miles of permanent pipeline installed backbone infrastructure Over 100 million BBL water moved to-date Safe and reliable delivery (<1% wait time in 2014) Eliminates over 2,000 truck trips per day (10 Million miles avoided) Serves up to four completion crews simultaneously Incorporates up to 10 different water sources 20 miles 30 miles

21 Diversions Pipes Wells Boosters

22 Measurement Pumping Treatment Mobilization

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24 Badding 11-35HZ pad June 2014

25 Shared infrastructure APC short-term use Irrigation company longterm use Irrigation company specs Regional benefits Enhance river flow Improve agriculture supply Beneficially use water 26

26 Drilling Water Fire Suppression Mobile Facilities Recycle and Reuse Fresh Water Supply Recycled Water Blended Supply Water Distribution System Discharge Well Pad

27 Working with other Assets on: Water On Demand Design Water Lifecycle Evaluation Water Risk Assessment Water Data Management Water Recycle Technology

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