Water Resources and Oil & Gas Production. Robert W. Puls, Ph.D. Director, Oklahoma Water Survey University of Oklahoma

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1 Water Resources and Oil & Gas Production Robert W. Puls, Ph.D. Director, Oklahoma Water urvey University of Oklahoma

2 Energy and Water are Inextricably linked Energy for Water and Water for Energy Energy and power production requires water: Thermoelectric cooling Hydropower Energy minerals extraction / mining Fuel Production (fossil fuels, H 2, biofuels/ethanol) Emission controls Water production, processing, distribution, and end-use requires energy: Pumping Conveyance and Transport Treatment Use conditioning urface and Ground water

3 Hydraulic Fracturing Water Resource Concerns Water availability Up to 10 million gallons per well Timing of water use Water contamination urface water Ground water Contamination from: Fracking chemicals Deep brines, native waters (highly saline, trace elements, radionuclides) 6/12/2013 3

4 Will water supplies be sufficient to meet U energy demands in 20 years? Population could increase significantly; fresh water will not Population increases will not necessarily be in water-rich regions Climate change and energyindustry operations could impact water supplies, water quality, and energy demand

5

6 Oklahoma s Challenge Increasing demands for sources of water, combined with changing land use, population growth, aging infrastructure, and climate change, pose significant threats to our state's water resources. Failure to manage our state's waters in an integrated, sustainable manner will limit economic prosperity and jeopardize both human and aquatic ecosystem health. 6/12/2013 6

7 Drought How Long?

8 Drought Monitor March 28, /12/2013 8

9 Water Rationing in January!! Lake Hefner Lake Thunderbird 6/12/2013 9

10

11 Water Resources and Oil and Gas Production Energy needs for water are projected to account for more than 20% of OK needs by 2050 Where water is already scarce, water re-use or use of marginal waters is an option, but more research is needed. 11

12 Hydraulic Fracturing in hale 6/12/

13 What has changed? Extraction of energy resources from shale more prevalent Advances in horizontal drilling technologies Improved frac fluids, improved extraction efficiency Access to unconventional formations (shale) New plays in TX, OH, OK, NY, PA, WV, CA ome new plays located in areas not used to oil and gas production 13

14 Oklahoma Fracturing Water Use OK Geological urvey; K. Murray

15 Role of Water in Hydraulic Fracturing Water associated with hydraulic fracturing is derived from local underground or surface sources and is either managed on-site or transported off-site for treatment and/or discharge The water footprint of hydraulic fracturing depends on the formation, depth, and type of drilling (e.g. vertical, horizontal, directional) Examples of water associated with the hydraulic fracturing lifecycle include: Make-up water for mixing hydraulic fracturing fluids Fluids that flowback or are produced back to the surface during the course of energy resource extraction 15

16 Water and the Oil and Gas Industry (courtesy Newfield Exploration Company) Water is the most common and most heavily used fluid in the petroleum industry Water is produced along with oil and gas from nearly every well Water is used as a base fluid in production, drilling, and completion operations Water will be produced, recycled, injected, mixed, cleaned, and reinjected Water s use and protection are emotionally charged subjects in many communities

17 Water source ubsurface aquifers, rivers, lakes or ponds, rural or urban water supplies, gray Water, acid mine drainage Water transport Pipeline, trucking Water storage Frac tanks (500 bbls) Modular tanks (up to 40,000 bbls) Pits or ponds (100,000+ bbls) Dispose/ Recycle Flowback Acquire Transport Water treatment and reuse Biocides, settling, electrocoagulation, distillation, crystallization timulate tore Water disposal Evaporation, water disposal wells.

18 Water ources (courtesy Newfield Exploration Company) ubsurface Aquifers using water wells Ground Water from naturally occurring or man made ponds Marginal Waters Treated wastewater effluent Brackish ground water Flowback/produced water

19 Marginal Waters as New ources Over 5000 TD water does not require a OWRB Permit No competition between agriculture or city usage Relieve dependency on fresh water Increased public perception of "Good Neighbors' aline Water is abundant, underlies all of Oklahoma; no one els,e is currently using it! A problem: Marginal water sources are not well characterized

20 Water torage (courtesy Newfield Exploration Company)

21 Why Is Water torage Important? Water is the base fluid and biggest component of any hydraulic fracturing operation Water volumes required for typical completions range from 2 to 10 million gallons pe well Water must be stored near the completion operation in sufficient quantities to finish a job at the desired pump rate In first 90 days after fracturing a well can produce from 30 to 80% back To recycle water there has to be enough storage for both the dirty water and the processed clean water Water must be stored in a manner that is economically and environmentally sound

22 Water Treatment and Reuse (courtesy Newfield Exploration Company)

23 Recycling Challenge Water Quality (courtesy Newfield Exploration Company) Fresh water No problems with frac Produced water & flow back water Minerals can cause scale Minerals can interfere with frac gel Water quality varies widely tudy to determine water quality limits for recycling Results specific to portion of basin Results will point to type of water treatment needed Environmental regulations becoming more stringent Air emission rules apply to recycle pits

24 Wastewater Disposal (courtesy Newfield Exploration Company) Underground Injection Control (UIC) Disposal Wells On-site Treatment Evaporation Recent studies suggest UIC wells Can cause earthquakes (OK, TX, AR, OH, CO)

25 6/12/

26 ummary of findings for 40 sites of reported suspected incidents Number of Incidents

27 Most Common Risk Pathways Affecting Drinking Water Mismanagement of wastewaters on surface Pit leaks, spills, recycling operations, transport, disposal Inadequate well construction Poor cement job, inadequate casing job

28 Methane in Drinking Water In rare cases, failure of the cement or casing surrounding the wellbore can pose a risk to water supplies. If the annulus is improperly sealed, methane, other gases, fracturing fluids, can access drinking water aquifers. e.g. Bainbridge, OH; Dimock, PA; Kildeer, ND; Pavilion, WY

29 Pavilion, WY Pits (33) as source of contamination Hydraulic fracturing in/near a drinking water aquifer probably not a good idea urface casing must extend below sources of drinking water Pavilion Draft Report, EPA, Dec 8, 2011

30 Chemical Usage The number of chemicals used is decreasing The toxicity of the chemicals used is decreasing Drivers: environmental concerns, costs, better understanding of chemical effectiveness and performance

31 Fracturing Fluid Composition Example From FracFocus 2011 Component Ingredient Purpose Percent Composition by mass Water Fresh water Deliver proppant 87.4 Recycled Water Produced water Deliver proppant 3.2 Proppant and Keep fractures open 8.8 Acid HCl Dissolve minerals, initiate cracks Friction reducer Polyacrilimide, petroleum distillate Minimize friction between pipe and fluid Iron control Citric acid Prevent precipitation of metal oxides Corrosion inhibitor Biocide Ethylene glycol, dimethyl formamide, decanol, isopropanol, octanol, 2- butoxyethanol Quaternary ammonium, ethanol, glutaaldehyde Prevent pipe corrosion Eliminate bacteria cale inhibitor Methanol Prevent scale deposits in pipe 0.001

32 UMMARY Hydraulic Fracturing together with horizontal drilling has greatly improved the efficiency and profitability for shale gas and oil resource extraction. While there have been some reported incidents potentially impacting water resources, improved surface management and better regulatory oversight can significantly reduce risks to water resources FracFocus and other initiatives are improving state-of-the-practice for environmental protection and transparency Baseline water quality data is important for adequate assessment of impacts Two states now require pre drill baseline: Colorado, Ohio Two other states have presumed liability If NY moratorium on HV HF ends, baseline sampling will be included

33 Potential Monitoring Parameters for Baseline ampling Program General Inorganic/Metal Parameter Analytes Organic Analytes Microbiology Alkalinity Arsenic DRO, GRO, BTEX Total coliform/e. Coli Redox potential Barium Methane ph Boron Ethane pecific Bromide Propane Conductance Total dissolved Calcium solids Turbidity Chloride Iron Magnesium Manganese Nitrate, Nitrite Potassium odium trontium ulfate

34 ampling Private Wells near Production Wells Clarify/determine objectives of sampling program Communicate with well owner, water usage patterns, volumes, recent usage (24 hr) Collect data on water supply system volume (i.e. well bore, pressure tank, pipes, water softener) and evaluate local/regional water quality variability

35 ampling Private Wells Purging Do not overpurge and evacuate well Remove at least 1 water supply system volume, but use ph, temp, and specific conductance to look for stabilization to begin sampling Collect pre drill samples within 6 months of drilling production well Collect post completion samples 6 12 months Collect longer term samples 5 6 years

36 Research Needs Continued development of recycling and alternative water sources to minimize water usage Cement formulations for increased pressures, longer life Continued development of green chemicals for hydraulic fracturing Development of tracers for compliance verification tudy on health effects of methane (ethane, propane) in drinking water

37 QUETION??

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